The final pieces of the puzzle

The pillars of an agent’s business plan will be their budget, market analysis and goals. Each is crucial for building a successful career and sustainable real estate business. However, there are still two important budget items to consider: marketing and reinvestment.

Those items stand apart because the amount of money an agent will devote to them will vary. They also encompass a wide range of individual expenses.

Marketing costs

“Whatever marketing budget an agent chooses to set for themselves is very much a personal decision, one dependent on a variety of factors that will be somewhat unique to that agent,” Engel says. “Some agents come in with wealthy spouses, and money is not much of an issue. Others need a paycheck in two weeks. Both have different motivations to earn.”

Engel does implore agents to, at the very least, use free social media tools available to them and leverage their personal contacts to build a client base.

Hajdu believes in the power of marketing, but acknowledges the hesitation in throwing too much money at it early on. When writing marketing expenses into her budget, she has a method that starts with testing, evaluation and then more widespread implementation of what works.

“I need to determine the effective elements of a marketing campaign, and then further determine the necessary quantity, costs and frequency,” she says. “By looking at the number of leads and appointments I was getting from each source, and then the conversation rate of those leads, I was better able to determine the marketing strategies that were giving me the monthly results I needed to achieve my year-end goals.”

Hajdu acknowledges that every brokerage is different, and while some leave it to their agents to tackle the marketing side of the business, others will offer marketing support for listings. No matter the budget, agents can only know if their marketing is effective – and therefore worth the expense – if they consistently evaluate the results of their campaigns.

Reinvesting in the business
“Ultimately, building a successful business will depend on an agent’s reinvestment in themselves,” Engel says, adding that, as with marketing, the amount allocated to reinvestment can only be determined by the agent. “My needs at home are going to be different from yours. My desire with what I want to do in the business is different from yours. Much of what should be reinvested is figured out when the individual agent sits and decides to make a plan.”

This step is so crucial, Engel suggests, because in order for a business to adequately scale, reinvestment is necessary. Eighteen percent of Realtors have at least one personal assistant, according to NAR, and the decision to bring on support staff is a classic example of reinvestment in one’s business. Education costs and new technologies are also examples of reinvestment.

Hajdu has invested a considerable amount in her own business, using the money to acquire new designations and a coach who helps her hone her techniques and strategies. “I want to be at the top of my game,” she says.