Investing money in marketing can look like the right decision for any business, but most times this is not the case. In the past, many businesses have invested in marketing and ended up losing. Just making noise about your business is not enough, you need to know what you are delving into before you pour money into it.
This is no different when it comes to marketing in the Real Estate business. Many real estate business owners believe that once they just pour money into marketing, it will generate revenue but this assumption is very far from the truth. If you do not want to shoot yourself on the foot, you need to answer certain questions before you invest a penny in marketing.
This article will be covering those important questions that you need to ask. And every one of those questions is as important as the other.
Which marketing channel should you invest in?
There are various marketing channels you can invest in to grow your real estate business and having proper knowledge of marketing channels is essential to your success. The real estate market is a very tricky one most especially when it comes to marketing online as everyone is interested in a home but not everyone is our target audience when we decide to run a marketing campaign.
To be able to determine and properly get our target audience to see our campaigns we need to master the marketing channel we want to explore and get our message out there to our prospects using that specific channel we have adequate knowledge on.
There are various channels you might like to explore such as, how to use local SEO to get potential customers to your site, how to generate leads using Facebook ads, or how to create a sales funnel to convert your site visitors.
These are very profitable marketing channels you can use to grow your real estate business but you need to know what you’re doing in other to succeed in them.
What is the benefit of investing in that marketing opportunity?
This is the very second question you need to ask yourself before you invest in marketing for your business. Why are you running that ad? Why are you renting that billboard? Why are you doing that Facebook ad campaign? These may look like simple questions, but answering them will open you up to start questioning some of the decisions you are making.
Unless you can identify the benefit of that marketing opportunity to your real estate business, you have no business doing it. Most people start not even answering the question of why they are doing what they are doing. And this ends in catastrophe, it is always a disaster. If the marketing opportunity cannot guarantee a positive impact on your real estate business, then you must not go on with it.
How do you measure the success of the marketing opportunity?
How do you measure the success of that marketing opportunity? Another way to ask this question is: How do you know the marketing campaign is winning? How do you measure success? Many Real Estate Business owners just pump money into marketing without deciding a metric to use for measuring success. Thus they end up repeating the same mistakes over and over again and wasting money on marketing techniques that do not work.
If you do not have a metric for measuring success, how do you know that the marketing opportunity is paying off? You do not know, hence you keep spending money and keep wondering why it does not result in more revenue. So you must ask yourself, how would I know that this marketing opportunity is bringing back the money invested in it? Is it by the number of people that sign up to your mailing list? Is it by the number of real estate units you sell? Decide a yardstick for measuring success and stick to it.
Who is your target audience?
This is another very important question to answer before investing in a marketing opportunity. Your target audience will determine a whole lot of things, it will determine the medium you use for marketing. If you are targeting a younger demographic you will be thinking social media, but if you are going for the older generation, your marketing medium may change. Understanding your target audience helps you to make the right decision when it comes to marketing for your real estate business, so it would be a crime not to know who you are selling to before you invest in marketing.
What is your lead generation magnet?
Your lead generation magnet is the bait you hope to use to attract people to your business. It can be in form of a discount sale or a juicy offer. There are thousands of marketing ads out there and you need to make your ad stand out. And one of the ways to make it stand out is by making your audience an offer they cannot overlook. So before you invest in marketing, you need to decide what your lead generation magnet is and how you can get people to pay attention to your business.
What are your marketing alternatives?
Many real estate business owners make the mistake of putting all their eggs in one basket. They use only one marketing route and do not even think about it, they just keep pouring money into that particular technique without thinking of an alternative. The truth is, that a particular technique worked for another person does not mean it would work for you.
To stop yourself from being boxed in, you need to consider every marketing alternative open to you. Look for other ways to market your real estate business, consider them, and look at their pros and cons before investing in any one of them. Do not stick to one option and box yourself in.
How much can you spend on marketing?
This is one of the most important questions you must ask. How much do you have to spend on marketing? Everything rises and falls on your marketing budget. The amount of money you have to spend dictates the medium you can use, how long the marketing campaign will last and how enticing your lead generation magnet can be.
Having pointed that out, it has become obvious that this question must be answered first since every other thing or decision you need to make depends on it. Many real estate business owners do not consider this and they sometimes end up running very expensive but inefficient marketing campaigns or choosing the wrong platform to advertise on or they run very mediocre campaigns that do not generate income.
You may have the most amazing ideas for your marketing campaign but if you do not have the money to fund it, it will go down the drain.
Investing in marketing as a real estate business is fundamental for growth and increasing profit. But it must be done the right way, if it is not done the right way, the result will blow up in your face. The questions above will help you make the right decision for your real estate business.