$8K in Revenue. $3K in Ads. The Real Math of Local Marketing

The real numbers behind Facebook ads for brokers and advisors

Running a local business is hard. I learned that first hand when I decided to spend $2,999.89 on Facebook ads to market my services.

In this article I will share the results, what worked, what didn’t, and what I think local professionals should focus on instead. This applies to anyone who depends on local clients. Mortgage brokers. Insurance brokers. Accountants. Financial advisors. Lawyers. If your business lives on trust and referrals, this is for you.

Where customers come from

After years of marketing all types of services from storage units to mortgages, I’ve noticed the same pattern. People go to friends and family first. They ask around for a referral. Only after that do they turn to Google Maps.

If you are not showing up when they search, you are invisible. That is the real starting point for local marketing. Not ads. Not billboards. Google Maps.

What better way to test this than by doing the opposite? I set up a Facebook campaign, built a landing page, and pinned my hopes on breaking the mold. I chose reverse mortgages because they offered the highest commission payout, giving me more room to spend on ads before dipping into losses.

My $2,999.89 experiment

Here are the results on my Facebook campaign.

I spent $2,999.89.
I had 609 clicks.
I paid $4.92 per click on average.
I had 55 leads.
That worked out to $54.54 per lead.

And here’s the kicker. Out of 55 leads, I had to call every single one. Most of them didn’t answer. Some hung up. Some were not serious. In the end, only one converted.

That one client did close (barely). The commission was $8,000 (It was a reverse mortgage). So on paper, the campaign was profitable. My return on ad spend (ROAS) was 2.6. That is not terrible, but very far from great. For referense, a growing business should have a ROAS of about 3-4. An established business should be around 10

The worst part was the work. Fifty-five calls for one client. That is the reality of Facebook leads. They are often people who couldn’t qualify with their friend’s broker. Then they couldn’t qualify with the first broker they found on Google. Finally, they arrive at me. The bottom of the barrel. That is why conversion rates are always low.

I’m not alone here, when I talk to other medium to large brokers, 2 to 3 percent conversion rate on paid ads is normal. oof!

What this taught me

The money was not wasted. It reinforced what not to do. Paid media can work, but it is a grind. For most local professionals, it is better to build trust where customers actually look. That means investing in organic local presence.

The two most important channels are:

1. Google Maps.

2. Local referrals.

How to win on Google Maps

Your Google Business Profile is the front door to your business. Here is how to make it work:

1. Claim and verify your profile. If you don’t, someone else will. Verification also gives you control over reviews and updates.

2. Pick the right categories. Choose “Mortgage Broker” if you are one. Add secondary categories if you also offer related services.

3. Add your location. Google wants to show local businesses near the searcher. If you can rent a desk in a real estate office or brokerage, do it. Even if it costs $100 to $1,000 a month, it is worth it. You get an address to pin on Google Maps, plus referrals from the brokerage.

   1. DO NOT say that you service an area rather than having a local address. Google Maps users want to see a pin where you located. No pin, no call.

4. Collect reviews. Ask every happy client to leave one. Reviews build trust and push you higher in search results.

5. Post updates. Share news, offers, or tips right in your profile. Google rewards activity.

6. Add photos. A profile with real photos looks alive. Add your office, your team, and even pictures of your neighborhood.

7. Track performance. Google gives you data on how many people call or click for directions. Watch it.

8. Make it look attractive. consumers will usually narrow their search down to a couple of options in their local area. The one they choose is usually the one with the most attractive photos, best reviews, and friendliest people. I know this from years of marketing Self Storage. :)

If you do this right, you can become the top listing in your area. That is better than spending thousands on ads.

To learn how I created $13 million in additional revenue on Google Maps, click here.

Build referrals locally

Ads reach strangers. Referrals reach warm leads. One of the best investments I’ve seen was renting a desk in a large brokerage. When real estate agents know you, they will refer clients. It is almost automatic.

Networking also matters. Join your local Chamber of Commerce. Sponsor a kids’ sports team. Host a free financial literacy night at the library. These things don’t just build awareness. They show you are part of the community.

Don’t forget your website

Google Maps is key, but people will also click through to your site. Make sure it is ready.

1. Use local keywords. “Mortgage broker Toronto” works better than just “mortgage broker.” Add your neighbourhood too.

2. Create service pages. Have one for “first time home buyers,” another for “refinancing,” and so on.

3. Add testimonials. Social proof helps people trust you.

4. Make it fast. People bounce if your site takes more than a couple seconds to load.

5. Add clear calls to action. Make it easy to call, email, or book an appointment.

SEO takes time (years), but it builds an engine that works for you 24/7.

Other local strategies that work

• Direct mail. Flyers still work if targeted by neighborhood.

• Local media. A story in your community newspaper builds trust.

• Events. Sponsor or host a seminar. People remember faces.

• Partnerships. Team up with accountants, lawyers, and real estate agents. Trade referrals.

Each of these has one thing in common. They build your presence where your customers already are.

The bottom line

I don’t regret spending $2,999.89. It taught me that ads can work, but they are expensive and time-consuming. For local businesses like mortgage brokers, insurance brokers, and financial advisors, the better path is clear.

Show up where your clients search. Build relationships where they live.

Google Maps and referrals should be your foundation. Ads can come later.

If you are starting a local business, remember this: people want to work with someone trusted. Be visible. Be local. Be the first name that comes up when they ask their friends or type “near me” into Google.

That is how you market a local business the right way.