Why Agencies Use VPA.

Without VPA, an agency may need to pay marketing costs on behalf of vendors.

That can become expensive very quickly.

For example:

If those properties take several weeks or months to sell, the agency may be carrying those costs for a long period.

VPA helps reduce that pressure.

The marketing campaign and the agent’s commission are different expenses.

VPA helps keep them separate.

The vendor pays for the agreed marketing campaign.

The agency earns its commission for selling the property under the agency agreement.

This makes it easier to explain what each cost is for.

Not every property needs the same campaign.

A small unit may need a different approach from a high-end family home.

VPA gives the agent room to recommend a campaign based on:

• Property type
• Location
• Price range
• Likely buyers
• Method of sale
• Competition
• Local market conditions

The campaign can be built around the property rather than a fixed agency budget.

VPA allows the vendor to see the proposed campaign and approve the cost before launch.

They can see:

• What is included
• What each item costs
• Which items are optional
• The total campaign budget
• How the campaign will be paid for

This can reduce confusion later.

A VPA conversation should be about the reason for each marketing item.

For example:

• Why professional photography is recommended
• Why premium portal placement may be useful
• Why video may suit the property
• Why social advertising may be included
• Why print may or may not be needed

The agent can explain the campaign rather than simply offering a package.

Agencies that pay marketing costs themselves can be exposed if:

• The vendor withdraws the property
• The listing expires
• The vendor changes agents
• The property does not sell
• The vendor disputes the costs

A clear VPA process helps reduce this risk.

The agency should still have proper approvals, records and payment terms in place.

Some vendors may delay selling because they do not want to use available cash for marketing before the property sells.

If an approved pay-later option is available, the vendor may be able to proceed without paying the full campaign cost upfront.

This can be useful when the vendor is already paying for:

• Repairs
• Styling
• Moving costs
• Legal costs
• Mortgage payments
• A deposit on another property

Any pay-later option should be explained using the provider’s current terms and conditions.

A clear VPA process gives the agent a simple way to present the campaign.

A practical structure is:

1. Explain the sales strategy
2. Recommend the marketing campaign
3. Show what each item is for
4. Confirm the total cost
5. Explain payment options
6. Get written approval

This keeps the discussion organised.

VPA also helps agencies put better internal systems in place.

This can include:

• Standard marketing approval forms
• Clear payment terms
• Approved suppliers
• Invoice procedures
• Vendor records
• Staff responsibilities
• Campaign checklists
• Payment tracking

These systems become more important as listing volume grows.

VPA is not a reason to load every available marketing product into a campaign.

The agent should still be able to explain why each item is being recommended.

Before adding something, ask:

• Does this suit the property?
• Will it help reach the right buyers?
• Is it worth the cost?
• Is there a better use for the budget?

A smaller, well-planned campaign can be more effective than a larger campaign with unnecessary extras.

For most agencies, VPA comes down to a few practical benefits:

• Better cash flow
• Less financial exposure
• Clearer vendor approvals
• Flexible marketing budgets
• Better campaign planning
• Cleaner administration
• More payment choices for vendors
• Clear separation between marketing and commission

Used properly, VPA gives the agency and vendor a clear structure for agreeing on the marketing campaign before it begins.