Question Details

Larry Brake, Real Estate Pro in Aurora, CO

What percentage of your annual gross revenue do you spend on lead generation and marketing efforts, and which of those efforts has the highest ROI?

Asked by Larry Brake, Aurora, CO Fri Apr 25, 2014

I currently spend about 10% of my gross commissions on marketing with limited ROI. Referrals, which cost almost nothing, are my best lead source by a wide margin. I assume that is the case for most Realtors. But, which of your other marketing efforts have the greatest impact on your business?

Help the community by answering this question:


Hi Larry:

10% is a fair amount.

But a market presence is needed.

Good luck
Web Reference:
0 votes Thank Flag Link Sun Apr 27, 2014
Aside from referrals, yard signs and online presence (search site, blogging) are generating the most PAYING leads for owner-occupied property transactions. About 50% of our income is from non-owner-occupied sources (estates in probate, investors), so we do a lot of B-to-B advertising as well. Overall, about 20% of income is budgeted for direct mail, event sponsorship, etc.
0 votes Thank Flag Link Sun Apr 27, 2014
When I first started just over two years ago, I was spending about 25% on lead generation. That was planned as I knew I would not get referral business from clients I have never had. It was all about getting in front of as many people as possible. These days, I am around 15% but most of the leads are going to my team members. Eventually I would imagine that it will be 0.
0 votes Thank Flag Link Sat Apr 26, 2014
I spend approx 15% on leads. My purchased leads are by far the least productive. The money I spend I past clients and staying connected return the highest ROI>
0 votes Thank Flag Link Sat Apr 26, 2014
I, too, get the majority of my business from repeat clients and referrals, but I also get paid leads through my team. It's a nice boost here and there, and usually they end up being repeat/referral as well.
0 votes Thank Flag Link Sat Apr 26, 2014
Larry 90+ of my business is repeat and referral. I find that phone calls, personal contacts, and email drip campaigns work best on those. I do subscribe to Lifestyle Magazine for my A & B clients. This keeps my name on their coffee table for them to have a conversation with their sphere.

As for other marketing efforts I get little to no ROI and use it as a tool to show my client I am marketing their home and to others that I am in business. Post cards, etc…. they are hard to measure.
0 votes Thank Flag Link Fri Apr 25, 2014
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