This article was written by our expert who is surveying the industry and constantly updating the business plan for a real estate agency.
In October 2025, a real estate agency should treat marketing as a precise investment, not an expense.
Your budget must be tied to your gross commission income (GCI), your market competitiveness, and your growth goals.
Use the quantitative benchmarks below to set a clear annual budget, split it across digital and traditional channels, and track ROI each month.
If you want to dig deeper and learn more, you can download our business plan for a real estate agency. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our real estate agency financial forecast.
Most established real estate agencies allocate 7%–10% of GCI to marketing, rising to 15%–20% for aggressive growth or highly competitive markets and dropping to 3%–5% for boutique, low-volume operations.
Within that budget, 50%–70% typically goes to digital, 20%–40% to traditional, 10%–20% to visual content, and 15%–25% to retention and referrals—with paid ads split mainly between Google and Meta, plus a testing share for TikTok.
| Decision Area | Benchmark / Range | Practical Guidance for a Real Estate Agency |
|---|---|---|
| Total Marketing vs. GCI | 7%–10% (standard) | Use 7% if stable and profitable; move toward 10% if you need more pipeline and brand lift. |
| High-Competition / Growth | 15%–20% | Adopt for market share gains, new office openings, or new agent recruitment ramp-ups. |
| Boutique / Low-Volume | 3%–5% | Leverage organic, referrals, and hyper-local plays; keep paid spend focused on proven funnels. |
| Digital vs. Traditional | 50%–70% vs. 20%–40% | Prioritize PPC, SEO, content, and social; retain selective print/direct mail and local events. |
| Lead Gen vs. Brand (of Digital) | 40%–60% vs. 20%–40% | Skew to lead gen when you need immediate deals; increase brand when building a new market. |
| Visual Content | 10%–20% of total | Fund pro photography, video tours, 3D/VR—critical for listing velocity and premium perception. |
| Retention & Referrals | 15%–25% of total | Automate past-client touches, reviews, events, and referral incentives; it lowers CAC over time. |
How much revenue should a real estate agency allocate to marketing each year?
Plan between 7% and 10% of your annual GCI for marketing in a typical real estate agency.
Use 7% when your pipeline is steady and your brand already converts at above-average rates; lean toward 10% if you need faster listing intake and more buyer leads.
Increase the figure up to 15%–20% in highly competitive cities, during expansion, or when launching a new office; reduce toward 3%–5% for boutique, low-volume agencies that rely on referrals.
Anchor the budget to conservative GCI projections and pace spend monthly against targets to avoid overruns.
Document assumptions and revisit quarterly with performance data.
What percentage of GCI do top-performing real estate agencies spend on marketing?
Top performers typically invest 10%–15% of GCI, and some push to 20% during aggressive growth.
They maintain disciplined channel-level ROI tracking and reallocate budget quickly toward the best converting campaigns.
They also over-invest in visual assets and reputation (reviews and PR) because those improve conversion across every funnel step.
Expect a higher budget share for digital acquisition, CRM, and analytics to sustain scale without losing efficiency.
Tie leadership bonuses to ROMI targets to keep the standard high.
How should a real estate agency adjust its marketing budget by size and transaction volume?
Match your percentage to the leverage of your transaction volume and the maturity of your brand.
Larger agencies with many closings can run a lower percentage (3%–7%) due to economies of scale; smaller or growth-mode teams should plan 10%–20%.
New markets, new recruits, or a weak organic base all justify a temporary uplift to accelerate brand lift and listing supply.
Track CAC and payback by office/team to decide where to add or cut spend.
Keep a 5% contingency to cover seasonal spikes or strategic tests.
What share should go to digital versus traditional marketing?
Allocate 50%–70% of the total to digital and 20%–40% to traditional for a real estate agency.
Digital gives better targeting, faster feedback loops, and clearer attribution; traditional still works for hyper-local presence and certain demographics.
Within digital, protect budgets for SEO, content, and paid media; within traditional, prioritize direct mail that ties to trackable landing pages.
Rebalance monthly based on lead quality, not only lead volume.
Phase out low-response print unless it drives measurable listing appointments.
How to split spend between lead generation tools and brand awareness?
Dedicate 40%–60% of your digital budget to direct lead generation and 20%–40% to brand-building.
Increase the lead-gen share when your pipeline is thin or your payback is under 90 days; raise brand share to solidify pricing power and long-term inbound.
Lead gen includes PPC, portals, lead forms, and conversion tools; brand includes content, reviews, PR, video, and social presence.
Use assisted-conversion analysis to avoid underfunding brand activities that lift all channels.
Set guardrails: no channel keeps budget unless it beats your CAC ceiling for two consecutive months.
What are the average costs to acquire a qualified real estate lead?
