tap vortexWhat vendor paid advertising is in Australia
VPA is the money a vendor puts towards marketing their home. It pays for the items that get the property in front of buyers and make it look its best. In most cases it's charged on top of the agent's commission, not taken out of it.
The Queensland Government's seller guidance puts it simply: advertising fees are "not usually part of the agent's commission". Consumer Affairs Victoria also tells sellers that agreed marketing costs are still payable even if the home doesn't sell, unless they negotiate a no sale, no fee arrangement.
That last point is why VPA conversations can feel tense. The vendor is being asked to spend real money before anything is guaranteed. Your job is to make the spend feel like a plan with checkpoints, not a gamble.
What the rules expect when you disclose marketing costs
Each state has its own agency laws, so check the rules where you work. Here's what three state regulators say, in short. This is general information, not legal advice.
| State | What the regulator says about marketing costs |
|---|---|
| NSW | The agency agreement must state the services and the fees or commission. The agent can only ask the seller to pay for advertising and similar expenses if it's set out in the agreement. Any rebates or discounts the agent receives on those services must be stated. There's a one business day cooling-off period after signing. |
| Victoria | The sales authority must include details of the agreed commission and expenses. If an expense isn't known exactly, the agent should estimate it. If the actual expense is less than the estimate, the difference must be paid to the client straight away. Agents can't keep rebates. |
| Queensland | Agents are appointed on the Form 6 (residential). Sellers only reimburse expenses agreed in advance. Prepaid marketing money must be held in the agent's trust account. Sellers are told to ask for a marketing plan and a detailed statement of all expenses. |
The common thread: agree the costs in writing before you spend, disclose any rebates, and keep receipts. Consumer Affairs Victoria tells sellers to ask for a written schedule of advertising and other outgoings. Hand one over before they have to ask.
What goes on a typical VPA schedule
Costs vary a lot by area, supplier and property, so we haven't listed prices here. Get current quotes from your suppliers and put real figures on the schedule. Here's what each common item does for buyers.
Professional photography
The lead photo decides whether a buyer clicks. Photos are usually the item that does the most work across every other channel, because they appear on the portals, the signboard, socials and print.
Floor plan
Buyers use floor plans to work out whether their life fits the home: where the beds go, how the kitchen connects to the living space. A plan also helps interstate and time-poor buyers shortlist without visiting.
Portal listing upgrade
The major portals sell premium placements that give a listing more space or a better position in search results. It's often one of the bigger lines on a schedule, so explain which level you're recommending and why.
Signboard
A board reaches local buyers, neighbours and passing traffic. In streets where buyers often come from nearby, it can be a steady source of enquiries.
3D or virtual tour
A tour lets buyers walk through before they book an inspection, which helps filter out poor fits and brings better-qualified people to the open. Our guide to virtual tours in real estate covers what makes one worth paying for.
Video
Video shows flow, light and the street in a way stills can't. It's especially useful for social ads and for homes whose best feature is a feeling, like a view or an outdoor area.
Other items
Depending on the campaign: print brochures, copywriting, styling, social media ads and database marketing. Only include what you can explain.
A VPA schedule layout vendors can follow
A schedule is easier to approve when each line says what it's for and how you'll prove it worked. Add a column for the supplier's quote, and keep the receipts to match. Here's a simple layout.
| Item | The buyer job it does | How you'll report on it |
|---|---|---|
| Photography | Makes buyers click and book | Enquiries and inspection bookings |
| Floor plan | Helps buyers check the home fits their life | Buyer comments, fewer poor-fit inspections |
| Portal upgrade | Puts the listing in front of more active buyers | Portal enquiries by week |
| Signboard | Reaches locals and passing buyers | Signboard calls and walk-ins |
| 3D tour | Lets buyers walk through before visiting | Tour views and the share of inspections who toured first |
| Video | Shows flow, light and lifestyle | Views and enquiries from social |
The last column is the important one. It's a promise you make at the appraisal and keep every week of the campaign.
How to justify the spend to the vendor
Vendors don't buy photos and floor plans. They buy more of the right buyers, and a better result. So talk about outcomes.
- Start with the buyer. Describe who is likely to buy this home, and where those people look. The schedule then follows from that, item by item.
- Link each item to a job. "The floor plan is for the downsizers who'll want to check the bedroom is on the ground floor." One line per item.
- Show options. Offer a core package and an extended one. Explain what the extra items add, and what the vendor gives up without them. Let them choose.
- Use your own evidence. Share past campaigns from your office where the numbers came from your own records. Don't borrow industry statistics you can't stand behind.
- Be clear about the money. Say when it's payable, whether it's due if the home doesn't sell, and that any rebate goes back to them.
Showing results during the campaign
VPA is easiest to defend when the vendor can watch it work. That means reporting what each part of the campaign produced, every week.
- Enquiries by source. Portal, signboard, socials, your database. This shows which spend is bringing people in.
- Inspections and return visits. The step from looking online to turning up is the real test of the marketing.
- Tour and video engagement. If buyers are watching the tour before booking, say so, and connect it to the quality of inspection groups.
- Buyer comments about the marketing. "We booked because of the floor plan" is worth more than any chart.
Put all of this in a consistent weekly report. Our guide to the weekly vendor report has a layout you can copy. And make sure enquiries are followed up fast; paid reach is wasted if leads wait. See speed to lead.
Some agencies go a step further and turn each listing into an interactive buyer tour that remembers what each buyer looked at. Tap Vortex is one option for that, and it also sends a weekly vendor report every Monday with a live link, so the vendor can see what their marketing produced at any time.
How to present VPA at the appraisal
Bring the marketing plan into the appraisal itself. If VPA first appears as a line on the agreement, it feels like a cost. If it appears as part of the plan to reach buyers, it feels like strategy.
- Show, don't list. Bring an example of what their home could look like in market: a mock-up of the lead image, the portal listing and the signboard.
- Bring a written schedule. Itemised, with real quotes, and the payment terms stated plainly.
- Explain the checkpoints. Tell them you'll report weekly and review the plan at set points, so they're never paying blind.
- Answer the rebate question before it's asked. Say whether you receive any rebates or discounts and how they're handled under your state's rules.
For the full appraisal approach, including how to show buyer demand and talk price, read how to win the appraisal.
VPA mistakes to avoid
- Spending before the costs are agreed in writing.
- Changing the schedule mid-campaign without the vendor's written OK.
- Keeping supplier rebates the vendor doesn't know about.
- Quoting a budget without receipts to back it up later.
- Selling the package on format ("premium", "platinum") instead of what it does for buyers.
FAQ
What does VPA stand for in real estate?
VPA stands for vendor paid advertising. It is the marketing budget the seller pays for, such as photos, floor plans, portal upgrades, signboards, tours and video.
Is VPA included in the agent's commission?
Usually not. Government seller guidance in Queensland notes advertising fees are not usually part of the agent's commission. Check what your agreement says.
Does the vendor pay VPA if the property doesn't sell?
Often yes. Consumer Affairs Victoria says agreed marketing costs are still payable if the property does not sell, unless the seller negotiates a no sale, no fee arrangement.
Do marketing costs have to be in the agency agreement?
In NSW, Victoria and Queensland, regulators expect agreed marketing expenses to be set out in writing in the agency agreement, sales authority or Form 6 before they are charged.
Can an agent keep a rebate on advertising?
Not in Victoria, where Consumer Affairs Victoria says it is illegal for an agent to keep a rebate. In NSW, rebates or discounts on these services must be stated in the agreement.