Monthly Archives: May 2023

Demystifying the “How Many Agents” Question

Introduction:

In the realm of real estate recruiting and advertising, brokers often approach ad agencies and marketing experts with a burning question: “How many agents will I be able to hire?” While it may seem like a straightforward inquiry, the truth is that the answer is far from simple. In this blog post, we will delve into the intricacies of real estate advertising campaigns and explore the multitude of factors that influence recruitment success. By understanding the complexity behind this common question, brokers can gain valuable insights into setting realistic expectations for their recruiting endeavors.

The Simplistic Question and its Limitations:

Many individuals unfamiliar with the intricacies of social media advertising expect direct and specific answers to seemingly simple questions. However, the reality is that real estate recruiting campaigns encompass numerous variables, making it impossible to provide a one-size-fits-all response. For instance, questions like “What’s a good starting budget?” or “How many agents will I get if we spend $30 per day?” depend on a myriad of factors, including the effectiveness of the ad, compensation models, website performance, competitive landscape, and more.

Understanding the Meta Ad Auction:

Meta, the company behind Facebook and Instagram, is one of the leading platforms for real estate advertising.  Meta employs an ad auction system to determine the optimal ad to display to users at a given time. The winner of this auction is selected based on various factors, such as bid, objective (leads, traffic, reach), and ad quality. Therefore, the success of a recruiting advertising campaign depends not only on the budget but also on the overall performance of the campaign, which is dictated by the following factors:

  • Audience size: The size and demographics of your target audience affect the potential pool of agents you can reach and attract.  There are fewer agents looking to consider changing brokerages in a pool of 3,000 agents than there are in a pool of 300,000 agents.  The larger the pool, the greater the opportunity for the Facebook algorithm to optimize for your expected result.
  • Ad copy: The quality, messaging, and relevance of your recruiting ad copy impact its ability to resonate with potential recruits.
  • Creative assets and resources: The availability of compelling visuals, videos, and other creative assets can significantly enhance the performance of your ads and is the key determining factor in getting the user to stop scrolling and engage with your advertisement.
  • Tracking mechanisms: The utilization of tools such as the Meta pixel, event tracking, and the Meta conversions API allows for accurate tracking and measurement of campaign performance.  These all feed into the Meta algorithm to optimize your campaign performance.

The Multitude of Factors at Play:

Beyond the direct Meta platform factors, there are a number of external factors that also impact your recruiting efforts.  To gain a comprehensive understanding of the outcomes and expectations of a real estate recruiting advertising campaign, it is crucial to consider the following key elements that can significantly impact your recruiting efforts including:

  • Compensation plan: The attractiveness and competitiveness of your brokerage’s compensation plan can influence the number and caliber of agents you can attract.
  • Training provided: The quality and comprehensiveness of the training programs offered to agents contribute to not only their desire to consider you as a destination brokerage but also their success with you and your retention rate of the agents.
  • Brand reputation: A strong brand reputation in the real estate industry can be a significant driver of agent interest and recruitment.  If a potential agent recruit has no knowledge of your brokerage, then they are much less likely to even consider inquiring.
  • Digital Identity: How an agent perceives your brokerage when searching online.  This includes social media sites such as Facebook, Instagram, and TikTok.  It includes reviews that both agents and buyers and sellers have left for your brokerage on platforms such as Google and also includes your recruiting website.
  • Recruiting Website Effectiveness: The functionality, design, and user experience of your recruiting website play a crucial role in communicating your brokerage’s value proposition to potential agents and in converting prospects into actual appointments on your calendar.
  • Available budget: The financial resources allocated to the recruiting campaign dictate how many agents can be reached in your audience and how frequently you will be able to target those individuals.
  • Competitive landscape: The level of competition within your local market can influence the effectiveness of your recruitment efforts.
  • Seasonality: More agents tend to reevaluate their choice of brokerage leading into the end of the calendar year and at the start of the new year as they take stock of their effectiveness for that year. 
  • Commitment to recruiting: The duration and consistency of your recruiting efforts can influence the long-term success of your recruiting campaigns.  Recruiting real estate agents for your brokerage is a process that occurs over months and years of time.

The Nuanced Nature of Expectations:

Given the multitude of factors outlined above, it becomes evident that expectations regarding real estate recruiting cannot be uniform or predictable. Each brokerage and advertising campaign possesses its unique combination of circumstances and resources, making it impossible to provide concrete numbers or guarantees. Real estate recruiting is a nuanced endeavor that requires careful consideration of context and all of the variables outlined.

Work with an expert partner:

Navigating the complexities of real estate recruiting and advertising campaigns can be a daunting task for brokers. Understanding that there is no one-size-fits-all answer to the question of “How many agents will I be able to hire?” is the first step towards setting realistic expectations. By acknowledging the numerous factors that influence recruitment success, brokers can approach their recruiting campaigns with a more informed perspective.

While the intricacies of real estate advertising may seem overwhelming, seeking assistance from an expert recruiting firm can make a significant difference. Here at XL Technologies, we specialize in helping brokerages streamline their recruiting efforts and maximize their advertising investments. With our in-depth knowledge of the real estate industry and expertise in digital marketing, we can provide valuable insights, tailored strategies, and comprehensive solutions to help brokers attract top-tier agents. By partnering with us as your recruiting partner, you will gain a competitive edge in the ever-evolving real estate recruiting space.

Final Thoughts:

In conclusion, real estate recruiting and advertising are multifaceted endeavors that require careful consideration of various factors. While there may not be a definitive answer to the question of “How many agents will I be able to hire?” understanding the complexities involved and seeking assistance from professionals can significantly enhance recruitment outcomes. Embracing the nuanced nature of real estate recruiting and leveraging expert resources will empower brokers to make informed decisions, optimize their campaigns, and ultimately build a thriving brokerage.