There are many lead generation options - cold calling, direct mail, classified ads, and more.
But as this is a PPC guide, we'll focus on digital channels, Google, Microsoft, and Meta ads. Which one should you choose?
Let's compare the advantages and disadvantages of each:
| Channel |
Advantages |
Disadvantages |
| Google Search Ads |
• high seller motivation
• high conversion rates
• high close rates |
• high competition
• high cost per click
• relatively high cost per lead |
| Bing Search Ads |
• high seller motivation
• high conversion rates
• high close rates |
• lower reach
• harder to scale |
Google Audience
targeting-based ads |
• lower cost per clic
k• lower cost per lead |
• lower lead quality
• higher risk of fraud |
| Meta Ads |
• lower cost per click
• lower cost per lead
• high reach / easier to scale |
• lower lead quality
• harder to track and attribute
• housing targeting restrictions
|
Ultimately, choosing the right PPC channel - or combination - depends on your unique situation. Key factors include:
- Your business size and goals
- The market size in your targeted area
- Existing experience
- Available budget
While every real estate investing business is different, the following general principles can guide your channel selection.
5 Principles to Pick the Right Channels
- Leverage Microsoft search ads regardless of budget. Competition can be 70% lower, with cost per click around 40% cheaper versus Google. But motivated seller leads are of similarly high quality. Maximize Microsoft search ads first. Start there.
- Don't bother with Google search ads unless you are prepared to invest north of $5k/month. The performance will be inconsistent without sufficient data. But with $5k+/month, add Google for its quality and scale power combo.
- Add Meta Ads to expand reach if budgets limit Google—or use it as a primary channel if you don’t have sufficient funds to run Google search ads. Clicks are 10 to 20 times cheaper. Track lead quality over time and optimize for it.
- Audience ads could help you capture more of the existing market work—if your ad account has sufficient history and uses offline conversion tracking. Our data shows advertisers need 30+ monthly quality search ad leads prior to expanding into audience campaigns. Test after maximizing Google and Microsoft search campaigns. Monitor lead quality diligently. Keep refining your targeting to be laser-focused on motivated sellers.
- Test channel combinations. What works at the start may differ long-term. And remember, always track data before committing to the ad budget!
Now let's dive into Google Ads, the most popular channel among real estate investors, to generate motivated seller leads at scale.
