What ROI should I expect from my marketing budget as an agent?

Question

Hi,

I hope to make big inroads with my marketing for 2016:

-Continue mailings to my existing lists with letters

-Online marketing (social media, craigslist, etc)

-Possible postcard campaign

My question is: What should I expect my ROI to be for marketing? For every marketing dollar I spend, should I get back $3, $5, $10, $20?

I was thinking of aiming to spend $500-600/month ($6000-7200 for the year) on marketing and my goal is to earn $100,000 in gross commissions. Thoughts?

Thanks and happy new year!

Brian Huber · Answer

@Matt Lefebvre thank you for the info!

Matt Lefebvre · Answer

Hi @Brian Huber! Our team tries to keep our marketing expenses extremely low and thus maximize every dollar we spend. We aim for 10x ROI with everything we spend on lead generation. We try and stick to the model outlined in MREA. Based on the economic model in the Millionaire Real Estate Agent, Gary Keller recommends that 10% of your GCI should be spent on lead generation. Its a fantastic read that can help you with model your business if you're looking for ideas on a budget model.

David Hunter · Answer

There's no one size fits all.

You want your ROI to be as high as possible!!

If you spend $500 a month on marketing, and get one new $300,000 listing every month from said marketing, then I'd say you're doing pretty well.

Plus, the ROI could go up if said listing refers you to other clients. Cha-ching

What ROI should I expect from my marketing budget as an agent?

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