Marketing is fundamentally one of the most important ways an agent can put themselves out there to try and gain new clients. Top agents often dedicate a significant amount of their funds to marketing campaigns, but it’s crucial to find the sweet spot that works for you and your clients.
Before you start spending money on ads and other forms of advertising, it’s important to spend some time looking at your income and sales data to determine the right amount to spend. Spending on marketing materials is a crucial part of the search for new clients. Investing the right amount into advertising can help bring in a steady stream of new clients.
To find the right amount to invest in marketing, you should analyze how much you make in commission on average. This average should take individual home sales into account, as well as total monthly sales. This average will help you determine how much you make monthly. If you put these numbers into a spreadsheet, you may be able to forecast how much you will make in the future so you can make an educated investment in your marketing efforts. Most agents will then invest anywhere between 10-25% of their commission profits on marketing campaigns. For new agents, or agents with smaller budgets, that may seem like a lot, but what you put into your business is what you get out of it. Marketing is a way for you to generate sales and get your name and face in front of potential clients.
Once you determine how much you can safely invest in advertising, it’s important to decide on a marketing strategy that will work for you. Depending on what plan you choose, you may still have money left over!