Facebook ads for real estate company (12)
Hey guys!
I have a real estate company in Austria that wants me to run fb ads for them.
So I would like to find out what's the usual industry standard in that niche.
I remember that Dan Henry mentioning a monthly retainer of 1600 dollars plus a mini percentage of houses sold.
Any suggestions in regards to what that percentage would be?
Any advice on how to best charge in that market in general (monthly retainer + 10% of ad spend like in other niches?)
I appreciate all your comments 🙂
Most people here are doing affiliate marketing. Few have marketing agencies working with a traditional model of retainer.
If 1) the real estate market currently has a clear direction (either a seller or a buyer market, with incentive for one of them to sell quite quickly) and 2) you really trust your client, i would go with retainer + percentage of houses sold.
Why?
Unless your client is a really large agency, the campaign targeting is going to be quite limited, because they won't be able to handle that many leads per month. So the cost of ads spent is not going to be that scalable.
To add to what @jeremie said, local audiences are only so big. Eventually you will saturate it and your costs per result will rise and/or you'll have to cap spend. So even if the real estate agency has a huge bucket of money to spend on ads for leads, you're still going to be capped by what the market can actually produce. Continuing to try and generate leads beyond that means lower quality and higher costs.
This is an interesting topic, actually.
I surprisingly get this question often from real estate agents and I never know what to answer. I tell them I can get them a shit load of leads, but they probably wouldn’t know what to do with them.
But if you have the pocketbook of an entire real estate agency who wants a lot of leads... could be a really good situation.
I’m gonna tag @jack_l because I know he used to do actual real estate stuff. And @stickupkid because I know he’s worked directly for local lead gen stuff and he’s the master of Facebook.
Originally Posted by jaybot
@styl3 I agree with @jeremie and @iwantotofly - if you know the person and they are a legit high-octane, high-protein real estate agent who can take lots of leads, I'd request a % of their commission on clients who your leads generated, on top of them paying for the media spend obviously plus maybe % of spend.
If you don't know them that well maybe instead just do a higher % of media spend + retainer.
If you're worried about them converting the leads at all or they're just getting started, etc, I'd treat it more like consulting almost and make sure you're getting paid for your time investment up front.
It also depends a lot on the market and how much agents are making, etc.
Here in US though real estate leads (whether agent-type leads or motivated seller leads) are EXTREMELY valuable. I don't know if RE agents in Austria make the same big money though.
Either way, just make sure you're being really fairly compensated as you have an important skill that 99% of RE agents don't have!
Thank you guys!
Cool, that pretty much matches what I thought.
So the real estate agency is quite established already with a good reputation in Vienna. Lot of different product offerings.
I have a friend working in the sister company so there might be some transparency when they actually do sell something.
Usually they get 3-5% depending on if they own the project or not. Yes real estate is good money in Austria but not as good as in the US.
My friend already told me not to come in too "cheap"....so I was thinking of charging 2000 eur as a retainer and the industry standard of 10% on ad spend. Regarding the % on sales, I am quite clueless of what would be fair. Like 0,3%...I really dont know.
A few additional comments:
1) For the %, I recommend you to express it as a % of the comission earned by the real estate agent, not of the sale price. Why? Because from one sale to another, the comission can vary a lot. In some cases, the seller agent is going to split with the buyer agent. In some case, the agent is going to accept a lower comission due to the fact that the listing is really high-end, or because it is a discounted asset which is going to sell fast. And in some cases, the comission is going to be higher because it is a property with such a low price that it hits the comission floor (for example, if the agency has a 5% comission floored at 3,000 euros, and takes care of a 50,000-euros unit.)
So if you express your fee as a % of the sale, it may not always be inline with what they earn.
2) For the amount, to give you an idea, I used to have a real estate portfolio in Santiago, Chile. Mostly high-end leases for expatriates. I have stopped to have more time to focus on other businesses. I am giving my leads to 2-3 real estate agents i know well, each one being a specialist in his geographically area. I am charging 25% of the fee paid by the owner, for sale or rental. That's 0.5% of the sale price (standard fee here is 2%+vat per side). I don't have any campaign running at the moment, so no cost. Just referrals from past clients.
3) When you start, ask for
- their portfolio distribution + their sale distribution
- 30 minutes to discuss with their top 2 agents on what type of properties they need
Start small with a focus on the city / area and price point where they are the strongest. That's where their closing rates ( 1. lead to client / 2. client to sale) will be higher because they have demonstrable experience and a portfolio of buyers from past sales. That's where your ROI + chance of hooking them will be better. Then, you can expand to other areas / price point.
Lots of agents want great, beautiful listings with high comissions, but very fee of them are capable of closing them. You will get a more recurring revenue with high-volume middle class units / areas. But start with an analysis of what they do and focus on the core of the agency.
how do you guys target people who want to buy a house ?
Google Display has a "real estate" category, with subcategories for buyers. But volume is low. I used to run the whole "real estate" category + a clear angle.
You can also geo target a few km around the house to sell.
Most of the time, you will generate buyers, but also potential sellers of similar properties looking for price estimates.
Originally Posted by jeremie
Originally Posted by sibi881
Don't waste money to push one house if you don't have 1) a portfolio behind to show 5-10 similar options to a potential buyer 2) an agent willing to take care of the seller leads that you will generate at the same time. On some campaigns, especially the geo target, you get lots of leads from people looking to compare price.
That's where you can get your investment back
Originally Posted by sibi881
You will reach lots of tenants looking to buy + sellers.
Originally Posted by jeremie
it is really just me i wouldnt be pushing any other houses though, was just curious if it was possible to grab people for 1 house lol. anyway, thanks for the info on that, i might look more into it.
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