residential complex website payback: how many deals it takes for a site to earn back its cost

the formula

profit from the site = clicks × conversion to a request × conversion of a request to a deal × profit per deal. divide the cost of the site by the profit from one deal, and you get how many extra deals it takes for the site to pay off.

a sample calculation

the numbers below are hypothetical, they show the logic. plug in your own from the ads account and the crm.

• ads bring 1,000 people a month to the site.
• the old site turns 1% of visitors into requests: 10 requests.
• the sales team closes 1 request out of 10 into a deal.
• that's 1 deal a month.
• the new site turns 2% into requests: 20 requests and 2 deals from the same budget.

the difference is one deal a month. with an average apartment price in the tens of thousands of dollars, even a small profit percentage from one deal usually covers the cost of the site.

where to look for higher conversion

• speed: according to google, 53% of mobile visitors leave if a page takes longer than 3 seconds to load.
• prices: price is the main factor for 89% of new-build buyers (olx real estate), so a hidden price costs requests.
• the first screen: specifics instead of generic words.
• answers to fears and construction progress, so people don't leave «to think».
• a simple form and saving the source of every request.

what you need to know to calculate

without analytics you can't calculate payback. that's why on every site i set up the pixel and lead events, and every request is saved with the campaign it came from. then you can see what a request and a deal cost from each source.

when a site won't pay off

if there are no ads or you sell 1–2 houses, there isn't enough traffic for the site to earn back its cost. more on this in the article a website or social media.