How Much Should You Spend On Marketing?

Business Agreement Business Greeting Blurb Illustration

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.

Analyze Your Business

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!


ad idea“Most agents will then invest anywhere between 10-25% of their commission profits on marketing campaigns.”


Create A Marketing Strategy

Creating a marketing plan that works for you can take some time, but in the end, you will have a strategy that works for you and your clients. To start, you should look at the different ways to market, including social media profiles, mailings, and various types of ads. It’s important to find a method to advertise that will be the right balance of time and money. 


marketing plan“Create a marketing plan that you will be able to follow through with.”


After you decide which method works best for you, the next step is to create a plan you can follow. Typically, you will end up spending more money on marketing in the beginning as you try to ramp up the number of clients you have. Once you have a solid client base, you will be looking to use your marketing efforts to maintain and manage that base. It’s a good idea to get into a routine and plan out when you will mail out information, post on social media, or send emails. 

The more agents market themselves, the more clients and recognition they will receive. If things are getting competitive in your farm, it might be a good idea to increase your presence on social media or send new postcards out to your clients. In the end, marketing to current clients, as well as potential new clients, will pay off. The more familiar they are with you, the more likely they will work with you when it’s time to put their house on the market or find a new one. More sales lead to more commission!


Don’t have time to create a marketing plan that makes sense for your budget? We’ve got you covered!


Our Homelife program is a subscription direct mail service that we designed with busy agents in mind. Most agents want to be consistent with marketing at a reasonable price, but just don’t have the time. We hear you! When you sign up for Homelife you get to choose from 9 different products, choose your area, and then each month you receive a proof. You don’t have to place an order, you don’t have to pull any information, we take care of it all. These products also come at a subscription price: the more you do on a consistent basis, the more you save per piece. Best of all, once you sign up for a product in a certain area you get exclusivity for that product in your area. Long story short: you get a high quality, low cost product automatically generated for you each month and no one else can copy you! Want to learn more? Email us at with the subdivision you’d like to send to and we will send you more information!

Check out our blog!

Get tips on all things real estate.


Market efficiently!

Start saving on your campaigns.

Do NOT follow this link or you will be banned from the site!