How Much Do You Need To Spend On Facebook Ads To Get Good Results?

 

If you need more customers to build your dream business, then Facebook is a good ocean to go finishing in, if you need hundreds or thousands of customers.

But…

How much do you need to spend on Facebook ads to get good results?

Would you agree, that’s the most important question?

After all, if you can spend £10 to buy a customer that pays you £100, then you'll run ads all day long.

If you spend £10 today, and the customer buys your product today.

What if scenarios like that are great for illustrating the “ideal world” but what does the real world look like?

How can you make an informed decision about running Facebook Ads before you’ve burned through your life savings?

That’s exactly what this blog will show you…

 

 

Give The Machine Good Data

One of the beauties of Facebook Ads is that you can target people based on their interests.

So, if you want to show your ad to people that are thinking of starting a business Facebook can help you.

These people may not have told their neighbors, their work colleagues, or their boss but Facebook knows.

You tell Facebook to find you qualified leads by pulling these 2 levers.

  1. Interest targeting
  2. Pixel Tracking

 

Interest Targeting

Interest Targeting is where you tell Facebook to find you people that are interested in a specific topic, such as Entrepreneurship.

Depending on the size of the interest you may need group interests together to create a target audience. A good target audience size to use is 1 million to 2 million. This is large enough that your ad will not fatigue quickly and small enough to help Facebook find your ideal customer.

With Entrepreneurship, the interest size in the UK is 1.6 million. This is a large enough audience to target if you are running ads with small budgets (less than £1,000 per day).

Interest Targeting is not very specific. In the case of an interest like Entrepreneurship, your ad will display to people with businesses, as well as people that want to start a business.

So…

How do you tell Facebook to find you people that want to start a business?

With Pixel Tracking…

 

Pixel Tracking

Pixel Tracking is the detailed lever that you pull to show Facebook the exact type of person that you are looking for.

Let’s say you are running Facebook Ads to fill a webinar. You tell Facebook through the Pixel that you want it to find people that register for the webinar.

Based on the people that have already registered, Facebook will find you more people like them.

This is how you can make Facebook give you qualified customers. You give the Facebook algorithm good data, and it will give you qualified customers. This is a straightforward relationship, and one that is easy to manage.

But…

How much do you need to spend to get good results…?

 

What Type Of Customer Are You Looking For?

This might sound like a stupid question so please let me explain.

Some people that you attract through your advertising will come with interest and intent. Other people you attract will come with money.

There is a whole spectrum of customers in each of these categories and for simplicity let’s limit these categories to just these 2:

  1. Leads
  2. Buyers

 

So…

What type of customers do you want?

It's easy to immediately say, buyers. After all, that is what you need to grow your business. But in the world of Facebook Advertising that is the ultra-high-risk route to success. Here’s why…

 

Getting Started With Facebook Ads

When you first start running Facebook Ads, you have a simple choice. Do you ask Facebook to find Leads or Buyers?

The amount of money that you will need to spend to get some initial results varies enormously.

Let me show you why…

 

Make Facebook Give You Buyers

Let’s just say that your core offer is a product that costs £1,000. This is what you want to be known for. This is the sum of your life’s experience. This is how you can best help people.

So, you tell Facebook to give you buyers. After all, if you are going to build your dream business, you need people that want to buy your core offer.

You send Facebook traffic to a sales page for your £1,000 product, and you are prepared to pay £500 to buy a customer.

This is a great situation to be in because you know your core numbers.

As long as you can buy customers for £500, you can sit back and watch the money roll in.

But…

How much does it cost to test your idea?

Buying customers for £500 is your target, and when you first test your ads, it is likely to cost you more… a lot more.

So, let’s just say that testing costs you £800 to £1,000 to buy a customer.

How much does it cost to test your idea?

It costs at least £1,000 right?

Wrong!

You see, the number one rule with Facebook Ads is Give The Machine Good Data.

Facebook have said that the algorithm needs a minimum of 10 conversions a day to optimize your ad. They have also said that it takes 2 to 4 days before the algorithm has enough data to optimize your ad. (Optimise your ad is Facebook language for finding your qualified customers.)

Knowing that allows you to calculate the cost of testing your idea. Here’s what the numbers look like in the example above:

10 customers a day, at £500 per customer, for 5 days is 10 x £500 x 5 = £25,000

That's just to test your ad creative and offer!

That’s the best case scenario!

It is more like that your initial creative will need to be improved over time. When you can make changes based on real-world feedback.

So your test may cost you £1,000 per customer or more! If you are buying customers at £1,000 each then your initial test budget balloons to £50,000.

If you’re anything like me, that’s too much money to spend on a test. Even if, it is a test that pays for itself, as it does in this case.

That’s why it is better to tell Facebook to give you Leads.

 

Make Facebook Give You Leads

When you ask Facebook to give you Leads your test budget drops like a stone.

Let’s say that you are running Facebook Ads to fill a webinar and you have a target cost per registrant of £5.

How much does it cost to test your idea?

10 conversions a day, at £5 per conversion, for 5 days is: 10 x £5 x 5 = £250

Even if your initial test shows that you need to optimize your creative and offer because your cost per webinar registration is £10, the total test cost is just £500.

If you’re anything like me, then £500 for a test is okay.

But…

How do you know if Facebook is giving you people that are interested in your offer?

How do you know if Facebook is giving you people who are likely to take action?

Because a webinar forces people to take action.

