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Wednesday, November 20, 2024

marketing budget

    Dean Jackson, the ultimate real estate marketer, states, “In real estate, pairing a capital investment mindset with some capital is a winning combination,” Dean Jackson is the founder of  GoGoAgent and  Listing Agent Lifestyle. The following is his breakdown of how to get more listings by becoming a real estate asset builder.

    Most real estate agents don’t come into the real estate business with a capital investment mindset because they’re so focused on earning commissions and controlling expenses.

    I think a capital investment mindset and some capital is the ideal way to become a prolific asset builder. And the best way to build strong long-term assets is with a geographic farm.

    A four-year case study

    I did a four-year case study with real estate agent Tony Kelsey. He started out in a farm area of 2,000 homes and, over four years, generated an almost 11 times ROI by consistently marketing there.

    Over four years, Tony spent $50,000 marketing to the people in this neighborhood every month, and with that investment, he generated $550,000 in commissions.

    He mailed postcards monthly for five months before he made his first transaction of $15,000 in commission. At that point, he had spent $5,000 on marketing.

    From that moment on, he was profitable, and his ongoing investment continued to realize transactions. He was building the asset of identifying future sellers and cultivating relationships with those sellers over time.

    Related: How to Turn One Listing into Five

    The path to dominating

    Now, let’s look at a 1000-home farm in a neighborhood that has a turnover rate of 8%. That means 80 homes will sell this year in that neighborhood whether you do anything or not.

    What if you decide you want to dominate this neighborhood? What will that look like for you in four years?

    Well, it costs approximately $750 a month to mail to those 1000 homes ($9,000 over 12 months). And let’s say the average home price in this neighborhood is $600,000; you’ll get around $18,000 on the listing side of each sale.

    This means after the first transaction in this neighborhood, you will be profitable, just like Tony.

    If, in addition to going after new listings, you cultivate a list of potential buyers in the same farm area and begin communicating with them, you’re taking asset building to a new level. Specifically, since NAR states home buyers purchase homes within 15 miles of their last home.

    This strategy is especially powerful if you are farming in a competitive market.

    In this case, the most valuable thing that you can bring to a listing presentation is a list of potential buyers that you’ve been communicating with over time. You’re actually demonstrating to the seller that you already may have their potential buyer in hand.

    So if you’re looking at a farm of 1000 homes or maybe 800 or 500 homes to get started (whatever you’re comfortable with), all you need is the seed money to get to the first transaction.

    And once you hit that first transaction, the only thing that more money allows you to do is to speed up the process of identifying who more future sellers are.

    Becoming visible to future sellers

    Getting in front of your market consistently through direct mail is a proven marketing strategy, and clearly, one that worked well for Tony.

    It gives you the advantage of identifying those future sellers and building a relationship with them before they even know they want to sell.

    Over time they will begin to view you as a helpful advocate who’s continuously serving their community without expectation.

    The more you get them to think about you, the more the odds increase that they’ll think about you when it matters most, when they’re ready to sell.

    That’s when the fun of being an asset builder begins.

    When you have time…below are some ProspectsPLUS! marketing tools to help support your success.

    1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

    Homes & Life Magazine is a customizable magazine with rich, full-color content and a sharp, professional aesthetic. It includes compelling, direct response-driven articles written by real estate industry experts combined with engaging lifestyle content. Send out Homes & Life Magazine in Just Minutes – No Minimums Required. Or we’ll ship it to you.

    Homes & Life Magazine is the ultimate “Coffee Table Lingerer”! …and it costs less than sending a greeting card! – Click Here


    2. The Free 12-Month Done-For-You Strategic Marketing Plan

    The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do and when. Four key market segments include niche Markets, geographic farming, sphere of influence, and past clients. – Click Here

    3. The BusinessBase, SOI building system

    The most effective thing you can do to build a real estate business is to become more visible, more likable, and remembered more often. The BusinessBASE™ not only checks all of these boxes but is also a business-building machine. In two easy steps, you can begin to build a robust sphere of influence that will provide you a lifetime of repeat business and referrals. – Click Here

