Most Effective Marketing Channels for Real Estate Agents in 2025

Residential real estate agents in 2025 are leveraging a mix of traditional and digital marketing channels to generate leads. In an industry built on relationships and local presence, agents now blend word-of-mouth referrals with social media outreach, email campaigns, SEO content, paid ads, and marketplace platforms like Zillow.

A recent survey found that 85% of Realtors use at least two marketing channels, and only 5% rely on a single source. This multichannel approach reflects the modern client’s journey – buyers and sellers often need ~7 touchpoints before choosing an agent.

Below, we break down the most important channels – comparing their ROI, cost per lead, conversion rates, lead quality, adoption, and time investment – and identify which channel stands out as the most effective in 2025.

(Distribution of how many marketing channels agents use. 85% of agents use 2 or more channels.)

Social Media Marketing – Broad Reach and High ROI

Social media has become a powerhouse lead generation channel for Realtors. An annual NAR technology survey found 92% of agents use Facebook, 68% use Instagram, and 52% use LinkedIn in their real estate business. 

Over half of Realtors (54%) said social media delivered the highest quality leads in the past 12 months – making it the #1 tech tool for lead generation (ahead of CRMs at 36% and the MLS at 24%). In fact, 60% of agents report their best ROI from social media marketing, according to industry research.

Why Social Media Works

First, it’s ubiquitous – 90%+ of agents maintain a Facebook presence – so it’s a key way to get exposure. Platforms like Facebook and Instagram let agents showcase listings with photos, virtual tours, and client testimonials to a broad audience for relatively low cost.

Many leads generated via social are organic (from regular posts or shares), so the cost per lead can be negligible. Even when using paid social ads, costs are reasonable: real estate Facebook ad campaigns average around 

10–10–20 per lead, among the lowest CPL of any industry.

Lead Quality and Conversion

Social media leads also tend to be high-quality and nurturable. One analysis found 52% of social media–sourced leads were rated “better quality” than leads from MLS listing sites (only 26% high-quality). These prospects often follow an agent’s content over time and build a connection before reaching out, so they come in warmer.

Top-performing brokers leveraging social media see conversion rates above 12%, far exceeding the industry average of ~4–5%. However, typical conversion rates from social media traffic are closer to a few percent, since many social leads are early-funnel.

Time Investment and Versatility

Social media does require consistent effort – 57% of Realtors report using social media daily for marketing. Agents must create content, respond to comments/messages, and monitor their profiles.

The payoff is strong ROI (often essentially free leads from organic efforts), broad reach, and the ability to build personal brand awareness. Social is also versatile: agents use it not only to find new prospects (41%), but also to promote listings (63%) and maintain client relationships (57%), as a recent survey shows.

(Why agents use social media – promoting listings and maintaining presence are top reasons. Only 36% explicitly cite “finding leads” as the main reason, yet over 50% say social delivers their best leads.)

Bottom line: In 2025, social media is a must-have channel with wide adoption and excellent returns. It’s cost-effective (organic reach is free, and ads have low CPL), and when done consistently it produces high-quality leads – making it one of the most important marketing channels for agents today.

Email Marketing – Massive ROI and Client Nurturing

Email remains a cornerstone marketing channel for real estate, especially for nurturing long-term prospects and past clients. Nearly 89% of Realtors prefer to communicate via email with clients, and a majority use email newsletters or drip campaigns to stay in touch. 

About 54% of agents use email specifically to nurture relationships over time – for example, sending market updates, new listings, or home maintenance tips to their sphere.

Exceptional ROI and Cost-Effectiveness

The reason email is so vital is its exceptional ROI and retention power. For real estate businesses, email marketing generates an estimated $36 in revenue for every $1 spent. That’s a 3600% ROI, among the highest of any marketing method.

The cost per email contact is minimal (often just the email service fee), so cost per lead through email is extremely low – essentially just the cost of acquiring that email initially. In many cases, the contacts are existing leads or past clients (no additional acquisition cost), making email a very low-cost channel.

Engagement and Nurturing Power

Email’s effectiveness is seen in engagement stats as well. Real estate emails enjoy an open rate around 23–27%, a bit higher than the general industry average (~21%). Click-through rates on real estate email campaigns average ~1.3–1.8% – modest, but these clicks are typically interested buyers/sellers exploring the content.

While direct conversion from email is around 1.4% on average, the true value of email is in nurturing leads until they’re ready. Agents often credit their email touchpoints for staying “top of mind,” so that when a lead eventually decides to transact, they contact that agent.

