Definition
Paid advertising model (primarily Google Ads) where agents pay a fee each time someone clicks on their ad, charged per click rather than per impression.
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PPC advertising (Google Ads, Bing Ads) places ads at top of search results for relevant keywords. Agents bid on keywords (e.g., 'homes for sale in Denver') and pay when users click their ad. Advantages: highly targeted (user searching for something specific), pay only for engagement (clicks), measurable ROI. Disadvantages: cost per click can be high ($2-10+ per click in competitive markets), requires ongoing optimization. Effective PPC campaigns: precise keyword targeting (match search intent), compelling ad copy, landing page optimization (where user lands after click), conversion tracking. PPC works well for agents with strong systems to convert clicks into clients. Many real estate leads come from PPC: agents appear when someone searches for homes. Competition drives cost up: multiple agents bid on same keywords. PPC requires budget, knowledge, and optimization to be profitable. Brokerages often manage PPC for agents; individual agents might use PPC providers or manage themselves.
Pro Tip
Agents heavily using PPC advertising (often visible at top of search results) are actively prospecting—good sign of marketing commitment.
Example
Agent pays Google Ads $5 per click for 'homes for sale' keyword, receives 100 clicks monthly ($500 cost), converts 2 clicks to clients.