How to set a marketing budget you can defend
Most agents pick a number that feels affordable and hope it works. A better way is to tie the budget to your income, split it across a few channels on purpose, and then judge each channel by what a closing costs you.
Where the percentages come from
“Spend 10% of your commission income” is advice passed down by coaches, not a research finding. This calculator suggests 15% for agents in their first two years, 12% for growing agents and 8% for established ones. Those are starting points for planning. Type your own percentage if you have one.
For a sense of scale, the typical member in the National Association of REALTORS® 2026 Member Profile reported $9,530 in total business expenses on $59,200 of gross income. That figure covers every expense, not only marketing.
How to use the split
- People who already know you usually pay back best. NAR members report that about half their business comes from repeat clients and referrals.
- One local channel, such as a farm, a sponsorship or a ZIP code you advertise in.
- One online channel you can measure.
- A small test budget, so you can try something new without betting the year on it.
Review it every quarter. Move money toward the channels that produced closings and away from the ones that produced only leads. How much should a real estate agent spend on marketing? walks through the reasoning.
Questions agents ask
How much should a real estate agent spend on marketing?
There is no studied benchmark. A common rule of thumb is about 10% of commission income, with newer agents often spending a larger share. What matters more is what each closing costs you by channel.
Should a new agent spend more on marketing?
Often a larger share of a smaller income, because there are no past clients to draw on yet. Start with low-cost work on people who know you, and add paid channels as closings come in.
Is marketing spending tax deductible for agents?
Advertising is generally a deductible business expense for self-employed agents, but the rules have limits and exceptions. Ask your tax adviser how they apply to you.