High Lead Quality

Lead quality via email is generally very high. These leads are people who opted in to hear from the agent (or are established clients), so they are warm and familiar with the agent’s brand. Conversion rates for past client outreach and repeat-business emails are far above average; indeed, “lead conversion rates for past clients are significantly higher than the industry average”. Many agents find that a simple monthly newsletter to their sphere yields a steady stream of referral and repeat deals with virtually no marketing spend.

Time Investment and Scalability

Email marketing requires creating content (writing newsletters, market reports, etc.) and maintaining a schedule. However, it scales well – one email blast can reach thousands of contacts. Modern email platforms and CRMs allow automation (e.g. drip sequences for new leads).

The time commitment is moderate (perhaps a few hours a month for a newsletter), and can be outsourced or templated. Given the very high ROI and role in fostering client loyalty, email is arguably the most cost-effective channel for long-term success. It may not always bring in as many new leads as social media or portals, but it powerfully amplifies other efforts (for example, converting online leads into clients through follow-up emails).

SEO and Content Marketing – High Intent Leads at Low Cost

Investing in search engine optimization (SEO) and content (blogging, videos, etc.) is a long-term marketing play for agents – one that can yield some of the highest-intent leads at a low incremental cost. In 2025, however, relatively few agents consistently do content marketing: only about 23% of U.S. real estate agents have a content marketing strategy in place. This represents an opportunity, as the majority of agents are not fully leveraging SEO, making it less competitive than other channels.

The Power of Organic Search

The value of SEO is clear in homebuyer behavior: 95% of buyers start their home search online (often via Google). In fact, 50% of real estate industry web traffic comes from organic search alone. If an agent’s website or content ranks well locally (e.g. appears for “real estate agent” or for informative queries like “home selling tips in ”), it can attract a steady stream of prospects without paid advertising. 

Organic search + paid search account for 57% of total visitors to real estate sites, with organic being the larger share. These visitors often have strong intent – someone who searches “homes for sale in X neighborhood” or reads your blog “How to price your home to sell” is likely in the market.

Attractive Cost Per Lead

Cost per lead via SEO/content is very attractive. The upfront cost is in creating high-quality content or optimizing the website (time, or hiring an SEO service). Once content is ranking, each additional click is essentially free. While a paid lead might cost 

While a paid lead might cost $50, an organic lead might cost only the fractional expense of your site’s upkeep. Industry benchmarks show the average cost per organic lead in real estate can be around $0 to $30 (hard to quantify precisely, but much lower than paid)​

One report recommended target CPLs of ~$410 for organic vs $470 for paid – but those figures likely include broader marketing overhead. In practice, agents often see organic leads as “free” since the content creation is a sunk cost.

Conversion Rates and Lead Types

The conversion rates from SEO can be higher than other online channels. Across industries, organic search traffic converts at about 3.2% in real estate, compared to ~1.5% for paid search ads. The visitors coming from Google search are actively looking for something specific, so they tend to engage meaningfully (e.g. sign up on an IDX home search site or contact an agent after reading an informative post).

Moreover, SEO content can attract seller leads (which are typically harder to get via ads) by demonstrating expertise (for example, a blog on local market trends might prompt a homeowner to call that knowledgeable agent).

Lead Quality and Follow-Up

Lead quality from content marketing is generally high. By the time a lead contacts an agent through the agent’s own blog or website, they may already feel a connection or trust due to the useful content consumed.

Agents often note that leads coming from their personal website or YouTube channel are “pre-sold” on them, making them easier to convert than cold leads. One caveat: SEO leads require immediate follow-up like any internet lead – e.g. responding quickly to a web form inquiry – or they’ll move on to the next Google result.

Time Investment and Sustainability

SEO and content is the most time-intensive channel upfront. Writing blog posts, filming videos, optimizing site SEO – these require consistent effort over months to build up domain authority and traffic. Results are not instant; it might take 3–6+ months for content to rank and start generating leads, whereas paid ads or social can yield leads immediately. This long timeline means some agents give up early.

However, the sustainability is unbeatable – a single well-ranked article or community guide can continue bringing in leads for years with little additional cost. Many top-producing agents who invested in content early are now essentially “rainmakers” getting a steady inbound flow. In 2025, with the online search trend only growing, SEO and content marketing remain highly effective (high-ROI) but are underutilized by most agents due to the required patience and effort. For those who do commit, it can become a secret weapon for lead generation.

