Why Direct Mail works and how Top Agents use content and strategy to amplify results

If you’re a real estate agent looking to generate more listings, dominate your geographic farm, and build long-term brand recognition, you’ve probably heard that consistency is key. But consistency in what?

The answer, backed by six major studies and more than three decades of industry experience, might surprise you: Direct Mail is still the most effective, highest-ROI marketing channel available to agents today.

At Discover Publications, we’ve worked with thousands of agents since 1993, some just getting started, some already in the top 1%. What do they all have in common? They use long-form, content-driven direct mail to get in front of homeowners again and again, and reap rewards that compound over time.

In this report we’ll explore the latest research about direct mail and share the strategies agents use today to get the best results.

Why Direct Mail Outperforms Every Other Channel, Even Now

1. Direct Mail Sticks in the Brain

A groundbreaking neuromarketing study by Temple University and the USPS found that print advertising triggers stronger emotional responses, better memory recall, and higher desirability than digital ads.

• Print ads were more likely to be remembered
• Participants could recall the brand faster and with more confidence
• The physical nature of mail triggered more emotional engagement and subconscious value for the product or service

In short: Homeowners remember you when they get your mail.

2. Digital Fatigue Is Making Mail More Powerful

Consumers are overwhelmed. Between emails, texts, retargeting ads, and social feeds, they’re tuning out. But they’re not tuning out their mailbox.

As Forbes reported in 2024:

Consumers are not overly saturated with direct mail but are highly overwhelmed by emails and social media ads… If we can get ahead of the direct mail revival, we can corner our markets.

Your inbox is cluttered. Your mailbox? Surprisingly open.

3. Mail Is the Only Way to Reach Every Home in Your Farm

No digital ad platform can reach every homeowner in your farm consistently. Only direct mail lets you blanket an entire route, build top-of-mind awareness, and own your neighborhood over time.

Better yet, they have to touch it. Even if it ends up in the recycling bin, there’s always a moment of interaction—and when that mail is well-designed, valuable, and consistent, it sticks.

4. The ROI Is Off the Charts

According to the 2024 ANA Marketing Response Rate Report, direct mail to a house list delivers a 161% average ROI—that’s:

• Nearly 4x the ROI of email
• 8x higher than social media ads
• Double the return of paid search

The 2025 Direct Mail Benchmark Report confirmed similar findings. Among 350 businesses surveyed, 87% said direct mail performed as well or better than any other channel in acquiring new customers and reactivating leads.

5. Younger Homeowners Actually Prefer It

It’s not just Boomers. According to USPS generational research:

• 93% of Millennials and 92% of Gen Z read direct mail from local businesses
• 73% of Gen Z say they’d be disappointed if they stopped receiving mail
• Millennials spend the most time engaging with physical mail—more than older generations

Want to connect with first-time sellers or move-up buyers? Mail might be your secret weapon.

6. Direct Mail Drives Real Action

In a 2024 study by Lob and CompereMedia:

• 64% of consumers said a piece of direct mail prompted them to visit a website or physical location
• 70% read their mail the same day
• 68% engage more with personalized, relevant mail

Even better? Consumers save helpful direct mail. The right message can stay on the kitchen counter for weeks—something fleeting digital messages can’t offer.

How Top Agents Use Direct Mail to Build a $50M, $75M, or $100M+ Business

1. They Stay Consistent

Whether monthly or every 6–8 weeks, top agents mail year-round. Not just when they have a new listing. Not just during the busy season. Consistency builds familiarity. And familiarity breeds trust.

2. They Show, They Don’t Just Tell

We call it “expertizating.” These agents use their mail to explain market conditions, educate homeowners, and offer real value—not just brag about past sales.

Their message is: “I’m not just a real estate agent—I’m your local market expert.”

3. They Make It Local and Relevant

Generic content gets tossed. But hyper-local stories, neighborhood stats, and relatable homeowner tips? That’s what people want to read—and it’s what gets remembered.

