How VPA Works.
Vendor Paid Advertising, usually called VPA, is the marketing budget used to promote a property for sale. This tutorial explains what VPA includes, how the process works, and what vendors need to know before approving a campaign.
What is VPA?.
Vendor Paid Advertising, usually called VPA, is the marketing budget used to promote a property for sale.
The vendor agrees to pay the approved marketing costs. The agent recommends the campaign and arranges the advertising.
VPA can cover everything from photography and portal advertising to signboards, video, social media and property presentation.
One point is worth making clear from the start:
VPA does not mean finance.
VPA refers to who pays for the marketing. How the vendor pays for it is a separate decision.
What can VPA include?.
A marketing campaign may include:
- Professional photography
- Floorplans
- Property video
- Drone photography
- Copywriting
- Signboards
- Brochures
- Property portal advertising
- Premium portal upgrades
- Social media advertising
- Print advertising
- Styling or furniture hire
- Other agreed marketing expenses
Not every property needs every item.
The campaign should suit the property, likely buyers, local market and method of sale.
How VPA works.
The process is generally straightforward.
| Step | What happens |
|---|---|
| 1. Recommend | The agent prepares a marketing campaign. |
| 2. Explain | The agent explains each item and the total cost. |
| 3. Approve | The vendor agrees to the campaign and budget. |
| 4. Pay | The vendor chooses an available payment method. |
| 5. Launch | The marketing campaign begins. |
| 6. Review | The agent monitors enquiry, inspections and buyer response. |
The vendor should know what they are approving before any costs are incurred.
VPA and commission are different.
Marketing costs are generally separate from the agent's commission.
They pay for different things.
| Cost | What it pays for |
|---|---|
| Photography | Property presentation |
| Portal advertising | Online exposure |
| Signboard | Local exposure |
| Social advertising | Additional buyer reach |
| Styling | Property presentation |
| Agent commission | The agency's sales service |
This should be explained clearly at the listing appointment.
How can the vendor pay?.
The available options will depend on the agency and provider.
Pay upfront
The vendor pays the marketing costs before or during the campaign.
Pay later
Some providers offer approved payment options that allow eligible vendors to defer marketing costs until later, often around settlement.
Fees, eligibility and conditions can apply.
A pay-later option does not make the marketing free.
It changes when the vendor pays.
A simple example.
An agent recommends the following campaign:
- Photography
- Floorplan
- Major property portals
- Signboard
- Social media advertising
- Printed brochures
The vendor approves the campaign.
One vendor may choose to pay the marketing costs upfront.
Another may use an approved pay-later option.
Both are using VPA.
The marketing campaign is the same. The payment method is different.
Why agencies use VPA.
Property marketing can involve substantial third-party costs.
VPA allows the agency and vendor to agree on a marketing budget before the campaign starts.
It can also help agencies avoid carrying advertising costs across multiple listings.
For the vendor, it provides a clear view of:
- What is being recommended
- Why it is being recommended
- What it costs
- How it can be paid
Bigger is not always better.
A larger marketing budget does not automatically create a better campaign.
Every marketing item should have a reason for being there.
Before recommending an item, consider:
- Who are we trying to reach?
- Where are those buyers looking?
- Does this property need it?
- What role will it play?
- Is there a better use for the budget?
A well-planned campaign is more useful than simply adding more advertising.
VPA does not guarantee a sale.
Marketing helps buyers discover and consider a property.
It cannot guarantee:
- A particular sale price
- A set number of enquiries
- A certain number of offers
- An auction result
- A sale within a particular timeframe
Results are also affected by:
- Price
- Location
- Property condition
- Buyer demand
- Competition
- Market conditions
- Sales strategy
- Negotiation
Agents should explain the purpose of the marketing rather than promise a particular result.
What if the property does not sell?.
Marketing costs will not usually disappear because a property does not sell.
What happens will depend on:
- The agency agreement
- The payment arrangement
- The provider's terms
- Whether the property is withdrawn
- Whether the agency appointment ends
These details should be explained before the campaign starts.
If a third-party payment provider is involved, agents should use the provider's approved information when explaining fees, repayment dates and conditions.
What should the vendor know?.
Before approving a campaign, the vendor should understand:
- What is included
- The total marketing budget
- What each item is for
- Which items are optional
- When payment is required
- Available payment options
- What happens if the campaign changes
- What happens if the property is withdrawn
- What happens if the property does not sell
Keep the conversation simple.
A practical way to present VPA is:
- Who are we trying to reach?
- What marketing do I recommend?
- Why have I recommended it?
- What will it cost?
- How would you like to pay for it?
The focus should stay on building the right campaign for the property and explaining it clearly to the vendor.