Every day I’m baffled by the lack of real estate agents who use Facebook Ads to gather warm and exclusive leads. In fact, it’s the reason I got into this business. There’s a gaping hole in the utilization of FB ads in real estate and the potential for growth is absurd. But in addition to the agents who aren’t using ads, those who are, typically aren’t using the correct campaigns to their advantage.
I run into so many agents who are hesitant to even consider ads. I get it. It’s a newer marketing medium, in many areas it’s unused so there’s a dearth of testimonials, and it’s unfamiliar to many agents thus making it time-consuming to look into.
Let’s dive into the top 5 reasons why realtors aren’t using FB ads and why it’s actually hurting their sales.
1. Using FB Ads is too expensive.
Let’s knock this one out right off the rip. FB Ads is actually the LEAST expensive form of direct response marketing. Plain and simple. Let’s break FB ad spend down. As I’ve explained in a previous post, FB ad spend is calculated on a per day budget that you choose. My recommended starting point is $15/day budget per ad. So monthly, if you run an ad every single day of a typical 30 day month, you’re looking at an investment of $450/month. Depending on your area and the local competition, real estate ads on Facebook average anywhere from $1-10 per lead. For my clients, I average $1-5, depending on locality.
Now let’s compare FB ad spend to Zillow Premier Agent. On ZPA, you’re limited to zip codes you’re willing to pay for and the average cost per lead in the Midwest is $30. Oh, and did I mention these leads are shared by 3-4 other agents? And those results are based on a typical $3,000/ month budget. In my estimation, the ROI with FB is the clear winner.
2. I “tried” ads before, wasted money and found no leads.
When an agent tells me this, I will ask “Tell me, are you “Boosting” your posts and think that you’re advertising on Facebook?" Nine times out of ten the answer is “yes.” I’ll say it again and I’ll forever scream it from the mountain tops, BOOSTING IS NOT FB ADS!!
When you’re actually using FB ads, you’ve set up the platform from where you run ads, FB Business Manager, and it’s from there that you choose the correct lead generation campaign types. When all you do is Boost posts, you will inevitably waste money. Use the Business Manager platform (I can help with that!), choose the right campaigns and it will be impossible to waste your money.
3. Already spending lots of money on other forms of marketing.
Many realtors feel as though their marketing budget is already stretched thin, which I understand, you need to be smart with your marketing dollars if you want to be profitable. But you need to do an audit from your current efforts and assess what forms are actually contributing to sales and resulting in a positive ROI.
FB ads are going to be your least expensive option for warm leads and highest potential recurring ROI. And it’s all measurable. We know this already. Some of the top realtors who have allotted as little as $300 per month in FB ads have netted 30-40 extra sales per year. Compare this to spending $300 per month on local mailers and I’m willing to bet sales from FB ads will win every time.
4. Nobody will willingly submit their info for ads.
Simply put, this just isn’t true! Besides the fact that people submitting their info to my agent’s ads is how I make my living, people who are compelled to want to learn more from a professional and well-targeted ad will submit their information willingly because they’re genuinely interested in what you have to offer. Have you ever submitted your information to receive more info on a product, service, newsletter etc.?
It’s the same concept, people who are interested in your listing or interested in finding a realtor will be compelled to enter their information and excited to receive a call from you. And with Facebook’s targeting ability, you can be sure your ads will be seen by people most likely to take an action. When you have great advertising help on your side, the leads will come!
5. It’s too much work.
Well, I can’t argue with this one! It is a lot of work to curate successful Facebook Advertising campaigns. It’s not a simple 5 click process like Boosting a post. It takes months of training, continual learning and experience to become an ads expert.
You wouldn’t expect me to get my real estate license on Monday and start closing multiple deals by Friday, would you? Likewise, I wouldn’t expect a realtor to set up an ad account on Monday and be flooded with leads by Friday. It takes knowledge, expertise, and experience in any field to start seeing results. Realtors need to be focused on serving clients, nurturing new leads and selling homes. Any good agent wouldn’t half-ass any of those duties, so why risk half-assing your FB ads? Hire an expert, cultivate your new daily leads, and close more deals!
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