Generating High Quality Leads
As many real estate agents understand, the key to growing a successful real estate business relies heavily on the ability to find high quality leads, and convert them into closed clients. However, this is much easier said than done. Because a lead is nothing more than the name and contact information of someone who could potentially be a client, generating a high number of leads every month is the name of the game. However, it’s not only about generating a large number of leads every month, but it is also about generating a large number of quality leads that can potentially be converted into clients. And according to many real estate marketing experts, one of the absolutely best places to generate high quality leads is by advertising on Facebook.
With a little more than 900 million people logging on to Facebook every day, it is a sound marketing strategy for any real estate agent to have a strong Facebook presence. Facebook is considered one of the best places for real estate agents to find high quality leads because not only is it free to set up a page, but Facebook gives real estate agents the unique opportunity to learn tons of valuable intel on potential leads by getting to know them on a personal level. By simply generating conversations with potential leads on Facebook and conversing with them about their day to day lives, gives a real estate agent the ability to create and maintain relationships with hundreds of potential clients at absolutely no cost and very little effort. Because real estate is ultimately a relationship business and is about creating successful business relationships with clients, the more they can get to know you and see you as a genuine, caring person, the better it will be for the long-term success of your career.
How to Use Facebook Correctly
But as you may have already learned, having a successful Facebook page doesn’t always mean that you’re getting tons of quality leads for your real estate business. This can happen for a multitude of reasons. It is important to understand that Facebook lead generation is not necessarily about name recognition, post boosting, or getting a lot of likes or engagements. Successful Facebook lead generation is about using your page as a successful inbound marketing channel to drive people to your website, not necessarily to your Facebook posts. Too many real estate agents get caught up in how many friends or fans they have or how many likes or comments they’re getting on their posts. Instead, real estate agents need to use Facebook as an inbound marketing tool to get people to click on their website, which is incredibly more valuable than a share or liked comment. And one of the best ways for real estate agents to generate these high quality leads using Facebook is to start running highly targeted ads through Facebook’s advertising program.
Facebook has recently emerged as one of the easiest and most cost effective ways for a small business to promote themselves online. According to a recent study done by MerchantCircle, it was found that over 20% of American small businesses have used Facebook ads to help promote their business, and over 65% of those businesses say they would use Facebook ads again. Many of these companies cited the ease and flexibility as the top reasons why they would run another Facebook advertising campaign, and they found it very helpful in acquiring new customers.
This is no different for real estate agents. Because Facebook offers a number of different advertising options that can be manipulated to achieve different objectives, Facebook ads can be a great way to zone in on potential clients, build awareness as a real estate agent, as well as drive traffic to your website. By learning and understanding exactly what these upgraded advanced tools can do, real estate agents can learn to build ads targeting the exact type of people who may be looking to buy a house in the next 6 months.
For example, in Facebook’s Audience section, under More Demographics, realtors can access the Home Value demographic where they can choose the exact home value ranges they would like to specifically target. Realtor’s may find this option valuable if they’re looking to market specifically to people with higher household incomes and home values, who turn into potential clients down the line.
Another great way for real estate agents to use Facebook ads to generate leads is to specifically target audiences who recently had a major life changing event. This advanced targeting technique can be found by clicking on Audience, in the More Demographics section, under Life Events. This gives you the ability to target audiences who may have recently gotten engaged, gotten married, or just had children. Because newlyweds and new parents are generally interested in purchasing a new home, or a bigger home for their new family, they can be some of the best people in which to target using Facebook advertising.
Facebook also gives advertisers a unique way to target people based on their recent behaviors, such as a way to target individuals who are likely to move in the next 6 months. You can find this specific demographic under Audience, and then in the Behavior section. Once there, scroll down to Residential Profiles and select the Likely to Move tab. With as little as $5 per day, real estate agents can you use this advanced demographic targeting technique as a great way to advertise to the exact people who are going to be needing a real estate agent in the near future. Might as well be you.
The Facebook advertising program also offers an Ads Manager app that helps you manage all your ads, as well as track each advertisement’s performance. This includes keeping track of how many people viewed your ad and what subsequent actions they took. It also allows you to seamlessly fix any typos, change images, adjust the budget and schedule of the ad, as well as edit your selected audience. The Facebook Ads Manager app will also give you timely notifications about when your ads are about to end, and when you’re about to reach your spending limit. It also allows you to change payment methods at any time, set new spending limits, and track how much you’ve spent on past advertising campaigns so far.
How to Create a Successful Facebook Ad
However, while posting a Facebook real estate ad can be a great way to generate home seller leads, there is a right and wrong way to go about it. First of all, you should always use images that are colorful, bright, and relevant to your ad and not some random stock photo. Because 90% of information transmitted to the brain is visual, a visually appealing ad will be more likely grab the attention of potential clients. Secondly, it is vital that you’re Facebook ad is relevant to your target audience. If you’re targeting newlyweds, it may be better to design an ad that specifically talks about finding your first home, then just posting about general real estate in your area.
