Vendor paid advertising (VPA) is the backbone of a good marketing campaign for any property. Without it or with a limited budget, it’s almost inevitable that the timeframe for being able to sell a property is going to blow out.
The ultimate goal in securing a buyer and ultimately the best price for your listing is to ensure that as many potential buyers see the property as possible.
It’s not only how you bring in the buyers for an open home but it’s the way to drive competition and hopefully increase the final sales price for your clients.
With many clients though this can be somewhat of a difficult discussion. Although they fundamentally can see how VPA works, it’s the detail and the dollar price that can stop them in their tracks.
Many vendors come with the expectation of having to pay an agent commission but throwing in vendor paid advertising can sometimes be received like a slap in the face.
Educate your clients
The first approach to take is to educate your clients on the marketing campaign you have in mind for their property,the thought and planning you have put in and the benefits you expect to achieve.
This approach aims to help your vendors understand the value they will be receiving from the marketing campaigns, not just what it’s going to cost them.
Use recent examples
Try to use recent examples or previous listings that have used a similar approach and discuss the results achieved with these. Mention the specific campaigns that were used and why.
Don’t forget to discuss how long the property took to sell and how the marketing campaign helped to achieve this.
Be sure to break your campaign up into online (real estate portals, website and social media) and also print/signage.
This will assist by showing the vendor the level of detail you are planning and the areas that will be reached through this proposed campaign.
Showing your clients that you have a full understanding of the current market, their neighbourhood and the buyers you are planning to target will give them a holistic understanding of the value that will be achieved.
It’s important that you enter the discussion prepared. Don’t try to discuss a marketing campaign or the prices they are likely to have to pay until you are confident and the details are finalised. You are selling this proposal to your vendors so it’s up to you to ensure that you have the tools needed.
Be prepared with smaller package options if your clients simply can’t afford or flat out refuses the main package you have proposed.
Although it’s not ideal, getting some VPA over the line is better than having nothing. Tier the campaign options for your clients so that you get maximum exposure for the money they are willing to put forward.
Remember to not show all your options at once to your clients. Your ultimate goal is still to get the best sales result for them and you want them to hit the market with the campaign that will achieve this.
What you don’t want is clients telling you they can’t afford the top of the line campaign and you have nothing else to offer them so it’s important to be prepared.