Spam prevention
Ambassador
3,986,518
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

It probably is every bit of that when you include all social media, signs, websites, marketing pieces, ads, etc.

Jan 29, 2017 05:50 PM
Ambassador
4,093,103
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

10% sounds reasonable to me - we do a lot of entertaining and I would consider that marketing ourselves.  Those events cost money so, 10% sounds about right for my business.  I know a lot of agents don't do much print or farm marketing so, I'm sure they have a far lower budget than I do.

Jan 29, 2017 03:46 PM
Rainmaker
5,372,215
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Peter,

It depends on where you focus and what you are hoping to achieve.  Based on what I have been privvy to with our clients, Barbara Todaro 's numbers are more accurate.  You have to spend to make, and one cannot economize and become a DYI just to save a few dollars, instead of doing what one does best, which is real estate.  A

Jan 29, 2017 12:12 PM
Rainmaker
2,806,095
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

Conceptually, I will disagree...with virtually any percentage.

Everything depends on your objective and your strategy to get there.  Are you trying to grow?  Rapidly?  Slowly?  How large is your business?  How will you get there?  What approach will you use to grow?  Grow through people?  Grow through referrals?  Pay for leads, etc...they all lead you different places.

This is one of those "trick interview" questions they would warn us about in business school.

Jan 29, 2017 12:06 PM
Rainmaker
4,136,000
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

One size certainly doesn't fit all. You do have to spend money to make money and you can't skimp on consistent advertising that comes in many forms.

Jan 29, 2017 03:42 PM
Rainmaker
1,178,109
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

I have an annual budget, so I have a monthly budget, but I know 90% of what I'd sending out every month since last October; every October I plan my next year.

Jan 29, 2017 03:31 PM
Ambassador
2,546,675
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   My first "sales job" advocated the 10% rule.  But I have had some really good years in real estate, when 10% would have been an absurd amount of money to spend on marketing and advertising.   Likewise, there were some lean years when 10% wouldn't be enough.

Jan 29, 2017 03:21 PM
Rainmaker
4,025,007
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Depends on what your agency does based upon your split and what it takes to dominate your market. For many 10 percent may sound high while high achievers like Barbara Todaro may go up to three times that figure! 

Jan 29, 2017 12:13 PM
Rainmaker
5,570,688
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

mine is more like 25-30% of my annual income

Jan 29, 2017 11:42 AM
Rainmaker
634,272
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

I agree with Fred Griffin that it's better to adjust your budget to your current needs and goals.

Jan 30, 2017 03:53 PM
Rainmaker
1,727,295
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

I do Peter Mohylsky 

Jan 30, 2017 05:31 AM
Rainmaker
2,014,170
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

It's actually 10% for Lead Gen (prospecting & marketing)

Jan 30, 2017 03:48 AM
Rainmaker
6,375,259
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

I would not use a percentage figure. 

Jan 30, 2017 03:42 AM
Rainmaker
3,069,684
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Focused more on ROI - right now 8 dollars in for every dollar spent

Jan 30, 2017 03:34 AM
Ambassador
4,495,628
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I suppose it depends also on what you include in the category of marketing, vs other related items

Jan 29, 2017 10:30 PM
Rainmaker
598,034
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

I know I should have a specific budget, but I don't.

Jan 29, 2017 09:59 PM
Ambassador
3,643,746
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

My budget is 15% of last years net.

Jan 29, 2017 08:24 PM
Ambassador
2,224,067
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I have a budget that I keep in mind. 

Jan 29, 2017 05:45 PM
Rainmaker
3,985,813
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

It is hard to put a number to it as if something works really well and inexpensive why spend more

Jan 29, 2017 05:25 PM
Rainmaker
528,327
Kathryn Acciari
Century 21 Real Estate - Shrewsbury, MA
Brand Ambassador and Business Coach

It has varied from year to year, depending on what I was trying to achieve.

Jan 29, 2017 04:41 PM
Ambassador
5,219,046
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

No, we dont spend much on marketing, just do what is needed.

