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Best Facebook Advertising Strategy for 2019 – Make More Sales Guaranteed! (PART 2)

Best Facebook Advertising Strategy for 2019 – Make More Sales Guaranteed! (PART 2)


welcome to part 2 of my guarantee
profitability formula my lead generation example in this video I’m teaching you
how to guarantee that your facebook ads are profitable and know that before even
having to spend a penny you want to add so stay tuned because that’s coming up
right now what’s going on guys welcome back my name is Gabe Ekemezie with www.gabeekemezie.com I am your internet marketing guide and on my channel I
teach internet marketing as well as entrepreneurship to help you grow the
business and grant that you want and as you deserve and this is part 2 of my
guaranteed profitability formula video so if you haven’t seen part one yet
pause go back and watch part 1 it says there I cover the numbers I cover what
we’re gonna be going through and if you don’t understand that this part is gonna
be kind of confusing because you may not understand what I’m talking about or you
may I don’t know but better safe than sorry go back watch the first part if
you’re continuing and you just finish the first part welcome back
now we’re gonna be diving into my lead generation example where I’m gonna show
you how you can use your KPIs that we talked about and how you can create a
profitability formula to basically guarantee that your ads are profitable
before you even start running any ads at all so if this is your very first time
on my channel go ahead and feel free to subscribe to my channel hit the
Nullification button so that you can get notifications for upcoming videos so
let’s go ahead and dive right into this okay so for our lead generation model
the first thing we need is obviously our lead capture page which is gonna include
getting our name and email of our traffic or phone number whatever we’re
getting and then we have our ad it’s gonna send traffic to our lead capture
page and then go straight to a thank-you page but with a lead generation model we
are usually following up with emails or you send them to a webinar it’s some
kind of presentation so once they get once we get their name and email we’re
sending emails to them or you’re sending them to a webinar you know you gotta
kind of to fight for your particular business
model that you’re using and from there they go to a sales page where we offer
what we’re offering and then finally a thank-you page and if you’re
particularly contains upsells and all that kind of stuff you can kind of put
that in there but this is just kind of the general model that we’re going to be
using for this example okay so now that we’ve kind of drawn this out the next
thing we need to figure out is our kpi’s so I’m gonna kpi’s alright so similar to
e-commerce we’re gonna need to figure out our cost per click we’re also gonna
need to figure out our click-through rate now now that we’re working with the
lead generation model we are going to have to figure out our cost per lead as
well as our conversion rate for our landing page and remember those are two
KPIs that we didn’t figure out in our e-commerce model but now that we’re
doing lead generation you’re gonna need to know those so our cost per lead also
your conversion rate for your lead capture page which is this right here
your conversion rate for your sales page which is this right here and then the
last two numbers which is the health of your biz business your CPA a cost per
acquisition and your Ald okay and similar to the last example we’re gonna
work backwards because it’s just the easiest thing to do alright so let’s say
for this particular example we want all our average order value remember that’s
the amount or average value of the product that we’re selling how much we
make from a sale is for this particular example like 100 bucks so that could be
coaching coaching services or it could be a course that you’re selling you know
whatever your particular product service is that’s the number you want to use
there okay I’m just using this as an example so what’s our CPA it gonna be an
our cost per acquisition remember our cost per acquisition we
want it we’re going for a two to one ratio meaning for every dollar we spend
on face book we want to get two dollars back in
it’s kind of a nice cool to have so if every so we get is gonna equal $100 then
how much we’re gonna spend per person to get a buyer it’s gonna be half of that
which is fifty bucks okay so those are the those are the numbers that were
working with here so now our conversion rate for our sales page which is this
right here two things happen here so if you know
your numbers for your sales page your conversion rate for your sales page
maybe you’ve been already running traffic or you already have a model or
business that you’ve been writing for a while then you’re gonna use that number
but if you don’t you if you have no idea what your conversion rate is for your
sales page just because you either a are starting a new marketing funnel or
you’ve just never done anything yet prior to this watching this Facebook ad
course then you’re going to want to use the ratio of 1 to 5% kind of like we did
in our e-commerce example now for this particular example I’m going to use 1%
because it’s it’s low and it’s very conservative and it gives us a little
bit of wiggle room to work with but um so that’s what we’re gonna use here 1%
for our conversion rate for our sales page now the conversion rate for our
landing page similar kind of idea if you know your numbers for your conversion
rate for your landing page that’s the number you’re going to want that you use
and put it here and if you don’t typically you want your conversion rate
for your landing page to be about 20 percent so 20 percent is what I’m gonna
