In any business advertising is looked at as a key component to generate new business. When someone starts an ad campaign (whether it be TV, Online, or Print) you might hear them say “I have to get the word out”. The striking part about that statement is it doesn’t imply any direct result in sales. This could be because of the definition of “advertising”. Consider the following definition:
Advertising (noun): The activity of attracting public attention to a product or business, as by paid announcements in the print, broadcast, or electronic media.
With this definition of advertising in place, it’s no wonder so many real estate professionals spend money on advertising and get absolutely no business! In the above most simple definition there isn’t any consideration for what that advertising shall do other than to bring “public attention”. In real estate we have very few funds to invest, so every dollar we spend on advertising must result in sales.
I invite you to consider a different definition of Advertising:
Advertising (noun) : The activity of attracting public attention to a product or business, as by paid announcements in the print, broadcast, or electronic media that shall result in leads and closed business.
With this definition in place you can allow yourself to make very different on which forms of advertising you choose for your real estate business. Every form of advertising needs to not just pay for itself, it needs to generate business for you!
Now, let’s look at some common forms of advertising and how you can determine if you should be using it for your business.
1. Magazine Ads – Magazine ads can be very effective. Before placing an ad, ask the advertiser how many calls the average agent receives from an ad. The entire point of launching a magazine ad is to get calls that you can turn into business. You don’t care about the circulation, the readership, etc., just how many calls should you expect!
2. Online Paid Advertising – Online advertising takes many forms. When you are examining pay per click ads take into consideration the following. How many clicks will it take to get a lead? When you know this number then you can quickly calculate what your cost per lead is and determine if you want to start with online advertising.
3. Postcards – Before sending out thousands of postcards take the time to understand what response rate you should expect. Your real estate coach might already be able to tell you what to expect, but if you don’t have a coach, send out just a few hundred post cards and track the number of calls you receive. When you don’t receive any calls, it means your advertising didn’t work, so you may need to change your marketing message, where you are mailing etc., but don’t send that postcard out again if you didn’t see any results!