In rare cases, real estate agents have enough personal contacts in their market to drum up business with very little need for a marketing budget. However, in most cases, Realtor marketing is imperative if you want to get the phone to ring on a steady basis. You simply must create effective messages that encourage others to call you when they have real estate buying or selling plans in mind. One of the most common questions that real estate agents have relates to their marketing budget. Specifically, they wonder how much should be spent on Realtor marketing. With a closer look, you will be able to determine if you should increase your marketing budget to improve your business.
The Typical Marketing Budget
There are many factors that will influence your actual marketing costs as a real estate agent. Depending on who you ask, you may hear estimates for a reasonable marketing budget between 10 and 20 percent of your total income. However, everything from who your target audience is and which market you are in to what the competition is doing and how busy you want to be will play roles in your actual marketing budget. As a good rule of thumb, if you are not as busy as you would like to be, you are not spending enough on marketing.
The Free Marketing Options
The caveat to this is that there are many steps real estate agents can take to drum up business that are free or very inexpensive. For example, some real estate agents find leads by hosting open houses for other agents in their office. Some make excellent use of social media marketing or manually send out email marketing to those who have opted into their newsletter or blog posts. If you heavily use free marketing methods, your budget may be on the lighter end of the norm.
The Right Marketing Message
Another caveat involves choosing the right marketing message. Through realtor marketing, you may be enticing those who are on the fence about buying or selling to contact you for more information. Furthermore, you are promoting your own qualities and services as being beneficial to them. The right marketing message can sell you as an agent while motivating the audience to take the bold step of moving forward with real estate plans. If you have the right message, you may not need to spend as much on marketing to stay busy.
The goal of most real estate agents is to keep the phone ringing on a steady basis, but there may be instances when you generate more business than you can handle. The last thing you want is for leads to fall off because you have not responded to them. Therefore, it is important to find a great balance between paid and free marketing in relation to your time and abilities.