real estate agents

What is a Google Ad?

Google ads, also formally referred to as Google ad words or ad words express, is an online advertising solution that businesses can use to promote products and services on other websites. Websites that allow for Google ads on their website can monetize these ads by the people paying for the Google ads. Pretty much any business or service can use Google ads.

Is a Google Ad the Same as Adwords?

A Google ad is the same word as Google AdWords, just a more updated version.

How do Google ads work?

Google ads work by displaying an advertisement when people search online for different products and services that you might offer. They may appear on YouTube channels, Google search results, and other websites. These ads can help get your ad in front of potential customers at the right moment so that they take action, or at least that’s the plan.

You first start by selecting your goal, what you really want your visitors to buy from you. Do you want them to contact you, buy from you, learn from you, or subscribe to you? You then select the geographical area where your ad should be shown and if this is a real estate brokerage, typically you’ll be within a certain demographic, geographical area, county or city. From there, you customize the ad and set your monthly budget. Once the ad is approved it will appear wherever users in your target area search for products or similar services to your own.

Can Google ads work for real estate?

Google ads can be a good source of real estate leads but like any marketing tool, you have to work the process. The unfortunate thing with Google, or it could be fortunate depending on how you want to look at it, is that the process changes frequently. To some it’s gotten easier over time, more simplified, and others, change is never good and you have to relearn a platform all over again.

To sign up for Google as you’ll need an existing Google account. Then you’ll utilize the Google ad system which can be as easy as googling “Google ads” and it will take you right to the page. You want to optimize your campaign for the proper lead generation and traffic. This will tell Google that the goal of the ad is to convert any clicks and traffic and actual leads. Make sure that you add your website to Google to track if the goal of leads is actually reached. This could be your homepage or your root domain or specific page just for lead sign-ups.

Consider using campaigns throughout ZIP Codes. While not everyone searches for ZIP Codes, it is easier to geo-locate and track using ZIP Codes for the area in which you service. If you live in a smaller market and don’t have a lot of ZIP Codes, you might use an entire city or even a county, whichever is more relevant for your demographic.

How much do Google ads cost?

The cost is determined by your budget settings. Google ads will give you control over your budget and your only charged when users interact with the ad. But, be careful, because more people may interact in your prepared for and then will have a hefty bill to pay. When they interact it means they’ve clicked to visit your website or called your business through the Google ad.

How much should I be spending on Google ads?

Of course, you have to do what’s comfortable for you, but if this is going to be a solid source of leads, a general rule of thumb is between $10 and $80 per lead. If it’s a solid lead, that could be several thousands of dollars in commission, well worth $50 or so. Smaller markets may have a less expensive leads based on competition.

The more people searching in an area and the more competition, meaning other agents that are using Google ad words similar to yours, will increase the cost per lead. Also, it depends on your landing page converts. If what you have when people get there is not compelling or entertaining or even worthy of a call or click through, you’re going to lose the lead. You can’t just set up a Google ad without a compelling website for them to visit. You’re going to lose them right away and waste your money.

Can I group ads together?

Yes. You can group ads together in the same category. Typically one for each ZIP Code or major metro area. Within that group, you can create multiple as with different headlines and descriptions. This is a great way to do a A/B testing to find out what’s really working and bringing in the leads.

How to analyze your leads.

There are several different ways to analyze the results. Your click through ratio means those that are actually clicking on your ad and following through to the website. Anything above 10% is usually pretty good but if it’s under 3 to 4%, you may want to adjust the ad slightly.

Lead to client ratio means your conversion ratio going from the click all the way to final closing. That, of course, is the key analysis because that’s where your income is coming from.

Traffic to lead ratio is how much traffic it takes to generate that one lead. A conversion rate of around 5% is actually pretty decent. For instance, if you had 300 clicks and you got 15 solid leads out of it, that could be upwards of $225,000 on average in commissions.

How do I know it’s working?

Again, it comes down to what you’re willing to work on. You can’t just set it and forget it. You need to look at where your dollars are being spent, your click-through rates, lead to conversions, and if it’s really working and then adjust if it’s not. You do need to let it play out for 1 to 3 weeks for each ad to really get a good snapshot of the success of the lead.

Need help adjusting your Google ads or setting it up correctly for your eXp Realty ads? Give me a call. Looking to start in the real estate business or if it’s time for a change to a brokerage where you can actually keep your commissions, contact me at any time!

Learn More about eXp Realty

You’ve made the decision to switch brokerages or maybe you’re just thinking about it and want to do a little bit of research. Interviewing brokerages is really the key to finding the best place in which to work. You want a brokerage that supports their agents, offers assistance and help, and doesn’t take your full commission. We recently asked agents what they wish they knew when they got into real estate and we got a lot of answers; 100 of them in fact, and one of the main key points was finding a brokerage that really supports their agents and is available. This should be one of your number one priorities when looking for the right brokerage.

Brokerages, the managing broker can vary from office to office. So when you’re interviewing brokerages and specifically a broker in which to work under, here are the top 20 questions that get asked the most.

#1. What are the goals of the company?

Agents want to know where the company is headed. This is not just regarding market share but also what the individual brokers goals are and what it looks like for agent growth. If they’re looking to grow their agent base, it usually means they are committed to delivering tools and systems that agents need to thrive. If you and the agent are both going in the same direction, it might be a good fit.

