Why Is It Crucial to Master Your Facebook Advertising Technique?

Cameron Real Estate Group Careers Podcast with Tom Cafarella

If you can utilize Facebook as a buyer lead source and marketing platform, your average cost per lead will be super low and your ability to convert will be super high.

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As an agent, you need to take advantage of Facebook as the top lead generation source and marketing platform in our industry.

Whether you like Facebook or not, us real estate agents need to capitalize on where our buyers’ eyes are, and buyers today look at Facebook six to eight times per day on average. This makes Facebook an incredible opportunity to generate leads.

Facebook is like no other advertising platform we’ve ever had because it knows more information about us than anywhere else. Think about it—it knows how old we are, what we do for a living, what we like, and what we don’t like. In addition to knowing what we like, they also do something called “data appends.” This means they take the information they gather from us and match it with other data sources to find out more information about you, like whether you’re a homeowner or you’re looking to buy a house.

The reason Facebook is so useful is that, unlike other marketing platforms of the past where we had to pay to get in front of people we didn’t even want to get in front of, it allows us to specify the type of person we want to put our advertisement in front of. If we run a TV advertisement for buyers, for example, we’ll only end up putting our advertisement in front of people who already own homes. Through Facebook, we’ll only put our advertisements in front of people who don’t own homes.

The other cool thing about Facebook advertisements is you can get even more specific with the needs, likes, and interests of the particular person you’re putting your advertisement in front of. You can craft an advertisement that seems like it’s talking directly to that person. That’s how you want your Facebook advertisements to look, and that’s how you get the biggest ROI from them.

You need to take advantage of Facebook right now.

Your average cost per lead will also decrease significantly if you learn how to run advertisements on Facebook. There are a couple of things that are really important to know to make sure your costs per lead are lower because the way Facebook works when you’re spending money on advertisements is different than other platforms.

For example, with Google pay-per-click advertisements, if you type in “homes for sale in Redding, Massachusetts,” each person who shows up who’s advertising with Google will pay a certain amount per click. Every single person who clicks on that ad will end up charging the advertiser. On platforms like that, advertisers end up bidding against each other. I might be willing to pay $2 for every person who clicks on my advertisement for homes in Redding, but somebody else might outbid me and pay $2.25. In that case, their advertisements will show up before mine.

Facebook is different because it doesn’t serve advertisements to people who don’t want to see them. If you put up an advertisement that someone doesn’t like and it shows up in their newsfeed, they have the ability to hide all future advertisements from you. No matter what you do, Facebook will respect their decision because the last thing they want is that person getting so annoyed with being bombarded by irrelevant advertisements that they stop using Facebook altogether. In that scenario, they’ll no longer be able to charge advertisements to show up in that person’s newsfeed.

That’s why they want to make the advertisements that show up on people’s newsfeeds as relevant as possible, and that’s why you need to continuously test and refine the advertisements you run. You have to run different pictures and different ad copy. Facebook will actually give you what they call a “relevancy score” on a scale of one to 10. Based on that relevancy score, they’ll determine what your average cost per lead is. If people keep hiding your advertisements because they’re either annoying or irrelevant, they’ll give you a score of one or two. If people continuously like and share your advertisements, they’ll give you a score of nine or 10. The difference between those two scores can mean a great deal in terms of your average cost per lead.

Once you have everything set up right on Facebook, you can decrease your average cost per lead by as low as $1 or $2 per buyer. That’s practically nothing compared to the money we can earn with every commission we make.

So again, avoid putting advertisements in people’s feeds that they don’t want to see. That’s where most agents fail when trying to utilize Facebook. Once their relevancy score goes down, their average cost per lead goes up. After a certain point, that’s not profitable.

It’s definitely a process to hone your Facebook advertising skills, but it’s well worth it. We generate over 1,000 buyer leads each month for our own brokerage through Facebook.

If you want to learn more about how we use Facebook to generate our leads or you’re interested in working with us, visit www.workingwithinvestors.com and enter your name and email into our landing page.