    4. The Free Interactive Real Estate Business Plan

    The Free Interactive Real Estate Business Plan allows you to enter your business goals for this year and get a breakdown of how many prospects, listings, closing, and so on are needed to reach your goals.  – Click Here

    5. The Become a Listing Legend Free eBook 

    This image has an empty alt attribute; its file name is Become-A-Listing-Legend-3D-Book-White-274x300.jpg

    Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. – Click Here

    6. The Take a Listing Today Podcast

    Watch the ProspectsPLUS!, Take a Listing Today Podcast for actionable content to help you get more listings. – Click Here

      There seems to be this fundamental fallacy among many real estate agents that the more money they spend on their businesses, the less there will be for their personal use.

      That simply isn’t the case, according to Heidi Sloss, author of “Fortune is in the Follow-Up: Five POWER Strategies to Grow Your Business.”

      “Too many business owners under-spend on marketing, thinking that not spending is the same as saving,” claims Sloss. While it’s an annoying adage, it really does “take money to make money.”

      Want proof?

      An older study by ActiveRain determined how much real estate agents made and how much they spent.

      Top producing agents earning more than $100,000 per year spent five to 10 times more money on marketing than lower-earning agents.

      Let’s face it, there are a number of money pits in the average real estate practice, from keeping up with the latest technology to what you drive or what you wear.

      The truly important stuff, however – most of what’s in your business plan – is where to focus if you’re looking for ways to gain more clients and grow your business.

      So, while it’s important to invest money in continuing education, professional development, and ensuring you have the office systems in place to make your job easier, none of it means a thing without clients.

      Overcome your Fear

      Remember the scene in the motion picture “Ghost,” where Whoopi Goldberg’s character is forced to endorse a $4 million check “to a bunch of nuns?”

      She struggles, claiming to “… just want to touch it one more time.” Finally, at the point of almost hyperventilating, with tears streaming down her face, Whoopie’s character, Oda Mae, hands the check to one of the nuns but then refuses to let go of it. A tug-of-war of sorts ensues until she finally releases it and dissolves into sobs.

      Is that not exactly what you do in your mind when it comes time to part with your hard-earned money? Especially in a commission-based business, parting with money is frightening. Who knows when you’ll close another deal?

      It’s only natural then that you might question whether any particular investment is really the right thing to do. Marketing dollars are particularly hard to spend.

      What if the campaign doesn’t work? What if I lose this money? These are perfectly valid questions as you tenaciously hold on to your dollar.

      One of the best ways to overcome the fear of spending is by paying close attention to the annual budget every year when you revisit your business plan. Once the money is budgeted, consider it spent. Then, make careful, informed decisions about where to spend the money when it comes time to do so.

      To help you make better buying decisions, visit review sites. Here you can read opinions – both good and bad – about the products real estate agents use in a typical day. Here’s our Google reviews page. Knowing what works for other agents arms you with the information you need to make sound spending decisions.

      The bottom line is that if you really want to grow your real estate business, you’re going to have to spend some money investing in it – whether it’s on marketing, staff, or technology. So, overcome the fear and lose the death grip on the pocketbook.

      6 Reasons to Go After Baby Boomers Right Now
      • They own 26 million homes in the U.S.
      • They control 70% of all wealth in this country.
      • They hold more than 50% of all owner-occupied homes.
      • 41% state they will definitely purchase another home.
      • They are almost completely ignored by the real estate industry. 
      • And, we’re giving you the first 100 prospects on a Baby Boomer list for free right now!
      That’s Right, Discover Baby Boomers in Your Area and GET THE FIRST 100 FREE!

      To get the first 100 on a Baby Boomers Prospect List FREE USE PROMO CODE: BOOM100.

      CLICK HERE to create your list (From a desktop/laptop computer) with the Demographic Search tool.

      This offer expires on January 29th, at midnight.

      Do You Need Help Creating Your Baby Boomer List? Watch This How to Video Below.

      PLUS: When you have time…below are some helpful tools to support your success.

