Question Details

Chris Schill…, Real Estate Pro in Houston, TX

How much do you spend monthly on marketing? Which mediums are focused on that are delivering you verifiable results?

Asked by Chris Schilling, Houston, TX Wed Feb 8, 2012

Do you think about spend/dollars in terms of return on marketing dollars spent? Should you? We havent in the past...we just spend and hope for the best, but havent really measured the impact of dollars spent to results. We should, and hence the question... thanks in advance for your thoughts.

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We allocate 20% of all income to marketing , from that we spend on:
1. Sponsoring local charity events (50%)
2. Direct advertising (mail, flyers) (49%)
3. Internet advertising (1%)
Note: this does not include our budget for promoting listings, that's a separate budget item.
1 vote Thank Flag Link Wed Feb 8, 2012
Dear Chris,
This is the Million Dollar Question that never gets a straight answer (IMO). The best marketing I have is word of mouth from other happy clients. It's absolute gold if you can get your clients to vouch for you with others.
0 votes Thank Flag Link Fri Feb 10, 2012
Great question and this is the #1 reason I became a Realtor®! What I spend is not typical nor would I expect any Realtor® to spend along the guidelines which I use. I spend approximately 75% of all gross revenue on advertising. I am a Realtor®, investor, new home builder and flipper. The number 1 reason I became a Realtor® is because the agent I was working with (close personal friend) refused to spend even 5% of the gross commissions I was accounting for on advertising. Instead of getting mad at my friend I got in the game. I think John’s guidelines are in order and if I would have him spending 20% of net I never would have became a Realtor®. Having stated this I can confess that I have wasted a great deal of marketing dollars just throwing money at items which do not help the marketing of a home. But I am learning and I am very happy, I have no one to blame for my less than optimal marketing ideas but myself (ps: I do not need any more black pens). Good thing I don’t need this money as income, but next year thanks to many of the comments here on trulia I believe I am making better marketing decisions.
Web Reference: http://www.randshomes.com
0 votes Thank Flag Link Thu Feb 9, 2012
There's no one right answer for how much you should spend on marketing, but you're absolutely right in thinking that you need to measure those results. Many real estate agents have moved entirely to social networking due to the low dollar cost, but those agents are often finding a correspondingly low return on the time and energy they've invested. Regardless of whether your marketing is done by radio, print, video, or social media it's important to track how resources are allocated and what results you're getting.
0 votes Thank Flag Link Thu Feb 9, 2012
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