How Much Do I Know How To Spend On Facebook Ads Campaigns

facebook advertising

How Much Do I Know How To Spend On Facebook Ads Campaigns

I’m not usually into Blogging – I prefer the Podcasting thing… however, this is a common question I get asked all the time:

“Cameron - How Much Do I Know How To Spend On Facebook Ads Campaigns”

The best way to answer this is to re-post an email feed from a prospective client that asked me this recently. Hope you enjoy reading it!

 


 

PROSPECTIVE CLIENT:

Hi Cameron,

Thank you for your detailed response — lots of good stuff there.

In this scenario, what size budget is ideal for you to work with for ad spend?

Thanks,

CAMERON:

yeh, that’s a question I get asked all the time!

and it’s actually the wrong question to ask (-:

It matters not on “ad spend” – but what you are selling, then we can work everything out – I reverse engineer the whole thing…

You sound like you understand sales and funnels so here’s a very conservative example:

If your business sells product/service “X” for $3k

- let’s say you spend $100 per day driving people to a webinar/sales page/VSL/on-demand training/consult etc

- On a very “ballpark” example of each click costing you anywhere from 30 cents to $1.50 – you could get anywhere from say 325 clicks per day, on the low side to 66 clicks per day on the high side.

- If what you’re selling has demand and people want it and there’s a market for it – if you convert at 5% then you’ll have 16.25 to 3.3 people opting in a day. (based on the previous line’s numbers and example)

- After a week – you would have spent $700 and have 113.75 to 23.1 people in your webinar/sales page/VSL/on-demand training/consult funnel.

- If you can convert at 10% on a webinar/phone call/via a sales page etc… you’d convert 11.3 sales or 2.3 sales.

So if you have a $3k product – 2 sales is $6.9k / 11.3 sales is $33.9k – both of which cover your $700 ad spend.

The above is an example only of how to reverse engineer the whole thing.

PROSPECTIVE CLIENT:

Right…but we both know that dialing in a funnel takes some un-ROI’ed ad spend. This is brand new, untested, and I’m fully expecting to lose some money on the front end getting this thing up and running. My question is simply — with a new funnel, how much do you think you would need to get it dialed in?

CAMERON:

No idea because I don’t know what you’re selling, who your audience is, how much your products are, what funnel you are using to convert them.
here’s a brand new funnel I started for another client here in oz 14 days ago (we tend to pay much higher ad spends than USA – we think it’s because of our lower audience reach) – they are in the coaching game. 
anyway – you can see my client has spent $978 in 14 days. He told me yesterday his sales people are getting 28 phone appointments per week from this fb funnel. each conversion is worth $2k at the front end and $25k at the back end – so the thing pays for itself. 1 conversion per week (out of 28) breaks even. the rest is gravy. 
Age30-55 MiddleClass Promo
https://{removed for privacy]
Active
1 Approved
1,869
Link Clicks
57,747
$0.52
Per Link Click
$150.00
Daily
$978.06
Feb 10, 2017 – Ongoing
Results from 1 Ad Set
1,869
Link Clicks
57,751
People
$0.52
Per Link Click
$978.06
Total Spent
Cameron’s final word… you can see from the above the prospective client was asking the wrong question. He was wanting a “magic number” to spend on advertising each day – that number does not exist. You need to know what you’re selling, what your conversions are and then you can reverse engineer the whole process. Good luck with your Facebook Advertising!
Cameron Roberts
Follow me

Cameron Roberts

A Multi Award Winning Business Owner, Award Winning Speaker and #1 Best Selling Author - Cameron Roberts is a leading Sales Strategist, Direct Response Internet Marketing Consultant, Certified Business Adviser, Podcaster and Copywriting Expert who helps business owners and entrepreneurs use a system for getting more leads and converting more customers.
Cameron Roberts
Follow me
No Comments

Post a Comment