      1. The Free 12 Month Done-For-You Strategic Marketing Plan

      The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do when. Four key market segments are included, niche Markets, geographic farming, sphere of influence, and past clients. – Click Here

      2. The Free Interactive Real Estate Business Plan

      The Free Interactive Real Estate Business Plan allows you to enter your business goals for this year and get a breakdown of how many prospects, listings, closing, and so on are needed to reach your goals.  – Click Here

        I recently spent some time talking to Todd Robertson, Director of the Market Dominator, about how agents are relying on their farms even more to keep business going during the pandemic. Todd shared some new and exciting things he’s doing to help agents level up and go from farmer to market maker.

        Farming a geographic area is a time-tested, proven method for achieving new listings and referrals. Yet Todd says for many agents insecurities over what to send, how often to send it, and how to budget stops them from taking advantage of this real estate game-changer.

        Those who understand the power of farming forge ahead putting systems in place, cultivating and developing lucrative relationships over time.

        This results in branded awareness that keeps their name at the forefront when someone is ready to buy or sell or knows someone who is and it’s that agent who receives the call.

        “These agents understand the key to successful farming is consistent marketing that allows them to stand out from the pack,” says Todd.

        “I believe this is why the Market Dominator is such a popular marketing tool for agents. It’s a content-rich marketing piece, automatically sent every month, that’s literally larger-than-life”.

        “And, I’m not kidding when I say larger-than-life,” Todd exclaimed, “At 12×15 in size, the Market Dominator is the largest legal size allowed by USPS. It’s a mailbox show stopper that can’t be ignored”.

        That combined with content designed by industry professionals, the use of budget-friendly EDDM, and carrier route exclusivity is what Todd says makes the Dominator an agent favorite.

        The leap from Farmer to Market Maker

        Although the Market Dominator has been incredibly well received by agents, Todd said the current climate got him thinking it was time to do more.

        With certain parts of the country just opening up again, it left many agents with only six months of 2020 to hit their annual goals. Todd said this knowledge caused him to go back to the drawing board to come up with a way to help agents level up during this remaining time.

        And he found an answer. He decided to help agents go from successful farmer to market makers.

        Instead of them following the traditional agent path of matching buyers and sellers, listing by listing, Todd’s helping them find a way to truly control their market and explode their growth.

        He says they’ve added a new valuable resource to the Market Dominator by providing agents with a Renter Prospect List from within or around their carrier route (at no cost to the agent).

        And, they’re also going to pay for the first campaign out to this renter prospect list using postcards from the Rent By Numbers Series.

        “Offering this additional tool is the ultimate progression for an agent who wants to truly begin to control their market,” says Todd.

        Now they’re starting to cultivate relationships with some of the very people who will be interested in buying homes in their carrier route.

        “Imagine how your listing appointment will go when you show an area map of potential buyers you’ve been communicating with to the homeowners,” says Todd.

        “How powerful is that?” Todd continued, “Regardless of who else is competing for this listing, they can’t win. You’ve shown up with potential buyers in hand”.

        Telling a homeowner you’ve already been looking for their home’s buyer for months is a strong statement. Especially considering there’s a high probability that their home’s buyer is on this list.

        While other agents are discussing what they’ll do to find a buyer once the listing agreement is signed, todd says you stand alone because you’ve already done the work.

        To learn more about the Market Dominator, watch this excerpt from a recent Q&A Todd did below.

        For additional questions, you can reach Todd at 866-405-3638 or Todd.Robertson@prospectsplus.com or go to Market Dominator for more information. To download Todd’s book, “Become a Listing Legend”, scroll down it’s available under Free Resources, below.

        If you’re interested in generating your own Renter Prospect List to market to in your Farm click here from a desktop computer to get started or watch the video below to learn how.

        PLUS: When you have time…here are some Free resources we’ve made available to support your success.

