Agent leads university: what does it cost for real estate agents to generate leads through facebook advertising?
Hey, Josh Rhodes here, Agent Leads. We're going to discuss how much it costs for a real estate agent to generate leads using Facebook. Buckle up.
We coach, train and serve hundreds of real estate agents and the number one question I get after an agent is finally embracing the fact that Facebook is the number one place on the planet to get people's attention and to generate buyer, seller leads, is how much does it cost to advertise on Facebook or how much do I have to pay for every lead? How does it even work? Understanding that the financial side and the economic side of advertising and lead generation is a really big deal to most real estate agents. I completely understand.
Why Facebook Advertising Works
Let me start by saying that Facebook is a social media platform. You have to look at it differently than you would Zillow or realtor.com or other static internet broker, internet-based lead brokerages. Ultimately Facebook, it's like the grocery store that has obviously a ton of shelves but just imagine all those shelves are constantly on conveyor belts and there's all new inventory all the time.That's how the Facebook newsfeed works which is where your ad will appear in the scrolling pieces of the Facebook newsfeed. At least the way we train, teach and function, when we use Facebook advertising, we use the newsfeed places. That's where the advertising appears.
How much does it cost?
How much it costs is different for everyone, but I can say this. 9.5 times out of 10, a lead is going to be two, three, maybe even four times less expensive than what you would pay on Zillow or another comparable site. The reason why is high levels of inventory, supply and demand. Facebook doesn't sit around going, "You know what? We're going to charge realtor A $9 and realtor B $28 depending on where they are, what ZIP codes they're in." No. It's very open market. It's a little bit of a Wild West which is great because there's no territories. There's no locked off areas. You get to target geographically. You get to target by demographic. You get to target who you want to target. Obviously we tell all of our customers exactly what to do in Agent Leads University. But the economics are completely controlled by you because, number one, you get to control your budget. You get to say, "I want to spend $5, $10, $100, $5,000 a day," if you want to. It's totally in your control.
You have intimate control over your budgeting. But the way you determine how much a lead costs is by doing what I call the bullet cannon ball strategy which is test, and , scale. You run a three to five day test and you do $10 a day. You spend 50 to $70 in ads. You're going to get leads if you have the right audience targeting, if you have the right message offer, you have the right follow up process and everything in place. If you have the right structure in place, then you're going to spend 50, 70, maybe a hundred dollars and you'll say, "Oh, okay. I received 10 leads. I spent $100." Well, guess what? Your cost per lead is $10. $100 divided by 10 leads. It's simple math but that's how the economics are calculated. There's not a man behind the curtain putting a big rubber stamp and saying, "This is how much your lead cost today."
The great thing is that these leads aren't being recycled before they're sent to you like they are with Zillow and other territorial-based lead brokers. You actually are controlling this lead with a unique proprietary messaging that's unique to your brand and your service and you get to bring them in and control the conversation. This is what allows you to have appointments on demand. We all know that if you can increase appointments, you get to increase listings and buyers and sellers and all of the other possibilities that come before you get those commission checks.
Increasing Income with Facebook Ads
To wrap up, Facebook leads are simply an opportunity for you to buy on demand as many or as little leads as you want in order to increase your income as a real estate agent. Don't be afraid of Facebook leads because you don't have to pay anymore than you want to when it comes to generating as many leads as you possibly can.
Give us a call!
Josh Rhodes here, Agent Leads University. Go to agentleads.co/commissions. Book a phone call with us if you've never spoken with us before. We provide free breakthrough sessions so that you can have the exact framework we use to help thousands of agents across the country dominate Facebook advertising and double their income really quick. Thanks.
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