Congratulations! If you are reading this you are most likely thinking about starting a PPC campaign. Below is a list of common questions & answers we receive regarding our PPC campaigns. Have a question and it isn’t on there? Please reach out to us and we would be happy to help.
How much does PPC for real estate agents cost per lead?
The cost of lead can vary based on location, competition, season, etc, however you can expect it to be in the range of $5 – $15. In some cases, it can be slightly higher or lower.
How much importance should I put on cost per lead?
The cost per lead is certainly a factor, however, there are other metrics to look at as well. For example, the average price point of home a lead is looking at. At the end of the day, the focus should be on ROI, not on the cost per lead. What is going to generate the highest ROI for you? With over 100 clients, we have not seen a correlation between the cost of leads and ROI.
What is considered a lead?
A lead is someone that creates an account on your website. When a visitor clicks on a property they are interested in, they will see the below pop up (or some variation of it).
Once they fill this out, their information is inputted in your CRM and you can now call, text & email them. It is important to note that not all leads will put in their correct information or have a phone number. This is completely normal when using a forced lead capture.
Bonus Tip: Check out this video by Al Lewis on the system he uses to convert leads without phone numbers
How long does it take to close a sale from a real estate PPC campaign?
This can range based on your monthly investment, your follow up process, etc, however, our clients typically close a deal between 3 – 6 months of starting a campaign. This often pays for the entire year of running PPC.
What goes into setting up a PPC campaign?
For each campaign we set up, we do extensive research into your market to discover all of the neighborhoods, types of homes, zip codes & more. We use these findings to help build a campaign that focuses on the areas you want to serve and the price points you want to attract. We also create 100s of different keywords, ad copy, set up conversion tracking, Google Analytics & more.
What do my PPC ads looks like?
With Pay-per-click, we are running text-based search ads that can be seen on both Google & Bing when someone types in a keyword we are bidding on. Below is an example of a text based ad.
For additional reading, I recommend checking out the following guides:
How much should I invest in PPC?
This isn’t a straight answer as it depends on if you pay for other lead sources, your goals, etc., but we recommend investing a minimum of $800/month with an optimal budget of $1,500 – $2,000/month for most single agents. The benefit of investing in this amount is:
- You generate more leads so you have a higher chance of closing one
- We have more data to work with in order to optimize your campaign and maximize your results
Another factor to consider is how many deals do you want to close. Most agents convert between 1-3% of online leads. If you convert at 1% and want to close 12 deals in a year, you will need approximately 100 leads/month, therefore you should invest between $1,500 – $2,000/month. If your average GCI is $10,000, you can expect to earn close to $100,000/year from the PPC campaign.
Bonus Tip: When putting together your PPC budget, think about how much you will make, not how much you are spending. The biggest mistake most people make is not investing enough in themselves.
What goes into monthly management?
Each month we spend time optimizing your campaign by adjustings bids, creating new ad copy, managing budgets, pausing underperforming keywords, monthly reports & monthly strategy calls. PPC is certainly not a set and forget it type of strategy if you want to maximize your results.
Bonus Tip: For each one of our clients, we offer monthly strategy calls. To get the most out of your campaign, be sure to take advantage of those calls.
How should I follow up with leads?
Calling the person is the single most important thing you can do when trying to convert leads into sales. Text & email workflows are very beneficial, but they can not replace picking up the phone and building a rapport with the lead.
Trying to reach the lead within 5 minutes is also pivotal. According to LeadSimple, calling within 5 minutes is 21x more effective than calling after 30 minutes. After 5 minutes, the odds of qualifying a lead drop by 80%. According to HubSpot, 50% of all leads will work with the first vendor they speak with.
Here is a list of other follow up tactics we recommend doing:
- When you are calling the leads, pretend you are calling a friend. Don’t overwhelm the lead with scripted screening questions. The goal of this call should be to find out what they are looking for, their motivation and to book an appointment. The rest of the screening questions can be answered at a meeting/tour. You should also have your elevator pitch perfected as to why the lead should work with you vs another agent.
- Create a workflow for new leads that sign up so an automated email & text get sent out. Need inspiration? Check out the workflow we put together. If you are a client, we will add these to your website for free 🙂
- Create workflows based on different scenarios (6 months out, 1 year out, window shopping, working with an agent, looking for someone else, active, not interested, etc.)
- Create a custom saved search for each lead and re-name the saved search with a description of what they are looking for, your name & phone number (ex. Denver 3 Bedroom Homes – Mike Smith Royal Le Page @ 123-234-1231
- Monitor your CRM daily to see who is active, currently online, etc. If someone is online, try giving them a call/text/chatting online.
- When a lead favors a property, send the following email/text – “Hey Bob, I saw you inquired about 123 Park Ave. Did you want to set up a time to check it out?”
- Set up each lead on a monthly market report based on the areas they are looking in
- Use tags to quickly filter leads (ex. contacted, time frame, city, type of home, etc).
- Use the urgency filter to quickly find hot & cold leads
- Send out e-blasts for holidays, monthly newsletters, etc.
- To find hidden sellers, use local directories to find out if a buyer owns a home in your (or nearby) city. If they own a home, mail them your listing package.
- Always focus on providing value to your database (no one likes a pushy salesman) so when the time comes to buy or sell a property, you are the clear number 1 choice.
- Continue to refine your follow up process and learn from other successful agents.
I strongly recommend also checking out the following videos to help with lead follow up.
With our PPC campaign, there are no contracts or set-up fees. Our campaigns are month to month so you can pause or cancel at any time. That being said, we strongly encourage you to stay with a PPC campaign for at least 6 months to 1 year to see the full potential. Just like anything in life, results don’t happen overnight, but the longer you stick with it, the better it will be.
I am sold! How can I get started?
If you are ready to get started with a PPC campaign, please fill out this questionnaire and an Asterisk Marketing representative will get back you to!