Referrals and Word-of-Mouth – The Untouchable Lead Source

Despite all the new digital strategies, referrals and word-of-mouth remain the bedrock of real estate marketing. Personal referrals from past clients, friends, or family are often considered the holy grail of lead sources: they cost almost nothing, convert at extremely high rates, and tend to result in the most loyal clients. 

Data from NAR underscores how dominant referrals are in actual business: Sixty-five percent of home sellers in recent years found their agent through a referral or by using a past agent. On the home buyer side, 43% of buyers found their agent via friend/family referral and another 13% used an agent they had worked with before.

In other words, roughly half of all buyers and nearly two-thirds of all sellers ultimately chose an agent based on personal connections – far more than any other single channel. This trend persists even in 2025.

Trust, Conversion, and Quality

The power of referrals comes from trust and social proof. When a past client enthusiastically recommends you to their neighbor, that lead comes in with built-in confidence in your abilities.

Consequently, conversion rates for referred leads are the highest of any channel. Industry coaches often estimate that 1 in 3 referral leads (or more) turn into a closed transaction, whereas cold online leads might be 1 in 50. Even if exact rates vary, it’s clear that past clients and sphere contacts are much more likely to convert (the earlier noted stat: past client leads convert “significantly higher than average”).

Similarly, referral leads tend to be higher quality – they’re usually motivated (or they wouldn’t have asked their friend for an agent referral) and they have a positive pre-disposition toward the agent. This often leads to smoother transactions and higher satisfaction.

Unbeatable ROI

From an ROI perspective, referrals are virtually unbeatable. The cost per lead is effectively $0 – agents don’t buy referrals; they earn them by providing great service. Agents might spend a bit on client appreciation (holiday cards, an occasional gift, a referral thank-you), but these costs are minimal compared to buying leads or ads.

Some agents join referral networks or pay a referral fee to another agent for a client hand-off, but those are usually one-time 25% of commission after closing – still a cost that only comes out of closed deals. Compared to dropping $1,000 on an online ad campaign for uncertain leads, spending that amount on client events or gifts can yield far more tangible returns via referrals.

In essence, referral business often has an infinite ROI, since the investment is just maintaining relationships as part of normal service.

The Referral Engine

It’s also worth noting referrals feed on themselves: 87% of buyers and 87% of sellers say they would recommend their agent to others after a good experience.

And indeed, 61% of buyers actually did recommend their agent within the first year after purchase. This means every successful transaction can spawn multiple new referral leads if followed up properly.

Top agents consistently cite their “sphere of influence” as their primary business driver – essentially a referral engine of past clients and contacts.

Time Investment and Strategic Importance

Generating referrals isn’t “free” – it requires time and care to cultivate relationships. Agents must stay in touch with past clients (via calls, pop-bys, emails, social media, etc.), ask for referrals, and possibly engage in community networking. However, many of these actions overlap with normal client service and local presence.

Relative to other channels, the time demand is not heavy in a structured referral program: an agent might dedicate a few hours a week to calling past clients or writing personal notes. The key is consistency and personal touch, rather than brute force time.

The payoff is huge: referrals produce the highest ROI and lead quality of all channels. The main limitation is scale – a new agent with few past clients can’t rely solely on referrals and must build up a base. But by 2025, even tech-savvy teams emphasize that word-of-mouth is irreplaceable.

It’s the channel that converts best and costs least, making it arguably the most effective channel in real estate, year after year.

Paid Online Advertising (Google Ads & Facebook Ads) – Speed at a Price

Paid advertising offers immediate lead flow for agents willing to invest marketing dollars. The two primary avenues are search engine advertising (Google PPC) – showing ads when consumers search keywords like “realtor near me” – and social media advertising (e.g. Facebook Lead Ads) which target users by demographics or behavior.

In 2025, about 1 in 5 to 1 in 3 agents actively use paid lead generation in some form (the $1.8+ billion that Zillow alone earns from agent advertising indicates heavy usage of paid channels overall).

Paid ads are especially popular for agents looking to scale up quickly or break into new markets, as they can buy exposure and leads on demand.

The appeal of paid ads is that you can “turn on” lead generation instantly, unlike referrals or SEO which take time.

For example, an agent can launch a Google Ads campaign and start receiving home buyer inquiries that same week. Paid leads also allow targeting specific niches (first-time buyers, seller leads via home valuation ads, specific ZIP codes, etc.).