        1. The Free Real Estate Mailing List Guide

        This image has an empty alt attribute; its file name is Real-Estate-Mailing-List-Guide2-3-D-999x1024.jpg

        The Real Estate Mailing List Guide outlines the top tools for generating targeted prospecting lists including Baby Boomers, Empty Nesters, Investors, Lifestyle Interests, High-Income Renters, Move-Up Markets, and more. The Guide also defines done-for-you marketing campaigns to match these markets. –Click Here

        2. The 12 Month Done-For-You Strategic Marketing Plan

        This image has an empty alt attribute; its file name is 2020-Planner-3D-999x1024.jpg

        The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do when. Four key market segments are included, Niche Marketing, Get More Listings, Geographic Farming, and Sphere of Influence. –Click Here

        3. The Free One-Page Real Estate Business Plan

        This image has an empty alt attribute; its file name is Business-Plan-3D-Book-New1-270x300.png

        Treat your business like a business it is vital to long-term success in this industry. Some agents may put together elaborate business plans, yet there’s something powerful about keeping it simple. Check out our one page Online Real Estate Business Plan.  – Click Here

        4. Become a Listing Legend Free eBook 

        This image has an empty alt attribute; its file name is Become-A-Listing-Legend-3D-Book-White-274x300.jpg

        Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. – Click Here

        5. The Free Online ROI Calculator

        This image has an empty alt attribute; its file name is ROI-calculator-b-233x300.jpg

        Consistency and automation are the keys to success. Discover how effective direct mail marketing can dramatically increase your bottom line. Enter your statistics in our Free online ROI Calculator and click the ‘CALCULATE MY ROI’ button to see your results instantly! –Click Here

        6. The Real Estate Marketing Guide “CRUSH IT” 

        This image has an empty alt attribute; its file name is CRUSH-IT-Guide-3-d-298x300.jpg

        The “Crush It” Guide includes easy steps to launching an effective direct mail marketing campaign, how to create a targeted prospect list, the perfect way to layout marketing materials for success, seven opportunities available to target in your area right now. –Click Here

          If you think that nobody foresaw the economic and emotional turmoil that the pandemic of 2020 has wrought, think again.

          A Netflix series, filmed in 2019, not only predicted a pandemic but narrowed it down to a coronavirus. To say a series titled, “Pandemic: How to Fight an Outbreak” was prophetic would be an understatement.

          Unfortunately, we’re not virologists, pulmonologists, chief science officers nor do we work in the Special Pathogens Program, so we had no clue what was coming.

          Now that we’re knee-deep in it, with a few weeks or months of not generating income, we’ve learned some hard, financial lessons.

          To avoid them in the future, we’ve rounded up some of the best advice we could find.

          Quote Series, Travel the World postcard
          Do you have a business continuity plan?

          Because agents are small business men and women it amazes me how many lack a business plan, or don’t consult the one they have.

          The business plan is the roadmap for your business and should contain a continuity plan (or, “Plan B,”) for slow periods. Pay close attention to the marketing section of the plan during this planning.

          Marketing should be one of the last tasks to cut, yet many agents slash it completely when times are tough.

          Free One Page Business Plan

          If you need help compiling a business plan, check out our Free One-Page Business Plan.

          Then, ensure that it contains a continuity plan – a document that details how your business “… will continue operating during an unplanned disruption …,” according to the pros at IBM.com.

          Ensure your plan accounts for a short-term economic slowdown as well as a major downturn.

          How’s that emergency fund?

          Good for you if you have one. Many Americans don’t. “By saving anywhere from three to six months of expenses (expert recommendations vary), an emergency fund cushions a sudden reduction or stoppage in income and gives breathing space,” according to Utpal Dholakia Ph.D., at PsychologyToday.com.

          Quote Series, Home postcard

          Start small, if you must, but direct a certain percentage of each commission check to a dedicated emergency fund savings plan. You do it for your quarterly tax payments, right? Do the same for you and your family.

          Keep filling the pipeline

          Now that you have a business plan you should be able to easily identify your marketing budget in a “Plan B” scenario.

          The least you should do under these circumstances is keep in touch with your Sphere, but it’s important to keep filling the pipeline with new leads as well.

          Yes, money is tight right now, but it’s possible to do some pretty stellar marketing at very low cost. Check out our Real Estate Marketing on a Tight Budget blog post for ideas.

