Many agents aren’t investing what they need to, where they need to for a high return on marketing.
If you’re frustrated that your marketing efforts aren’t resulting in a significant increase in business and you’re ready to give up on your marketing efforts, it’s time to reconsider your approach. There are things you can do to get a high return on your marketing investment.
What’s Marketing ROI?
Marketing ROI refers to how you assess the effectiveness, impact, and profitability of your marketing campaigns. ROI is return-on-investment. If your ROI is high, you will get good results regardless of how much you spend. Conversely, if it’s low, you may not be getting satisfactory results. You can accurately calculate ROI to determine how much your marketing dollars contribute to revenue growth or profit.
You can make better decisions about whether you want to keep a campaign running, increase the budget, or modify it to achieve better results. An accurate understanding of ROI can help you justify marketing spending, allocate marketing budgets, measure campaign successes, and establish baselines for future campaigns.
There are many ways to calculate your marketing ROI. The easiest is to use the core formula: sales growth plus marketing cost divided by marketing costs. This formula assumes that your marketing efforts are responsible for all sales growth. It’s unlikely. Instead, use the formula: sales growth minus organic growth divided by marketing cost to get a better idea of the real ROI of your marketing campaigns.
What Marketing Mistakes do Realtors Make that Hurt Their ROI?
You’re not the only one worried that most or all of your marketing dollars are being wasted. Many agents feel they have to wait too long before seeing the results of their marketing campaigns. Others believe they never see any tangible results. Here are common mistakes that can reduce your ROI:
- Underspending on marketing
You could be wasting your marketing budget if you’re not spending enough. Agents may try to spread their money among several marketing campaigns, and this can backfire and result in little or no ROI. If you market online via platforms like Facebook, Instagram or other online marketing networks, investing too little can result in the platform distributing your budget so thinly that it ends up generating no leads.
- Not giving campaigns the time they need
Successful marketing campaigns take time. Agents sometimes jump on each new marketing trend, burning through budgets before giving any one approach a real chance. No matter how trendy these campaigns are, they won’t succeed without thoughtful budgeting, commitment, and consistency.
- Not seeking professional advice
If real estate agents don’t have marketing skills or access to an in-house marketing team, they can hire a professional marketing firm. A good firm can help identify which campaign will work best for them, a realistic budget needed to succeed, and what the ROI is.
What are the benefits of sustainable marketing systems?
With a strong marketing campaign, real estate agents can benefit from a consistently high ROI. You’ll end up needing to spend less on marketing and still getting results. You can rely on solid marketing to generate meaningful commission income for your business, instead of worrying about the next trend.
How can a real estate agent increase their marketing ROI?
It doesn’t take much to create a sustainable marketing strategy that gives you a good return on your investment. You can start by considering the common mistakes we’ve covered in this post.
You may need to increase your marketing campaign budget. Calculate your cost per acquisition. This is the amount you are comfortable spending to acquire a client. You can then determine your maximum cost per lead, and reverse engineer the total.. Experts recommend that you start with no less than $1,000 to $1500 per month. As you gain a better understanding of your ROI, you can increase this amount.
Don’t rush a campaign just to move on to the next new marketing trend. Marketing is all about consistency, repetition, and engagement – not jumping from one trend to the next. Each campaign should be given at least three months and an appropriate budget before you should consider moving on to something new. Marketing efforts can take time, but the return on investment is worth it.
If you try to handle the marketing on your own you take time away from the things you should be doing, like building your business or buying and selling properties. You might not keep up with changes in the marketing industry, hindering your campaign efforts. A real estate marketing expert at RE Digital can help you identify and invest in campaigns that will bring the greatest ROI, so that you can focus on other aspects of your business.