use here and if it’s higher that’s good but 20 percent is usually your goal what
you want your conversion rate for your landing page to be and if it’s not there
yet if it’s lower let’s say you know your numbers that area at within your
marketing funnel you know you have to kind of work on and tweak in order to
try your best to improve so for this particular example we’re gonna use 20
percent okay so now we’re the cost of cost per lead now here’s what we’re
gonna against a little bit of math here so hold on with me for a second so with
our cost per lead there’s two things we need to figure out first we need to
figure out one how many leads do we need to generate in order to get this model
to work and two how much I’ll be paying per each one of those leads okay so
let’s figure out the first step first how many
do we need to figure out in this situation and to give you guys an
example here okay so our cost per lead I’ll do the math here first we need to
figure out how many leads do we need so let’s say we’re sitting
so this is where first what you want to do is kind of set a goal for yourself
well so let’s say I’m setting a goal of I want to get a hundred customers right
go bigger go home so I want a hundred people to pay me a hundred dollars for
my product service whatever so my goal is a hundred customers so that’s what
you’re gonna put here whatever your goal is okay and then in the bottom part here
you’re going to put the conversion rate for the sales page so the conversion
rate that were using for this sales page is one percent remember that’s a
conservative number but that’s what we’re using because for this example
because I don’t know what my conversion rate for my sales page is if you know
that you’re gonna use your numbers so the conversion rate for the sales page
zero point one I’m gonna say conversion for a sales page okay so and just to
kind of illustrate what’s going on here we’re trying to figure out how many
leads we need in order to make this work so we know that our conversion rate for
our sales page is one percent and we also know that we’re trying to get a
hundred customers is like our goal right so basically we’re trying to figure out
how many leads need to come through this system where one percent of that number
of leads equals one hundred customers so we’re trying to figure out this number
right here right because if we’re getting traffic coming here once they
come through our lead capture page they become a lead so what number what one
percent of this number equals one hundred that’s what we’re doing here
algebraically okay so if my math is right it’s going to be ten thousand all
right ten thousand leads is our goal for this particular model
okay so now we know this number here this number is 10,000 so out of the
10,000 leaves that are coming through this funnel one percent of these 10,000
leaves is going to equal our hundred customers so now that we know the first
part which is how many how many leaves we need now we need to figure out how
much are we paying per lead so in order to figure out how much we’re paying per
lead all that is is we just need to figure out how much are we going to pay
for this whole campaign right so if our goal is a hundred to customers for and
we are paying 50 bucks per customer then what we’re going to be spending put what
we’re predicting we’re gonna spend for this whole campaign is 50 times 100 so
100 customers are just gonna say Cu is what our goal is times our CPA which is
50 bucks because we’re paying 50 bucks for one person remember if we spend 50
bucks one person is gonna give us a hundred so if we want a hundred people
we need to spend 50 bucks for 100 people that’s what we’re doing here so that
equals $5,000 all right so that’s what we’re spending for this whole process
that’s what we’re spending to drive our traffic through to hopefully if all
these numbers dial out the way we want them to dial up get a hunted customers
okay so now all we have to do is figure out how much of that 5,000 dollars how
much we’re gonna pay per lead so if we have a budget of $5,000 for this entire
campaign and we have 10,000 leads that means that we’re gonna be spending 50
cents per lead okay so that makes sense you see what I kind of did there if this
is a little bit confusing posit go back kind of see what I’m doing here plug in
your numbers and figure out what your cost per lead is so that’s what our cost
per lead is for this particular scenario it’s gonna be 50 Cent’s all right so now
we need to figure out our click-through rate once again I’m gonna give you this
none and that’s gonna be the same number used
in a last example three percent it’s good and remember if you’re trying to
figure out where did I get three percent or whatever I’m giving you that number
there’s no fancy calculations for that it’s three percent is just that ideal
click-through rate that you just want to shoot for in order to keep your cost per
click down which is what we’re gonna figure out right now okay so far our
cost per click it’s the same method we need to figure out two things one how
many clicks do we need to get in order to get this model to work for us and
then two how much I’ll be spending per click okay so let’s do that math real
quick I’m gonna leave 10,000 needs up there cuz we’re gonna actually need that
so cost per click so first we need to figure out how many clicks do we need so
how many clicks do we need to get 10,000 leaves all right so we know we need
10,000 leads I’m gonna say alpha leads it’s not leaders for all my chemistry in
bio majors there so for 10,000 leads now what we need to put at the bottom number
here is the conversion rate for our a landing page and the conversion rate for
our landing page is right here which is 20% so that’s what we’re gonna put here
in decimal form it’s 0.2 0.4 and rate for our lead capture page right and the
