One of the most able marketers of all time has to be the musician/actress Cher, who has been known for over 40 years for her distinctive designer outfits, extravagant homes, and other accoutrements of the rich and famous. Apparently, staying on top in the entertainment industry requires a lot of upkeep which can strap even seven figure wage earners such as Cher. Once, Cher was reported in the tabloids complaining to her friend Meryl Streep that she never seemed to have enough money. The ever-enigmatic and wise Streep replied that "spending too much is the same thing as not making enough."

The lesson hit home with Cher; she revised her spending and pulled herself out of debt - a happy ending to the supermarket tale.

As a Realtor, you have more in common with Cher than you may realize. With agents spending between 14 and 25 percent of their gross personal earnings on business-related expenses, according to the NAR, you may be wondering why you never seem to have enough money, too.

Like Cher, you have to spend a lot to market yourself so you are top-of-mind with sellers and buyers. While you don't have a hit record or movie to promote, you do have listings or other services to tell people about. Like Cher, you are also competing against a number of other people to get the public's attention. Consequently, you may have trouble knowing where to draw the line on spending. How much is enough? And, will spending a little more net you that much more business?

It's easy to stop spending when you aren't making enough money, but you may soon see your future business dry up. Remember Patti Brotherton's 90-day rule? Whatever you are doing right now effects your business 90 days from now. If you want to plant those seeds that will yield business later on, you have to find a way to balance some expenditures with what you're making and what you think you will gain. When you can figure that out, you will be a marketing genius, just as Cher has managed to remain a top name draw for decades.

According to the NAR, Realtors spend a wide range to stay in business, so which range is right for you? For example, in 2000, the typical Realtor spent $6,600 or 14 percent of gross personal income on business-related expenses. Twelve percent of Realtors reported less than $1000 annually in expenses, while a similar number reported over $30,000 in expenses for 2000. A typical Realtor with a gross personal income of over $100,000 spent $26,300 on business-related expenses. Much of this is for self-promotion. So how much should you spend on business-related expenses?

Clearly, agents spend what they think they can afford. Here are some steps that may help you determine what expenses are right for your budget:

• Decide on a realistic income/expenditure ratio

  The less you make, the less you can afford to earmark for business-related expenses because you have to keep a roof over your head.

  According to the NAR, the typical Realtor earned a median gross personal income of $47,700 in 2000. But if you balance that with typical expenses (14 percent) you only get an income of $41,100. Is that a realistic number for your obligations? How much income do you need to cover non-business-related expenses such as housing, groceries, medical bills, savings and so on?

  When the NAR did its survey of brokers and agents to arrive at these figures, the nation was in the middle of a bull real estate market, which "created buoyancy in incomes; 23 percent of NAR members had incomes over $100,000, compared to only 10 percent in 1996." Some areas are experiencing a housing recession. Is yours one of those?

  Look realistically at your ability to generate income, your level of experience, your area, and the type of market you are in and estimate what it will take to cover your obligations.

  Do a cut-to-the-bone, only-essentials household budget first, then do the same budget for your business expenses. If you think you can earn $40,000 and it takes $35,000 to cover your monthly bills, then you will only have about 12 or 13 percent of your income to put toward your business expenses. If you want to increase your business expenses, then you'll have to cut back on the essentials in your household budget, because that budget has to be based on what you earn and believe you can earn.

• Look at historical data and use that to estimate the future.

  A lot depends on how long you have been in business and how much you have coming in as referrals and repeat business. Are you historically doing more or less every year? What are the circumstances? Have circumstances changed? For example, if you had back trouble last year and your income went down 25 percent, but this year your back is fine, it stands to reason that you can not only make up that lost 25 percent but set yourself a goal to sell more. This is more possible if you are in a bull real estate market.

  Look also at current days on the market. If you typically do 10 transactions a month in a 30-day market, and your market has slowed to DOMs of 60 days, then you can estimate that your sales are going down, unless you are prepared to take other steps to keep your sales at a 10 transactions a month level. Also look at prices. If prices of homes are going down, your average sales are going down, too, unless you plan extraordinary action to stay at the same level.

  If you are new, look at what you have in the hopper. Do you have any listings or prospects? If so, those can be counted upon to close in 30-60 days. Count on the worst-case scenario in planning your budget.

• Pick your categories

  Basic business expenses include technologies like laptops, digital cameras, and contact management software, MLS fees, office expenses, advertising and marketing, and more. Advertising and marketing aren't the same - advertising is to get your name in front of strangers, marketing is what you can do face-to-face and by word of mouth. Marketing materials can include your business cards, a Web site, a newsletter, and listing cards.

  Ask your broker for help in establishing a budget for how much you should spend in which area. Hardware such as a laptop and a cell phone are essential. If you are new, plan to spend the majority of your day marketing yourself so you can bring in a client. Knock on doors, buy a farming tool such as an address list for your local gated community, and start getting your name out.

• Choose technology and other marketing tools by what they do for you

  You need everything from a cell phone to a Web site, to advertising mediums, to business cards to keep in contact with people. But not all products and services will help you. Some are more effective than others. How do you choose when every vendor in the world is after you to buy something?

  It's easy. Only buy real estate-related products and services that can help you:

  1. organize your business so you reach and serve contacts quickly, easily and as inexpensively as possible
  2. get exposure so you can attract qualified or high-quality leads
  3. follow-up inquiries with relationship-building content such as compelling information and courteous reminders

  Any product that doesn't meet one or more of these basic needs doesn't belong in your budget.

• Buy what you know you will use

  Some products are more cost-effective than others. No one questions that you get more exposure for the money on the Internet than anywhere else, but that doesn't mean you can't spend a fortune advertising yourself on the wrong sites or in the wrong search engines or in conjunction with products you don't really like to use.

  If you only answer your e-mail once a week, the money you spend on products and services that capture Internet leads is largely wasted. If you are going to invest in a product, make sure you also invest in understanding why and how it is supposed to work. For example, people who are sold on the Internet value Internet leads highly and are willing to spend more money on tools and services that improve communication between them and Internet consumers. They will tend to buy electronic newsletters, market conditions reports, e-cards, listing alert tools, virtual tours for homes and other products which facilitate a continuing dialog between them and their consumers. Likewise, a person who is not as comfortable with the Internet, will limit online expenditures to a Web site, or a Web page, and may only check for e-mail once a week or so.