How Much Should You Spend On Your Real Estate Marketing?

How Much Should You Spend On Your Real Estate Marketing?

Marketing is a core part of every budding real estate business, but just how much of your budget should you spend on it?

The answer varies between industries, with B2B (business to business) companies generally spending more than their B2C (business to consumer) counterparts. The best way to figure out your own marketing budget is to calculate it as a percentage of your gross revenue. While B2B companies typically spend anywhere from 2-5% of their revenue on marketing their business, B2C companies find themselves spending more, to the tune of 5-10% of their business’ revenue.

Real estate professionals in particular find themselves on the higher end of this scale, as clients are notoriously few and far between. Furthermore, the competition seen in most housing markets forces Realtors® to adopt increasingly creative strategies in order to stay relevant in their local housing market. Whether this means buffing up your core marketing tools such as your website and business cards, or embarking on a new social media campaign, real estate agents have a lot to consider when deciding how and where to spend their marketing budget.

We’ve talked at length in our other articles about the need for quality, affordable marketing solutions, but here we’ll expand on just how important real estate marketing is for your business’ long-term growth, and give some tips on how you can stay within your budget while still purchasing the quality materials you need to generate mass amounts of leads.

 

The importance of a healthy marketing budget

Realtors®  starting or attempting to grow their own business have a lot to worry about, especially when it comes to expenses. With that being said, generating leads and enticing new clients should always be your first priority. The best way to do this is by growing your brand and promoting it to your target audience however possible.

In the beginning, be prepared to spend on a brand that matches your personality and will adequately represent you in whatever channels you use to market your business. Your first steps here should be creating a business name and tagline that tell your audience what you’re about. From there, you’ll need a professionally designed logo that you can use everywhere from your website to your business cards, and any form of physical or digital communication your business releases, including your email signature.

As you can see, marketing is the engine that drives growth for a successful real estate business, and spending accordingly is key to reach the top of your local housing market. If you find yourself spending more than 10% of your revenue to start – don’t worry! It’s important to remember that you’re ultimately investing in the future success of your business, a worthy use of your business’ capital.

 

How you can save money on your marketing expenses

Reading this, you may be understandably overwhelmed by the number of marketing assets you’ll need before you begin putting your business out there. But not to fret. None of these key materials need to break the bank, and it is 100% possible to build a full marketing arsenal while staying well within your budget. Realtors® who are willing to put a little more time and effort into building their brand can certainly do it themselves. Your company name and slogan are easy enough to devise on your own, and a rudimentary logo can be created with relative ease, especially if you opt to use one of the many templated logo designers that exist online.

This is certainly adequate if you’re just starting off. The most important thing to remember when building your brand is to be genuine, and as long as you create an image your audience trusts and wants to do business with, you’re well on your way to marketing success.

However, as your business begins to grow, it’s definitely worth your while to consider enlisting professionals to revamp and grow your brand. There are a number of talented designers creating completely customized marketing assets for real estate, at a reasonable price (Tiny Tomato Design happens to be one of them!). Once you begin to grow your revenue and achieve a higher stake in your chosen housing market, you’ll need a brand that matches your prestige. Of course, it’s important to stay within the recommended 10% of your revenue when deciding how much to spend on your real estate marketing.

 

Looking for quality, professionally-designed real estate marketing materials at an affordable rate? Click here to get in touch with us today and start a marketing campaign that will help grow your business to new heights.

 

Source:
https://www.bdc.ca/en/articles-tools/marketing-sales-export/marketing/what-average-marketing-budget-for-small-business



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