During December, I’m focusing my blog on business planning, as well as in my managers’ blog, Management in a Minute. Look for ready to use checklists, processes, and systems. Let’s make awesome plans for 2012!
Today, real estate agents capture much more of the gross commission dollar than ever before. At the same time, they must become real businesspeople, because they must allocate some of these dollars to marketing—to increase their business. But, how do you know how to spend those marketing dollars?
Here are two basic principles of marketing dollar allocation
Principle One. Spend a proportional amount on your best source (s) of business—it will beget more business (your best source of business is from your past clients and people who know and trust you).
Most Agents are Not Spending Their Marketing Dollars Right
A recent study showed that agents spent the largest amount of their marketing dollars on direct mail, advertising, and the Internet. Yet, the majority of their business came from traditional ‘people to people’ sources
•IVR Technology (interactive voice response)–the only ‘technological’ lead generating source
Do you know how much you spent on your best source of business last year?
Only one percent of the agents do. That means they aren’t treating that group of people as a ‘target market’. You must segregate your best sources and allocate funds directly to marketing to them. You must make a marketing plan directly to these people, and attach a budget to this best source.
How much Money Should You Spend?
Principle Two. Spend between 5 and 10% of your projected income on marketing to your best source of business.
Example: If you were to project for next year that you will get 20 sales from your past clients, and that income would be $4000 per ‘revenue unit’ or $80,000, you would allocate $4000 to $8000 to marketing to that source.
Simply reviewing how you spent your 2011 and allocating adequate marketing dollars for 2012 will, in the end, save you money. Also, you’ll have something to measure and adjust.
If you’re unsure how to start your plan, if you don’t see the benefit of planning, I’ve got some answers for you. I’ve been working on business planning for years……and I’ve just come up with a series that I think answers questions like, “How do I get started? How do I know what numbers to put in? How can I make my plan useful? How will I know that it works?”
I call this big program Come See 2012: Beyond the Basics of Business Planning. In it, I’ve created 2 webinars to walk you right through the planning process. I’ve made it simple and straightforward–but not so simple it won’t work! Along with that, I’ve provided the most updated versions of my planning documents–15 of them!
In addition, I’ve added several bonuses:
- From the Coach: 53 Pointers for your Business Plan
- Biggest Marketing Dos and Don’ts
- Especially for teams: How to use the planning process to teamify and inspire
All for a VERY affordable price of $79. Why not let me walk you through the process, provide inspiration, and confidence that your plan will work to give you a great 2012? Click here for more information and purchase.