InboundREM Client Testimonial Article on ROI

InboundREM Return On Investment

How did we arrive at “return on investment” numbers for InboundREM

Return on Investment refers to HOW MUCH DID I SPEND vs. HOW MUCH DID I MAKE

 

It’s more difficult than you as a real estate agent might realize to find a client as a marketing company willing to take the time to track not only lead generation but SALES generation off a lead source. I have many many clients generating leads off InboundREM websites. I have only a small handful that sort OUR leads VS. other lead sources and only 1 or 2 that track where their sales are coming from source to source. Since I have access to the core lead and traffic generation on 100’s of real estate websites from almost every company that makes real estate websites I am oftentimes able to make EDUCATED GUESSES throughout all of my posts on things like CONVERSION RATE (Usually that refers to the number of visitors to a website or landing page VS the total number of signups which you would refer to as a lead). 

 

3.5 YEARS into taking clients on at a retail volume (I already had many clients built up person to person but in the latter half of 2017 my blog started producing lead inquires from agents and brokers that I had never personally met) I finally got a client that tracked his production from the MOMENT the website went online to the MOMENT we hit 18 months of service on the site which is the standard length of my SEO and lead conversion agreements.

This client also agreed to record videos with me at the 6 month and 18 month marks so that YOU could hear directly from him what his thoughts about both our service AND his results are. 

Additional factors that impacted THIS case study on ROI

This client is a second home market that was briefly impacted (90 days right in the best part of their sales year) by COVID 19. You’ll see him reference this in the second case study video. This case study DOES NOT reference the 5 or so listings put under contract but not yet sold as part of the ROI equation. In other words, there is a lot more production geared up to happen soon. ALL WE ACCOUNTED FOR is what had factually been sold in the first 18 months. This ROI equation would be 20-40% higher without COVID 19. The clients says something similar in the video reviews so you don’t have to take my word for it. Another element I will be pointing out is the client ELIMINATED $8400 in ad spend by hiring us. He too mentions that. I have MANY clients generating more traffic and more leads than this client. But they haven’t been responsive to partnering with us to do the kind of tracking this client has. So this is NOT InboundREM’s BEST results. It’s simply results tracked by a great partner who is so happy with the return on investment they are willing to provide data to help YOU understand what our services might be able to provide. I also offered some additional service to make it worth their time to do all the work on their end to get these results for you. 

How much TRAFFIC did the InboundREM website generate in the first 18 months 

A great website SHOULD be promoted with DIRECT ADVERTISING at launch. It helps generate user behavior signals from Google which in turn gets organic rankings happening MUCH FASTER. This client utilized PPC for months 1-10 with the budget being reduced the entire time. Currently, the budget is 0 and the client intends to keep it that way as the performance of the website is producing enough leads for their two-person team. 

 

InboundREM Website Traffic and SEO Growth 18 Months

This report was generated by Dean’s team not us and it shows the 18 months worth of traffic generated by InboundREM

 

How many LEADS did the website generate

InboundREM actually provides FIVE services. We don’t call it out usually but there are tons of companies that only do one or two things. So here are the FIVE things we do. 

 

  • Produce the best SEO optimized real estate website that money can buy(and that you own)  
  • Get traffic to that website using mostly SEO but oftentimes we will manage PPC budgets for clients that want ranking and leads FAST
  • Make sure that TRAFFIC is converting into LEADS
  • Integrate CRMS and Lead follow up tools so that these leads are being followed up with effectively
  • Consult with the client on an ongoing basis making recommendations unique to THEIR account and territory so if they are following our advice they will be getting the best results from digital marketing strategies. 

This case study reflects a client that has utilized THREE of FIVE of our included services so once again I would call this an average account in some respects. This client DOES spend 2-3 hours a week adding elements to their website to make it more useful to their audience which puts them on the HIGH side of active for our accounts. 

 

How much did the client SPEND vs How much did they MAKE?

These numbers reflect 18 months of service ALMOST ALL OF WHICH HAS BEEN basic service. This client opted to have much of the SEO work done upfront in order to get the best results as fast as possible. 

  • The client’s total SEO and website investment for 18 months not including hosting or IDX was $12,000.
  • Their total earned income was a little over $36,000

What was the 18-month InboundREM return on investment?

