What it is: You pay for every lead that comes through your partner ILS provider’s site.
What I like about it: Pay-per-contact, otherwise known as pay-per-lead, puts you in the driver’s seat and allows you to ultimately control how much you spend. The onus is then on you-the property management company-to put your marketing budget to work for you.
Having this degree of control also means having the flexibility to adjust quickly to changing market conditions. For example, if you have a lease-up property, you can crank up your marketing and advertising efforts and add more contacts to the leasing funnel through your ILS partner. On the other hand, if you’re 95 percent leased and you don’t need the traffic; you can dial it back, slowing the flow of prospects.
Our industry can trust this model because the data is transparent, the invoicing process is fair and the business model causes no headaches for your on-site teams. No one has to review the standards for a “qualified” prospect and no one has to trace a lease back to its online source, which can be difficult given how many websites our customers visit when researching their next apartment. Moreover, all team members can rest assured that you are not exceeding budget expectations.
Biggest drawback: With the pay-per-contact model, you have to align yourself with an ILS partner that understands what we do day in and day out, which is refining our marketing strategy to best fill vacancies. So, don’t overspend on advertising that is ineffective, but do spend wisely on advertising that works and returns to us quality renters who we all work hard to attract and retain.
Jennifer Staciokas is a senior vice president at Pinnacle.