Cost Per Lead and ROI Breakdown

Cost per lead for paid channels varies widely by market and platform:

• Google Ads (Search PPC): The average cost per click in real estate search is around $1.55 (significantly lower than industries like legal or finance)​. However, clicks usually convert to leads at around 5–10% on landing pages, so effective cost per lead can be roughly $30–$60 in many markets​. Industry data puts the average search CPL near $53.50​. In competitive metros or high-value segments (luxury homes), CPLs can rise toward $100​. Still, compared to a typical $10k+ commission, a $50 lead is worthwhile if it converts. Google PPC generally has a 2:1 return on ad spend on average (each $1 yields ~$2 in GCI)​, though top teams fine-tune campaigns to achieve much higher ROI.
• Facebook/Instagram Ads: Social media ads tend to have a lower CPL but also lower immediate intent. A LocaliQ analysis of 2024 Facebook campaigns found real estate leads were about $13.87 each on average – one of the lowest CPL industries for Facebook ads. Some agents running simple Facebook Lead Form ads report leads at $2–$5 a piece in low-cost regions. The trade-off is these leads are often casually interested (e.g. they clicked on a home photo or “What’s your home worth?” ad out of curiosity). Thus, conversion rates are low unless there is diligent follow-up. It’s not uncommon for Facebook leads to convert in the 1%–3% range (similar to general internet lead benchmarks of 1–3.5%​). The lead quality can be mixed – some leads might not even remember filling a form. That said, the sheer volume and low price can make it a numbers game that yields results with proper nurturing. Many teams run both Google and Facebook ads in concert: Google to capture high-intent searches, and Facebook to fill the pipeline funnel.

One popular paid model in 2025 is also portal advertising (like Zillow Premier Agent or Realtor.com leads), which we cover separately next. Those are essentially paid leads too, but via a third-party platform.

Conversion Rates and Speed-to-Lead

On paid search, users are actively looking for real estate info, so conversion tends to be a bit better than social. The average website conversion from paid search is ~1.5% (that is, out of 100 ad clicks, maybe 1–2 people become a lead). However, those who do convert are often deeper in the funnel (e.g. requesting a showing or CMA).

On Facebook, conversion is often the submission itself. The real measure then becomes conversion to client. Overall internet lead conversion to closed deal hovers in the low single digits (1%–3.5%). Speed to lead is crucial – studies show responding within 5 minutes dramatically improves chances of contact. Agents who excel with paid leads typically have fast response systems. When worked properly, even a 1–2% close rate can be profitable if the cost per lead is low and commissions are high.

ROI Variability and Scalability

Return on investment for paid ads can vary. Some agents report stellar ROI (e.g. $8 of GCI for each $1 spent on Zillow or Facebook, after refining their approach)​. Others struggle to break even if they lack follow-up time.

Promodo’s industry benchmark suggests real estate PPC yields ~$2 return per $1 spend on average​ – a positive ROI, but not as high as organic channels. The advantage is scalability: you can pour more money into ads to amplify your results, whereas you can’t instantly double your referrals or organic traffic overnight.

Time Investment and Lead Management

While money replaces time to some extent in paid channels, they still require management. An agent (or their marketing hire) must configure campaigns, monitor budgets, tweak targeting, and crucially, follow up with every lead.

The follow-up is where time sinks – calling, texting, emailing new inquiries to qualify them can consume hours if lead volume is high. Some agents automate initial follow-ups or use chatbots/ISAs. Overall, paid ads can be considered a medium time investment: less time on content creation, more on lead handling.

They are an effective component in a marketing mix, especially for agents who have more budget than sphere contacts, but the cost per lead is higher than organic methods, and the lead quality is variable. Still, in 2025, many agents find success using Google and Facebook ads tactically. When measured and optimized, paid ads provide a consistent pipeline to supplement referral business.

Real Estate Marketplaces (Zillow, Realtor.com, etc.) – High Volume, High Cost

Real estate portals like Zillow, Realtor.com, Trulia, Redfin represent a significant marketing channel for agents in terms of lead generation and advertising. These platforms attract the largest real estate consumer audiences online – Zillow alone clocks around 300+ million visits per month on its site, making it often the first stop for home shoppers. For agents, having presence on these marketplaces can mean exposure to active buyers and sellers they wouldn’t reach otherwise.

There are a few ways agents use marketplaces as a channel:

• Free profiles and listings: Simply claiming their profile on Zillow and ensuring their listings are up gains some organic visibility.
• Advertising programs (paid leads): Zillow Premier Agent, Realtor.com’s connections, etc., allow agents to buy leads or impressions in certain ZIP codes. Zillow offers either a share-of-voice model or a referral fee model (“Flex”).
• Enhanced branding: Some agents pay for featured placement or branding to attract referrals.