The 18-month return on investment was 3 to 1. 

What is the expected 36-month InboundREM return on Investment?

We are going to use the client’s CURRENT numbers to extrapolate this next period’s traffic, lead generation, and conversion rate. 

The website traffic is currently growing at 10-15% per month. We will use 10% for this future modeling. We currently DO NOT have ANY lead registration triggers on this website. ALL response is 100% organic. We will make the assumption this remains the same. Traffic to lead conversion WITHOUT LEAD REGISTRATION TRIGGERS is 1/4 of 1%. We will use that number for future modeling. 

We ARE GOING to assume that COVID interruptions do NOT happen the same way in the middle of busy season. The expected production would be as follows. 

 

  • 48,000 Visitors
  • 150 leads
  • 15 Property tours 
  • 13 offers
  • 1.8 – 2.5 million in sales 
  • $60k in additional revenue earned off original investment

36 Month return on investment should be 12-1 

Additional ROI factors not mentioned above.

There was a PPC budget used to estimate the client’s total expense at $5800.00. It’s worth mentioning this client HAS ALWAYS been spending on PPC. The $20.00 a day was their previous AD budget which comes out to $8400.00 a year. They kept that budget in place for 5 months. Then stopped entirely. Then brought it back at 1/2 as much a couple of months later. Then discontinued it entirely about 14 months after the website had been launched. 

 

This client HATES registration triggers. Most of my clients HAVE these triggers and my websites average a 1-2% conversion rate across all 150 of our current and previous clients. So SOME of the numbers mentioned in this case study are FAR below average. This client is getting IN front of 1 out of every 10 leads. That is HIGH. Because they are not requiring registration almost every lead acquired is VERY GOOD. The close-ratio is VERY low. COVID impacted this market deeply. It is VERY much coming back which you’ll see the client say themselves and they explain why. But briefly, everything went full stop. That won’t be the case in most markets. If I was being optimistic these numbers would be 2-3 times higher. Finally, the client OWNS this website. Not me or InboundREM. If they decided to sell it at about the 2-3 year mark they should be able to get AT A MINIMUM one year of earned commissions related strictly to website generated sales. Currently, RIGHT NOW That number would look like $45k. Meaning they would ultimately get PAID on the work they put into the website. 

At the upper end of the spectrum that looks like 12k Investment $126,000 earned income no later than year 2-3.

I am a smart marketer. You probably follow my stuff because you feel the same.  At the end of a 3-5 year period, there is NO marketing company in the real estate space that can even come close to the ROI that InboundREM generates. The ONLY con is the length of time it takes to see SEO results and the fact investment has to be made upfront.  This is why in a PERFECT world clients will have long and short term lead generation strategies in place for lead generation. Inbound Marketing will naturally propel you into an entirely different income stratosphere over the course of a few years. You can also drive traffic to the website we have slightly lower conversion rates than certain of our competitors with PPC campaigns but we generate a MUCH higher quality lead ultimately leading to more money earned.

 

ROI of InboundREM compared to  Sierra Interactive, Real Estate Webmasters and Real Geeks

I am going to estimate a sale price at the exact average as it is for my client which is $250k. I will be giving each PPC based provider a year over year 10% increase from users book marketing and coming back to their websites. This is actually an aggressive number. Remember I actually have access to analytics for all of these providers so I am using HIGHLY EDUCATED FIGURES to generate my estimates. I am using my above case study and their numbers to do a side by side comparison.

Sierra Interactive Return on Investment

  • $300 Set up 
  • $499.00 Monthly (no marketing) includes CRM and IDX
  • Need to pay for advertising we’ll estimate at $1000.00 
  • Low-quality registrations due to a commoditized search experience(it’s great but not better than you find other places in abundance) 
  • Traffic to lead conversion is about 2%  
  • Estimating the cost of a visitor at  .50 cents
  • It takes between 40-60 registrations to equal a sale
  • I will NOT factor in tools time or other resource expenses to follow up with that many low-quality leads. 
  • TOTAL FIRST YEAR COST$19,100
  • TOTAL FIRST YEAR LEADS = 480
  • TOTAL FIRST YEAR SALES = $2.5 Million
  • TOTAL FIRST YEAR GCI = $75,000
  • TOTAL FIRST YEAR ROI = 4 to 1 
  • TOTAL SECOND YEAR ROI = 4.5 to 1 
  • TOTAL THIRD YEAR ROI = 5 to 1 

