That’s the question I get asked all the time, how much should I spend on my ads?
When I get on the phone and speak with a potential client, many of them don’t know what my budget is. And it’s one of the most frustrating questions that I have to answer. But I can totally see where you’re coming from with that question because you want to be a little bit conservative up front.
You don’t want to lose too much money and that’s totally understandable. If you do put money into Facebook when it’s not converting, then it is very easy to lose a lot of money.
So let’s discuss this for a moment. Because there’s a lot of really cool things that we can make happen within our business so that we can essentially grow our business for free.
I have a really great insight to help you shift that mindset a little bit so that you can continue to grow your business to where you actually really want it to be.
Here’s the thing, most of my ads that are run are from online virtual summits. I know a percentage of those people are going buy instantly. It’s almost the same with any funnel that’s out there. There’s always going to be a certain amount of people that want to buy instantly from you. They’re really at that point of pain and they want to solve that pain quickly.
So you always want to be giving them an offer very quickly when they come into your funnel. With summits we do this by having a one time offer as soon as they register. And this is usually at a discount or an added bonus in order to reward fast action takers to buy immediately.
A percentage of those people are going to buy immediately from you and if you’re using something like PayPal, then that money will clear immediately so that it is available for you to use on your ad spend. If you’re using something like Stripe, that money will clear within probably two or three days and can be sent straight back into your bank account.
Now the next thing is that with Facebook, you can either pay it on a credit card (which gives you up to 30-50 days to pay back your money interest free), or you can have a high ad spend limit.
So let’s just say for example, you have a $500 limit on Facebook which means you don’t need to pay your bill until that $500 is up.
And let’s say that you’re just running a campaign for $100 a day. What that means for you, is that you can run the ad campaign for five days and you don’t have to pay Facebook.
So if you start this campaign on a Monday and you start making sales on that Monday…
And Let’s say for every 50 people you’re sending to your page, two of them are buying at $50 per purchase…
That means you’re essentially breaking even every single day. So if you make two sales on the Monday, that you can either have your PayPal linked straight into your account, and you just keep feeding it daily and it’s just going to self feed itself. So you’re growing your business for free.
Or if you’re not using PayPal then Stripe’s the same thing but with a slightly longer delay of 2 to 3 days.
When you get to the end of the week, you’ll have another $100, $200, $300 or even $400 sitting in your bank account ready to pay Facebook. Pretty cool, right?
So what that means is that you need to have a really great offer in place first. If you don’t have a great offer, then this is not going to work out for you. You will lose tonnes of money instead. So make sure your offer is in place first before you start running paid advertising to it.
Secondly, you want to have really great ads. So make sure that you’re targeting the right people and that your leads are highly qualified. The worst metric to concentrate on is Cost Per Click (CPC). The best metric to focus on is Cost Per Purchase (in most cases if that is your goal).
So I hope that answers that question but feel free to message me and I’ll definitely get back to you as well.
Get more leads. Make more sales. Do more Good.
Mitch Asser has been using Online Virtual Summits in his business for over 2 years. For his own summits and his clients he has assisted in generating 10's of 1,000's email subscribers which have been responsible for multiple 6-figures in sales from summit sales alone. Online Summits have helped him build a successful Health & Wellness Media company and he now assists clients in helping them launch successful online virtual summits.