          Keep your marketing messages (to both your sphere and pipeline) more helpful than salesy and as uplifting as possible. Yes, show your expertise, but in a low-pressure way.

          Need some ideas for topics?

          Lockdowns are easing at various rates across the country and agents are getting back to work.

          Don’t forget the financial lessons we’ve all learned during the crisis. Be prepared for anything.

          Quote Series, Not How Much postcard
          Send the Not How Much postcard from the Quotes Series to your Sphere.
          Let them know they’re in you’re thoughts.

          Need help targeting a specific niche of buyers or sellers? Use our prospect list tools to create the ideal list (it’s easy) or call our support team for assistance at 866.405.3638!

          PLUS: When you have time…here are some Free resources we’ve made available to support your success.

          1. The Free Real Estate Mailing List Guide

          This image has an empty alt attribute; its file name is Real-Estate-Mailing-List-Guide2-3-D-999x1024.jpg

          The Real Estate Mailing List Guide outlines the top tools for generating targeted prospecting lists including Baby Boomers, Empty Nesters, Investors, Lifestyle Interests, High-Income Renters, Move-Up Markets, and more. The Guide also defines done-for-you marketing campaigns to match these markets. –Click Here

          2. The 12 Month Done-For-You Strategic Marketing Plan

          This image has an empty alt attribute; its file name is 2020-Planner-3D-999x1024.jpg

          The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do when. Four key market segments are included, Niche Marketing, Get More Listings, Geographic Farming, and Sphere of Influence. –Click Here

          3. The Free One-Page Real Estate Business Plan

          This image has an empty alt attribute; its file name is Business-Plan-3D-Book-New1-270x300.png

          Treat your business like a business it is vital to long-term success in this industry. Some agents may put together elaborate business plans, yet there’s something powerful about keeping it simple. Check out our one page Online Real Estate Business Plan.  – Click Here

          4. Become a Listing Legend Free eBook 

          This image has an empty alt attribute; its file name is Become-A-Listing-Legend-3D-Book-White-274x300.jpg

          Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. – Click Here

          5. The Free Online ROI Calculator

          This image has an empty alt attribute; its file name is ROI-calculator-b-233x300.jpg

          Consistency and automation are the keys to success. Discover how effective direct mail marketing can dramatically increase your bottom line. Enter your statistics in our Free online ROI Calculator and click the ‘CALCULATE MY ROI’ button to see your results instantly! –Click Here

          6. The Real Estate Marketing Guide “CRUSH IT” 

          This image has an empty alt attribute; its file name is CRUSH-IT-Guide-3-d-298x300.jpg

          The “Crush It” Guide includes easy steps to launching an effective direct mail marketing campaign, how to create a targeted prospect list, the perfect way to layout marketing materials for success, seven opportunities available to target in your area right now. –Click Here

            Many real estate agents routinely write that check to the IRS in April, June, September, and January and do little to nothing more to take the sting out of those payments.

            Are you leaving money on the table? Most likely, says a Canadian study.

            We’ve rounded up some of the best year-end tax planning strategies we could find. As a bonus, we have some tips on tax strategies to implement in 2020.

            Make an IRA contribution 

            Have you maxed out your IRA contribution for 2019? Those you make to a traditional IRA may be deductible in the year you contribute, according to the IRS (Roth IRA contributions aren’t tax-deductible).

            There are several limitations and you can read about these (and find 2019’s limits) at Investopedia.com.

            The best part of this tax-saving strategy is that it doesn’t expire at year-end. You have until April 15, 2020, to make your contribution.

            Pre-pay expenses

            If the devil is truly in the details, then he feels right at home in IRS Schedule C.

            Most of your real estate business-related costs are listed in Part II of the schedule, so use it as a roadmap for your year-end tax planning.

            If you are planning to hold an event in 2020, consider pre-paying for as many of the expenses as possible. The caterer most likely won’t balk at a prepayment, so if you have the money now, let it flow.

            If you regularly spend $2,000 a month for website content, consider pre-paying your writer for the next three months. Pre-pay for Doorhangers, Newsletters, ProspectsPLUS! Gift Cards, and Free Reports, website hosting, your association dues, lockbox fees and the cost of continuing education.

