Those of you using PPC, are you tracking it separately from organic search?

If so, how much are you spending per month? how many closed transactions per month? Cost per closing?

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Greg Long | Keller Williams | Portland, Oregon
Portland Oregon Homes for Sale | Portland Real Estate | Portland Pearl District Condos

I calculate ROI as follows:

(Gross Commissions - PPC Costs)/PPC Costs

My ROI is approximately 700%

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Tim Shepard

Destin Florida Real Estate | Destin Florida Homes For Sale | Destin Florida Condos For Sale

If that is really true... why wouldn't you spend every last advert dollars on PPC?

Just trying to learn here, but 700% ROI seems extremely high. How accurate are these calculations?

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Augusta, GA real estate investor (GAAR) l Columbia, SC Realtor® (CML)

Augusta Real Estate l Augusta, GA l Augusta Investing

That is my ROI. Other's may be different.

I'm one person, with an assistant, and I feed the PPC machine as much as needed to keep my schedule full. Spending more would not help me. I already work 5-6 days a week and don't have any more time.

I would love to spend more money to generate leads for other agents. However, I've fed a few buyers agents leads but they just couldn't convert in this down market. In fact, they tell me that internet leads suck.

There are many successuful teams in my area but in all cases, the lead agent is primarily a listing agent. I haven't seen any built around a buyers agent but I'd be interested in hearing ideas or examples of how other buyers agents might have done this.

In any case, the ROI on PPC is dependent on the skills of the agent. In fact, my guess is that most all agents get enough "leads" to be successful, but they don't have the skills to close enough of them.

One other thing, don't expect to spend $2000 and generate $14,000 in gross commissions. It doesn't work that way. I spend enough so that I can cherry pick the leads. It took me a long time to figure out my "sweet" spot but I know that the return got better as I spent more money.

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Tim Shepard

Destin Florida Real Estate | Destin Florida Homes For Sale | Destin Florida Condos For Sale

Ok, that makes sense.

Tell me if this logic is correct. In your scenario, would it make sense to starts using high end search terms, referring out bad/weak leads, and just qualify leads on the first contact... figure out their price range, time period, etc.

And if they are not exactly what you want move on... so eventually you are working with high end clients or whatever type of clients you enjoy (in my case investors).

Thanks for the help.

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Augusta, GA real estate investor (GAAR) l Columbia, SC Realtor® (CML)

Augusta Real Estate l Augusta, GA l Augusta Investing

In the beginning, you will be able to call every lead that you get and do a lot of legwork for them. However, you will quickly find that you don't have time to do this.

At this point, you'll be showing property to some and only able to follow-up on the high value targets. If you spend enough money, you should also have people call you. These are the best because they are normally ready to do something within the next 90 days.

If you do things correctly, you will see your avg. transaction increase. You have to be extremely careful not to spend too much time with the lower price ranges. The economic cost of this can be extremely detrimental to overall rate of return. A $400,000 sale generates as much commish as 4X$100,000 sales and takes the same amount of time. I only work with the low ranges when they call me and literally want to get into my truck to look around.

The more leads that you get, the more likely that you will get a few of the really high end leads in your market. That's why you have to spend money. Statistically speaking, in my market, only 1 out of 50 buyers in my market are looking on the high end. You'll never get a high volume of these but a few will make the difference between a good year and a great year.

I sent you a pm with more detail.

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Tim Shepard

Destin Florida Real Estate | Destin Florida Homes For Sale | Destin Florida Condos For Sale