You can easily make a bazillion dollars on Facebook by just spending $5 a day. Yup. We’ve all heard that one before, but how much should you really be spending on Facebook if you want to see a return on investment? Well, how long is a piece of string?
Hi, I’m Salome Schillack and I help coaches, consultants and online course creators reach more people, get more clicks and attract more clients using Facebook video advertising. Today, I want to shed a little bit of light on how much you should be spending if you want to see a return on investment for your Facebook ads.
Here’s the thing about making money with Facebook ads. You basically pay Facebook to give you more access to your ideal customers or to turn that access into a lead, an opt-in, someone who gives you their email address in exchange for something good. Now, Facebook really has nothing to do with how you take the exposure they give you and the leads they give you and turn them into clients. That bit is entirely up to you and the way you do that is with a little magic thing called a sales funnel. A what? A sales funnel. A sales funnel is basically a way you take people who’ve never heard of you before and turn them into people who have heard of you and turn them into people who like you, and know you, and trust you and turn them into lifelong fans who send you cool stuff in the mail.
A sales funnel is basically a way of taking people from never heard of you before to, “I know that girl. I like her. I think I want to learn more from her.” To, “I’m a lifelong fan and I will buy anything you sell and send you cool stuff in the mail.” I call these three phases people go through: see me phase, love me phase and pay me phase.
Recently, I had a conversation with a wonderful coach who was trying to sell tickets to a live event at $97. He sent his ads into a cold audience, people who had never heard of him before, and he thought that if he spent $5 to $10 on it, he would actually sell some tickets. Now, I’m very sad to say that coach did not sell any tickets to his events, and the reason is he was sending a “pay me” message out into cold traffic to people who had never heard of him before. They didn’t know who he was. They didn’t like him. They didn’t trust him so why woulda they spend the money?
Now, let me give you an example where $5 or $10 a day could give you a result. If you have a video like this one or your most popular Facebook live video and you send that video into cold traffic and you spend $5 or $10 a day, you’re getting more and more people to see who you are, to see what you’re about and to watch a percentage of your video and that’s what you want. You want people to watch as much of your video as they can because the more they watch, the more they love you. But, these people still haven’t paid you. You still don’t have any return on investment for the money you gave to Facebook, so how do you do that? You take all those people who’ve seen your video, all of the people who already love you and watch your other videos and you send them into some kind of a promotion, something that happens outside of Facebook where you can then make an offer to them. In Facebook jargon, we call this retargeting hot audiences with conversion ads.
What are some examples of these conversion events where you can turn a hot audience into a client? It could be a webinar. It could be a video series. It could be an email series. It could be a five-day challenge or it could be a live event. This is called the bottom of the funnel. This is where people pay you and this is where you see a return on investment for the money you gave Facebook. The challenge though with buying into the idea that you can spend $5 a day and make a bazillion dollars back is this. If you’re spending $5 at the top of the funnel where people are learning to love you and only seeing you for the first time, you won’t have enough people coming through the funnel to make it all the way down the bottom to this.
Now, I’m recommending to my clients that they spend at least a thousand dollars a month building up these warm audiences and retargeting them with conversion ads where they can then take those people and turn them into clients. But, again, how long is a piece of string? It doesn’t have to be a thousand. It could be less. It could be more. It depends on a lot of things but I hope that that gives you some indication of what you can achieve when you’re only spending $5 a day versus when you have a structured funnel in place where you know what the return on investment will be for what you put into Facebook.
There you have it. I trust that that helps you gain more clarity about where in this funnel you’re currently spending your money on Facebook and why perhaps you’re not seeing the return you are hoping for.
Please share with me in the comments what is your biggest challenge when it comes to running your own Facebook ads. If you like this video, give it a like and if you think someone else will like it, please share it with them, too. Have a fabulous week. Bye.