Being a realtor is great when you are closing properties regularly. Unfortunately, that is not easy to do so the ugly truth is that many realtors struggle. And when you do close on a property you will have to pay broker fees and they can be up to 50% of your commission. Some brokers have monthly fees instead but there is always a broker fee.
It is not easy to answer the question “is it worth being a realtor”. It is because realtors success varies from person to person. If you can become decent at marketing yourself and your services, you will be able to build up your closing rate.
Being a realtor oftentimes means that you can work your schedule. It is perfect if you have kids or any other family or personal residence. Being a realtor Grant’s you freedoms that a regular job does not. These freedoms can make whatever you are earning worth it.
With proper training and effort on your part, these numbers can be improved for your specific results.
How To Get More Closings As A Realtor?
To get more closings as a realtor you will have to learn basic marketing. Handing out business cards and networking and being active on your Facebook business account is great. But to close more deals at a faster rate you will have to advertise on Google.
The numbers indicate that Most people search on Google when they are looking for available properties when they are or when they are looking for a real estate agent/realtor.
All this traffic is of potential clients. These are what are considered hot prospects. When you post or run an ad campaign on Facebook the end-user who sees your ad is not currently searching for your services, this makes them a cold prospect.
The fact that a person took the time to type into their search bar a keyword phrase like “homes for sale” usually is an indication that they are in need or soon will require your services. Taping into this traffic will enable you to close at a higher and faster rate.
Is It worth Advertising On Google As A Realtor?
According to daveramsey.com the average sale price of a home is $315,000 and see how many people are searching for your help every day on Google. Not advertising on Google is like you letting money walk out the door every day that passes that you do not advertise on their platform.
The commission of 3% of the average home price is $9,450
I say if you can get a few closings a year it is worth is. Especially after you factor in the work schedule freedom and work environment. That is worth a lot more than money. No boss stressing you out and on your back can add years to your life because of the quality of your life. I say yes it is worth it and the money is a bonus.
But with a good marketing campaign, you can close more deals and make more money.
How To Get More Closings And Make More Money As A Realtor?
Think of all the people that are searching these terms as traffic. This traffic specifically requires your services and or help. These hot pote tail clients are looking for you and not the other way around.
The traffic is like a stream of water that runs through your yard. This stream runs through many other private properties but you own the section of it that falls on your property. Your business is a cup and your website is your straw. Your website will act as a bridge or connection between your business and clients.
You do not need to get the whole stream of traffic. You are looking for a small portion of the traffic.
If you invest in this marketing strategy and do not have the time to devote to learning how to build a website and learn how to create a Google ad campaign that has persuasive and powerful ad copy you can hire a marketing agency to handle the heavy lifting for you.
Let us look at some of the numbers if you do decide to invest in a professional marketing agency. We will use the LGM Marketing Group rates for this example. If you run an ad in your local area on Google ads and target a few keyword phrases this is what you can expect.
You would target several keywords but for this example we will use one. According to ubbersuggest “homes for sale in Miami” has an average of 4,400 searches per month. It cost an average of $1.13 per click. LGM Marketing will set up and manage this campaign for $500 a month. In the month your ad on Google will be seen by a few hundred hot potential clients that typed into their search bar “Homes for sale in Miami”. Out of all the people that see your ad only a percent will click on your ad. That percent of people that click on your ad is called the click-through rate. To keep the numbers simple let us say 500 people saw your ad and at a 5% click-through rate, so you get 25 hot potential clients that click on your actual ad.
Now you have used your straw (website) to take a small amount of water (traffic) from this stream (internet) over to your cup (your business). What happens next?
Once they get to the landing page of your website you guide them through what is called your sales funnel. You have a video on your landing page of yourself saying something like “Are you looking to buy a home in Miami? If so you are in luck because I have a few must-see home deals on my list and I will send it over to you right away, just send me a message on the bottom of this page or in the contact page and I will make sure you get my list of Miami home deals”. A contact form that is linked to your email needs to be coded into your website.
You want to make it nice and easy for the client to contact you. They do not even have to open up their email account to send you an email. Once they do send you a message you can probe a little further and set up a phone call and or in-person meeting. All this with someone who is looking for your services. Remember they are the ones that took the time to type into their search bar “Homes for sale” They need you just as much as you need them.
Now that you have led 25 hot potential clients to your landing page where they watched a quick video of you mentioning how you have something that nobody else has and that they need to message you for it. How many of the 25 people send you a message? Let’s say for whatever reason only 10% contact you. That is low but let us look at the worst case. Only 2.5 people contact you for your home listing deal list. Let us not work with fractions and let us drop it to 2 people.
2 people contact you and only 1 agrees to meet in person and to look at a few houses. After you show this person around for a few hours they tell you that they do not like any of the houses and no longer are interested in buying a house. It was a complete waste of time and money.
But you decide to do it again for another month. This time you get 3 people to agree to look at homes for sale. But unfortunately, nobody decides to buy a home. Now you are out $1,000 for 2 months of LGM Marketing Group managing your Google ads. Plus the time you spent with each of the potential clients.
Then you say that you will do it for a 3rd straight month. This month your Google ad results are still below average again and you only get 40 clicks and 5 of those hot potential clients contact you. This time 3 of the 5 agree to look at houses and finally one buys a home. Then before the month ends the first person that contacted you from your Google ad campaign contacts you about a home they saw that was just added to the MLS. They saw it come through their email because you added them to an automatic email list for homes that fit their needs. This month you get 2 closings from your Google ad campaign.
At the end of these 3 months, you close 2 homes. According to daveramsey.com the average sale price of a home in the United States is $315,000. At a commission rate of 3%, your commission check would be $9,450 for the two closings. If you pay broker fees of 50% (extremely high rate) you walk away in you pocked with $4,725. Minus your investment with LGM Marketing Group, for the 3 months, you paid a total of $1,500. After your investment in marketing, you made a profit of $3,225.
You add that to the clients you will get from working with an established real estate agency and broker and you should be making good money.
Remember we were conservative with these numbers and you really can make triple that amount from your Google ad campaign.
How much does a real estate agent make?
The average monthly income for a real estate agent is $2,997 on the low end and up to $8,229 on the high end. Ten percent make less than $1,725 and another ten percent make above $7,861. The medium monthly earnings come out to $3,252.