4. They Include Enticing Calls to Action

A strong direct mail piece doesn’t just sit pretty. It invites response. The best agents include:

• Free home value offers
• Seller guides
• QR codes or shortlinks
• Easy contact info
• Seasonal tips that tie into their services

5. They Connect Print to Digital

Mail isn’t isolated. It’s a gateway. Great agents repurpose their printed content on social media, link mail to their website or email funnels, and brand consistently across every touchpoint.

Print and digital aren’t rivals—they’re teammates.

What Kind of Mail Works Best?

Postcards work, but they’re just the start.

Use postcards for quick hits: Just Listed/Sold announcements, special events, or algorithm-driven targeting. But they don’t build trust on their own.

Long-form content builds relationships.

We produce custom, 12-page newspapers for agents, packed with content homeowners want to read. These tabloid-size publications:

• Stand out in the mailbox
• Stick around on kitchen counters
• Position you as the go-to expert

That’s why our clients stick with us for 5, 10, even 15 or more years and why they become the top agents in their farms over time.

Direct Mail Works When You Work It

If you’re serious about listings, market share, and long-term success, you can’t ignore the power of direct mail. Especially now.

The mailbox is primed, the science is clear, and the opportunity is huge.

Whether you’re breaking into a farm or ready to grow your brand, a consistent, content-driven direct mail strategy can set you apart—and keep you top-of-mind when your neighbors are ready to make a move.

Want to See How It Works?

• Schedule a strategy call with the team at Discover Publications
• See sample publications from agents just like you

Sources:

• Forbes (2024): The Direct Mail Revival
• Temple University & USPS Neuromarketing Study (2019)
• ANA Marketing Response Rate Report (2024) (summary)
• Franklin Madison Direct Mail Benchmark Report (2025)
• USPS Generational Mail Report (2020–21)
• Lob & CompereMedia: State of Direct Mail (2024)
• Quad Insights: Direct Marketing Revolution (2023)

Getting listings with direct mail is easier than many real estate agents think. Despite being one of the most traditional marketing techniques, is still a formidable weapon in a savvy realtor’s arsenal. In fact, direct mail consistently outperforms all digital marketing channels by nearly an astounding 600 percent, according to the Direct Marketing Association Response Rate Report published last year.

Of course, direct mail is only an effective strategy in the hands of an experienced realtor: when it comes to direct mail campaigns, quality content, consistency, and expert knowledge of the local community are what counts. Here are three keys to success for direct mail in real estate.

1. Content is Key to Getting Listings with Direct Mail

Research shows that direct mail is far more effective than other marketing tactics. According to the Data & Marketing Association, direct mail showed a response rate of 3.7 percent for house lists, while all digital channels combined yielded a response rate of only 0.62 percent. The reason for this success could be that digital technology has reduced the amount of marketing materials that find their way into people’s mailboxes; as a result, marketers that still use direct mail are seeing more bang for their buck.

Crafting Engaging Direct Mail Strategies for Local Markets

That said, delivering nothing but “I Just Sold This” postcards or irrelevant newsletters will reflect poorly on your service. Getting listings with direct mail is about first leveraging the power of direct mail to showcase your expertise. Content must be engaging and relevant, addressing the needs and desires of the local market: for example, few people in considering listing their Allentown, Pennsylvania home care to read about how a a quarter point rate hike affects the national housing market. Non-promotional content that educates and informs can be appealing if it affects the reader at the local level. The best choices for delivering a good amount of quality content are newsletters, publications, or magazines with at least four pages.

People want to know if the real estate market in their area is on the cusp of an upward trend, or if there’s an influx of families because of new construction.

Community Insights: Elevating Your Real Estate Brand through Direct Mail

When you mail to your neighborhood, you are intending to brand yourself as a real estate expert – so the focus of your content should speak to your real estate expertise. But a good direct mail newsletter or publication should also contain articles about the community in general – such as an event or small business spotlight. Local, relevant stories are crucial if direct mail is to have an impact: if your content is intriguing and pertinent to your customers, they may even start to depend on your mailing for local insights, looking forward to its arrival in their mailbox.

Emotion plays an enormous role in decision making, even when it comes to significant decisions like buying or selling a home. For instance, the Harvard Business Review described a credit card launched by a major bank which was artistically designed to establish an emotional connection with millennials; the bank found that millennial customers for the “emotional” card increased by 70 percent, with 40 percent growth in new accounts.

