That’s fine, but the answer for the growth part is missing.
So, how to grow fast as a real estate agent?
Since the growth motor of your real estate business is marketing and sales, you first need to find a winning marketing campaign by doing persistent testing.
Once you know your cost per acquisition or transaction you can apply different scaling methods to your winning campaign taking into consideration your marketing numbers, and reducing your time frame to attain your profit goals.
If you would like to know how you can do that I invite you to read the rest of this article.
What Do You Need First to Be Able to Grow as a Real Estate Agent?
Marketing and sales are usually the heart and growth motor for every business.
This is not only true for the real estate industry.
If you are just starting out with your real estate business, you are confronted with many unknowns.
And one large piece of the unknowns is that you don’t know what’s working.
You might have heard from different real estate influencers and gurus that this and that marketing method brings good results, but you usually don’t know if this is also the case for your business or your individual situation.
So, if you don’t know what’s working for you, you can’t think of growing just yet.
I’m kind of a gym junkie and I can give you an analogy from there.
It took me several years to test different methods, read up on science based training methods, modifying the nutrition, etc. to find out what is working for me to grow some muscle.
You read in different publications and books what different people are doing and very often you can wrongly assume that what’s working for these people will work for you.
But unfortunately, it’s not the case for the most part.
Sure, you can be lucky and get results with a particular method you are reading about because you have a similar genetic constitution.
But usually, we aren’t clones or some collective hive like the Borg from Star Trek where one thing works always for everyone else.
So, before you can double down on what works in order to grow, you first need to find out what works.
The same is true for growing your real estate business.
How Do You Find Out What Works?
You first need to have a real estate marketing plan or a strategy in place.
I already discussed how to create a marketing plan in this article.
This is usually done by testing different marketing methods and channels you plan to use based on your marketing plan.
When coming up with a marketing plan you will also know which metrics to track, so you know if you get the desired results.
An Example of a Marketing Method that is Scalable
Let’ do an example with a marketing method that is scalable, because scalability makes growth possible in the first place.
For your marketing tests, you always want to start with one to a maximum of three marketing channels or methods.
This is because firstly, you don’t want to lose track and secondly, you want to preserve your advertising spend.
Ideally, you start with a marketing channel that has potentially a large reach and at the same time is suitable for your individual financial and time situation.
Usually, if you have enough money at hand, you not necessarily have much time and vice versa.
In this article, I analyzed already some marketing channels in the context of scalability.
So, for someone with not so much time but some money to spend on advertising to do tests, you can go the route of paid digital advertising or pay per click advertising.
The two largest ones where you basically cover the whole Internet are Facebook Ads and Google Ads.
If you know based on your research that your target customers can be best reached, for example, on Facebook, then you start with Facebook and if they can be better reached by Google AdWords, you start with the latter.
Once you get successful results in one of the two, you can first apply different scaling methods within the platform and then also branch out to other marketing channels, using the market information and experience you have already collected with the one that worked and is working.
With market information and experience I mean that you then will have the knowledge about which ad creatives, which copywriting and which offer convert best.
This is knowledge you can take with you and apply it to variations to other additional marketing channels (print media, content, marketing, etc.), without having to do the kind of testing you did in your first one.
And there are not that many marketing channels that are as good to carry out speedy tests with trackable variables as is the case with Facebook Ads and Google Ads.
Suppose you decide to use Google AdWords.
With Google AdWords, you can do several kinds of tests to develop step by step a winning ad campaign.
You could test in the following sequence:
- Your Ad Copy improving steadily the CTR of your Ad to find out which real estate offer likely has the highest demand including several different keywords by doing A/B tests with your different ad variations on a regular basis
- A/B test different versions of your landing pages
This is just a superficial way of describing a test with Google AdWords and this would merit an article on its own.
Depending on your monthly ad budget, it can take just several weeks, a month or several months until you have done enough tests and find a winning campaign that starts to convert well.
Once you have found or rather developed with hard testing work a winner, you can start to scale your AdWords campaign and then branch out to further marketing channels.
You would be now at the stage where you know that for X amount of dollars you would constantly get Y real estate leads.