Also, make sure that the photo on your Facebook advertisement is also located somewhere near the top of your landing page, so that when visitor’s click on your link they know they reached the right page, which builds trust. Facebook ads also need to be inviting and intriguing enough to evoke a level of curiousity, without trying to sound too presumptious. Try using a conversational tone that can create an emotional connection and response, rather than a boring sales pitch. Lastly, using a call to action has been to proven to result in more clicks like “Click here to Learn More” or “Find your Dream House today”.
Types Of Ads Offered On Facebook
There are two main type of ads that Facebook offers, the right-hand column ad and the news feed ad. Each has their own strengths and drawbacks. The right-hand column ad is the most traditional and cheapest way to advertise on Facebook, and appears on the right side of a user’s Facebook page. While news feed advertisements generally have higher engagement metrics, right-hand column ads often result in less expensive clicks and conversions. On the other hand, news feed ads will appear directly in a user’s news feed and looks more like traditional advertising. While news feeds ads are more expensive to produce, they generally have a higher engagement rate and are great for bringing people to your Facebook page.
Common Mistakes To Avoid
While incorporating Facebook ads into your overall marketing plan can be a great way to generate real estate leads, there are several mistakes you should try to avoid. The first mistake that you will want to avoid is being too broad or narrow if your search criteria. While Facebook allows you to target specific demographics that can be very attractive to real estate agents, targeting them too broadly or narrowly can counterproductive. This will either lead you to getting fewer conversions than you estimated, or blow up your budget if you’re trying to reach out to too many people. Always consider your budget first and start off small until you found a specific ad that works, and then expand it to reach more potential clients.
Many realtors often make the mistake of dumping tons of money into their Facebook advertising campaigns at the outset, expecting that their business will instantly take off. Generating value leads through Facebook ads can be a long process and is about developing relationships with potential clients, which can take time. Take that time to find what advertising campaigns are working and which ones aren’t, then invest the appropriate money to broadening the successful campaigns.
Secondly, not impressing or purposefully misleading your intended audience will only do more harm than good. Because you only have a few seconds to make a lasting impression on your audience, it is important to create an ad that grabs their attention and creates an interest in what you’re trying to sell, which for a realtor, is all about selling yourself. Create an ad that sets you apart from the other realtors in your area, and makes someone want to join your page and take an interest in what you’re doing. Even though they may not be interested in purchasing a house at this time, they probably know someone who is, and who do you think they’re going to recommend. Conversely, be careful never to say anything misleading in your Facebook ads, as this could create a negative reputation for your business, as well as violate Facebook’s advertising guidelines, which can get you banned from posting Facebook ads in the future.
How Much Do Facebook Ads Cost?
The truth is, Facebook ads can cost anywhere from $2 a day, to $200,000, depending on how much you want to spend. The most important thing is to understand how Facebook’s pricing structure works. Facebook allows you to choose between two different pricing systems when placing ads, CPM and CPC. CPM is an acronym for Cost Per Mile, and it is basically the cost your pay per thousand impressions. This means that every time your ad is shown to a Facebook user, it counts as one impression. This has nothing to do with how many times your ad is clicked or how many ads are converted into likes, it is simply the number of times your ad is displayed to each Facebook user that you targeted.
The other option is a CPC program, which stands for Cost Per Click. This is how much you’re willing to pay for a click on your Facebook ad. This means that when you create your ad you will be asked what is the most you’re willing to pay per click of your ad. Facebook recommends that you choose a bid that is big enough to allow you to win the auction among ads that are similar to yours, with the higher the bid giving you better chance of winning more auctions, which means receiving more clicks. However, because Facebook allows you to set up a maximum budget for your advertising campaign, your ad will just stop running once you’re reached your limit, so you don’t have to worry about going over your budget.
Generally speaking, the CPM option may be better if your goal is to get your name or brand in front of a large number of people as quickly as you can. This is helpful if you want to build your Facebook fan page and gain a lot of exposure relatively quickly. On the other hand, if bringing people directly to your website is your goal, you may find that the CPC option will most likely work best for you.
While advertising on Facebook is a great way to generate leads for your real estate business, it may not be the overnight solution many realtor’s expect. Just like any kind of online marketing program, it takes time, money, and patience. If you decide to advertise on Facebook, don’t get discouraged if it doesn’t pay off right away. Advertising on Facebook will give you the unique opportunity to slowly build up a following and allow you to create and build relationships with potential clients. This may not turn into instant sales right away, but over time this will help you to build your brand and gain much more exposure than you would have if you never advertised on Facebook to begin with.