#2. What types of training and continuing education does the brokerage provide?

By now, you probably know that continuing education is a priority and necessity of the job so it’s important to understand what the brokerage provides when it comes to continuing education. Do they allow mentorship programs? Mentors can teach new agents real-world scenarios and because legalities are always changing, agents need to understand best practices and keep mistakes minimal. Tip: eXp Realty does this really well.

#3. What are the costs?

I know I posted this under #3 but it really is one of the top questions. What are the commissions like, how will you build your business and what are the fees you might incur along the way? Ask about any hidden fees and ask other agents if they were surprised about fees once they signed on.

#4. What marketing materials are available?

Marketing is at the core of what agents do and many brokerages provide marketing materials but there are guidelines for the use of each. Brokerages may also delegate and dictate what words and images are best for promoting properties and protecting you from litigation.

#5. What are the commission splits and caps?

A brokerage cap is the amount of money an agent will pay in splits to the brokerage before that agent gets to keep 100% of earned commissions. While many brokerages offer this incentive to real estate agents, not all do. Some brokerages offer massive fees without a cap. eXp Realty is different in its approach to splits – Read more here.

#6. Does the brokerage offer training programs?

More than simply continuing education or mentorship programs, training is essential, especially for new agents. The last thing new agents want is to be thrown to the lions den and have to deal with things all by themselves. Training for different scenarios is key to managing the transaction and keeping things running smoothly.

#7. Is there favoritism in the office?

Your broker may not come right out and admit this but if there is favoritism between the agents, commissions for some and not for others, free training for top agents etc., this may be a red flag. If you are unsure, ask other agents in the office what they think of the brokerage and if they feel there is favoritism or nepotism going on.

#8. How big is the brokerage?

If a managing broker has a couple of dozen agents underneath them, that’s pretty manageable but what happens if the brokerage grows in the hundreds? Will each agent still receive the same amount of attention and consideration? Are there managing brokers that will split off and help other new agents and experienced agents?

#9. How is the administrative support?

Administrative support is huge when it comes to finding the right brokerage. Most offices will have administrative staff that will handle office details however, some admin support will also be in the form of a transaction or sales coordinator for agents such as inputting MLS information, follow-up, and contacting clients. Ask about the support and if you agree with the process.

#10. Does the company have a policy and procedure manual?

The last thing you want is to be a year or two into a brokerage only to discover there’s this manual that no one talks about but everyone should follow. Ask about this now and if it’s not automatically volunteered, that could be a red flag as well.

#11. Is there mandatory floor duty?

Will you need to sit at a desk all day at least one or two days a month? Can you work from home? What is the policy and what makes best use of the agent’s time?

#12. Are there restrictions on self-promotion?

Will each agent be able to promote themselves or the broker or both? Can each agent have their own website, picture on their business card and signage or is there major restrictions as to the location, frequency, and wording of the brokerage? Some companies have strict rules, which can be a dealbreaker for many brokers and agents.

#13. How are incoming sales distributed?

When a call comes in on a listing how are these calls handled? Do they go to the listing agent or an on-site buyer’s agent or to the general pool of agents?

#14. What is the average income of active agents in the office?

You’ve heard that old rule of thumb that your income is the average of your five closest friends and if you are in an office surrounded by other top agents and successful brokers, chances are you’re more likely to rise to that level as well.

#15. How are referrals handled?

Do agents refer each other, have a book of referrals when they are on vacation or out of town, and how do referrals happen out of the area? This is something to understand right off the bat because referrals will happen and possibly sooner than you think.

#16. What is the overall attitude and culture of the office?

Are you an agent that just wants to be left alone or do you need your hand held through most transactions? Regardless of which side of the coin you fall, you want a brokerage that gives you the freedom to do what you need to do and learn in the best possible way. An office that has a lot of new agents can feel energized but also a little chaotic. Seasoned veterans of the office can feel more stable but can also leave new agents isolated. A good combination of experienced agents and new agents can give you the best of both worlds but again, ask about the culture and see if it fits into your work ethic.

#17. What is the broker’s reputation?

Of course, the broker themselves is probably not going to be honest in this realm but asking agents in the office about the broker’s reputation and what they’ve heard in the industry can really give you a sense of what people think about the broker and the brokerage.

#18. What is the turnover?

If agents are constantly coming and going, there’s probably a reason. If the brokerage has seasoned agents that have been there for years, chances are that’s good news for your future.

#19. How are successful agents recognized?

If you’re out there all by yourself but succeeding, you probably want to be acknowledged for it. Top agents in eXp Realty and incentives so top earners and successful agents are rewarded, which incentivize all new agents to continue up the ladder.

#20. Are there any long-term benefits?

This might be in the form of stock options, investment opportunities, and other agents underneath you. If this appeals to you, this might be the right brokerage.

Remember, you can always move brokerages, but I hope these 20 questions have given you a good direction on finding the perfect brokerage in which to hang your real estate license. If eXp Realty seems like a good fit, give me a call. Let’s talk through these questions and find out if your next brokerage is right around the corner.

More Advice for Agents:

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How to Increase Your Real Estate Salary

What You Need to Know as an eXp Agent

Is Ownerly a Good Valuation Tool?

eXp Realty Stock 101: What you need to know as an agent

Contact Me At Any Time for More Information on Brokerages and Real Estate Agency

Do Google Ads Work for Real Estate Agents?