In real estate, if you share dry statistics or paraphrase a Federal Reserve meeting, you won’t make a connection. Instead, tell them that three houses in their area have sold at record prices and you’ll get them excited to learn more. This is content designed to provoke an action, and it can make all the difference in your direct mail campaign. The more effectively you can engage your readers emotionally, the more likely they are to engage with you in return, establishing brand loyalty.

2. Getting Listings with Direct Mail Required Consistency

As a real estate agent, you need to be consistent when it comes to getting listings with direct mail marketing. If you’ve delivered quality content, your readers will be anticipating your next publication — particularly if they’re thinking about selling their home. If you’re inconsistent with either the timing of delivery or the quality of your publication or newsletter, you’ll imply a lack of commitment and reliability, which is bad for business; in short, your reputation will be tarnished. Set high standards and strict delivery schedules and stick to them.

Mailing publications or newsletters every month or quarter in tandem with postcards is another critical factor in direct mail success. Postcards can effectively reinforce your messaging and can be used between newsletters. Gary Keller of Keller Williams Realty recommends that agents should mail a newsletter or other publication at least quarterly; many top producing agents like Dale Ross mail publications monthly. During the other four to eight months, mail your readers postcards, flyers, or letters to keep in touch.

3. Trusted Experts are Getting Listings with Direct Mail

Customized publications and newsletters are mainstays of direct mail, and mailing professionally designed postcards which match your publication and website branding is important if you do not intend to publish content-driven mail each month. But the goal of direct mail campaigns should ultimately be to position yourself, the agent, as an undisputed expert.

Geographic farming used to mean just direct mail and in-person prospecting, but now it refers to all your channels within a specific territory. The idea is that your marketing efforts, such as direct mail, email, and Facebook targeting, connect the agent with specific homeowners on a regular basis and establish you as the go-to local agent. By tending to your “farm,” your business will reap the rewards of customer and brand loyalty. Remember that it often takes seven or more “touches” (that is, contacts with a potential customer) before a prospective seller reaches out — and in real estate, it can take even longer, because people only sell their homes every few years.

Agents should choose their farming tactics strategically, making sure that their mailings and messages don’t come across as purely marketing pitches.

Quality content that’s educational, informative, and timely will project professionalism and success. And when it’s time for a seller to list their home, what real estate agent will immediately come to mind? The one who has sent regular, engaging publications with consistent and insightful information! The same agent who, by the way, is actively involved in community events and has also been engaging with them through email and social media (where possible). Direct mail is a powerful channel – perhaps the most powerful these days. But in 2017 it is only effective as part of a multi-channel marketing system, one which includes a lead-capture website, social media, blogging, email marketing, and good old-fashioned prospecting.

Do “Predictive Analytics” Improve Direct Mail Results?

Some agents are experimenting with “predictive analytics,” or geo-targeting, programs for direct mail. These predictive analytics solutions automatically send unsolicited emails and postcards to homes, leveraging data to predict their likelihood of being listed for sale. Many times, the “prediction” is not actually accurate, the homeowner has no plans to sell.

1. Challenges with Ultra-Targeted Direct Mail:

   • Addressing the potential drawbacks of waiting until a seller is close to listing, potentially missing crucial touchpoints.
   • Highlighting instances of inaccurate predictions, leading to wasted efforts and ineffective outreach.

2. Consumer Perception and Trust:

   • Exploring how recipients may perceive ultra-targeted direct mail, potentially viewing it as frivolous or disingenuous.
   • Emphasizing the importance of establishing trust with prospective sellers, regardless of their immediate selling plans.

3. The Role of Consistent Content in Building Trust:

   • Discussing the significance of consistent, high-quality content in establishing agent reliability and expertise.
   • Exploring how prospective sellers are more likely to choose agents who consistently deliver valuable content, even if they are years away from selling.