Jan 29, 2017 03:16 PM
Rainmaker
3,297,674
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I do not use a straight percentage. It depends how many listings i have, as more listings equals a great increase in marketing. As well i do special marketing projects or target certain areas through out the year that will change. 

Jan 29, 2017 02:38 PM
Rainmaker
2,611,670
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

When you find something that works...then you adjust accordingly

Jan 29, 2017 01:45 PM
Rainmaker
3,877,157
Richard Weeks
Dallas, TX
REALTOR®, Broker

10% of your commission

Jan 29, 2017 01:05 PM
Rainmaker
1,157,435
FN LN
Toronto, ON

I don't discuss my budget for competitive reasons in a public forum.  I have seen various places state that budgets should be ramdom percentages of future expected sales, budgeted sales, past sales etc. but they do not good reasons for such percentages.

Jan 29, 2017 01:05 PM
Rainmaker
808,597
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

So many variables on what you are doing with your business, if you are solo, on a team, in a brokerage that provides leads, what your splits are, if you are a team lead or broker, etc. etc. We don't spend 10%. Much less.

Jan 29, 2017 12:54 PM
Rainmaker
515,521
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

I've always heard 25% and in years past I've spent more than that.  But there comes a time where you find your "comfort level" and I've had some months I spent less because I was making sure I did not "over market" and then have more business than I could handle.  If you are not able to take "good care" of the clients you have the following up on the "new leads" that can actually backfire.  So I watch my spending according to my need.

Jan 29, 2017 12:52 PM
Rainmaker
1,674,448
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

When I did a survey, the figure ran between 20% - 30%.


Jan 29, 2017 12:44 PM
Rainmaker
3,842,065
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I had $916 last year. per month.

 

Jan 29, 2017 12:12 PM
Rainmaker
1,698,248
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

I'm not so sure about that 10%, that sounds high plus I don't know what that 'somewhere' included or not included.

Everything has an ROI & that would make something a no-go. Not every marketing adventure turns out to be a winner.

 

Jan 29, 2017 11:41 AM
Rainmaker
465,116
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

A lot of marketing is very inexpensive. 10% would be too much.

Jan 29, 2017 11:36 AM
Rainmaker
1,707,347
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

It doesn't make sense for me unless your business plan is to make money for everyone else instead of yourself.

Jan 29, 2017 11:34 AM
Rainmaker
363,597
Shirley Coomer
Keller Williams Realty Sonoran Living - Phoenix, AZ
Realtor, Keller Williams Realty, Phoenix Az

I think the number varies by agent and location, also the price point you are targeting.  Newer agents will spend less.  Whatever you are spending, be sure it is working for you.  Always look at the results of the spending and be sure you aren't just going for the next shiny object (been there, done that).

Feb 28, 2017 07:01 AM
Rainmaker
4,740,827
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

My expenses do run about 10% of my income.

Feb 01, 2017 11:06 AM
Rainmaker
1,624,472
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

It should be whatever works for you and your market. Maybe more, usually less.

Jan 30, 2017 01:06 PM
Ambassador
1,616,204
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

it depends on the agent and is the marketing working

Jan 30, 2017 09:49 AM
Rainmaker
1,362,398
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

No budget here, if it's a good marketing idea we spend on it.

Jan 30, 2017 09:27 AM
Rainmaker
907,123
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

No, I have an annual budget

Jan 30, 2017 07:28 AM
Rainmaker
4,799,356
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

No, not really.  More of an annual budget.  And, not that much.

Jan 30, 2017 07:22 AM
Rainmaker
4,433,483
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

No.

Jan 30, 2017 05:58 AM
Rainmaker
869,411
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

200 is too low.

However, if one is running a one-dimensional real estate business, 200 could work. Having all the eggs in one basket is a recipe for disappointment.

Jan 30, 2017 05:05 AM
Ambassador
4,312,167
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Peter Mohylsky - I don’t spend so much... not 10% for sure.

Jan 29, 2017 10:02 PM
Ambassador
3,002,424
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I do not believe in one-size fits all.  The amount spent on marketing will vary. 

Jan 29, 2017 01:52 PM