You are asking people who don’t know you to give up their most valuable commodity… time!

If they attend the webinar, then they have shown their commitment.

On the webinar, you can sell your product or service. I wouldn't recommend trying to sell your core offer if it is £1,000 as these people do not know you. It’s much easier to sell a lower priced product.

This turns a lead into a buyer. This proves that Facebook is giving you qualified leads.

 

Getting Started With Facebook Ads

When you start running Facebook Ads, I would suggest running a conversion campaign to generate Leads. This could be webinar registrations as in the example above, or it could be people that download an ebook or to book a consultation call with you.

The ethical bribe that you chose is not important.

What is important is that you can generate Leads through Facebook AND you have a process in place to turn the Lead into a Buyer within a specific time period.

Why is that important?

Because you want to know if Facebook is finding you people who are ready to take action.

You also want the sale of the first product to cover all or most of your advertising cost so you must have a process in place for this.

Once you are getting good results with your Lead Generation Funnel, you can change your mind…

 

The Easy Way To Switch From Leads To Buyers

The number one rule with Facebook Ads is Give The Machine Good Data.

In practice, this means putting the Facebook Pixel and Standard Event Tags on every page in your Funnel. This lets you and Facebook know what is happening.

Let’s look at a Webinar Funnel and identify the Facebook tracking that you need to put in place.

  1. Webinar Registration Page = View Content (Standard Event)
  2. Webinar Registration Thank You Page = Lead (Standard Event)
  3. Purchase Thank You Page = Purchase (Standard Event)

 

You can add parameters to Facebook Standard Events, so you know which product was purchased and the value of the product. This does require being able to edit JavaScript and if I can do it, then anyone can. Believe me when I say that I’m no techy.

When you have the correct Facebook tracking in place, you can run a conversion campaign for webinar registrants, which is at the top of your funnel and won’t cost a lot to generate some data.

Once you have optimized your Facebook Ads and Sales Funnel to the point where you are happy with the results you can let it run in the background.

Facebook will continue to give you Qualified Leads, and your Sales Funnel will continue to turn Leads into Buyers.

Once you have 1,000 buyers, you can tell Facebook to find you Buyers instead of Leads.

Because you have the correct tracking in place, making the campaign switch is easy. Facebook has the data it needs to give you better-qualified Leads at a good price.

You see, to make the switch your Sales Funnel does not change. The only thing that changes is you are giving Facebook better data. You are telling Facebook to find you more people based on the characteristics of your buyers. Facebook can then find you better quality leads, and you can watch the performance of your Sales Funnel soar.

 

Now It’s Your Turn

I hope you can now see how much you need to spend on Facebook Ads to get good results.

I hope you can also see that you need a Sales Funnel in place before you test your Facebook Ads or you will never know if Facebook is giving you Qualified Leads.

If you've got a Sales Funnel in place, then you should test Facebook Ads as a source of Qualified Leads.

Facebook gives you instant access to a 2 Billion global audience. That is the amazing fact that made me master Facebook Ads.

As you have seen with this blog, you do not need to spend a fortune to test the success of Lead Generation through Facebook.

With real-world feedback you can improve your ad creative and offer to cut your lead generation costs in half.

If you've found this useful, then please leave a comment below.

If you know a business owner with a fantastic product or service that struggles to get their voice out there, then please share this with them.

Until next time…

Carpe diem

Roland Eva

 

P.S. if you'd like to build your dream business then you need a proven system to find your ideal customer, earn their trust, and make them feel good about buying.

After many, many failures, I’ve created a simple 5-step system to find people that need your help, to earn their trust, and to make them feel good about buying. This system made me £672,989 in just 9 days!

I’d like to give you a free ebook that reveals: how to use the simple 5-step system that made me £672,989 in just 9 days!

To download your free copy just click the link below:

http://bit.ly/FREEeBookTEIC

Here’s Just A Taste Of What’s Inside:

  • How to find your ideal customer – those that desperately need your help and can pay for it.
  • How to test your business idea for FREE! And how to scale fast with the proof of market demand.
  • How to sell products and services at any price (£5 to £12,000) in any market without a sales team!
  • How to make yourself unique… even in a crowded market… so you never compete on price… and easily attract your ideal customer like bees to honey!
  • Remove the confusion, fear, and doubt about turning your idea into a profitable business by following a proven 5-step system that made me £672,989 in just 9 days!

 

To download your free copy just click the link below:

http://bit.ly/FREEeBookTEIC

About The Author

I’m a copywriter and business growth trainer, mentor and consultant.

For the last 5 years, I’ve helped authors, coaches, mentors, consultants, software developer and health professionals to sell products and services in industries as diverse as property, technology, finance, personal development, business opportunity, weight loss, and alternative health.

These products and services have ranged in price from £5 to £12,000. My most successful campaign made £672,989 in just 9 days. I took that result and transformed it into a simple repeatable system. A system that I teach to ambitious entrepreneurs that want to make money on demand without a sales team.

Why do I want to help other business owners? Because my marketing journey began when I lost my first business, a photography and graphic design studio. The pain of watching my business slowly die, and being powerless to do anything about it, motivated me to discover how promotional messages can make money on demand without a sales team.

Today my mission is to prevent every business owner from suffering through the same pain as I did. I’d like to take entrepreneurs on the joy ride that comes with having a proven system to make money on demand and to relax with the security of knowing where your next sale is coming from.

Leave a Reply

Your email address will not be published. Required fields are marked *

TOP