Let's settle the debate: Which one is better? Facebook Ads or Cold Calling when it comes to generating leads for your real estate business. Personally, I'm a big fan of Facebook Ads, but I've also seen success with cold calling.* In order to answer this question we actually need to explore 3 other questions that will help us answer it.
*Cold Calling, for the purposes of this article/blog/video, means prospecting for Expireds, FSBO's or Geo/Circle Prospecting.
#1 Which One Costs More?
I can tell you with honesty and experience that Facebook Ads are going to cost you more per lead. You may come across some agents who shout from the social media roof tops that they're spending pennies on the dollar "98 cents per lead!!" with their Facebook Ads. Today, especially with all of the iOs changes from Apple...this is less likely. You're probably going to wind up spending closer to $2 - $8 per lead. In some markets and with some ads, you could even spend $15+ per lead. That's STILL GREAT!
It's especially great if you compare it what you'll be paying per lead if you subscribe to a service like Zillow Premier Agent, Realtor.com, or Bold Leads.
Cold Calling on the other hand, means you can subscribe to purchase a list of homeowners every morning and for the number of contacts you make versus what you're spending per contact....now THAT is leads for pennies on the dollar.
#2 Which One Requires More Time?
Facebook Ads are definitely more of passive lead generation strategy. Yes, you do need to make time to call and follow up with the leads you receive, but you're not sitting there attached to a dialer all morning.
When it comes to Cold Calling you'll want to make sure you're focused on this activity for at least 3 hours a day for a minimum of 4 days a week in order to see results.
#3 Which One Requires More Skill?
Now this question is definitely up for debate...but my vote is that BOTH of them do. Here's the thing, if you don't have the ability to convert then you're going to have a hard time finding success with either option.
Cold Calling is going to lead to more practice converting leads into appointments. If you have a large or unlimited Facebook Ads budget then you'll get a fair amount of practice there too.
Truth be told, you're going to build your database a lot faster with cold calling than you would with Facebook Ads.
The Verdict
Even though I love Facebook Ads, and I believe they work (they've worked for me and Alex), I have to say that Cold Calling wins this battle. It's important to understand that if you're looking to be successful in your real estate business the idea is to build your database. I'd actually recommend doing BOTH!
Look at Facebook Ads as a supplement to your daily prospecting activities. Cold Calling is the equivalent of eating your dark leafy greens for a balanced diet, and running Facebook Ads would be like taking a daily vitamin!
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