Why Cost Per Lead For Real Estate Agents?
As a real estate agent, you need to invest in marketing. That being said, too many real estate agents spend money on lead generation and don't know how well it performs. They spend money and don't have an idea if it is helping their business or not. Some Agents spend the money, and they monitor the results, but they don't put systems around how they observe those results and don't really know what they are looking for besides closings.
You can step up your marketing efforts and level up as a business owner by keeping track of simple metrics. Metrics allow business owners to fairly and unbiasedly evaluate how their marketing investments are doing it from a numbers/ logic standpoint.
If you are starting with lead generation metrics, I always advise real estate Agents to start by calculating "cost per lead." Knowing your cost per lead can help with two main things.
Comparison of Your Marketing Channels
Once you calculate cost per lead for all of your marketing and lead generation sources, you can compare them against each other. Is one lead generation technique generating many more leads than the other? Is one lead generation method much more expensive than the other? All of these are great questions that can be answered with a simple cost per lead calculation.
You Are One Step Closer To Knowing Cost Per Conversion
Cost per conversion, how much it costs you to generate a closing, is the holy grail of metrics in running a repeatable and successful business. The first step to understanding your cost per conversion is understanding your cost per lead.
Ready To Start Calculating?
Good luck with your metrics and happy calculating!