Opinions On How Much to Charge

[jk3210]

Assume that a PR7 site is ranked #1 in Google for the term "[city name] real estate," how much would you charge a new condo development to advertise on that real estate page?

* Condo development = 40 stories, and 240 units selling for $400,000 to $7 million.

* Advertising includes 1-2 paragraph write-up, plus photo, plus link to their site.

[jbauder]

jk ... as much as you can ;-)

If I were the condo owner ...

Am I getting just a listing, or a featured listing, or exclusive advertising rights to the page.

What size city is it, obviously NY or LA would be worth more than Minneapolis or a smaller city.

What the cost per click is at Overture and Google PPC on the specific term ...

What are the number of visitors per month I can expect

If I am your salesman ...

Talk about selling just 1 property per month, or even saving a real estate commission on selling 1 property per month ... 7% of $400,000 is $28,000 ...

Not that you could get this , but someone can relate to the discussion of "if this listing generates even 1 sale per month" ...

Another option is to capture leads on the site, and work a deal where if any of the people you create a lead on make a purchase you get a huge bonus ...

[HackingLawyer]

Better yet, get your real estate license, and get a referal fee instead of an advertising fee. Generally, you can get away with more loot if you are in the same club.

[allanp73]

I deal with this issue on a daily basis. However, I don't charge a advertising fee I charge a 25% referral. Usually I get about $30 million per day in leads from the 50+ real estate sites that I work with.

[PFOnline]

<- Usually I get about $30 million per day in leads from the 50+ real estate sites that I work with.

Maybe i read this wrong, but does that mean u make $30 million a day?! lol if so, i'm in the wrong business! ;P

[HackingLawyer]

Thirty million X .07(typical commission) X .0025(referal fee, 25% of the commission = webmaster revs. -do the math.

And I'm a only a lawyer

[jtoddv]

humm thanks... I think i just found my next target.

[allanp73]

The 30 million per day sounds impressive. But I manage 50+ sites and it takes a lot of effort to generate this many leads. The problem with the leads generated is that most don't become sales. There are a lot of first time home buyers (who take 6-12 months) or those who are just playing with the forms in order to get quick information. I wish that every lead was an instant sale I would be a very wealthy man so far this year I've only sold 4 homes with 4 more closing soon. It is a far cry from the 1000+ requests that I have received.

Note: Actually, I hoping to be able to generate about 200 million per day by June. Right now is a slower time for real estate and most of sites are still new.

[rfgdxm1]

>Maybe i read this wrong, but does that mean u make $30 million a day?! lol if so, i'm in the wrong business! ;P

And to think I went into international narcotics smuggling thinking that was where the money was. ;)

[daroz]

And to think I went into international narcotics smuggling thinking that was where the money was. ;)

Well now I know where eveyone in the "Google Update" threads gets their fix from. :)

[HackingLawyer]

rfgdxm1 is on a roll tonight. It must be the tension associated with the pending update or-perhaps cabin fever.

In any event with all his DMOZ web editing experience involving drug addiction perhaps he would be kind enough to help us find cure the Google UPDATE Syndrome.

[Marcia]

>>your real estate license, and get a referal fee

It may vary from state to state, but if I'm not mistaken it's not necessary all over to even have a license in order to collect what's called a finders fee.

Also, the site may be PR7 but that's not necessarily the PR of the page the property will be on.

[jk3210]

>>I don't charge a advertising fee I charge a 25% referral.<<

Do you mean 25% of the sales commission? If so, I would think that would be a nightmare to make sure you get paid when the buyer closes months later.

I'm thinking of doing something more along the lines of straight ads like you'd see in the Sunday paper.

Local magazines are charging $3,000/month for a full page ad. I'm considering trying it initially at $6,000/YEAR, hoping that at that price difference some new condo developments will give it a try just to see how it works out.

[gopi]

I think allan meant $30 million is the total value of houses looked by prospects in a day ( not his income or something)

So considering a average price of $200,000 per home it boils down to 150 leads a day ...

[allanp73]

Actually, the average is around $1 million. I generally get about 30-40 leads per day. I put a minimum of $250,000. The math isn't that great even with a 25% referral it works out to the following: $100,000 house X 2.5% (buying agent's commission) x 70% (broker's fee) x 25% (referral) x 75% (I have a partner who gets a 25% share) = $328 (which is not much after everyone gets their share).
However, my goal is to get $1 million in sales per site this year or $150,000 in income. I figure this is realistic and not a bad return.