But if you're just starting out, that might not be enough. On average, most real estate agents spend less than $5,000 a year or between $5,000 and $10,000. However, there are the top 3% of real estate agents who spend more than $80,000 on their marketing efforts, both online and offline. Over time, you can expand your marketing budget, but at first there are a number of benefits if you spend less on your marketing efforts.
The real estate world is more like an ocean than anything else, with all the depth and variety you would expect from such a vast expanse of humanity. Facebook offers you powerful targeting options, such as “chances of moving” and “house hunting”, which allow you to show relevant ads to people who are actively interested in buying or selling real estate. While most businesses only need to spend about 5% to attract new potential customers, the real estate industry is different. There's an infuriating amount of complexity present in the world of real estate marketing, as anyone who's ever stepped foot in these waters no doubt knows.
However, those who don't learn it shouldn't expect much from their career as a real estate agent; without marketing, you won't get very far. In these special cases, the agent does not yet have experience in the real estate industry to know what works and what doesn't. The amount of money you should spend on marketing as a real estate agent depends entirely on your income and availability. Most real estate agents plan to increase their marketing expenses on their websites and SEO, as websites and digital marketing are the main marketing tools used by real estate professionals.
Regardless of how advantageous a well-funded marketing strategy can be, most novice real estate agents only have a limited amount of money to work with. If you're a real estate agent trying to determine your marketing budget, you might be wondering where to spend your money on advertising, this section is for you. Real estate professionals with more disposable money may be willing to spend more than 12% of their total commissions on marketing, while newer agents who are still struggling financially may not be able to pay 7%. All real estate agents should have a website that is modern and responsive on all devices, that has attractive and valuable content for buyers and sellers, and that hosts potential customer capture pages for all your active listings.
As a real estate agent, the amount you should spend on marketing will depend entirely on your income and the resources you have at your disposal.