If you’ve been in real estate long enough, you’ll know how important marketing is. Marketing is a vital tool in being able to buy and sell properties to keep your real estate business alive. However there are still many real estate investors who are confused when it comes to marketing and social media budget creation for real estate.
Don’t feel embarrassed if you too are unsure how much you should be spending on social media and marketing. We’ve put together a quick guide on how to see if you’re spending too much or just the right amount for social media services.
How much should you spend for online social media management?When it comes to allocating a real estate marketing budget, the industry consensus is that it should be equivalent to 10% of your commission revenue. This should be sufficient to cover both digital and conventional marketing methods. However, it’s important to note here that many different factors could change how much you should allot to your marketing and social media budget. For example, an agency that’s still trying to grow might want to spend more on marketing to help drive more sales, especially if their marketing strategy has proved effective so far. Read on to see other factors that you’ll need to consider during the creation of a social media budget for real estate.
Factors to consider during social media budget creation for real estateKeep these factors in mind whenever you assess and plan your budget to make sure you can maximize advertising effectiveness while minimizing cost.
Recent sales history
The company’s recent performance will be a major factor in how much you spend on social media services like content creation. After all, if your company isn’t making any money, you can’t just pour everything into marketing.
Take a look at your recent sales performance and see if you are expecting any more sales to come in. If business has been good, you can afford to experiment and increase the social media budget to see if it further improves.
On the other hand, if sales are down, you need to determine whether spending more on marketing is wise and can actually bring in more customers. In this scenario, we suggest limiting your expenses to forms of marketing that are known to perform well without costing too much.
Local real estate conditions
Industry averages for ad spend
Typical advertising costs and performance
Look at different activities and placements to see if you can get some ROI back. If you’ve already conducted marketing activities, look at the data and see which ones helped you get the most quality leads and sales. From there, you can see roughly how much they cost.
When you have an idea of all the costs of social media—like content creation, community management, and ads—you can better determine which activities you should invest in for maximum cost effectivity.
Perfect your online social media management with Top Results Consulting
Figuring out the perfect social media budget or strategy can be difficult while trying to run a business. So why not let the experts at Top Results Consulting help you and your real estate business establish a solid online presence?
We offer a wide range of social media services that are sure to help any real estate business reach its goals. Contact us at (818) 600-1850 today and see how we can help take your social media to the next level.