            Again, take a look at Schedule C to figure out what you can pay for now that will help boost your deductions.

            “By making a bulk purchase at year-end, you’ll get a deduction in the current tax year for that business expense,” according to the TurboTax pros.

            Naturally, the IRS has rules around this strategy. “In general, the tax code says that if your prepayment creates an asset, you can’t deduct it until you get the benefit,” according to the pros at wealthfactory.com.

            Strategies to implement in 2020

            It’s a bit late in the year for some of the best tax-saving strategies, so consider implementing them in 2020.

            Work from home

            If you’ve been working out of your broker’s office, you’re missing out on one of the best tax savings tactics for small business owners, the home office deduction.

            Now, if you’ve considered your broker’s employee and not an independent contractor (or self-employed, whichever you choose to call yourself), the Tax Cuts and Jobs Act (TCJA) took away your ability to use this deduction.

            Since most agents are self-employed, however, it pays to move from your broker’s office to a home office. And, by the way, you can still work part-time from your broker’s office. As long as your office at home is where most of the work takes place, you can take the home office deduction.

            Hire Your Kids

            It’s not a well-known tax-saving strategy, and it requires diligent record-keeping, but hiring your kids to help out in your real estate business will have you writing significantly lower checks to the IRS each quarter.

            “The deduction reduces your federal income tax bill, your self-employment tax bill (if applicable), and your state income tax bill (if applicable),” according to Bill Bischoff at marketwatch.com.

            Plus, there are benefits for your child as well. “… you can hire your under the-age-of-18 child (as a legitimate employee) and his or her wages will be exempt from Social Security tax, Medicare tax, and federal unemployment (FUTA) tax,”

            Your child also won’t pay taxes on the first $12,000 of income (unless he or she has other income).

            Yes, there are rules, such as “that the child’s wages must be reasonable for the work performed,” according to Bischoff. In other words, $50.00 an hour to your 8-year old to clean mud off your signs or for your 12-year old to dust the office won’t cut it.

            Learn more about hiring your kids at the aforementioned Market Watch link, IRS.gov, and cripca.com.

            Attend a conference or convention

            Conferences and conventions offer so much to the real estate agent. From inspiration to tips on how to generate leads to how to run your business more efficiently, they’re worth the price of admission. And, that price, by the way, is tax-deductible, as is part of the cost of travel and meals.

            Get started now to save money on your 2020 taxes.

            Order at least 100 Free Market Report Door Hangers from the Door Hangers Series before year-end and keep them in your car to hang on the doors of prospective clients.

            Need help targeting the perfect niche of buyers or sellers? Use our mailing list tool to create the ideal list (it’s easy) or call our support team for assistance at 866.405.3638!

            PLUS: When you have time…here are Free killer tools to help your success this year!

            1. The 12 Month Done-For-You Strategic Marketing Plan – NEW 2020!

            The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do when. Four key market segments are included, Niche Marketing, Get More Listings, Geographic Farming, and Sphere of Influence. –Click Here

             

             

             

            2. The Free One-Page Real Estate Business Plan – NEW 2020!

            Treat your business like a business it is vital to long-term success in this industry. Some agents may put together elaborate business plans, yet there’s something powerful about keeping it simple. Check out our one page Online Real Estate Business Plan.  – Click Here

             

             

             

            3. Get the ALL-NEW Real Estate Marketing Guide “CRUSH IT” 

            The “Crush It” Guide includes easy steps to launching an effective direct mail marketing campaign, how to create a targeted mailing list, the perfect way to layout marketing materials for success, seven opportunities available to target in your area right now. –Click Here

             

             

             

            4. Become a Listing Legend Free eBook 

            Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. – Click Here

             

             

             

            5. The Free Online ROI Calculator

            Consistency and automation are the keys to success. Discover how effective direct mail marketing can dramatically increase your bottom line. Enter your statistics in our Free online ROI Calculator and click the ‘CALCULATE MY ROI’ button to see your results instantly! –Click Here

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