Lead Costs and Intent

Costs for Zillow leads vary widely by zip: in less competitive areas, leads might cost $20–$75 each, whereas in hot metro markets some agents report $300–$500 per lead due to competition​. Realtor.com leads often range in the $20–$60 apiece as well. These are among the most expensive leads on a per-lead basis, but they come with high intent – these users are on real estate sites actively clicking “Contact Agent.”

Adoption and Market Share

A significant number of agents incorporate portal leads. Zillow’s Premier Agent program has been used by tens of thousands of agents, and nearly all top-producing teams either advertise on Zillow or have in the past.

In 2022, Zillow reported $1.8 billion in revenue from agent advertising and services, indicating how much agents collectively spend here. Portal leads still make up an estimated ~32% of agent leads industry-wide, second only to referrals.

Lead Quality and Conversion Dynamics

Portal leads are typically actively looking at homes, so they can be good-quality buyer leads. Many are early-stage, but some will be ready to view a property immediately. The average Zillow lead conversion rate is ~5% (1 in 20) and the best teams convert up to 10%.

This is significantly higher than generic web leads. Additionally, Zillow leads tend to close faster – one study claimed Zillow leads transact in ~90 days on average. Seller leads from these portals are rarer but valuable when they come.

One challenge is lead distribution. Consumers reaching out on Zillow may be sent to multiple agents, or they might think they are contacting the listing agent when they are not. Competition on follow-up is fierce.

Return on Investment

The ROI on marketplace leads can be decent if conversion is good, but given the high upfront cost, it’s often narrower. For example, if an agent pays $200 per lead and converts only 5%, the cost per closed deal is $4,000. With an average commission perhaps $10,000, that’s still a profit, but maybe a 2.5:1 ROI. Some agents report 3x to 5x ROI consistently, while others have seen as high as 8x ROI. The Flex (pay-on-close) model removes upfront cost but ROI per deal is lower.

Time Investment: Marketing vs. Sales

Using portals can be low time investment in terms of marketing effort – Zillow and others deliver the leads to you. But it becomes high time investment in lead conversion – responding to many inquiries, many of which might be unresponsive. It’s a bit of a grind: agents must make repeated contact attempts. Some outsource initial contact.

In summary, real estate marketplaces in 2025 remain an important channel, especially for buyer leads. They offer volume and immediacy. Yet, the high cost per lead and heavy competition mean the ROI can be lower than other channels if not carefully managed. Marketplaces are effective in providing prospects, but they are arguably the most expensive channel and require a savvy business plan.

Niche Directories (e.g., CatholicRealEstateAgents.com) – Reaching Specialized Audiences

Overview
In an increasingly crowded digital landscape, niche directories have emerged as a powerful way for agents to connect with highly targeted audiences. Instead of competing on massive, general platforms, real estate professionals can leverage specialized online directories that align with their values, community affiliations, or professional focus. Faith-based directories—such as CatholicRealEstateAgents.com for Catholic agents—are among the most effective examples, allowing agents to tap into a substantial, ready-made audience that already trusts professionals who share their faith and ethical principles.

Why It Works

• Shared Values Foster Immediate Trust: Agents and clients who share a specific niche (in this case, Catholic faith) often find an instant connection and comfort level. Real estate is a trust-heavy transaction, so this faith-based “common ground” can dramatically speed up rapport-building.
• Lower Competition, Higher Quality Leads: Niche directories feature fewer agents than giant listing portals, so your profile stands out more. Leads that come through these platforms typically have higher intent—they specifically sought a Catholic real estate agent.
• Strong Referral Potential: Communities bound by shared faith or another unifying factor tend to be referral-rich. Satisfied clients who value their faith-based experience are more likely to recommend your services to friends, family, or fellow parishioners.
• Cost-Effective Exposure: Compared to the high per-lead costs of large portals (where some ZIP codes can run hundreds of dollars per lead), niche directories often charge modest membership fees or offer relatively low advertising costs. This lower overhead can translate into a substantially higher ROI.

Impact on Lead Quality and Conversion
Because these leads often come “pre-sold” on the idea of working with someone who shares their background and values, conversion rates can rival or surpass those from other channels. Plus, by being part of a faith-focused network, agents can strengthen their personal brand and attract long-term relationships within that community.

