How Much Are You Spending on Marketing?
The amount of your realtor commissions that you should spend on marketing can vary based on your individual circumstances and business goals. Although there is no specific industry standard, a common suggestion is to allocate around 10% to 20% of your commissions towards marketing activities.
If you are a new realtor looking to establish your presence and build your client base, you might consider, for example, allocating a larger portion of your commissions towards marketing in the initial stages.
Above all, it’s important to approach your marketing budget strategically. Evaluate different marketing channels and strategies to determine the most effective ways to reach and engage your target audience. After that, regularly assess the ROI (return on investment) of your marketing efforts to ensure that you are allocating your budget efficiently.
In addition, consider consulting with industry experts or The U.S. Small Business Administration https://www.sba.gov/business-guide/manage-your-business/marketing-sales to help you develop a customized marketing plan and budget that aligns with your objectives. They can provide ideas and help on the most effective marketing strategies for real estate professionals.
Do You Know if Your Marketing Budget is Being Spent Wisely?
All realtors use a variety of advertising platforms to promote their services. Are the platforms you’ve chosen providing a reasonable return on investment (ROI)? How do you know which channels are the most productive? How do you know which ones are dogs?
When was the last time someone walked into your office and said “I saw your picture on the back of a bus and I want to do business with you?”
Your Marketing Budget – Available Advertising Channels
Here are some common advertising platforms utilized by realtors:
- Multiple Listing Service (MLS):
- Your own website. Interested in having your own and not relying on Affiliated Corporate Websites? https://one8mediagroup.com/why-should-a-realtor-have-a-website-and-not-rely-on-an-affiliated-corporate-website/
- Real Estate Websites such as Zillow, Realtor.com, Trulia, and Redfin.
- Social Media Advertising including media platforms like Facebook, Instagram, and LinkedIn.
- Online Display Advertising networks like Google Ads or Bing Ads.
- Print Advertising & traditional print advertising methods including local newspapers, real estate magazines, brochures, or direct mail campaigns to target specific geographic areas.
- Videos using video marketing platforms like YouTube or Vimeo to create property videos, virtual tours, or informational videos.
- Email Marketing to interested buyers or clients and utilize email marketing platforms to send newsletters, property updates, or targeted promotions.
Your Marketing Budget – What Channel Makes You Unique?
None of the above. Every snow flake is unique – just like all the other snow flakes.
Notice that all of the above marketing budget options are being used by all your competition. In other words, how do any of these options (perhaps excluding your own website) help you stand out from the crowd in your local area?—They DON’T.
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For a live example of a Local Website with a realtor sponsor…https://lbnylife.com/real-estate/.
In conclusion, when deciding whether a specific advertising channel is worth your precious investment dollars. It’s important to consider your target audience, budget, and marketing objectives AND how it helps you stand above your competitors. You may choose to use a combination of these platforms based on their specific needs and market dynamics.