Vendor Paid Advertising (VPA) has long been part of Australian real estate practice, but in today’s digital-first marketplace it has shifted from being a campaign add-on to a strategic necessity. For agents, understanding how to explain it – and defend it – is critical.
At its core, VPA is the upfront marketing investment a seller makes to promote their property, so rather than an agency absorbing advertising costs, the vendor funds the campaign directly.
This typically includes professional photography and videography, floorplans, copywriting, signboards, social media advertising, database marketing, and premium placement on property portals such as realestate.com.au and domain.com.au.
While some vendors still view advertising as something that should be “included in commission,” most high-performing agents treat VPA as a separate and deliberate investment designed to maximise competition, and ultimately price.
Why VPA matters more than ever
The modern buyer journey begins online. Visibility on major portals determines how many people see a property in the crucial early stages of a campaign.
Algorithms favour new listings, so buyer alerts trigger immediately; emotional urgency is strongest in the opening weeks.
If a property fails to capture attention during that window, momentum can stall. Enquiry drops, days on market extend, and price expectations can soften.
Premium portal placements, targeted social media campaigns, and strong visual presentation materially influence click-through rates and inspection numbers.
In competitive suburbs, this visibility can be the difference between a single-offer negotiation and a multi-buyer bidding environment.
In softer markets, where buyer pools are thinner, VPA becomes even more strategic. When demand tightens, exposure must widen.
The alignment factor
Beyond reach, VPA changes the psychology of the campaign.
When vendors invest financially in marketing, they are typically more committed to presentation, pricing strategy and execution.
The campaign becomes a shared commercial endeavour rather than a passive listing.
For agencies, VPA also protects cash flow: self-funded marketing campaigns expose businesses to risk if a property is withdrawn or fails to sell.
A structured VPA model ensures each listing is properly resourced without compromising operational stability.
How to pitch VPA at your next listing
The strongest agents don’t “ask” for VPA — they position it as standard practice.
Start with the outcome
Anchor the conversation in the vendor’s goal.
“If the objective is to achieve the highest possible price, we need to generate maximum competition in the first two weeks.”
This reframes marketing as a results strategy, not a cost line item.
Use evidence, not assumptions
Show vendors data on buyer behaviour – enquiry volumes, listing impressions and engagement comparisons between standard and upgraded placements on listing portals.
When vendors see measurable differences in reach, the discussion becomes commercial rather than emotional.
Break down the budget transparently
Itemise what the campaign includes:
- Professional imagery
- Digital upgrades
- Social media targeting
- Print (if relevant)
- Signage and collateral
Transparency removes suspicion and builds trust.
Address the commission question directly
When vendors ask, “Isn’t that what commission covers?” clarify the distinction:
Commission remunerates the agent for negotiation and successful sale. Marketing creates the competitive environment that allows that negotiation to occur.
The risk of under-marketing
- Reduced visibility in crowded search results
- Lower enquiry volumes in the peak window
- Extended days on market
- Increased likelihood of price adjustments
- Buyer perception that the property lacks demand
A poorly funded campaign doesn’t simply limit exposure — it can shape perceived value.
Josh Phegan on selling VPA
Josh Phegan, one of Australia’s leading trainers views Vendor Paid Advertising as more than just a line item – he sees it as a core skill that separates top-performing agents from the rest.
In his experience, selling VPA is a learnable skill, but it requires confidence, preparation, and the ability to guide the vendor through the strategy.
In a YouTube presentation he prepared in partnership with Domain, he explained that, “Selling vendor-paid advertising is one of the greatest skills inside of your real estate career… it’s a learnable skill.
It comes down to the way you present it, the conversations you have, and most importantly that you stay dynamic in what you’re doing to win more business more often.”
For Josh the key is storytelling and evidence-based selling.
Rather than simply listing marketing options, he shows vendors how each component of a campaign drives results, using concrete examples from past sales.
“Imagine this: you’re in a position that naturally you had an auction bidding record and you have all the different bidders that have bid on that particular property, and how you can evidence that that particular one came directly from Domain, that particular one came from the Domain Social Boost, and that particular one came from an ad in the Australian Financial Review. You’re showing how every element of the campaign adds value.”
By demonstrating this, the vendor sees the tangible impact of their investment, reinforcing both confidence in the process and trust in the agent.
He also underscores the connection between customer experience, branding, and pricing power.
Every interaction with a vendor – from initial conversation to marketing execution – reinforces the agent’s brand.
“Your customer experience equals your brand, and your brand is your pricing power. If you get the scripting right, this will change everything because you need to be where the customers actually are.”
By combining storytelling, structured campaigns, and measurable outcomes, Josh’s approach turns VPA from a cost discussion into a results-driven strategy.
The professional standard
Across much of Australia, VPA has become standard practice because it aligns incentives.
Vendors fund the exposure; agents deliver strategy, execution and negotiation expertise. Both parties share the objective: maximise price through competition.
In a market where attention is currency, visibility is leverage.
Agents who confidently articulate the value of Vendor Paid Advertising – backed by data, transparency and clear strategy – are not just selling marketing, they are selling outcome.
