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. Also, don’t forget to add the costs in if you do choose to hire someone to manage your Facebook ads for you.
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 $297 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 34 units ($10,000/$297=34).
If you plan for a 3% conversion rate then you need roughly 1150 people to land on your sales page because 1150 x .03 is 34.5.
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 . Realistic lead costs can range between $2-10 depending on the market, time of year, and what you’re offering.
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 $3,400-17,000 to get those 1150 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!
Download this calculator and crunch your numbers! Be prepared for your next launch!
Now that you have crunched some numbers, you won’t be caught off guard with a huge bill from Facebook AND you are in a better place to make important decisions UPFRONT such as:
- Increasing the price of your offer
- Making sure your ad cost stay low
- Increasing your conversion rate
Now it’s your turn to put together a realistic Facebook ad budget for your upcoming launch!
PS – Download this calculator and crunch your numbers! Be prepared for your next launch!