Facebook Ads, Marketing, Video

April 18, 2019

How much should you spend on facebook ads?

So you’re ready to launch your first or next ad campaign but now you’re asking yourself – how much should you spend on Facebook Ads? And what’s the right amount to pay for advertising in general?

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So you’re ready to launch your first or next ad campaign but now you’re asking yourself – how much should you spend on Facebook Ads? And what’s the right amount to pay for advertising in general?

We’re diving into that in this video, so stay tuned.

Hey Impact Maker! I’m Kamila Gornia, founder of Heart Behind Hustle, where we help impact-driven entrepreneurs grow and scale their business online through aligned marketing strategies that turn their brand into a movement.

I’ve been running Facebook ads for all kinds of clients since 2012 and in that time, I’ve seen a lot of ad campaigns go EXTREMELY well, generating super cheap leads and huge ROI’s, and I’ve also seen campaigns totally flop.

Facebook ads may seen like a gamble to a newer entrepreneur, so the question is —

How do you know how much to pay for Facebook ads so you don’t end up broke in the process?

There are two things I have to share about it that will hopefully help:

First – it depends on what you’re running your ads TO.

I have another video that goes into how to make sure you’re ready to run Facebook ads…

And I have a fantastic FREE DOWNLOAD that I’ll share with you at the end of his video that will make your Facebook ads way more effective…

But first, it really depends on your exact campaign and flow.

Are you focusing on just getting leads?

Are you looking for sales?

What kind of business do you have?

Who is your audience?

What are you selling? How much does it cost?

How well is it converting in your sales funnel?

The answers to these questions will inform your budget.

I mean, let’s look at it this way:

If you KNOW that for each 100 new leads you get into your sales funnel

5 of them purchase a $47 product

making it a 5% lead to sale conversion…

… then you know that you can spend up to $235 to get those 100 leads if you want to break even. Which means you’d want to stay at or below $2.35 per lead.

This also means that if everything stays the same, and you generate leads at LESS than $2.35 you will be at a positive ROI.

But then let’s say that you have another offer for those people…

Let’s say that each customer who purchases a $47 product is then presented with a $97 upgrade.

And of those, 10% of them purchase the upgrade making it a 10% conversion on the upsell.

Let’s make the numbers a bit larger to make the math easier…

So, if you get 1,000 leads and 5% purchase the $47, that’s 50 customers, making you a total of $2350. So, if you spend $2350 to generate those, you break even.

But then those 50 customers are presented with a $97 offer and 5 of them buy… that brings you another $485 in the bank.

So if everything stays the same and you are able to get leads for less than $2.35, you just made at least $485 in profit.

So if you know that you are making a profit, you get to them calculate how much you can add into the budget to continue making more and more money.

And then, let’s not forget that those people who did not buy right away – they very well might buy in the future! Whether it’s your high ticket packages, event tickets, or something else.

There’s a saying that goes “The advertiser that spends the most, wins.”

So you have to figure out what makes sense for you.

But let’s say that you don’t have these figures.

Maybe you are just doing ads to grow your list, and don’t have an offer to sell.

I’d keep things a bit more conservative then.

I’d still make sure you have some kind of a high-ticket offer to sell to people through the phone, so you can recoup the investment as much as possible…

But at that point, I’d just look at what are you WILLING and comfortable with spending?

Some people will want to spend no more than $5 per day… others are okay with $20 per day. I would say that to get faster results, I’d recommend doing at least $20 per day so you have some time to test things out.

I know you might have wanted me to give you a straight answer but there really is none without me knowing exactly what you’ve got going on.

If you’d like some specific support on this, don’t hesitate to reach out and I’ll be happy to see if I’m a fit to help you out.

In the meantime, make sure to grab my FREE GUIDE on how to create high-converting facebook ads in your business 2019 — plus the 3 things most people miss out on that prevent them from creating BIG results they desire.

I linked it in the description.

If you liked this video, give it a thumbs up and share with a friend.

And don’t forget to subscribe to get more videos from me in your feed!

I look forward to seeing you in the next one.

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