Hello, Damir Butkovic here and today I want to talk about what to do and where to start if you're a real estate agent and you have no idea where to start with Facebook ads and you want to get quality leads from Facebook.
Well, believe it or not, the first thing before you do any ad, you have to calculate your lead cost.
You have to know how much can you spend per qualified lead to get those sales.
Because, when we enter the lead generation campaigns, we make every decision on your lead cost.
It doesn't matter how many clicks we have or what impressions you get....if ever heard about these terms.
None of that matters. It only matters the number of leads we get for the cost we pay.
So here's what I would do, which you should do too, is to calculate how much is your potential profit.
Let's say you have a half-a-million dollar or euro property, and your commission fee is 5%.
Which means you should get around 25,000 in commissions, let's say, in the best-case scenario.
So, I would say out of that, take 10% for your advertising. Two and a half thousand to sell that property.
Now, you might say this is a lot, but it's not.
If you don't put enough money into your advertising, you're not going to get enough quality leads. And someone else will sell that property.
So let's say on average, I need or you need a hundred leads, good potential quality leads to generate one sale.
So we have $25,000, 10% is two and a half thousand.
So we will divide 2,500÷100, right?
And we will get a figure of $25 or €25 per lead.
Now we know that.
So this is important for you to know.
If you start to generate leads in the future, and you're getting leads at 30, you know, 40 euros or dollars per lead, then you can say, listen, I can't afford this.
But to be honest, you know, if we are, if you are in a game, and you should be in the game of generating quality leads, which I'll show you in a couple of next videos, then you don't need a hundred leads to make a sale.
You know you'll need maybe 30, 40, or even less.
To repeat, you want to know how much can you make per sale?
Like, what's your commission?
Take 10% out of that divided by a hundred, and then you'll get your lead cost.
And this is literally the first thing you need to know. This is how you'll be able to optimize campaigns because it will depend on each property, right?
A higher the property in sales, if it's 2 million, 5 million, or whatever, you're going to pay a little bit more per lead.
It's how it goes on Facebook. If it's less, you're going to get quality, cheaper leads.
So your lead costs will also be different, but here we go. This is your first step.
This is what you need to do - You want to do it.
And start here, and I'll talk to you in the next video.