The National Association of REALTORS® published a report last year that indicated most real estate agents spend between $1,000 and $10,000 annually on marketing across a variety of mediums. In looking at the data, agents spent a lot on signage and flyers, as well as an ever-growing amount on internet advertising. Expenditure on the old standard classified print ads was also present, but in an ever-diminishing amount.
There is no question that REALTORS® spend a lot on advertising. However, how many truly know what their return on advertising investment actually is? I find that a lot of agents do not track the success of their promotions and may be spending a lot more than they need to get the same results.
A fundamental principle in direct marketing is TRACK EVERYHING. As an example, the marketing managers of most large corporations can tell you what the response and return on investment is for every mailer, advertisement, and marketing push that is made in their departments. As independent business people, real estate agents should follow the lead of these larger organizations and track the response from their marketing endeavors. Only through tracking the number of leads that each marketing vehicle returns can you determine where you will get the biggest return on investment. By extension, in knowing where the biggest ROI can be found, an agent can budget and tailor their marketing plans to maximize their lead collection and overall income.
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