Most agents are hardwired to look for the lowest cost-per-lead possible. However, I am going to tell you that you should actually overpay for your marketing and advertising. This is Team Growth Principle number 19, and while it sounds counterintuitive, it is the secret to achieving high-ROI real estate advertising and dominating your local marketplace.
The Myth of the “Cheap” Billboard
Around 2015, I decided to test the billboard space. Specifically, I had a choice between two premium billboards or six “value” billboards at a lower cost. I chose the six cheaper boards, thinking that more coverage was better. Consequently, I spent $36,000 over 12 months and received exactly one phone call. The ROI was a disaster.
Fast forward a few years, and a premium billboard—the one every single person passes when entering or exiting town—became available for the first time in 26 years. Even though it cost the same as all six of my previous boards combined, I pulled the trigger. As a result, our brand awareness skyrocketed. Because we held the best position, every other marketing effort we did became more effective.
Positioning is Everything: The Radio Drive-Time Rule
This principle of high-ROI real estate advertising applies to every medium, including radio. Many people claim “radio doesn’t work,” but that is usually because they are buying cheap spots during the “graveyard shift” (6:00 PM to 6:00 AM).
If you buy 100 ads at midnight, you are wasting your budget. Instead, you should overpay for a single spot during “Drive Time” (6:00 AM to 9:00 AM). Specifically, when you own the top of the hour when people are in their cars, you create the illusion of omnipresence. People tell me, “Nick, you’re always on the radio!” In reality, I am only on the radio when they are listening. That is the power of premium positioning.
Stop Bidding for the Bottom
The same logic applies to Google, Facebook, and AI search results. If you constantly bid for the lowest cost, you will end up with low-quality traffic. Therefore, you must be willing to pay the premium for the top spot.
- Recognition: When they see your name on Google, they recognize it from that premium billboard.
- Trust: High-end positioning signals to the consumer that you are the market leader.
- Efficiency: One “expensive” lead from a premium source often converts better than fifty “cheap” leads from an inferior source.
In conclusion, high-ROI real estate advertising isn’t about spending the least; it’s about buying the best. By overpaying for the best-positioned assets in your town, you ensure that your brand is the first one people think of when they are ready to move. Stop looking for the bargain and start looking for the podium.