Scaling in the context of Google Ads means that you increase your daily budget, start adding new keywords, and/or branch out to other Google Ads distribution channels besides just search ads.
These channels are the display network, YouTube Ads (as part of the display network), Gmail Ads, now just recently Google Discovery Ads, and more.
Once you have really exhausted these distribution channels, you can branch out to other marketing channels outside of Google Ads.
This is not only because of growth reasons but also because of risk mitigation reasons.
You don’t want your business to be dependent solely on one marketing channel.
How to Grow Your Winning Campaign and Yourself as a Real Estate Agent Fast
If you want to grow your real estate business fast using the marketing channel chosen in the above example, it would just mean that you would have to spend more advertising money in a shorter amount of time.
But it also depends on what the term ‘fast’ means to you.
Let’s say you had a monthly $1,000 ad spend budget to test your campaign with Google Ads.
After one month of disciplined testing, you created a winner and you now know that you can spend $50 and reliably generate one quality lead and that for one real estate transaction you need to spend $500.
In one transaction, you earn a profit of $8,000 on average.
Now, we have some numbers to work with to plan even for fast growth. It all depends on what the terms ‘normal’ and ‘fast growth’ mean to you.
Let’s say you made $60,000 the past year and normal growth would mean to you making a profit of $100,000 in the following year.
On the other hand, fast growth could mean to make this $100,000 profit not within the following year but within the following three months.
Now, let’s apply the assumed numbers from above to this sporty goal.
In the normal growth year, you would have needed to make 12.5 transactions within 12 months to reach that goal.
Expressed in advertising spend, that would have meant spending $6,250 (12.5 transactions x $500 ad spend per transaction) within a year to generate these transactions.
The monthly ad spend would have been roughly $521.
But since you want to grow fast and do this within three months, this same amount of $6,250 you would have to spend not within a year but within three months.
Which would mean a monthly ad spend of $2,083.
Maybe you can now realize how important it is that you first create a winning marketing campaign, before you start to scale aggressively and thus can grow fast.
In the end and in the context of paid digital advertising, it comes down to whether you can also increase aggressively your marketing budget to be able to reach your yearly goals within three months.
But that’s not all.
By just crunching the marketing numbers, we now completely ignored the operational aspect of a (real estate) business.
You would also have to be prepared to handle more transactions in a shorter amount of time.
This would usually mean to delegate more or hire more staff, which would likely reduce your profit per transaction, which in turn would also mean having to increase the number of transactions not in a linear way as we did in the example above.
How to Grow as a Real Estate Agent On a Budget
A whole different can of worms would be if you didn’t have the above budget for ad spending and would need to do it on a small or almost empty wallet (e.g. $100 budget per month).
If you would still want to use the paid advertising method, testing could not take just one month but between 6-12 months or even longer.
Since you probably have more time at hand in this situation, the content marketing method with an intelligent search analysis approach to produce the right content could be a viable route.
Because it can also take between 8-12 months until articles reach about 80% of their ranking potential.
So, if you produce many articles and other types of content right at the beginning within 1-2 months, this content could reach its ranking potential within 8-12 after publishing.
Nevertheless, you will also need patience until you know which content gets the most traffic and which one converts best into transactions.
To grow your real estate business with the content marketing approach, you will definitely need to delegate at some point the content production.
Here comes again a numbers game.
You may know after a certain amount of time that once ranked, you get on average 800 page views per article and for every 5 articles with this number of page views, you generate a real estate transaction of $8000 profit.
In so knowing, you can then determine how many articles you need per month to reach your profit goal in the desired amount of time.
But take into consideration that the scalability will not be that fast as with paid advertising because Google takes its time to rank your content and the traffic you generate isn’t that controllable as with paid traffic methods.
To end this article, I will give you an example of calculation for this method:
- 4000 page views per month convert into one real estate transaction of $8,000 profit
- You get on average 800 page views per month per article
- The number of articles ranked at 80% of rank potential to reach the yearly profit goal of $100,000 (normal growth): 50,000 monthly page views or 62.5 articles ranked at 80% of ranking potential
- The number of articles ranked at 80% of rank potential to reach yearly profit goal of $1,200,000 (fast growth): 600,000 page views or 750 articles ranked at 80% of ranking potential