So you’re getting ready to launch your new course, program or service and you know you want to use Facebook ads.
How much should you budget for Facebook ads?
In this blog post, I’m going to share with you exactly how to crunch the numbers so you can be prepared.
First, your budget depends on the price of what you’re selling and your sales goal. Let’s say you want to sell a course priced at $197 and you want $10K in sales.
How much do you spend to hit this sales goal?
First, know your typical conversion rate. If you’ve ever had sales from a sales page go and take a look at how many people visited that page vs how many units purchased.
100 (visitors), 10 units sold = 10% conversion rate
If you do not have any data yet, then go with the average online conversion rate of 3% (some say 1% – you choose).
With this data in hand, you can now determine how much traffic you need to send to your sales page.
Note: When launching with Facebook ads you will usually build your email list first and then send them to the sales page (and towards the end of the launch you can retarget your audience and send them directly to the sales page).
If you want 10K in sales then you need to sell 51 units ($10000/$197=51).
If you plan for a 3% conversion rate then you need 1700 people to land on your sales page because 1700 x .03 is 51.
Ad costs vary depending on warm or cold traffic and a lot of other factors such as targeting, ad copy and images, offers, and messaging . Ad costs can range between $1-5 per conversion.
Note: not everyone who gets on your email list is going to land on your sales page, that’s when you use retargeting ads to send people to your sales page.
So with the ad cost range above, you can expect to pay between $1700-8500 to get those 1700 people to your sales page. If you already have an audience built up it will likely NOT cost this much. But it’s always good to be prepared!
$8500 sounds a bit steep, especially after you calculate the numbers and realize that you are only left with $1547 after launching (10047-8500=1547).
BUT now that you have crunched some numbers, you are in a better place to make important decisions UPFRONT such as (and you won’t be caught off guard with a huge bill from Facebook)…
- Increase the price of your offer
- Make sure your ad cost stay low
- Increase your conversion rate
Now it’s your turn to put together a realistic Facebook ad budget for your upcoming launch!
Want me to create the Facebook ads and funnel strategy for you? Learn more about my services here!
PS – Download the simple Facebook Ad Budget and Traffic spreadsheet!