Time Investment
While you may spend minimal time setting up and updating your directory profile, it’s wise to remain active in community events and parish life to maximize referrals and visibility. However, this investment of time is no different from normal relationship-building—and often yields disproportionately positive results due to the shared-faith element.

Example: CatholicRealEstateAgents.com

• Audience Size: In the U.S., roughly 23–25% of adults identify as Catholic, representing tens of millions of potential clients.
• Built-In Trust: By appearing on CatholicRealEstateAgents.com, you signal a commitment not only to professional excellence but also to a shared moral ethos.
• Reinforces Personal Branding: Listing on the directory can be combined with your own social media and email marketing to highlight your specialization in serving Catholic families and communities.

Channel Comparison Table

To recap the data, the table below compares key metrics for each major marketing channel in 2025:

Channel	ROI (Return on $1)	Cost per Lead	Avg. Conversion Rate	Lead Quality	Agent Adoption	Time Investment
Social Media	Very high – 60% cite social as highest ROI	Low cost (organic free; FB ads ~10–10–20)	~4.7% overall (top agents >12%)	High quality – better than other online	~90%+ use FB; 68% Insta; 82% use some	High – Daily effort needed for content/engagement
Email Marketing	Extremely high – 36:36:1 spent (3600% ROI)	Very low cost (~$0 for existing lists)	~1.4% direct; much higher for past clients	Very high – warm leads, past clients	~89% use email; ~54% use nurture	Medium – Writing, automation; scalable
SEO & Content	High long-term ROI (organic leads are “free”)	Low once established (<$5/organic lead)	~3.2% (organic web traffic)	High – high intent, pre-sold	~23% have a strategy	Very High – Upfront effort, long-term payoff
Referrals & Word-of-Mouth	Off the charts – Highest ROI	Negligible cost	30–50%+ (est.); 65% sellers / 56% buyers come via referrals	Highest quality – trust, high conversion	All agents benefit; Top source	Low – Relationship maintenance
Paid Advertising (Google/FB)	Moderate – around $2 return per $1 spent avg.	Medium to High: Google ~50–50–60; FB ~10–10–15	~1–2% (paid search ~1.5%; FB lower)	Variable – Intent varies; needs fast response	~20-33% use paid leads	Medium – Campaign management, high follow-up
Real Estate Portals	Varies – 3–5x ROI common if well-managed	High: Zillow/RDC leads typically $50+	~5% average (Zillow)	Good quality – active searchers, but competitive	Many top agents use	Low marketing time, High sales time
Niche Targeted Directories	High (low-cost listings, strong referrals)	Low to Moderate (membership fees often minimal compared to other channels)	5–15% (can be higher if well-managed)	High – pre-qualified, trust from shared niche values	Growing but still smaller than general portals	Low to Medium – primarily profile upkeep + normal relationship-building

(Sources: NAR, industry surveys, Statista, Promodo, Resimpli, The Close, and others.)

Conclusion: The Most Effective Channel in 2025

After evaluating all the data – from ROI percentages to conversion rates and cost per lead – one channel stands out as the most effective and important for residential real estate agents in 2025: referrals and word-of-mouth. The numbers tell a compelling story: over 50% of all business (and nearly two-thirds of listings) comes from personal referrals or repeat clients, far more than any other single source. No other channel can match the combination of virtually zero cost, extremely high conversion (often >30%), and strong client loyalty that referrals produce. An agent’s reputation and relationships – their “sphere of influence” – yield the highest quality leads that are most likely to convert to sales.

This isn’t to discount the rise of social media and digital marketing – indeed, social media is the top new client acquisition channel, excelling in reach and low-cost lead generation, and agents should absolutely leverage it. But social media success often serves to funnel into a referral-like relationship or to stay in touch with past clients. At the end of the day, real estate is a relationship business, and 2025 data shows that relationships translate into closed deals better than anything else.

Agents who cultivate referrals – by delivering great service, staying connected with past clients, and asking for recommendations – are capitalizing on the highest-ROI channel available.

The firm conclusion from the research is that referral and word-of-mouth marketing is the single most effective and important channel for real estate agents in 2025, serving as the backbone of a successful agent’s lead generation strategy.

In an era of proptech and lead automation, the trust earned through personal connections is still the ultimate differentiator – and the statistics bear out that it delivers the best results. An agent’s smartest investment is in relationships: turning each client into a referring fan. 

Marketing budgets and time should be structured to harness this powerhouse channel, with digital tactics as complementary support, not replacements. The top agents of 2025 are those who modernize their marketing and continue to prioritize the timeless strategy that dominates their ROI: referrals.