Most Effective Ways to Advertise as Real Estate Agent

Most Effective Ways to Advertise as Real Estate Agent

Real Estate Agent · Bangor, ME · Member since 2017 · 3 posts · 0 votes

Introduction:

Here is the situation: I have been a licensed real estate agent for a little over 2 years. My first year as an agent I was full-time. All of my savings and budget went to Zillow's Premier Agent platform. That cost me $300 a month and I was only able to close one sale throughout the whole year of advertising.

Because I only closed 1 sale, I eventually ran out of my savings and budget and had to get a full-time job to support my family. Of course, that means I had to stop focusing on real estate for several months.

Now, I am still working my full-time job, but am starting to put all of my effort outside of work back into real estate. It is very important to my family and I that I can build my business and become a full-time REALTOR without having to work another job.

Here is my question:

Now that I once again have some money to advertise, should I consider trying Zillow again? (now that I am more experienced on closing sales, managing leads, etc.)

If not, what are the best and most cost-effective methods of advertising as an agent to garner leads?

Other methods I have been considering are:

  • Advertising Magnet to place on the side of my truck
  • Facebook ads (though I attempted this with little results
  • Farming neighborhoods with post cards
  • Placing flyers around town
  • "Lead Generation" online platforms/companies
  • Others that I am not aware of?

Conclusion

I just don't want to continue to waste my time, money and energy on strategies that do not yield results. This may be my last opportunity to make it as a real estate agent. This is my dream and I want to try to everything the correct way this time.

Thank you in advance for your thoughts, opinions and guidance.

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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
7y

Jacob do not reinvent the wheel.

Try to find a top producer team where you live and sell. They often are too busy with listings and looking for buyer brokers agents for their teams to handle massive influx of buyer leads to process.

Some buyer brokers in residential can make 100k plus a year income. 

Work your numbers.

You need your BURN rate. If after all your expenses for necessity items for your family the number to pay your bills is 4,000 then that is 48,000 a year. Back off taxes and likely need to be at 70k. That is to just break even and not have additional money to invest with.

If you are on a 60/40 split on a team after the brokerages fees and team fees it might look something like this.

Average commission sale price 300,000 X .03 = 9,000     9,000 X .60 (your commission) = 5,400

70,000 / 5,400 = About 13 closings a year at 300k sales price or a little over 1 a month. This is just to SUSTAIN and not THRIVE. This is example only.

Real estate is a tough business but once you establish yourself can be very lucrative and rewarding. Residential can be more nights and weekends and take a toll on your family. Commercial real estate if you like investors and numbers tends to be more 9 to 5 Monday thru Friday so better for family times and demands. Numbers tend to be bigger but closings take longer.

See this reply in the discussion

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  • Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
    7y
    Originally posted by @Jacob Grandmaison:

    Introduction:

    Here is the situation: I have been a licensed real estate agent for a little over 2 years. My first year as an agent I was full-time. All of my savings and budget went to Zillow's Premier Agent platform. That cost me $300 a month and I was only able to close one sale throughout the whole year of advertising.

    Because I only closed 1 sale, I eventually ran out of my savings and budget and had to get a full-time job to support my family. Of course, that means I had to stop focusing on real estate for several months.

    Now, I am still working my full-time job, but am starting to put all of my effort outside of work back into real estate. It is very important to my family and I that I can build my business and become a full-time REALTOR without having to work another job.

    Here is my question:

    Now that I once again have some money to advertise, should I consider trying Zillow again? (now that I am more experienced on closing sales, managing leads, etc.)

    If not, what are the best and most cost-effective methods of advertising as an agent to garner leads?

    Other methods I have been considering are:

    • Advertising Magnet to place on the side of my truck
    • Facebook ads (though I attempted this with little results
    • Farming neighborhoods with post cards
    • Placing flyers around town
    • "Lead Generation" online platforms/companies
    • Others that I am not aware of?

    Conclusion

    I just don't want to continue to waste my time, money and energy on strategies that do not yield results. This may be my last opportunity to make it as a real estate agent. This is my dream and I want to try to everything the correct way this time.

    Thank you in advance for your thoughts, opinions and guidance.

    Unfortunately, none of those things you mentioned will generate much business. They will, but the ROI is near to zero to negative. Zillow has a 1% conversion rate, so you have to talk to 100 people to find 1 or 2 that are actually ready, willing, and able. Out of the 2, in a buyer's market you might not find what they are looking for.

    Facebook ads aren't much better. The leads tend to be 2 to 3 years out from being able to buy  a home - usually bad credit and not enough money for a down payment.

    Post cards and flyers have a low pull through as well, so you have a spend a lot of money each month for a year or two to get any really traction. 

