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Key Takeaways
Understand the Differences Between Owner and Guest Marketing: Owner marketing requires a longer-term investment mindset since the time between lead generation and cash flow can span months. In contrast, guest marketing delivers quicker returns, making it easier to track and optimize.
Prioritize High-Intent Marketing Channels Like PPC: For both owners and guests, Google Ads (PPC) is a critical tool due to its ability to capture high-intent leads. On the guest side, budgets can range from $1,000 to $15,000 per month depending on market size and goals. On the owner side, PPC clicks are fewer and more expensive, but often worth the cost to secure new properties.
Incorporate Direct Mail for Owner Acquisition: Direct mail remains an effective strategy for reaching absentee owners. Budget $1,500–$2,500 per mailing for lists of 1,000 recipients. Focus on consistency and refresh your data frequently to avoid targeting outdated contacts.
Leverage Email Marketing for Retention and Acquisition: On the guest side, email marketing costs are primarily tied to list size, typically $10–$300/month for platforms like MailChimp. For owners, budget for high-quality data acquisition, with email addresses costing around $0.40–$0.50 per record. Use personalized and automated workflows to nurture leads.
Use Social Media Advertising Strategically: Retargeting and custom audiences work well for both guests and owners. Guest campaigns typically range from $5–$10/day for smaller budgets, while owner campaigns often remain smaller due to smaller audience sizes. Consider LinkedIn ads for high-value owner prospects despite higher costs per lead.
Allocate a Sufficient Budget for Data Acquisition: On the owner side, high-quality data is crucial for both email and direct mail campaigns. Be prepared to invest $200–$300 per 1,000 records. Avoid cheap, low-quality lists as they can hinder campaign effectiveness.
Build a Marketing Flywheel: Effective marketing requires an omnichannel approach where efforts like PPC, social ads, direct mail, and email reinforce each other. For example, retarget homeowners who received your direct mail piece with follow-up email campaigns or social ads.
Invest in Marketing Personnel Carefully: Hiring a single in-house marketer to manage all efforts may seem cost-effective but can dilute expertise and performance. Agencies or specialists often provide better value by bringing multiple areas of expertise to the table.
Track ROI and Use Metrics to Refine Budgets: For guests, aim for a 5x–10x return on ad spend (ROAS). On the owner side, recognize that cost per acquisition may exceed $2,500 in competitive markets, but the long-term value of signed properties justifies the expense.
Balance People and Media Spend: Avoid allocating more than 50% of your marketing budget to personnel. Ensure ample funds remain for paid advertising and other campaigns to maximize your reach and impact.
What We Cover In This Episode
In this episode, Conrad and Paul talk about the process of building a budget that spans both guest and homeowner marketing for your vacation rental company.
