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
It’s not always indicative of future trends if you had an excellent year last year (but cross your fingers). Now set aside a portion of your money to be used for marketing. This can be a little intimidating, and you’ll eventually have to watch the figure in your spreadsheet’s income bracket decrease. While it may be tempting to preserve your current revenue, consider that marketing is an investment, and you don’t want to be left with a few prospects months from now because you didn’t invest in marketing.
Try to strike a balance between the marketing budget you’d want and the amount you’re willing to spend. You’ll have a solid number to work with if you can find a happy medium. Depending on how frequently you want to evaluate your marketing approach, you may set a monthly, quarterly, or annual marketing budget.
Develop a marketing strategy.
Once you have a figure, you may start planning how you’ll spend your money. For example, a quarterly marketing budget for an agent or team with $23,685 to spend each quarter is shown below. Don’t worry if you’re working with much less, and this is merely an illustration:
Don’t be scared to break down your budget any further. The “Online” category, for example, could be divided into all of your paid advertising initiatives.
The expense of maintaining your website and paying for digital services could fall under the “Web” category. If you look correctly, digital marketing such as organic social media engagement, content marketing, and a website can be relatively inexpensive. There are numerous low-cost advertising choices available on the internet as well. To get the most bang for your buck, pay-per-click ads can be targeted by location and behavioral demography.
Marketing for Real Estate Agents That Works
Don’t forget about tried-and-true marketing techniques like networking and handing out business cards. After all, it’s all about creating relationships with people in your line of work. While digital marketing can help you acquire more leads, walking the streets is still a cost-effective and efficient approach to get your name out there. First, develop an understanding of where to find your target audience. Then, make sure you allocate your marketing budget for events, printing, and travel.
If you’re starting with marketing, don’t be discouraged if you don’t get results right away. It may take some effort to tailor your strategy to your specific requirements.
Long-term strategies like crafting blog posts or search engine optimization (SEO) may not yield immediate results. But if you stick with them, they can turn you into an Internet powerhouse.
For more real estate marketing strategies, check out these Five Realtor Advertising Strategies, or schedule a consultation with one of our advertising consultants.