 TOTAL SPENT OVER THREE YEARS = $56,100

TOTAL EARNED OVER THREE YEARS = $240,000

  • To see my review on Sierra Interactive CLICK —> HERE 
  • To see in-depth side by side website comparisons to both Sierra Interactive and similar websites CLICK —> HERE

Real Estate Webmasters Return on Investment

  • $3000 Set-Up
  • $499 Monthly (No marketing) includes CRM and IDX
  • Need to pay for advertising we’ll estimate at $1000.00 
  • Low-quality registrations due to a commoditized search experience(it’s great but not better than you find other places in abundance) 
  • Traffic to lead conversion is about 1.5% less than Sierra Interactive  
  • Estimating the cost of a visitor at  .50 cents
  • It takes between 40-60 registrations to equal a sale
  • I will NOT factor in tools time or other resource expenses to follow up with that many low-quality leads. 
  • TOTAL FIRST YEAR COST$21,000
  • TOTAL FIRST YEAR LEADS = 360
  • TOTAL FIRST YEAR SALES = $1.8 million
  • TOTAL FIRST YEAR GCI = $53,000
  • TOTAL FIRST YEAR ROI = 2.5 to 1 
  • TOTAL SECOND YEAR ROI = 3 to 1 
  • TOTAL THIRD YEAR ROI = 3.5 to 1 

 TOTAL SPENT OVER THREE YEARS = $58,000

TOTAL EARNED OVER THREE YEARS = $174,000

  • To see in-depth side by side website comparisons to both REWB and similar websites CLICK —> HERE

InboundREM Return on Investment

  • $3500 Set-Up
  • $1000 Monthly (this includes marketing ) CRM and IDX are additional but = around 2k per year to integrate both.
  • Advertising is included but in some cases, additional PPC is spent and we will include the additional for this case study since the client DID spend extra. The client did NOT keep spending the $1000 in SEO OR PPC past year one however so in fairness we get to remove that from the case study.
  • High-quality registrations due to tons of additional information on the website about the area being served AND no FORCED registration which all other examples in the case study have. Very few real estate websites bother to add anything more than a commoditized paragraph about areas and we do both had written research as well as integrate statistical info from numerous sources making our pages one-stop destinations for research and creating high-quality registrations.
  • Traffic to lead conversion is 1/4 of 1% in our case study far less than our competitors in the case study
  • It takes between 10-15 registrations to equal a sale
  • Mot nearly as much time is spent reaching out to or managing these leads those an email campaign is recommended. 
  • TOTAL FIRST YEAR COST$12,000 (Client was provided a discount for payment upfront) 
  • TOTAL FIRST YEAR LEADS = 90
  • TOTAL FIRST YEAR SALES = $1 million
  • TOTAL FIRST YEAR GCI = $30,000
  • TOTAL FIRST YEAR ROI = 2.5 to 1 
  • TOTAL SECOND YEAR ROI = 8.75 to 1 
  • TOTAL THIRD YEAR ROI = 12 to 1 

 TOTAL SPENT OVER THREE YEARS (I’m going to include PPC, IDX and CRM even though my client doesn’t actually spend money on all of these, I’m also including the $100 a month the client spends to have us host and service the website.) = $28,210

TOTAL EARNED OVER THREE YEARS = $180,000

  • To see in-depth side by side website comparisons to both InboundREM and similar websites CLICK —> HERE
  • To get a deeper understanding of InboundREM’s service line up CLICK —> HERE