Getting Listings with Direct Mail: The Bottom Line

In 2024, real estate agents are indeed getting listings from direct mail – when it’s done right. To build a reputation in your community as THE real estate expert, content and consistency are key. Integrate an aggressive, content-driven direct mail farming strategy with your multi-channel marketing, and stick to it month after month. You will soon be getting all the listings your direct-mail-resistant real estate counterparts are leaving on the table.

As an agent, you’ll constantly find yourself at the negotiating table, fighting for the best deal for your clients. Whether you’re going back-and-forth with a stubborn seller or trying to land that perfect property for your buyers, your ability to negotiate effectively is what separates the wheat from the chaff. In 2024, with market dynamics constantly shifting, mastering real estate negotiation strategies will be an absolute necessity.

Top agents know that negotiation goes way beyond just hammering out prices. It’s about finding creative solutions that work for everyone involved, building trust, and ultimately walking away with wins that keep clients coming back for more. So if you want to stay ahead of the game and elevate your real estate hustle, you need to be a negotiation ninja armed with the best real estate negotiation strategies for 2024. In this guide, we’ll dive into five battle-tested strategies to level up your negotiation prowess and start landing more deals.

1. Understand the Market

Stay updated with the latest market trends and understand the factors that influence property prices in your area. For example, if you’re working in a seller’s market where demand is high and inventory is low, you might need to advise your buyer clients to make more competitive offers.

Actionable Step: Subscribe to real estate newsletters, attend local real estate investor meetings, and use online resources like Zillow or Redfin to stay informed about your local market. Additionally, consider joining a professional organization like the National Association of Realtors (NAR), which provides valuable market insights and resources for its members.

2. Know Your Client

Understand your client’s needs, motivations, and limitations. For instance, if your client is a young family looking to buy their first home, they might prioritize safety, good schools, and proximity to parks and recreational areas.

Actionable Step: Streamline your client intake process by delving into their lifestyle, requirements, and future aspirations. Employ a comprehensive tool such as a client needs assessment form to gather pertinent details, ensuring a profound grasp of their priorities. Access a list of helpful questions tailored for this purpose by downloading it here.

3. Be Prepared

Do your homework before entering negotiations. This includes knowing the property’s details, understanding comparable sales, and being aware of the seller’s situation. For example, if the seller needs to move quickly, they may be willing to negotiate on price.

Actionable Step: Use tools like the Multiple Listing Service (MLS) to research comparable sales and gather information about the property and the seller. Additionally, consider utilizing a real estate data and analytics platform like Remine, which can provide detailed property insights and market trends.

4. Stay Calm and Patient

Negotiations can be stressful. It’s important to stay calm, patient, and focused. Remember, the goal is a win-win situation for all parties involved.

Actionable Step: Practice stress management techniques like deep breathing or mindfulness meditation. These can help you stay calm and focused during negotiations. You could also consider taking a negotiation course or workshop offered by organizations like NAR or your local real estate association.

5. Practice Active Listening

Listen carefully to the other party’s concerns and objections. This can help you address them effectively and move the negotiation forward. For example, if a buyer is concerned about a home’s old roof, you could negotiate a lower price or ask the seller to replace the roof before closing.

Actionable Step: During conversations, repeat back or paraphrase what the other party has said to ensure you’ve understood correctly. This not only shows that you’re listening but also gives them a chance to clarify if necessary. Consider role-playing with colleagues or attending negotiation workshops to improve your active listening skills.

Example: One effective way to practice active listening is to use the “mirroring” technique. For instance, if a buyer says, “I’m worried about the age of the HVAC system,” you could respond with, “I understand your concern about the HVAC system being older. Let’s discuss some options to address that.” This shows you’re listening and open to finding a solution.

Remember, mastering negotiation is a journey. With patience, practice, and continuous learning, you can become a more effective negotiator with these Real Estate Negotiation Strategies and close deals more efficiently and profitably.

In the dynamic world of real estate marketing, the potency of direct mail as a strategy might surprise those heavily invested in digital platforms. However, its effectiveness remains unquestionable. According to The Data & Marketing Association’s 2023 Report, direct mail boasts an average response rate of 2.7% – 4.4%, far surpassing the mere 0.12% for email and 0.08% for social media. Moreover, direct mail maintains an average conversion rate of 14%, compared to a mere 1.9% for email.

