Now that you have your funnel build out correctly, you are ready to start buying some paid advertising traffic!
But which ads should you start with Facebook, Google, Insta, Pinterest, SnapChat, Bing?
For many businesses, Facebook and Google are where they get started.
But it really depends on how old your audience is, the type of digital content that they prefer and other demographical factors.
For me and for my clients, Facebook’s ad platform is #1.
Why?
-FB has a ton of insanely powerful targeting features
-They have 1.86 BILLION users!
-FB Ads are WAY cheaper and easier to use than Google Adwords
-I have close friends who work for Facebook so I get hooked up ; )
Want $.37 leads, customers for $2.72 and to get in front of all of your prospects for less than a penny per view?
But despite Facebook’s user-friendly platform…
A LOT of brands fail on their first few Facebook Ad campaigns because:
- They do no have an ad strategy.
- They do not have a performance marketing funnel that works, so they cannot know…
- Their LTV (lifetime value of a customer) over 1-12Months so they have no idea as to…
- How much they can spend per lead or on a new customer conversion…
And I hate to say it… but many companies have absolutely no business buying ads on Facebook because…
WHAT HAPPENS AFTER SOMEBODY CLICKS ON YOUR FACEBOOK AD, IS MUCH MORE IMPORTANT THAN THE ACTUAL AD
After someone gives you their email address or convert to a new customer, their customer journey needs to be planned out to the “T” or…
Paid ads will be a total waste of your time and money
If your ads are not driving your paid Facebook clicks into a step-by-step, strategic marketing funnel… you are going to struggle.
Questions You Should Ask Yourself Before Buying Ads:
- How many sales offers will a new customer or new subscriber see in months 1 – 3?
- What is the revenue potential from these offers in months 1-3?
- If I don’t know that answer to question 1 and 2, how will I determine if this campaign was a success or a failure?
- Should I run a lead conversion campaign that drives potential buyers into a well-planned marketing funnel, or try to send cold traffic straight to my homepage or sales page (even though this NEVER works)?
If any of this sounds completely foreign to you… please save your money. Don’t buy ads yet.
Advertising Drives Clicks
Marketing Makes Money
To be clear, we provide expertise and services for both advertising and marketing.
However, we do not take advertising clients who do not have the marketing assets necessary for advertising success.
YES! Paid advertising is the only way to rapidly scale your business with predictability and consistency.
IT’S AWESOME.
SEO, Content Marketing and Social Media marketing are part of your long-term strategy and take much longer to drive profits.
Valuable! But they are long-term marketing strategies and not profitable in the short-term or predictable.
Paid Ads can drive sales immediately, on-demand and grow your business a fast as you can handle.
But let’s get crystal clear on something-
Unless you are targeting your existing customers….
90% of the time…
Paid Ads Must Send Traffic To A Marketing Funnel That:
- Converts Paid Clicks To Email Leads
- Converts Leads To New Customers
- Convers New Customers To Repeat Buyers
- Nurtures, Builds Rapport, Retains & Generate Continued Sales From Repeat Buyers
And does this on autopilot year-round.
Paid ads send people to marketing assets, that drive people into sales and marketing funnels that do 1, or all of the 4 things mentioned above.
Take a classic trip wire marketing funnel or example…
- Covert Ad Click To Email Lead: You send a facebook user from and ad to a high converting lead magnet (which is free, in exchange for an email)
- Lead To Buyer: When they give their email in exchange for the Lead Magnet, they are redirected to a Thank You Page with a Trip Wire (a low-cost product with high conversion rate that is Free + Shipping)
- Buyer To Repeat Buyer: Customer Now you have their credit card on file so you offer your 1-Click Upsell #1 on a Core Offer (your flagship product with mid-high conversion)
- Buyer To 2x Repeat Buyer: Then you offer your 1-Click Upsell #2 on a Profit Maximizer (high price, low conversion)
- Drive More Sales With Follow-Up: An automated email sequence will follow-up and continue selling depending on where a new email subscriber stopped buying products within your funnel
- Build Relationship & Prime For More Sales: After they are through the funnel, you will put them into a new follow up sequence meant to build rapport, educate, entertain and sell
- Measure LTV (LifeTime Value)- If you know the exact dollar amount of sales opportunities present to your subscribers at 1Mth, 3Mths, 6Mths, 9Mths, 1YR and beyond… You now have a REAL business that you can scale up to 7-figures/year with paid ads
Oh… and even if you have your funnel built out correctly, you are going to have to multiple variables of every component of that funnel to break even, get profitable and scale.
For instance…
- CPC and CTR- First, you need to optimize your ad by testing different subject lines, body text, and image or video. At first, you are looking at CPC (cost per click) and CTR (click through rate) which affects CPC.
