Lately I have been thinking about “what is the cost to an agent to acquire a new client?”
That lead me to wonder about the different ways we use to attract new clients. From there I started thinking about ways to measure the effectiveness of the various ways we use to find new clients.
Our old mantra of “if I just get one sale from this it will be worth it” doesn’t scale. It MAY give us a measure of whether something can actually produce a sale, but it’s hardly a metric that that can be scaled or relied upon for future business. I’m not saying that the method or tool that was used doesn’t scale, just that the way to measure doesn’t work.
So, I did some searching around to see if anyone one else had similar thoughts and what, if anything, they had done about it.
And of course, someone had!
Take a moment to to go to https://www.wordstream.com/blog/ws/2021/08/31/real-estate-advertising-benchmarks and look at what their research shows about return on investment of Pay-Per-Click ads (search), Display (print) ads and Social ads.
They provide charts on four key metrics:
- Average click-through rate
- Average cost per lead
- Average conversion rate
- Average monthly budget
These are further broken down into the following sub categories:
- Apartments & Rentals
- Homes for sale by agent
- Real Estate Brokerages
- Real Estate agent
You may wonder how this data was obtained. Their article says this about it:
This data was pulled from a sample of 2,690 North American-based LOCALiQ client accounts in the real estate vertical who were running search advertising, display advertising, and/or social media advertising between March 1, 2020, and April 25, 2021. Each subcategory includes at minimum 10 unique active clients. “Averages” are technically median figures to account for outliers. All currency values are posted in USD.
They are in the business of helping businesses acquire clients by optimizing their ad spend, but you aren’t required to buy anything to look at the charts and draw your own conclusions!
There is an offer of “Free” ads graders for Google ads, Facebook Ads and Google My Business listings. Although you do have to provide an email address to get access to the graders.
If you do nothing else, at least click the link above and look at the charts as doing so may help you decide how to spend your advertising dollar!