Read our Report:

The Awesome Power of Great Direct Mail

With decades of experience in real estate marketing, we’ve witnessed firsthand the enduring impact of direct mail. Our report serves as a testament to its potency, offering invaluable insights to elevate your marketing strategy and drive tangible results.

Real estate closing gifts are not a new phenomenon, but sometimes real estate agents aren’t sure what to give. Let’s face it, our clients are all our businesses really have. Showing appreciation is not just polite but critical for keeping and building upon those relationships. Over the years we’ve learned a lot from our many friends in Real Estate, most of whom have built hugely successful practices, and we’d like to pass that wisdom along. Below are some important guidelines and some great ideas for your next closing gift.

How Much To Spend:

We suggest you spend between $40 and $100 on closing gifts. Spend more for big, complicated sales and less for smaller and simpler sales. When my husband and I sold one of our houses over the summer our Realtor gave us a simple, inexpensive, but very thoughtful gift. Our family has worked with this agent for over 20 years and probably bought and sold 20 houses with her. This particular sale was small, simple, and very fast so a small thoughtful closing gift was perfect. She hand-wrote a thank-you note with a $25 pizza gift card and also brought us a soft cooler full of water bottles. Every time we take the cooler to one of our daughter’s swim meets we think of our agent and how she even kept in mind the season when showing us her appreciation. It was a small token but had a big impact – nothing more was necessary.

However, if spending more is in your budget or fits your market better, go for it. We know an agent who spends $100 every time on fancy closing gift baskets and another one who always mails a $50 restaurant gift card and a bouquet of flowers. Both agents do this consistently regardless of the size of the sale. We also know an agent in the luxury market who will take the homeowners (or sellers) out for an expensive dinner to celebrate. Each sale brings in quite a bit of commission, so spending a few hundred dollars and a few hours of his extremely precious time makes sense. Most of the time we see agents spending more money on larger sales or sales that took longer or had more set backs. Whatever you do, don’t go too cheap, especially if the closing gift is generic. Generic gifts are easier to forgive if they’re pricier.

What to Give:

Buying a home, either for the first or umpteenth time, is a deeply personal task for anyone. Be sure that your closing gifts represent not only your personal relationship with your client, but also represent how building a personal relationship with your clients is something you always do. The gift should provide your client with a lasting impression of how much importance you place on your client relationships. Because your clients are your best source of new business, your closing gifts should say: “I know you, I care about you, and I’ll get to know and care about your friends and family just as much.”

Be Genuine and Thoughtful. This one is crucial, and happens long before closing. After all the time you’ve spent with your buyers or sellers, you probably know a lot about them. If they don’t volunteer personal information early on, be sure to ask. Ask about their kids and how they spend their weekends. Are they the indulgent type, or more practical? Religious? Artistic? Are they into wine, coffee, beer, sports? Are they gaga over their pet, or perhaps expecting a new baby? Tailor closing gifts to your client’s personality, stage of life, and preferences. For example, my husband and I are practical people with a bunch of kids, so pizza and a soft cooler resonated. My single, fun-loving sister, however, received gourmet coffee, a funny mug, and an Amazon gift card when she bought her first home, which was perfect. 

If you have a good sense for your client’s personality, here are some creative ideas:

Young families:

Think about closing gifts that will become part of the household, so you are thought about often, or things that make the hectic business of raising kids a little easier. You could also go the kid angle; parents are really moved when someone goes out of their way to make their kids happy.

1. Game Night basket; this is a great idea that we stole from an agent we know. You’ll have to put it together yourself because I’m not aware of a retailer who offers this. Load up a big basket with board games, Pringles, a sixer of IBC, and a gift card for pizza delivery.
2. Movie Night basket; this you might actually find online. A few family-friendly DVDs, a bucket of popcorn, and few movie-theater candy boxes.
3. Personalized Door Hangers; get Mom and Dad and each kid a personalized nameplate to put on the door to their room. This can be a nice-looking sign or a doorknob hanger they can flip to “Do Not Disturb.” You can wrap them in a gift box and present them with a nice housewarming bouquet.
4. Holiday ornaments; select a special ornament for each family member and wrap in a beautiful box. This gift will make a very sweet impression, and perfect if your client is the sentimental type.