Real Geeks Return on Investment

  • $700 Set-Up
  • $249 Monthly (No marketing) includes CRM and IDX
  • Need to pay for advertising we’ll estimate at $1000.00 
  • Low-quality registrations due to a commoditized search experience(it’s great but not better than you find other places in abundance) 
  • Traffic to lead conversion is about 1% while good these websites provide the least amount of info of all the Search/IDX driven websites.  
  • Estimating the cost of a visitor at  .50 cents
  • It takes between 40-60 registrations to equal a sale
  • I will NOT factor in tools time or other resource expenses to follow up with that many low-quality leads. 
  • TOTAL FIRST YEAR COST$15,700
  • TOTAL FIRST YEAR LEADS = 240
  • TOTAL FIRST YEAR SALES = $1,200,000
  • TOTAL FIRST YEAR GCI = $30,600
  • TOTAL FIRST YEAR ROI = 2.5 to 1 
  • TOTAL SECOND YEAR ROI = 3 to 1 
  • TOTAL THIRD YEAR ROI = 3.5 to 1 

 TOTAL SPENT OVER THREE YEARS = $45,700

TOTAL EARNED OVER THREE YEARS = $135,000

  • To see in-depth side by side website comparisons to both Real Geeks and similar websites CLICK —> HERE
  • To deep dive into the Real Geeks website and CRM offering CLICK —> HERE 

There are a lot of comparisons not on this list because time is finite. Boomtown lands between Sierra Interactive and Real Estate webmasters with tools that are better for teams but a MUCH MUCH higher monthly cost dropping the ROI. The same goes for commissions inc and KvCore. Currently, Ylopo probably has the highest first-year ROI because they have better ad management and lead generation tools giving you higher lead generation numbers. Conversion numbers are still on the 1 in 50 side maybe slightly better because of some of their automated tools. At best they are 4 or 5 to 1 in the short term (first year) 6 or 7 to 1 over the three year period. The point here is NOTHING comes close to long term ROI on an information-heavy website that you own that is optimized for SEO. Which is what we make here at InboundREM. 

 

The InboundREM ROI used in this case study is 100% centered around the factual information given to us by our client. The numbers used for competitors is calculated based on my 100’s of conversations with realtors using these services through 2018 and 2020. I also have access to backend systems for ALL of the competitors mentioned and can verify things like traffic to lead conversion rates as well as the budgets used to generate those leads. If anything I have OVERESTIMATED the returns of most of these systems. 

 

I can write all day long but NOTHING beats hearing from a client themselves about what their experience has been using a service. This client recorded case studies for me MONTH six and MONTH eighteen. The first video is month 6. The second video produced in July of 2020 is month 18.  I want you to hear from them directly what their ROI is now and what the experience was working with us in the short term. Expected 3-5 year ROI will be even higher even though this client looks like they will re-invest in additional SEO which should make both traffic and lead quality get even better and raise their overall numbers. 

 

 

 

 

 

 

Closing thoughts on ROI and using InboundREM

I am wildly enthusiastic about the services we provide. I have generated over 1 million dollars in revenue for InboundREM using the same strategies I use for clients. I have worked with clients in the past that have gotten 100 to 1 returns on investment. The best case study I have EVER seen is a client that spent 50k 10 years ago in the middle of a MAJOR market downturn. She specializes in Golf Course homes in Palm Springs. She has been making over $300,000 dollars PER YEAR in commissions off her website since 2009. She has never spent more than a few thousand here and there updating the basic information we put on the site all those years ago. When Inbound Marketing works it pays in ways nothing ever could match. It obviously doesn’t hit home runs every single time. Countless clients stop doing work on websites before it hits a critical mass and starts driving returns. These clients sometimes have terrible or non-existent ROI. You need to stick with it once you start especially if you’re doing work incrementally. It also requires an attitude shift. You need to be of the mindset your website WILL BE the place your clients learn about you. Full stop. As a result, you need to commit an hour a week to improving or if you’ve hired us then REVIEWING work and making sure it has the best most relevant information for your clients. But you do THIS instead of chasing leads all week. That’s the trade-off. Don’t CHASE but attract. Spend your time making better and more appealing answers for your clients and then making sure those answers have been done in ways Google loves. Which is where we come in. The numbers OBVIOUSLY make sense. If you can buy into the attitude shift and you’re an experienced agent or broker then you should absolutely open a dialogue with InboundREM. 

 

Use the form below or on my “services” page to potentially schedule a call. I prefer to understand what areas you are targeting and what you are doing for marketing currently. If you have a website list it. 

 

Contact Form

 

Leave a Reply

Your email address will not be published. Required fields are marked *