The amount of money you should spend on marketing as a real estate agent is entirely dependent on your income and available resources. Most agents recommend allocating 10% of your commission money to marketing. However, that may not be enough if you’re beginning to start. New agents may find it challenging to come up with $1,000 or more to spend. Meanwhile, top agents with much competition would choose to spend anywhere from 15% to 20% of their earnings on marketing. Your real estate marketing budget can vary based on your locale, as marketing costs for real estate agents can differ depending on your local competition. If you want to grow, you could spend 30% in a quarter or a year. While most businesses only need to spend approximately 5% of their revenue on lead generation, the real estate industry is an exception. To succeed, agents must brand themselves and focus on their particular marketing initiatives. Some brokerages provide advertising or a page on their website for their agents, but this is rarely adequate. “You have to spend money to make money,” as the saying goes, but there’s no reason why a new agent can’t enhance their success with a tiny marketing budget. Here’s where to begin.
Determine a marketing budget that is appropriate for you.Find out how much you have to work with before you spend a dollar on pay-per-click ads or a dazzling new website. You almost certainly have a personal budget. It’s as simple as designating a fraction of your income within that budget to determine how much you should spend on marketing. Some things to think about are:
- Your typical sales commission
- The final sales price of the residences you sell on average
- The total amount of transactions you make each quarter and year