For the highest return, REALTORS® use a multifaceted marketing approach
By Megan Craig
It’s an obvious goal for every agent: Spend marketing dollars in a way that generates the most leads and, ultimately, the most closed deals.
But because a REALTOR®’s marketing plan may include various small actions without obvious and direct financial benefits, calculating the return on investment (ROI) for marketing activities may not be straightforward. With so many available avenues for advertising themselves and their properties, agents need to be sure they’re spending their marketing dollars wisely.
Taking advantage of technology
More than 95 percent of people looking to buy or sell a home rely on the internet as a main source of information, according to the National Association of REALTORS® 2017 Profile of Home Buyers and Sellers.
Barry Jenkins, CRS, a broker at Better Homes and Gardens Real Estate in Virginia Beach, Virginia, says he’s lucky to be “barely-a-millennial who’s been in the business for two decades,” so he knows how to harness the power of the internet. He does much of his marketing via popular social media websites.
“What the internet has done for a guy like me is that it’s given me the opportunity to generate business at a super-high level,” he says.
On average, Jenkins generates from 500 to 1,000 leads per month via the internet, with at least 3–5 percent turning into actual sales. In addition to paid ads, he uses social media to network with friends, former classmates and the community. That means when the time comes for them to buy or sell a home, he’s first in mind.
“In terms of return, Facebook is huge,” says Dallison Veach, CRS, associate broker at RE/MAX Executives–Veach Realty Group in Springfield, Virginia. “I can target my audience for each ad to exact demographics. And the crazy thing is that it’s relatively inexpensive to do it.”
And social media is only part of the technology puzzle. Agents using viral video marketing have also seen a significant ROI from using those videos to stay engaged with clients in a hands-off way.
Rita Driver, CRS, president and principal broker at All Stars Realty in Bartlett, Tennessee, sends videos bi-weekly or monthly to clients—not asking for referrals or business, but giving useful information for homeowners’ everyday lives. Her business website, which is displayed at the end of each video, is up-to-date and offers an easy way to connect her to potential buyers thanks to a real estate-specific content management system.
In fact, so many people reach Driver through her website that its steep cost—she spends $35,000 a year on the BoomTown platform—is “absolutely worth it.”
Combining old and new strategies
Despite the usefulness of social media and other technologies in spreading the word about yourself, using a single marketing strategy probably won’t get you the return on investment you need to be successful, says Thomas Nelson, CRS, an agent with Big Block Realty in San Diego.
Nelson uses a combination of new and traditional marketing strategies to keep his network active and interested. He sends monthly mailers, video emails, hosts a podcast, pops by the homes of past clients, throws client appreciation parties and is active in his community, in addition to mailing hand-written notes to his network every year. Each part of his marketing plan is equally important, he says.
“This is like the recipe for baking a cake. You can’t remove an ingredient—you have to put it in the oven to bake, and you can’t take it out early, or it won’t work,” he says. “It’s a sequence, and if I don’t do the next step in the sequence, it doesn’t have the same return on investment in total as it does if I follow the plan.”
Until three years ago, Jenkins also did all of his marketing online, mostly because he was growing his team and needed to advertise his new business in the easiest and fastest way. Now, he does more in the community and uses SendOutCards to keep his most dedicated customers engaged. Still, his Facebook ads bring him much of his business.
Hired hands
Even the best REALTORS® sometimes need assistance, and hiring good help could be the difference between a plan that makes money and one that costs money. To make your marketing the best it can be, consider getting someone on board who can develop a solid marketing plan and help execute it. Options include:
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- Hiring a marketing-savvy in-house assistant
- Paying a virtual assistant company that provides online marketing experts
- Finding hidden talent within your existing employee pool
- Attending training sessions or classes to become your own marketing expert
Driver spends about $10,000 a year sponsoring local sports teams, but her ROI from being a valued member of her community is well worth it: “That money comes back to me, and more,” she says.
Veach, who used to market on Zillow but decided it wasn’t worth the price, says that in addition to social media networking and paid ads on Facebook, she’s a “big believer in pretty, glossy postcards.”
The postcards come with a high-tech twist: Veach partnered with a photographer to create videos of each property, and the cards include links to the tour videos. That way, she can accurately track how often people are using the postcard link to view her properties—and it’s often enough that she finds the postcards to have a tangible ROI for her.
“I think marketing online is great, but not everybody is going to look at your online advertising,” she says. “That’s why doing it in combination with things like postcards and being in the community face-to-face is so important. I think if you lose that personal touch, that’s when your business dries up.” 
Party Time
Although the internet has been a game-changer for many REALTORS®, it can’t replace arguably the most important aspect of marketing: actual face-to-face interaction. In between Facebook postings, consider throwing a party (or several small parties) for your clients.
Everyone loves a party, whether there’s a reason to celebrate or not. Holding such an event allows your best clients to network with each other while reminding them that you’re a great person to know in the community.
Rita Driver, CRS, president and principal broker at All Stars Realty in Bartlett, Tennessee, estimates about 40 percent of her business comes from client referrals. She uses a system of “ambassadors”—very satisfied past clients who talk her up at every opportunity—to drive her business, and she keeps them engaged and happy with regular gatherings of like-minded individuals.
Thomas Nelson, CRS, an agent with Big Block Realty in San Diego, California, also holds a “gratitude gathering” each year. Although he advocates for a multifaceted, well-rounded marketing strategy, Nelson says these parties are the one piece he can isolate as having a direct return on investment. Last year’s appreciation party of 55 people yielded seven referrals and four closings in 2017 for a total cost of about $1,500.
“It works because it’s a social gathering, not a work event. Here’s a peek behind the curtain of who I am as a human being. I’m not just this commodity,” he says. “It helps because it allows people to see you in a different light.”
Meet Your Designation Maintenance Requirement today! Read this article and “First Steps” on p. 12, take a 10-question quiz and earn 2 credits. Go to CRS.com/trs-quiz to get started.
