Which is why creating a data-backed, scalable lead generation budget is top priority (also known as a marketing budget). Your business’s lead generation budget is a living, breathing document. Much like your business plan, these documents should be frequently monitored, and tailored, to take into account long and short term goals.
Our lead generation team pulled together three quick steps to help you create a workable lead generation budget.
Calculate the Leads Needed Per Agent
Before you calculate the leads needed per agent, consider first how many lead sources you have. Is your budget going to be all inclusive? Or will you break it down into a multi-channel budget reflecting the number of leads per channel going to each agent at any given time.
Which channels make-up the perfect lead generation combo? Explore these options.
The factors you need to consider in this step are your team structure, lead rotation style, conversion rate, and how many lead generation channels you use. Realistically consider how many leads each agent needs in order to achieve their average or higher conversion rate.
How many leads do you really need? Our video helps calculate your team’s numbers.
How Many Total Leads Does Your Team Need?
At this point, you know how many leads each agent receives on average for a certain period of time. For now, we will work with a monthly timeframe. Then, with one simple multiplier you will arrive at the total number of leads your team needs to survive.
Start with actual, achievable numbers. You can always scale at any point in the future. And remember, this budget is an active source for growth and change. It is important to note online leads take longer to convert.
Your lead generation budget will help accommodate the price of cultivating these leads through choosing the right number at this step in the game.
If you need your business to become more efficient at nurturing leads, consider taking a look at the ISA team structure. Another reliable route to facilitating lead nurture plans is housing all of your information in one predictive CRM system. This allows your team to easily access, share, track, convert, and close all in one place.
Final Step: Calculate Your Real Estate Team’s Lead Generation Budget
We’re almost there! At this step you’ll take your total leads needed and multiply by the average cost per lead in your MLS or area. Again, we can’t emphasize enough how important data is for your overall lead generation operation.
Cost per lead is ever changing and affecting your budget. You may conduct your lead generation in-house or partner with other companies to get the job done. But no matter how you go for lead generation gold, remember the more data you have, the better decisions you or your vendor will be able to make.
For example, take a look at why the price of Pay-Per-Click is always changing.
Separating your channels within your overall budget is one way to effectively control the varying cost per lead in different channels. And if you are just starting out with lead generation in general, we suggest sticking to Paid Search and Facebook. These two options will give you a great starting point, localized audiences and leads unique to your team’s efforts.
Controlling the Moving Pieces of Lead Generation
Real estate lead generation budgets are much easier to craft and scale if you have data. BoomTown’s Online Marketing Manager, Chris Cousins, likes to say his team “works in a world of averages and moving targets.”
In other words, your lead generation vendors need to:
- Look for extensive localized data.
- They utilize algorithms which navigate and make educated decisions based upon the data.
- Manage to appropriately scale your accounts and budgets.
Keep these three characteristics top of mind for any lead generation effort. If you manage your budget, it is oftentimes much easier to let the experts manage your actual advertising campaigns and accounts.
Click below to watch a short video about how BoomTown’s lead generation works!