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!
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?
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.
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?