Real Estate Agents Need Leads
Most real estate agents are concerned about their next deal, so they are continually thinking about leads. How do I generate real estate leads?
Where will the lead for my next sale come? How much is lead generation going to cost me?Lead generation is an essential part of running a real estate business. Without leads for real estate agents to continually work, there is a chance they won’t have enough deals to sustain a profitable business.
One Important Real Estate Lead Generation Metric
When lead generating, there is one thing that most agents tend to forget. That is calculating the cost per lead for their real estate business. Cost per lead is an essential metric when running a sustainable business model.Too often, real estate agents spend money on marketing but don’t feel they are getting a return on their investment. The reality is that without calculating cost per lead, they don’t know if what they are spending their marketing budget on is a good investment. It is best to calculate cost per lead so that you can accurately compare how one marketing source is doing versus another rather than just going off of feeling.
How To Calculate Cost Per Lead
Calculating cost per lead for real estate leads is rather easy.
From AfterTheLicense.com, “To calculate your cost per lead, you simply need to take the total amount of money you’ve spent and divide by the numbers of leads you’ve received.
So if you’ve spent $50 on Facebook Advertising and that advertising generated 10 leads, you would divide $50 by 10 and quickly learn your cost per lead is $5.”
We recommend calculating cost per lead for every lead generation source that way, you can compare how one source is doing versus another. There are other important metrics to consider when running your real estate business, but this is a good start.
Last modified: August 24, 2020