Online leads have become super expensive. I know agents who pay $300 to $500 for a single lead from Zillow or Realtor.com.

Who can afford these rates and make money?

If you are looking for a more affordable alternative Facebook is a good option for online advertising. Let me show you how inexpensive Facebook leads are.

We’ve been running Facebook Ads to promote open houses for the past 3 years. We certainly get a lot of eyes on these ads.

But what about leads?

To find out how much Facebook leads really cost and if they are worth anything, I ran a test to promote a new listing.

Here are the results …

The Facebook Ad We Tested

You can see the ad we used for this test below. It promotes one of Susanne’s listings in Dublin.

We ran this ad on Facebook for the past 2 weeks targeting likely home buyers in a 20-mile radius around the property.

Here are a few interesting stats:

  • The average click through rate was 7.33%
  • Most link clicks came in the evening between 7 and 11 pm
  • 57% of all impressions were on the Facebook news feed on iPhones, followed by 15% on Android phones, and 10% on iPads
  • Only 1.8% of visitors saw the ad on their desktop
  • 54% of clicks came from the Learn More button on the first tile

Advertising Cost per Click

The ad spend was $10 per day. As you can see below the cost per click (CPC) was only $0.12.

A total of 961 Facebook users clicked on a link. Only 593 got to our landing page.

Here’s what visitors saw when they arrived at the landing page.

Advertising Cost per Lead

We are using Chime landing pages with a forced opt-in. It’s very annoying to visitors as they have to enter their email before they can look at pictures.

Most people don’t enter their information.

Still, we got a total of 27 opt-ins. After eliminating fake email addresses, we ended up with 14 good leads, at a true cost of $8.21 per lead.

How Does This Compare to Google PPC?

​We’ve been using Chime for online lead generation with Google pay-per-click (PPC) ads for the past 2 years.

Google ads produce more motivated leads, as they actually search for homes and don’t just stumble across a listing.

The cost for a Chime lead is $15.

Should You Run Facebook Ads?

Yes, you should run Facebook Ads to brand yourself, to promote open houses, and to market listings.

Don’t run Facebook Ads exclusively to generate leads. Even leads with good emails are a long shot. They require a lot of follow-up and take more than a year to convert.

Where Can You Learn More?

To learn how to run effective Facebook Ads for real estate check out the Paperless Agent and PostAProp. Both offer free resources as well as paid subscriptions.