After testing dozens of Facebook ads with thousands of agents, we’ve discovered the one that outperformed all others, regularly producing leads for between $6 and $13 a pop.
My brother Stephen heads a team in Lynchburg, Virginia, and between January and May 2024, he used this ad to generate 806 leads at a cost per lead of $12.27, which is incredible. On top of that, he also collected 416,886 impressions, making a huge contribution to his branding in his 15-mile target area.
These outstanding results underscore the effectiveness of Facebook ads and demonstrate why they’re a must-have tool for every agent. However, they’re not a magic bullet. You’ll still need to diligently follow up with your leads because it’s only by having conversations that you’ll actually convert a prospect.
Why you need to run Facebook ads
You’re probably thinking, “Thanks for the advice, Luke. Where’s the ad?” Give me a sec, I’ll get to it. First I want to explain why you should run ads so that when you steal this one, you’ll be that much more prepared to both run it and commit to more in the future.
There are at least a dozen reasons why every agent should be using Facebook ads, but here are my top four.
- Your potential reach is enormous. Since Facebook and Instagram are both owned by Meta, ads you post to one can also appear on the other.
- You can finely target an audience. Real estate ads fall under Facebook’s special ad category “Housing,” which removes any concern about violating Fair Housing Act advertising regs. You can create a custom audience, select remarketing options, and use “look-alike” audiences to target people similar to those who have already engaged with your ad.
- You’ve got access to exceptional analytical tools. Facebook’s tools give you in-depth insight into your audience and how your ads are performing. This data can direct you to move funds from underperforming ads to ones performing well for a lower cost per click.
- You’ll get incredible value. With Facebook, you can set a daily budget of as little as $5 a day and get in front of potentially thousands of users. And each click is a real touch from an interested prospect, who you can direct to either your website or a Facebook lead form that will populate with their contact info.
Introducing the “List of Homes” ad
The concept of this top-performing ad is simple and powerfully effective. Instead of advertising a specific listing or open house, it advertises a list of homes in your ideal client’s price range. Check it out, and then I’ll tell you why we believe it performs so well.
It works because it has a long life, optimizing cost per lead
Many ads you see on Facebook aren’t lead generation ads like this one is—they’re branding ads attached to an event like an open house or a listing, giving them a limited lifespan. The problem with this is it takes about seven days for an ad to hit the right people and deliver an accurate cost per lead. The List of Homes ad, however, can run indefinitely and without a need to be constantly refreshed, giving the algorithm more time to optimize which leads to target for a cheaper cost per lead.
It works because it’s laser-focused on the audience
The primary text gives you an adaptable framework to speak directly to the people you want to reach without violating any anti-discrimination regs.
You can change the price point of a single ad, run multiple ads with different prices, or use the average price of homes that are selling in your area. Or you can edit the text to target buyers looking for, say, new construction.
You can even offer a custom list of homes targeting a specific niche: seniors want to downsize, growing families, blended households with multiple generations, etc. It’s a framework, so it can be adapted as needed.
It works because it gives your audience what they want
You’re offering prospects exactly what they’re looking for—properties that meet their budget. (This ad is also highly effective in low-inventory markets where buyers are struggling to find what they want.) Presenting a list of homes entices people to see if there’s something they may have missed (a little FOMO never hurt anyone) or to get word of a listing sooner than others.
If you’re not going to follow up, save your money
You have what you need to run this ad and enjoy a consistent and predictable flow of new leads into your business. But leads aren’t clients—you must follow up until you’re told to stop, and even then you want to add all leads to a drip campaign. Don’t kid yourself into thinking they’re going to call you; they won’t.
One more time: if you can’t commit to following up with leads, don’t waste your money. On average, these leads take between 8 and 10 months to convert to a closing, with an average of 36 calls made during that timeframe.
Run this ad (or let us do it for you) and start getting leads as soon as tomorrow
One of the advantages of allowing ReminderMedia to run your Facebook ads for you is the free coaching we provide that gives you everything you need to follow up, including scripts, videos, and recorded live calls featuring Stephen, who’s become a master at closing these leads. But really, the best reason I can give you for using our Facebook ads service is that, short of making your calls for you (and we’re working on that), we literally do everything for you, including:
- Setting up your Facebook Ads Manager
- Connecting your Meta accounts
- Designing your ads with scroll-stopping AI images
- Creating the lead form
- Targeting your audience
- Monitoring campaign performance
- Offering SMS and email lead notifications
- Reporting on your leads management dashboard
Book a call with one of my dedicated Facebook ad specialists to see a demo and get all the details, and we’ll start funneling new leads to you as soon as tomorrow.