reason why we use this number is because let’s think about it for it separate for
a second so this is our lead capture page we know that the conversion rate
for our lead capture page is 20% so whatever number whatever amount of
clicks we are sending to our lead capture page 20% is going to convert
into leads and we know that we have 10,000 needs that’s our goal is to get
10,000 leaves so 20% of what number equals 10,000 is what we’re trying to
figure out that’s what we’re doing here algebraically and that equals 50
thousand clicks alright so that’s the amount of clicks that we need in order
to get this model to work so we now know our mystery number here which is 50
and fifty thousand clicks okay so now how much are we spending per click now
we already know how much you’re spending for this entire added because we’re good
because remember we’re aiming for 100 customers we’re paying 50 / 50 bucks per
customer so 50 times 100 once again is 5000 is what we’re spending for this
entire thing so now we just need to figure out how much of this 5000 divided
into clicks now remember we’re not remember we’re this is the same budget
we’re using throughout the entire ad so we’re not using some of this for a leads
some of this for it clicks some of this for customers it’s all one and the same
if that makes sense we’re just we’re just figuring out out of this 5,000 how
much would that be for leads and how much would that be for clicks so 5,000
for our budget divided by the amount of clicks which is 50 thousand equals 10
cents per click okay so that is our CPC cost per click it’s
10 cents okay so you see how this kind of works and so now if we kind of walk
use these numbers to walk through our basically our story here we know that in
order to get this model to work for us our goal is to get 100 customers okay so
we know that we need to get 50,000 clicks now if we are spending 10 cents
for each click that means 10 cents times 50,000 equals 5,000 so we’re gonna spend
$5,000 to push our traffic through this particular marketing funnel so out of
the 5,000 dollars that were spending the 50,000 clicks
20% of the 50,000 Clips turns into 10,000 leads and then those 10,000 leads
as they go through our marketing funnel 1% of those 10 thousand leads equals 100
customers and we know that where our aim is where our average order value what
we’re selling is $100 so if we have a hundred customers and
we’re selling $100 product that means that
in total we are making $10,000 in total revenue but remember we’re spending five
thousand dollars to drive this traffic through this funnel so if we are making
ten thousand dollars and we’re spending five thousand dollars that means we are
making a profit of five thousand dollars okay so do you see that do you see how
by knowing our numbers in an understanding your funnel understanding
your KPIs you can to a certain extent almost predict your profitability for
your Facebook Ads if you get this down if you understand this and you figure
these numbers out for your particular business model for your particular
marketing funnel then you are putting the rightful forward to basically
guaranteeing your ads are profitable without having to even spent a dime yet
okay and I think it’s important to realize a couple things here one is that
this is not all black and white okay because if if it worked perfectly like
this every time everybody would be rich okay it sadly it doesn’t work perfectly
like this all the time remember how I said before 80% of your ads are not
gonna work the way you want them to work only you know a smaller amount is gonna
work just like this but you have control over creating or trying your best to get
your numbers to be dialed into your kpi’s by changing things in your
marketing funnel and I remember these two numbers once again these are for our
ad right and these two here are a conversion rate for our landing page and
for our sales page is for our funnel right and then these two are for our
business the health of our business and $0.10 for our cost per click it’s not
impossible it can be a little bit tough depending on how well your marketing is
but remember our conversion rates here are really low one percent twenty
percent we’re just working with conservative numbers here but if we want
to reduce our cost per click let’s say it’s a little bit higher we can do that
by changing things in our ad maybe and testing out different things to try and
get the cost right click down or try to increase our click-through rate because
the higher the click-through rate is on the lower the cost per click goes down
or let’s say our cost-per-click looks good are picked
through it looks good but our conversion rate for our landing page is not good
let’s say it’s half of this it’s 10% so we know now okay there’s an issue with
our landing page so we can test out different copy images maybe our offer
isn’t where it needs to be or maybe our sales page the conversion rate for our
sales page is low hopefully it’s not who were that 1% cuz
if it is then you definitely know you need to work on something with furrious
and your sales page and that could be a variety of different factors or the
issue might be here with your webinar with your emails with um this process
here driving these leads to convert that might be where the issue is that’s where
you kind of have to focus and change and alternate things in there in order to
get these numbers to look the way you want them to look and then obviously
your cost per acquisition and your average boredom value let’s say um you
know you can always raise their prices you know if you decided to charge $200
for your product or your service then you have a little bit of wiggle room
because if I’m charging $200 then my CPA is gonna be $100 so I can afford to
spend $100 for one person to buy right and and I can do that because if
