Paid vs. Organic: Which is Better for Real Estate Crowdfunding?

By Adam Gower Ph.D.


Social media presents a great opportunity to get your message in front of a wider investor network. It also presents a dilemma about whether you need to use paid ads to enhance your message or not.


The Limits of Organic Reach


The dream is to be able to build your social media accounts on nothing but organic reach.


It’s only a dream today because reach has been handicapped again and again on every platform. Once social media platforms realized how much they could make from ads, organic reach lost its power.


In the earlier days of social media, everything you posted would have automatically been placed in the feeds of everyone who followed your profile. But, the golden days for organic reach are over now. Today, only around 3% of your posts make it into your followers’ feeds.


Organic reach was powerful in its day. There were strategies to fully harness it, ways to increase reach, and some of your posts were likely to even show up on new peoples’ feeds if they were interacted with enough.


While all of this is still true today, the baseline reach has been so crippled that you can’t rely on organic reach alone if you truly want to see growth and get your message in front of different investors and prospects.


Social media presents a great opportunity to get your message in front of a wider investor network. It also presents a dilemma about whether you need to use paid ads to enhance your message or not.

Ready to get started?

Real estate syndication online is no longer optional

It's a minimum mandatory requirement

Build your own investor acquisition system by learning how industry leaders employ best practices so you can start raising capital for your projects now

A Place for Advertising


Advertising has taken the place of organic reach. What you can’t do organically, you can do with social media ads. The benefit of advertising on social media today is that you can target your audience extremely specifically. You’re not just paying and praying it finds the right feeds.


You can create an ad profile to reach a targeted group of investors even if you have a smaller budget. To get to the best results, start with a smaller budget of $10 – $50 per day, and refine your audience profile, constantly refining your messaging and audience until your ad spend is equating to approximately 3-4% of your conversions.


Put another way, for every $3,000 to $4,000 of ad spend, you should expect to see $100,000 of investment in your deals.


That said, this won’t happen immediately even if you use a proven strategy honed to your specific value proposition.  And keep in mind that while you can reach a highly targeted group of prospective investors across different social networks, your paid campaigns shouldn’t replace organic posting 100%. 


You still need to have a robust, professional digital presence so that when prospects see your ads and do some research on you, they find a developer who provides them with high value educational content, consistent messaging and appearance, and who they can relate to as an authority in the field.

FREE Real estate syndication education and insight newsletter. Subscribe now.

Creating a Broad Mix


The purpose of using organic reach and advertisements in unison is to create an effective mix to reach your target investors in as many ways as possible. What you want is to get your important content in front of the right eyes as often as possible.


You want your ideal investors to see your content wherever they are. One email isn’t enough, because they may not see it. One Facebook post may not be enough, because it could be lost in the mix. Because you don’t know exactly where your ideal investors will see your content, you want to put it everywhere to catch their attention one way or another.


You can do this by creating a mix using organic reach and advertisement together.


Add in traditional advertisement as well when you find a particular ad-set that works, and then test that against another ad-set. With real estate investment online, the cost of conversion is going to be very different from other industries where a 20% margin on ad spend is considered stellar. 


In real estate crowdfunding you can expect 25x return on your ad-spend depending on your minimum investment levels, but you must have patience before seeing results.




Social media presents a brand-new opportunity to reach a highly targeted new group of investors as well as reaching out to your existing network, but it doesn’t come free. Organic reach still works, but it works even better alongside sponsored posts and advertisements. Build the right mix and keep refining it until you’re getting meaningful investments as a multiple of your ad spend.


Perfection is the Enemy of the Good in Real Estate Crowdfunding

Perfection is the Enemy of the Good in Real Estate Crowdfunding By Adam Gower Ph.D. Authenticity means showing prospects and investors the raw side of your personality and business but it’s tough to put content out online that is anything but perfectly produced.  Being authentic online when you are raising money for your real estate…


LinkedIn as Resource Not Resume

LinkedIn as Resource Not Resume By Adam Gower Ph.D. You can never get a second chance at a first impression. If you’re looking for high net worth investors, or even non-accredited investors, use your LinkedIn profile to give a great first impression – and not as a resume (unless you’re looking for a job!)  …


Social Media No Longer Optional for Real Estate Developers

Social Media No Longer Optional for Real Estate Developers By Adam Gower Ph.D. It doesn’t matter which side of the real estate investment equation you’re on, it’s time to get hooked up to social media. Whether you’re an investor (or potential investor), developer, project sponsor, broker, or whatever, now is the to start doing social…


Copyright 2019 - ADAM GOWER PH.D. - All Rights Reserved

Website Disclaimer:  All Content contained on this website is intended for informational purposes only and does not purport to be complete or accurate. No recommendations are made or intended to be made regarding investment in real estate of any kind. For further information on any investment opportunity contained in any content of this website, you should visit the respective crowdfunding portal or site where such investment opportunity is published. None of the content presented on this website has been prepared with any reference to any particular user’s investment requirements or financial situation, and you are encouraged to consult with professional tax, legal and financial advisors before making any investment decisions or including the decision to invest at all. GowerCrowd makes no representations or warranties as to the accuracy of any information and accepts no liability or fiduciary responsibility whatsoever. Offers to sell, or the solicitations of offers to buy, any security can only be made through official offering documents through registered portals outside of this website. Investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity. Neither Adam Gower nor GowerCrowd or any related entities are a registered broker-dealer, funding portal, or investment advisor and does not conduct any activity that would require any registration as such.