There is an idea of “Free” marketing, but it simply does not exist. I can think back to Econ 1101: There is no such thing as a free lunch. This is always true, but let me explain it in terms of free marketing.
Many real estate companies are focusing on Social Media Marketing, and Search Engine Optimization in their marketing plans and strategies as avenues of “Free” marketing. However, how much is this free marketing is actually free?
Many real estate brokerages do not have, or can not afford a dedicated Marketing Manager. Therefore, end up running their own social media and SEO, or delegating it to an Office Manager. The overhead of the Office Manager, office supplies/space, and time taken away from other income producing activities represent the overall cost of the free marketing. Then, we need to look at the return derived from the free marketing. If it seems like the efforts put into social media and SEO are not producing any leads, then there is no return on investment. Even worse, there may actually be a negative return on investment! We have all heard the expression that “all press is good press.” However, that is not always the case. In fact, meaningless chatter and content may actually be driving clients and prospects away.
So what is the solution?
First, the cost of time needs to be calculated, and realized. Then, the cost needs to be compared to the cost of hiring a Marketing Manager or Marketing company. After that, determine the average lifetime value of a client. Once all of the data is collected, calculate the number of clients that would need to be generated each year to offset or justify the costs. For a quick example: Suppose a Marketing Manager will work for $85,000 annually. In that year, 5 new clients are gained. Each client representing an average lifetime value of $150,000.
To sum up… Just because there are free marketing channels, does not mean there is not a cost associated. It is always best to do what Real Estate Agents recommend their clients to do, i.e. hire a professional.