Obsessed-with-the-pet People:

The fastest way into the heart of people who treat their pets like their children is through… their pets. Pet-related gifts should always be given with something else, like flowers or a restaurant gift card. Write in the Thank-You card how you wanted to get a little something for Fluffy because you know this will be a big adjustment for him.

1. A box of gourmet dog treats; some specialty pet stores or online retailers sell cute treats that look so good you’d want to eat it yourself
2. A personalized nameplate they can put on a doghouse, if they have one
3. A dog or cat bed monogrammed with the pet’s name; this is especially appropriate since they are moving into a new home, and the pet will have their own special place

Expectant parents:

If clients have their first baby on the way, this is a great opportunity to personalize your closing gift. Soon-to-be new parents are usually pretty over the moon about their little one, so anything baby related will be a hit. But like with pets, be sure to also give something for the parents or household, even it it’s just flowers. Warning: stay away from baby gifts for clients expecting babies number 3 or 4; for these parents, think of gifts that will help them to relax and unwind.

1. Monogrammed baby blanket; before selecting, be sure to ask about the nursery colors and try to find one with a “Home Sweet Home” or “Welcome Home” theme to tie it back to their new house.
2. Growth Chart; look online or at Babies R Us for a wall-mounted cloth that records the child’s height over the years. There are some you can stick photos in, and you may be able to have it monogrammed too.
3. Don’t get: baby clothes. They will never remember who gave them what outfit because they’ll receive so many, and the baby will outgrow the clothes in about five minutes.

Empty-nesters:

If you’re helping an older client whose children grew up long ago or a couple whose last child recently moved out, sentiment and thoughtfulness are probably more important than practicality. Think of gifts that remind your client of the important things in life, or helps a couple reconnect after years of rearing children.

1. Romantic evening out; give them a gift card to a nice restaurant with a heartfelt letter expressing how much you hope they enjoy this next chapter of their life together. For the right couple, something fun like a ballroom dancing lesson or couples massage might be appropriate.
2. Gardening gift basket; assuming they like gardening, fill a basket with seeds, a colorful book on gardening tips, tools, gloves, and maybe a watering can or lawn ornament. This is doubly appropriate since it relates to homeownership.
3. Personalized mantelpiece with a family portrait and picture of the new home; this may be tricky because you need to stealthily get a family portrait. You may find one on your client’s Facebook page, if they have one and shared it with you, or you may need to ask. Simply tell them you’d like to frame a family photo for their new home. You can do a side-by-side of the new house and the family, or have a picture of the old house with the dates they lived in it, the family in the middle, and then the new house with the move in date inscribed below.

Compassionate bleeding hearts:

People who live to make a difference are often turned off by flashy presents and sometimes even feel guilty accepting them. You can spot these types by their modest home decor, church involvement, and how often they talk about others.

1. Donate to a charity in their name; we got this idea from an agent in Ohio and she says her clients are usually very touched by this. Make sure the charitable cause is something they believe in – or, better yet, a charity or church they are already involved in. Make sure they have a plaque or another physical item to commemorate the donation, and we recommend you also give them a small gift.
2. “Adopt” a family (or child) in their name; be sure to get a photo of the family or child being helped, and also make sure they know how much money or what items were given to them on their behalf.

If you really don’t have a sense for the client’s personality, here are our favorite standbys:

1. Welcome mat; this can be customized with the family’s last name
2. Treat basket; everyone loves a basket of goodies and there are thousands of retailers out there putting together great baskets. Warning: be sure you know about any food allergies, or if your client is vegetarian or vegan, a super health nut, or avoids gluten. If you’re including alcohol or coffee, be sure to first ask if your client partakes.
3. Restaurant gift card; all you have to do is ask where they like to eat. You should always accompany a gift card with something tangible, like flowers or a box of cookies.
4. Edible Arrangements. Yum! Fork over some extra cash to get them one with lots of chocolate-covered pieces.