- Paid qualified lead (2025 typical): roughly $400–$500 per qualified lead depending on market and channel quality.
- High-quality exclusive lead: often $100–$200+ per lead when tightly targeted and pre-screened.
- Broad, lower-quality inquiries: $20–$60 per raw lead; expect lower conversion to appointments.
- Organic lead (SEO/content/referrals): acquisition cost declines over time; plan initial investment then a structurally low marginal CPL.
- Always distinguish raw leads from qualified (appointment-set) leads when comparing CPL and CAC.
How much should a real estate agency invest in website, SEO, and social media?
Allocate 10%–20% of the total marketing budget to your online presence.
Fund a fast IDX-enabled website, technical SEO, local SEO, and ongoing content that targets seller intent keywords in your city.
Add social media management to maintain consistent posting, community engagement, and review generation; this supports both brand and conversion.
Budget separately for one-time rebuilds or migrations so BAU performance spending stays predictable.
Track organic sessions, rankings for “sell my house in [city]”, and form-fill-to-appointment rate monthly.
You’ll find detailed market insights in our real estate agency business plan, updated every quarter.
How should paid ads be distributed across Google, Facebook/Instagram, and TikTok?
Use a simple split to start, then optimize by CAC and payback: Google 25%–35%, Facebook/Instagram 30%–40%, TikTok 10%–15%.
Google captures high-intent searches for sellers and buyers; Meta excels at retargeting and local farming; TikTok builds reach and tests new creative angles.
Keep 10%–15% of paid budget for testing new audiences, creatives, and betas; promote winners into the core mix within two cycles.
Run geo-targeting down to ZIP/postcode, attach all ads to trackable landing pages, and enforce call tracking.
Pause any ad set that misses your CAC ceiling for two reporting periods in a row.
What budget should be reserved for video, virtual tours, and professional photography?
Dedicate 10%–20% of the total marketing budget to visual content in a real estate agency.
Use professional photography for every listing, add video walk-throughs for mid/high-ticket properties, and deploy 3D/virtual tours to widen buyer pools.
Typical 2025 costs: photography $100–$400 per listing, video $150–$1,500 per listing, 3D tours $180–$500 per listing; negotiate volume packages with vendors.
Maintain brand standards for lighting, framing, and editing so visual quality is consistent across agents.
Track DOM and price-to-list ratios by asset type to prove ROI and justify upgrades.
This is one of the strategies explained in our real estate agency business plan.
How much should go to client retention and referral programs versus new acquisition?
Invest 15%–25% of the total marketing budget in retention and referrals; keep 75%–85% on new acquisition.
Past clients and their networks convert faster and at lower cost; formalize quarterly touches, anniversary gifts, and homeowner tips to stay top of mind.
Build referral incentives that comply with local regulations and ensure every closed client is enrolled in an automated 12-month nurture sequence.
Measure referral rate, review volume, and repeat business share by agent and by office.
Shift 2–3 points of budget from acquisition to retention when your referral rate is rising and CAC is falling.
We cover this exact topic in the real estate agency business plan.
What portion of the budget should go to local events, sponsorships, and networking?
Allocate 5%–15% of the total marketing budget to community presence for a real estate agency.
Prioritize neighborhood events, homeowner seminars, and strategic sponsorships that put your brand in front of sellers.
Pair each activity with lead capture (QR to landing page, RSVP forms) and follow-up automations so it drives listings, not just awareness.
Track cost per appointment and listing intake from each community initiative to refine next season’s calendar.
Reduce spend on untracked sponsorships even if they feel “prestigious.”
How should a real estate agency measure ROMI to validate spend levels?
- Define CAC ceilings and payback targets (e.g., CAC ≤ 15% of average gross commission; payback ≤ 120 days).
- Attribute revenue to channels using first-touch + last-touch with assisted conversions monitored monthly.
- Track funnel metrics: lead → appointment → listing agreement → closed transaction by channel.
- Use the ROMI formula: (Attributed Revenue − Marketing Investment) ÷ Marketing Investment, reported monthly.
- Reallocate 10%–20% of budget each month from underperformers to proven winners; run structured tests with a fixed horizon.
It’s a key part of what we outline in the real estate agency business plan.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Want to go further?
Explore related guides that quantify profitability, margins, and commission dynamics for real estate brokerages.
Sources
- Realtor.com – How to create your marketing budget
- IndoorMedia – Real estate agent marketing spend
- Sierra Interactive – Real estate marketing budget
- WebFX – Realtor marketing budget
- CallingAgency – Cost of real estate leads
- AmpiFire – Average real estate CPL (2025)
- Momentum Virtual Tours – Videography pricing
- NAR Magazine – Create a virtual tour
- Nielsen (2025) – Splitting media budgets
- Primal – Real estate marketing in APAC
