How Much You Should Actually Spend in Marketing to for a Strong ROI

As agents face a competitive, tech-forward, and volatile market, there’s a pressing question agents and brokers can no longer afford to ignore: How much should you really be spending on marketing to see a return on investment?

It’s not just about brand awareness or pretty postcards anymore. As market dynamics shift post-commission lawsuits and economic uncertainty lingers, your marketing budget is a line item but it’s also your growth engine. If you’re not making strategic decisions with your dollars, you’re falling behind.

Let’s get tactical. Based on recent, in-depth findings from our detailed client research, here’s what the top performers are actually doing and how you can do it too.

Most agents are investing more and seeing results

According to our State of Marketing Reports, in 2023, real estate professionals spent an average of $12,725 on marketing. In 2024, that number jumped to over $14,200. Why? Because 78% of surveyed agents said they planned to spend as much or more this year than last. And with good reason.

Agents in the highest income brackets were the most likely to increase their budgets — 60% of high-GCI agents upped their spend — primarily on digital advertising, social media, and video production. What’s more telling: agents who spent the least in 2023 were the most likely to increase their budgets in 2024, signaling they saw measurable ROI and are reinvesting accordingly.

This points to a critical insight: The agents getting ahead are the ones treating marketing as an investment, not an expense.

ROI tracks with diversification and consistency

It’s not just how much you spend, it’s what you do with it. Agents using five or more marketing channels reported an average GCI of $4 million. That’s double the income of agents using three or four channels, and quadruple those using just two.

The most commonly used — and successful — channels include:

• Social media (Instagram and Facebook were named most critical)
• Business websites
• Email marketing
• Video and YouTube content
• SEO and Google Ads

What sets top producers apart isn’t just activity volume, it’s platform variety and intentional targeting.

So what should you spend?

Let’s break it down. If you’re serious about growing your business, a good rule of thumb is to reinvest between 7% and 12% of your gross revenue into marketing. For a real estate agent earning $250,000 annually, that’s $17,500 to $30,000.

Here’s what the data tells us:

• The most common budget range for 2024 was $10,000 to $20,000.
• Agents spending $20,000+ were less likely to increase their spend — not because it wasn’t working, but because they had already optimized it.
• ROI-minded agents focus their budget on lead generation, video content, and personal brand building, with nearly 36% citing higher-quality leads as their top priority for 2024.

Translation: if you’re earning a living from real estate, it’s time to make marketing one of your top investments.

Real examples of ROI: What Luxury Presence clients achieve

Clients who partner with Luxury Presence are investing in their websites, but they’re especially investing in outcomes. On average:

• Luxury Presence clients closed nearly 25 transactions per year, compared to the industry average of 10.
• Their sales volume averaged $24 million annually, almost 10 times the NAR average of $2.5 million.
• In 2024 alone, Luxury Presence helped generate nearly 500,000 exclusive leads via digital tools like home valuation modules and Google One Tap integrations.

That kind of impact doesn’t come from dabbling. It comes from calculated, data-driven marketing investments that scale.

Why video, CRM, and websites lead in ROI

Video content, once optional, now seems essential. Agents earning the most were twice as likely to use video regularly. In fact, video was ranked the most underrated marketing channel in the survey — with a net sentiment of +11% compared to -17.5% for paid ads.

Similarly, websites surged in importance. In 2024, agents ranked business websites ahead of social media in importance for the first time.

CRM tools also drive ROI. While 83.5% of agents now use a CRM, high-GCI agents were significantly more likely to actively request referrals and testimonials, leveraging their database like a power user.

The takeaway: Spend smart, scale fast

If your marketing budget still resembles a miscellaneous spend — a few hundred here, a social post there — you’re not playing to win. The most successful agents invest confidently and measure returns obsessively.

Start with these guidelines:

• Spend 7 – 12% of your GCI on marketing
• Diversify across at least five marketing channels
• Prioritize video, your website, and CRM automation
• Partner with a platform that offers proven ROI

Ready to scale your impact?

Luxury Presence powers over 13,000 real estate businesses — including 127 of the top 0.5% of agents and teams, as featured on RealTrends and published in The Wall Street Journal.

If you’re ready to generate more leads, command higher commissions, and build a brand that converts, let’s talk. Book a free strategy call today and discover how your marketing spend can finally start paying dividends.