Today I am going to share with you the real results of 2 Facebook ad campaigns we ran in December and January. Facebook ads seem to be a hot ticket for generating cheap leads. At least that’s what many gurus promise.
Honestly, I’ve been running FB ads on and off for the past 3 years, with mixed results. Most of the ads were for open houses. And I noticed that their cost has increased substantially in 2017. So, we decided to test new FB campaigns to generate both buyer and seller leads. Here’s how we did it and what we found.
The Buyer Leads Campaign
The objective is to get potential buyers to submit their name, email and phone number to see the interior pictures of one of our listings.
The FB ad shows a picture of the outside of a property. It announces a Hot Listing Alert and prompts the viewer to click a link to see inside pictures of the specific property.
Here’s a picture of the ad:
When a viewer clicks the link, they are forwarded to our IDX website. We are using a Chime as our web platform. When the viewer arrives at the landing page they are prompted to enter name and email (they may also use Facebook or Google+) to log in, before they can see the photos.
Click through rate: 8% of people who saw the ad clicked the link.
Cost per click: $0.61
Form completion rate: 4% of visitors completed the login form.
Cost per lead: $3.49
When a viewer clicks the link, they are forwarded to a landing page and asked to enter their address. After they enter their address, but before they see the home valuation, they need to submit their name, email and phone number. When the form is completed, they see an instant home value and comparable sales.
The landing page we’ve been using for the past 4 years is Home Value Leads, a very affordable service that computes surprisingly accurate home values.
Click through rate: 3.51% of viewers clicked the link.
Cost per click: $0.61
Form completion rate: 19.3% of visitors gave us their contact info.
Cost per lead: $3.16
Lead Quality and Follow Up
The cost of leads from both campaigns was super cheap!
By comparison, leads generated with Commissions Inc cost about $10 a piece, that’s without the cost of their platform (which runs $1500 a month). I recently talked to a sales rep from realtor.com, and he tried to sell me on leads costing $100!!
The leads we generated from both FB campaigns require immediate follow up by phone, email, and text. The key to converting the leads is to get them to communicate with you, ideally on the phone.
Most online leads are not ready to buy or sell immediately. They may be 6 or 12 months out and will require rigorous and consistent follow-up to become a real customer.
We are currently working with a number of buyer and seller leads that came from these campaigns. None of them closed a transaction, yet.
My bottom line: Facebook advertising is still the most cost-effective way to generate online leads!