The common wisdom for real estate agents is to budget 10 percent of their commission income for marketing. It can be difficult for newer agents because they are less likely to know what their income is going to be.
If you are wondering how much you should be spending on real estate marketing, keep these things in mind:
- Set some goals: In order to get where you want to go, you need a plan. Just like you would never leave home for a road trip without a GPS, plan what you want your future to look like. Include these:
- Picture your future
- Build a vision statement
- Write goals for the next 5 years
- Write goals for the next 18 months
- Use SMART (specific, measurable, attainable, reasonable, and time-bound) to help meet your goals
- Implement your goals: After a plan is set, it is time to take action. Here are some ways to put your goals into action:
- Build brand awareness
- Create an online presence
- Build strong relationships with community members
- Create a reputation as an industry expert
Don’t forget to determine how you will measure your goals. A great way to do it is to complete this sentence: “Goal… as measured by…”
How to Set a Marketing Budget for Real Estate Agents
Obviously, all real estate agents have different goals for what they want their business to look like. And of course the smaller the business, the smaller the marketing budget. Here are ways that you can build a marketing budget for three different sizes of agencies:
Small Real Estate Marketing Budget
A small agency (typically just one or two agents) will tend to have a small marketing budget. The marketing budget for a smaller agency ranges from $2000-$10,000. Here are some features of what you will get with this size of marketing budget:
- A website built for you. Keep in mind that your website needs to be SEO optimized and should also be mobile-friendly.
- A paid advertising campaign. While you may feel it’s enough to have a professional website, it is a waste if potential clients can’t find it. A paid advertising campaign will allow your website to show up in a Google search so that your hard work won’t be for nothing.
- A professionally made introductory video. We all like to connect with people. While a written profile may feel like enough, a video is so much more powerful.
- A digital marketer. In order to set your social media platforms up for success, you may want to hire a digital marketer for a few hours to get you off on the right foot.
- The means to reach out to a community-minded platform. A platform like Parkbench offers exclusive access to real estate agents. By using your platform to offer support and connections, you will be able to build relationships and referrals, which will help expand your business.
Medium Real Estate Marketing Budget
A medium-sized agency tends to have a mid-level marketing budget. The size of this budget ranges between $20,000 and $40,000. In addition to the features in the smaller budget, here are some more features available to you:
- Create content. If you are a talented writer (and enjoy it) you can write your own content. But if you couldn’t be bothered, then you can hire someone to do all the writing for you.
- Sponsor your content on social media. Choose which of your content you would like to boost based on how many people you would like to reach.
- Build an online mailing system. With a mailing system, you will be able to instantly send your content out fast.
- Purchase professional equipment. From video equipment to editing software, using professional equipment will bring your content to a higher level.
Large Real Estate Marketing Budget
A larger agency will end up with a larger marketing budget. These marketing budgets start at $80,000 and increase from there. In addition to all the things from the small and medium budget, you will be able to do the following:
- Outsource, outsource, outsource. In an agency this large, you will be able to hire experienced professionals who explain your brand to clients.
The Most Important Thing to Keep in Mind: Engagement
Whether you are a large or small agency, the most important thing to remember is that you are aiming for engagement. So whether you are using your own content or sharing someone else’s, think about who you are trying to reach. It doesn’t have to be flashy, but it does have to meet your clients where they are. And if you don’t know where to start, the company that can guarantee you 6-12 more transactions a year on the smallest of budgets is Parkbench.