How much money should I spend on Facebook Ads
I get this question a lot.
So what I would do is to look at my conversion rate.
I will reverse engineer my numbers
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I will ask myself
Out of X number of leads,
How many appointments would I set?
How much sales would I make?
SALES ÷ NUMBER OF LEADS = VALUE PER LEAD
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Example when I am selling my course for $997
Leads: Out of 100 leads
Appointments: I will set 50 appointments
Sales: I will make 10 sales X $997 = $9,970
Value per lead = $9,970 divided by 100 = $99.70
This means, so long as I am getting leads below $99.70 per lead, it will be profitable
So normally, my first $100 is used for testing. I set that aside and test different audiences, different copywriting, different advertisements.
Then I will look at what’s the cost per lead. So long as the cost per lead is LESS than the value per lead, I will keep scaling that campaign infinitely.
I will scale it until it breaks
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It will only break when either
I have too many leads that I can’t handle
I overwork myself
My ad cost is more than my sales