How much marketing budget should I fix for 2022?
If I ask ten various brokers, “How much do real estate brokers spend on marketing?” I will likely get ten various answers. The right method to calculate that sought-after number should be the same. That’s because the general rule of thumb says my marketing budget should be based on my total income.
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The U.S. Small Business Administration suggests fixing 7-8% of my total income to marketing if I do earn less than $5 million in sales for the year. Although this is a general suggestion that isn’t specific to the real estate industry. It’s consistent with the way many brokers determine their marketing budget.
HOW MUCH SHOULD BE THE MARKETING BUDGET ?
It’s usual for real estate brokers to fix approximately 10% of their gross commission income for marketing activities.
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BROKERS STRATEGY FOR MARKETING
How much real estate brokers spend on marketing will vary by each individual or team. They must also take their objectives into account and how their current transaction activity aligns with those objectives. For instance, an agent might decide to pivot their 2022 strategies and double-down on “Just Sold” and “Coming Soon” digital ads to reach more seller leads if listings are flying off the shelves in their market without any digital advertising.
The calculation is the easy part: The more complicated part is deciding where to invest each dollar for maximum return.
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