Here’s another question I just got: How much should I be spending when I start advertising on Facebook?
That’s an interesting question. First of all, it depends on your budget. It depends on a lot of different things. It depends on what types of cases you’re going after. As for the person that sent this in, I don’t know exactly what their budget is or what their practice area is.
How to Get Started
But what I would suggest, I would typically start with $30 a day. And when you’re doing Facebook, it’s really important to look at your cost per lead. And then, once you can figure out your cost per lead and what your close ratio is, then you start getting a pretty accurate idea of how much it costs you on Facebook to get a client.
And then, as long as your cost per acquisition is low and you know you’re making money on the clients, then you can scale up from there.
What I Do
So for me, if I’m trying to get people to watch a Webinar, I know that it will cost me about $30 to get a webinar registration. I also know that it costs me x amount of dollars to make a sale on a webinar. That’s because we know what our close rates are. And I have enough data that I can then say intelligently if I spend $1,000, I can expect to make x or if I spend $5,000, I can expect to make x.
And the reason that’s beneficial is that then, once your numbers are right and once you kind of figure all that out, then you don’t necessarily have a big marketing budget. Not if you’ve got your marketing dialed into where you know that when you spend $1,000, you’re going to make $5,000.
Then it follows theoretically that if you spend $2,000, you should make $10,000. Now, it might not always work that way. Once you spend more, sometimes we’ll drop a little bit. But if you could spend $1,000 profitably, then you should be able to spend $2,000 profitably.
How (And Why) To Test Things
So for testing, I usually start with 30 a day and then I go from there. And as long as my ads are profitable, then I keep scaling up because that’s one of the cool things.
That’s also why I do the self-liquidating offers with ClickFunnels. I do my free Facebook guides, and I do my free book. I do all that type of stuff. And the reason I do that is that when I limit my ad costs, or if I can make my earnings per click or revenue per customer higher, then I can spend more per acquisition and I can spend more profitably.
So that’s a long answer to that question, but that’s what I would suggest. Start with 30 bucks a day. If you do personal injury, something like that, then maybe try closer to a hundred dollars a day, or at least $50 a day. Or maybe start at $50, then go to $100 a day and just see where that takes you.