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

  • 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

  • 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 

  • 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