    The two most effective methods are still calling expired listings, FSBO, personal sphere, circle prospecting neighborhoods (cold or around just listed or just sold properties). Also, door knocking.

    If you want to work with buyers (all sellers are potential buyers if they are staying local to you) talk to someone in your office that has a new or slow listing and ask them if you can hold an open house. Get an agreement up front about keeping the buyer leads for yourself and how to work buyers that submit offers for that property. If you circle prospect the open house during the week, you will get a nice turn out and potentially get buyer leads or even seller leads. You don't have to spend money for the open house. Just borrow some signs.

  • Rental Property Investor · New York City · Member since 2019 · 58 posts · 29 votes
    7y

    @Jacob Grandmaison Since your marketing budget is gone, I would suggest the most effective method out there - door knocking. I don't know how dense your city is, but knock 100 doors a day, no matter what, Monday-Friday. When no one opens the door leave a door hanger behind you. 2,000 knocked doors a month should land you at least one listing, and few good other leads.

  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    7y

    Jacob do not reinvent the wheel.

    Try to find a top producer team where you live and sell. They often are too busy with listings and looking for buyer brokers agents for their teams to handle massive influx of buyer leads to process.

    Some buyer brokers in residential can make 100k plus a year income. 

    Work your numbers.

    You need your BURN rate. If after all your expenses for necessity items for your family the number to pay your bills is 4,000 then that is 48,000 a year. Back off taxes and likely need to be at 70k. That is to just break even and not have additional money to invest with.

    If you are on a 60/40 split on a team after the brokerages fees and team fees it might look something like this.

    Average commission sale price 300,000 X .03 = 9,000     9,000 X .60 (your commission) = 5,400

    70,000 / 5,400 = About 13 closings a year at 300k sales price or a little over 1 a month. This is just to SUSTAIN and not THRIVE. This is example only.

    Real estate is a tough business but once you establish yourself can be very lucrative and rewarding. Residential can be more nights and weekends and take a toll on your family. Commercial real estate if you like investors and numbers tends to be more 9 to 5 Monday thru Friday so better for family times and demands. Numbers tend to be bigger but closings take longer.

  • Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    7y

    Look my litle muffin 

    Let uncle Jerryll show you a lil som som.

    C'mere, sit on my lap. ahh yeah comfy?

    OK now.

    Your first and biggest mistake is to rely on Zillow... dude, no!

    You see this little thing called life?

    You crab it right there by its lil ... umm.. how to say this without being banned... balls! and you squeeze and tell it "I am in control you hear"?

    And then  you do this.

    You get a website and you do SEO, and you work on credibility.

    Imagine this..

    Imagine someone someone wants to sell their house and goes to google (everyone does that well, cept the ol ol grannies maybe), and they will ask Google for help.

    Now what IF Google displays this:

    This one company is ALL over the SERPs with killer reviews, and hey a news article from a reputable news source is even writing about them. OMG wow.

    But..

    no no that is not all..

    now Google even spits your name out. I mean literally...

    Do you know what this would do for your success? EVERYONE will AT LEAST check you out!

    You would get so many leads, so many listings you wouldnt have time to take care of them all. (I know because that is my problem now)

    Whenever I get a lead now, I am like "Gaaaadamnit give me a break, don't you have better things to do then filing out my form harnessing me?"

    I hope you feel the sarcasm ... but it kind of is true. I really can't handle all these leads....

    The best form of marketing is where you do not go after your leads. You let your leads go after you.

    Now you ask, how did I do it.

    that is the question now. Isn't it.

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y

    Join a team.

  • Property Manager · Syracuse, NY · Member since 2016 · 601 posts · 384 votes
    7y

    Get with a good brokerage. I know wholesalers that work 10x harder than any agent. They have signs all over the major cities, intersections, they're mailing probate lists, lists of people behind on taxes, inheritance, out of state owners, rental properties, these are all lists available for you to buy. If you hit these lists hard, you will get listings. I did ONE mailing to 1,000 people and had 40+ calls of people looking to sell. All of those houses were off market. My buddy @Daniel Sisto does a ton of volume on properties that very well could have gone to agents but he works harder than they do, he has better systems, is more organized, and wants it more. The sellers & buyers are out there, you just have to know where to look. 

  • Real Estate Agent · Bangor, ME · Member since 2017 · 3 posts · 0 votes
    7y

    Thank you all for the great advice. It is really appreciated.

    @Christopher Phillips:

    I have already begun targeting FSBO. I have tried to look into contacting expired-listings.

    My question is what is the best way to get contact info for expired listings? (accurate and budget friendly)

  • Member since 2019 · 3 posts · 0 votes
    7y

    I think that Google advertising will be the most effective for you. It is easy to set up even a newbie correctly, and the price is quite loyal.

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