- CVR and CPL- Then you must measure the CVR (conversion rate) on your landing page with your lead magnet, which determines CPL (cost per lead). Your landing page should convert at 20% or higher. If the CVR is lower than 20%, you must test different colors, images, subject lines, buttons… the list goes on.
- CVR and CPA- Cool. So now our Facebook campaign is producing leads (email subscribers), but are they converting to customers when we ask them to buy our tripwire (Free + Shipping) and what is our CPA (cost per acquisition) for each new trip wire buyer, who is now a new customer. Your conversion rate should be no lower than 30-40% for the trip wire.
- CVR and Upsell 1 (Core Offer)- After they order the trip wire (Free + Shipping), now we have their credit card info and all they need to do to add another product to their order is click a button (increases the likelihood of them buying significantly). My conversion rate on a core offer has as high as 120% in the past. It is important that your core offer is converting at 15-20% minimum. I will tell you why in a second.
- CVR and Upsell 2 (Profit Maximizer)- This offer is going to convert at once again, a lower rate than the first two items (Trip Wire and Profit Maximizer) because it is more expensive. But, it can mean the difference between a failed (unprofitable Facebook campaign) and highly profitable FB campaign that you can scale.
- Automated Email Follow-Up & Retargeting Ads- What happens after they stop buying at any phase of the funnel? You must send emails and place ads in front of them to compel them to buy the ____ (trip wire, core offer, profit maximizer) that they did not take you up on.
- 1MTH, 3MTH, 6MTH & 1YR LTV (Lifetime Value)- After your funnel campaign is over, you should go into a series of email sequences and campaigns meant to build rapport, educate, entertain and sell over the course of a year. Start with mapping out Month 1 and know exactly how many offers a new subscriber or customers will get and the maximum revenue you can make from a new subscriber based on how many offers you put in front of them and the total value of those offers.
Sounds like a lot of work right!
You’re right.
It is! That’s why I always say…
Want to set up 15-30mins to get a custom analysis of your Facebook campaigns? Click here now!
Example Campaign:
-Leads Purchased on Facebook: 1000
-Lead Magnet (value: free)
40% CVR (conversion rate) = 1ooo x .4 = 400 leads at $4.00 CPL (cost per lead)
-Trip Wire (value: free + $5.00 Shipping)
60% CVR = 400 x .06 = 240 Trip Wires Sold alue: $0 Profit Margin)
Value: $0 Profit Margin
IMPORTANT: The Shipping Cost On Your Trip Wire Alone Can Allow You To Break Free on Your Ad Spend Immediately. However, the upsells that are “trip wired” by the consumer entering their credit card details to pay for shipping is where you see profitability. Upsells immediately following the trip wire…
Upsell #1 – Core Offer (value: $49.95)
40% CVR = 240 x .4 = 96 Upsell #1 Sales
Value: $4,795.20
Upsell #2 – Profit Maximizer (value: $499.95)
5% CVR = 96 x .05 = 12 Upsells #2 Sales
Value: $5,999.40
Was this campaign profitable??? Let’s break it down:
Campaign Duration: 1 Month
Total Ad Spend: 1000 leads at $3.00/lead = $3000
Total Sales Revenue: $10, 794.60
Total Cost: $3000
Net Profit: $7,794
Revenue Per Lead: $10.79
Profit Per Lead: $7.79
Something REALLY important has happened here… you now know EXACTLY how much you can spend on a lead before you are no longer profitable.
This means you can set a Facebook Automatic Ad Buying Rule, to shut down an ad campaign if you lead start costing you more than say $5…
Because you now know how profitable your funnel is… you can predict with great confidence, that you can put $1 into your little money machine and get back $7.79 every time…
But what I start targeting a new audience on Facebook and my lead cost up by from $3 CPL (in last example) to $5 CPL?
Easy.. You already know your RPL revenue per lead ($10.79), so now you just play with the increase CPL (cost per lead).
How does that look at scale?
Leads Bought: 10,000
Cost Per Lead: $5
Facebook Ad Spend: $50,000
Revenue Per Lead: $10.79 (same as last time)
Sales Revenue: $10.79 x 10,000 = $107,900
Profits: $57,900
Profit Per Leads: $5.79
But… you can create these things call “custom audiences” and “lookalike” audience along with dozens of other Facebook Ad cheats, that will increase you odds of success exponentially.
An easy, low risk, high success rate Facebook Ad campaign to start with, is the Video Boomerang Campaign… click below for more info.
Footnotes… IMPORTANT: The products in your funnel should be offered at a discount that the new subscriber or customer will NEVER see again. These are no bullshit, 1-time offers. If you EVER offer this price again, it will ruin your consumer’s trust and rapport which means they will never believe you ie, buy from you again.
The 1-Time offer allows you to follow up with them for the next week without being sleazy… (example of generic 1-time offer follow-up email available in follow-up article).
Bye for now.
Banderbuzz
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