Chart of the Day: How Much CCRCs Spend on Marketing IL Units

The majority of continuing care retirement communities budget $20,000 or less per independent living unit sale, finds a Ziegler CFO HotlineSM about marketing costs and commissions. 

The survey took multiple variables into account, csuch as organization size, wage and commission structure, along with the current occupancy rate. 

Nearly one hundred participants responded to the survey, the majority of whom were organizations with less than $20 million in revenues who served between 250-500 residents.


Respondents that budgeted between $10,000-$20,000 per independent living unit sale made up 37.2% of participants, while those who budgeted less than $10,000 accounted for 35.1%. Together, these groups accounted for more than 70% of participants. 

Only 3.2% said they budgeted more than $30,000—the least among respondents. Communities with revenue exceeding $35 million spend $25,000 or more on average per independent living unit sale, according to Ziegler’s survey.



Chart courtesy of Ziegler

The commissions side of the survey examined the cut paid to an organization’s marketing and sales professionals for each sale of an independent living unit.

Of the 85 respondents under this criteria, 34% stated they do not split commissions. Of these, 71% claimed to have a policy of weighting commission heavier on the settlement side, while the remaining respondents mostly did a 50/50 split. 

Written by Jason Oliva

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