Calculate the ROI of real estate portals

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One last step we can take is to find our ROI-- the return on investment .

ROI is very important because it allows us to know which portal is more profitable. In very simple terms, it tells us how much income each Euro we invest in a real estate portal generates.

To calculate ROI, we first need to take the volume of tunis country code closed sales from each portal. We can take the list of sales we've made previously, but in this case we're going to add up the fees we've earned--instead of the sales count, the money generated:



Once we have everything noted and distributed for each portal, we add a last column to calculate the ROI:

ROI = (Profit - Investment) / Investment

The reason we do this with our sales volume is because of the difference in commissions. It is possible that a portal has a higher conversion rate, but that it gives us contacts interested in cheap apartments (and with low commissions). On the other hand, a portal with fewer conversions may give us lower quality leads, but that result in a higher amount of fees:



Analyze your results
Again, it is important to remember that this data is indicative. Since most real estate agencies close less than 10 sales per month, there is not enough data to draw reliable statistical information. A portal with an ROI of 14,000% is not necessarily better than one with 13,790%.

However, the key to all this is knowing the performance of each of your real estate portals month by month. Although you cannot rely on the data being consistent, you can obtain very valuable information.

Depending on your results, you can employ more than one strategy:

Observe whether there are consistent results on a portal, and increase or decrease investment
Finding seasonal trends by breaking down your analysis month by month
Know your best investments so far, and the worst ones too
Compare last year's performance with the previous one