A Final Caution:

 Now that you know what to give, here are a few “Definitely Don’t” gift ideas:

1. Cheap branded stuff. You know what I mean. It’s fine if you want to give them a refrigerator magnet or a $2.00 calendar with your face all over it, but stick stuff like that in with the closing documents and also give a real gift.
2. Nothing. Bad bad bad. You must give a closing gift.
3. Babies. They are cute, but not practical. Plus, I think it’s illegal.

We hope you’ve found this useful! Please share your thoughts and what gifts you give.

How Real Estate Agents should measure Marketing ROI: the Right Way and the Well Intentioned Way

As Agents work to pivot and re-group, we’re seeing an influx of new agents and a resurgence of effort from existing agents. With so many realtors in the game, carefully selected marketing has become a key differentiator of the best agents. And when it comes to marketing, there have never been so many choices… so knowing what works for you in your market has never been so important.

So let’s talk marketing ROI, and why we should be a little more careful in how we analyze it.

ROI is just “return on investment.” In the real estate business, this usually refers to the amount gross profit off of marketing-generated leads (less marketing expenses) as a percentage of marketing dollars spent in the same time period. That’s:

But beware!

Oftentimes it is this very equation that causes an agent to abort good efforts in the name of “business sense.” Why? Two reasons: first, a marketing effort by itself might not work. Your marketing plan should be a concert of several different channels playing in harmony with each other, delivering a consistent, top-notch message; and second, marketing programs often need a year or more to truly build traction, especially for agents with less than 5% market share. The standard marketing ROI equation ignores these truths.

So, we’d like to offer a slightly modified ROI equation with the big caveat of be prepared to wait. For this equation, we let the marketing do its magic, then we calculate.

First, let’s define the pieces of the puzzle:

• Average customer commission. This is how much commission you earned in total last year divided by the number of sides you completed.
• Lead conversion rate. This is the percentage of leads that become customers. Do you track this? If not, take an educated guess.
• Marketing cost. This is the total cost of the marketing program you are honing into. This can be actual or anticipated and must span a specific time period. Include a percentage of staff time dedicated to helping with this type of marketing.
• Leads generated. How many leads did you receive from the marketing program you are honing into? This must be measured over the same time period as your marketing costs.

Next, you’ll want to determine your Time to Break-Even. Because so much of your marketing is intended to communicate what you’re already doing, the more active you are now, the quicker you will get results from new marketing efforts. So if this is a new plan, or one you are considering but have not yet tried, put a deadline on the break-even and discipline yourself to wait until that date before you decide to measure marketing ROI and being running calculations.

In general, your Time to Break-Even should be set based on what the industry declares, and then adjusted based your market share. It is simple to figure out your market-share:

If you’re unfamiliar with housing turnover, it is simply a measure of how often people in your target market move. If 100 homes sell in your neighborhood of 1000, your turnover rate is 10%, and there are 100 listing prospects in your area per year. Here is a great article from Joe Manusa on housing turnover.

A good baseline on any new channel, especially direct mail, is 1 year (if you are hitting your farm with quality mail at least once per month). If you have greater than 20% market share, you might expect results a little sooner, and if you have less than 5% market share, you might be waiting 2 or more years. You should also adjust your time to break-even according to the turnover in your area. If you’re marketing to 10,000 homes with a 5% turnover, you should expect to wait longer (paying more in marketing costs) than if you marketed to 5,000 homes with a 10% turnover.

Now that you have established your Time to Break-Even, here are two ways to look at your marketing efforts. The first is a way to see what the performance of efforts should look like after they have already broken even. The second is a way to “spit out” how many leads you need to generate from the marketing channel for it to pay for itself, so you can gauge how realistic the new method is. If you only need a few leads a year to make it break-even, you might adjust your Time to Break even.

Measure Marketing ROI after Break-even:

Number of Leads needed in 1 year to Break-Even:

We hope this helps as you forge ahead this year. Best of luck, and never hesitate to reach out to us here at Discover if you’d like feedback on any of your marketing decisions. Please click below to download a complimentary calculator.

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