What is the 80/20 Rule in Real Estate Marketing?

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Every Realtor® needs to understand the 80/20 rule of marketing—and if you understand the rule and apply what you’ve learned from it, you can tip the scales in your favor.


What is the 80/20 Rule of Real Estate Marketing?


The 80/20 rule comes from the Pareto Principle, which has nothing to do with real estate. (Originally, it referred to Vilfredo Pareto’s observation that 20 percent of Italy’s population held 80 percent of Italy’s wealth… way back in 1906.)


In the real world (and as applied to marketing), the 80/20 principle is pretty fluid. It’s solid, though, and it certainly applies to real estate marketing—especially when it comes to marketing investments and profits. (Just remember, 80 and 20 are estimates; every Realtor and his or her marketing techniques are different, so your 80/20 rule may look a little more like a 70/30 rule.)


The 80/20 Rule in Real Estate Marketing Investments


If you apply the 80/20 rule to your marketing, as many Realtors do, you’ll see that roughly 80 percent of your business comes from just 20 percent of your marketing efforts. Generally speaking, just one of every five marketing efforts you undertake will provide you with 80 percent of your results.


Take a minute to think about what you’ve used in the past that brought in great results. Was it a branded football schedule magnet, a piece of visual content you created, or a cool little seed packet with your contact information on it?


It’s important that you understand which of your investments produce the greatest results. That way, you can focus more of your attention (and investment) on them and get even better results.


For many agents, offline marketing provides a steady stream of tangible results, including real estate business cards, branded pens, and other marketing materials that can be used as takeaways.


A Few Words From the Experts on Takeaways


“Make alliances with human resource directors of major companies in your town that tend to bring in new hires from other cities and ask to be part of their relocation kit,” says Gail Oliver, author of Real Estate Marketing Ideas.


“Ask friends and family to put your magnetic business card on their workplace fridge in addition to their home fridge,” Oliver suggests, which is a fantastic method of gaining more exposure in a crowd you might not ordinarily reach. (Magnetic business cards are a great marketing tool, too, when you’re meeting new people or adding something to a mailer.)


“Giving out coffee mugs or water bottles at local events, as both of these items will be thrown into the kitchen and used consistently,” says John Liston or All Set in Boston


Real estate promotional items can go a long way—especially if they’re items that people can pull out and use frequently. “Another popular item I've seen is a high-quality drawstring bag which has the added benefit of carrying your marketing anywhere it goes.” Equally effective: branded tote bags for Realtors.


What Works for You?


What kinds of marketing materials or marketing techniques are your 20-percenters? What brings you the best results, and how often do you use those strategies? We’d love to hear your thoughts and ideas, so please share them in the comments below. We’d also like to invite you to stop by Real Estate Calendars on Facebook to say hello!


Comments (2)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Steve Bunker Thanks for the very good report on the 80/20 rule in real estate marketing.

Jul 31, 2017 04:39 PM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Knowing where your business is coming from helps you make smarter decisions about where to spend your marketing dollars and how to use your time most efficiently. My database and open houses works the best for me. 

Aug 24, 2017 03:17 PM