somebody does buy and I spent $100 I’m getting $200 back two to one ratio is is
is a great goal to set you may not always hit that all the time and that’s
fine but as long as you’re profitable right guys as long as your CPA at the
end of the day is lower than your AOV right that’s really all that matters at
the end of the day because that means that you’re you’re gaining more and
profit than you are in spending because if you’re constantly spending more than
you’re making then you know obviously you’re just losing money well with that
being said like I said with the e-commerce example you may have a lower
CPA and have a lower price point for this funnel but you may have some
upsells afterwards you have to consider that into your equation so let’s say
you’re buying is like you know 20 bucks or 50 bucks you might just be breaking
even in terms of your ad flow but when you include your upsells and all that
kind of stuff that’s where you see the return on investment that’s what you
see the profitability so you have to remember to to incorporate your upsells
into your AOV okay guys so that’s it that is the profitability formula or
right there so as you can see it’s a lot of math it kind of looks all jumbled up
myself but I promise you if you take some time get a piece of paper out dry
out your final write out your kpi’s and go through step by step to try and
figure this stuff out for your particular business model once you have
this figure out you have a plan right and that’s the most important thing you
need a plan you need to know where you’re going you need to know what
you’re aiming for and I now know what I’m aiming for before I even spend a
dime on an ad and so once I begin running campaigns and I start testing
and I start optimizing I have a goal to hit these numbers because I know if I
can hit these numbers no matter what I’m gonna be profitable because math does
not lie it’s just going to work out and the way that you manipulate these
numbers and get them to work is by changing things in your funnel and and
with the optimizations and all that kind of stuff once you are actually
profitable then all your your number one goal is to scale you scale this whole
baby up and that’s what we’re gonna be talking about later on this course with
multiple different ways to scale your ads so that you will stay continue to
stay profitable even though you’re increasing the ad budget because
obviously if I’m spending 50 bucks and I’m making 100 bucks every time I do
that that’s where printing money comes in
okay and you might hear about gurus or people that are really successful online
printing money online this is where they get that from and if you dial this in
okay if you dial this in and it’s working for you man I’m selling my car
I’m borrowing money from family members friends I’m taking out bank locks I’m
pouring everything I can into this ad because I know for every dollar I spend
I’m getting $2 back so that’s the sweet spot that’s where you want to get to and
I hope this video was valuable for you guys I hope that it was helpful I know
it’s a lot of technical stuff and a lot of math but um this is this is the stuff
that a lot of people are missing this is the stuff that a lot of people don’t
teach okay and if you understand this process you are
well ahead of the competition you are well ahead of understanding what you
need to hit in your business in order to guarantee that your Facebook ads are
profitable so if you like this video if you got value from this video give it a
big thumbs up guys leave any comments that you may have down in the comment
section below if you have any questions about your particular business model and
you need help with this leave me a comment too as well I try my best to
help don’t just tell me your business and say figure out your kpi’s for me I
can’t do that for everybody guys like go through this figure it out yourself but
if you have an issue or you’re stuck or something let me know the Congress and
obviously I’d be happy to help also don’t forget to subscribe to my page hit
the notification button so that you can get updates for later videos that I’m
doing as well as you continue to follow along with my facebook ads course here
and last but not least if you would like my 10 Facebook ad copy cheat sheet where
I cover ten secrets of copy strategies and um things that you can include in
your ads in order to get them in order to write effective ads that actually
selling that actually work then click the link down below in the description
download that free pdf guys but until then y’all I appreciate you guys so much
for watching thanks for sticking in with me I know this was kind of a longer
video but we’re gonna be going along in the lesson here so if you’re following
along with the ultimate Facebook Ads course you can continue with the next
lesson and if not well I hope to catch you guys on another video go ahead and
engage share this video with other marketers or other people that would
benefit from understanding this if you have a agency or no agencies or if you
just know other people they’re trying to run Facebook Ads they need to know this
and this this can this can really save you a lot of headaches at the end of the
day all right guys I’m done rambling you guys have an amazing day and I’ll catch
you guys on the next video

4 thoughts on “Best Facebook Advertising Strategy for 2019 – Make More Sales Guaranteed! (PART 2)

  1. Gabe, love the content man! Would it NOT make sense to run this process with a $7 product. It seems like you would need a product that cost a bit more, correct?

  2. Wow Gabe! Yes, this video is technical and a lot of math! but you really broke it down and I know after watching it a few times, I will get it! Ty! 🙂

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