Latest News

How to tell if your real estate social media budget is too much for what you need

by | 20 November, 2022 | Social Media Marketing

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 estate

Keep 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

The conditions of the local market will also tell you how much you should be spending. It may seem counterintuitive, but a sluggish market usually necessitates an increase in marketing spend to get the same number of sales. Inversely when sales are consistently coming in, you can choose to spend a bit less as you work through all your current clients and leads.

Industry averages for ad spend

Another good peg to help give you an idea of how much you should be spending is by looking at the industry averages for how much is spent on marketing. For instance, data from the National Association of Realtors reveals the average realtor spent $128 on paid advertising and $78 on search engine optimization (SEO), blogging, and social media marketing per month in 2012.

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.

Related Posts

You might be also interested in

How to make a content calendar for social media

How to make a content calendar for social media

When you are running a business, big or small, there is always a lot to do and things can quickly start to feel overwhelming. This is especially true when it comes to your social media presence. Posting regularly on social media is essential for promoting your brand...