Realtors: Why use Referral Marketing
17 August 2018
We all know what a money pit is. It’s something that we keep having to sink money into, yet gives us very little return. For example, an old car might be considered a money-pit if you constantly need to take it in for repairs and the thing still keeps breaking down!
The opposite of a money-pit is a good investment. That’s something you put money into that consistently pays off for you. In real estate terms, that payoff could be in the form of increased real estate leads, real estate referrals, or both.
When it comes to where you invest your real estate marketing dollars, you definitely want to invest rather than just sink your budget into a money pit.
Consider the following examples.
Say you’re spending money on online leads. You’re either signing up with an online lead-gen company, or you purchase online advertising. Would that real estate marketing strategy be a money pit or an investment?
Let’s take a look.
According to studies:
As you can see, sinking money into online leads is mostly a money pit. It hits your credit card regularly, usually each month. The chances of you converting enough of these leads to make your time, and the dollars you spend, worthwhile are very low.
Now let’s look at another example.
Say you’re staying in touch with past clients using an effective client referrals real estate marketing system. That system includes an eye-catching real estate newsletter packed with valuable content, real estate email marketing, real estate social media marketing, and more. And best of all, it’s primarily an automated, done-for-you system.
According to studies:
Would you say focusing on client referrals is an investment or a money pit? Obviously, an investment. The more you stay in touch with past clients, the greater their loyalty to you builds, and the more real estate referrals you generate.
So when deciding how to spend your marketing budget, especially if that budget is limited, make sure it’s in an investment and not in a money-pit!