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Facebook Ads Tutorial: How to Calculate Earnings Per Lead

Facebook Ads Tutorial: How to Calculate Earnings Per Lead

(upbeat music) – The things that we look
at are earnings per lead. We want to understand for
each new subscriber that comes into our business,
how much they’re worth. So the simple way to do that
calculation is to take your total revenue and divide it
by the total number of leads. That will give you an idea of how much a lead is actually worth. And then you can turn
around and decide how much am I willing to spend on Facebook ads to acquire that new lead along the way. So the second challenge that
people have when it comes to running Facebooks ads,
especially when they’re new, is that they create Facebook
ads that are so random. I mean I know you know
what I’m talking about. You’re scrolling through your
Facebook news feed and all of a sudden you see this ad for
a webinar and you think I have never even heard of this person
before in my entire life. And sure, it might hit a
pain point that you have. And you might sign up. But the likelihood of that
happening is pretty slim. So when you’re thinking
about creating Facebook ads, I want you to zoom out and
really focus on creating a strategy to move
through the three phases of connect branding,
commit lead generation and close sales retargeting. So I really want you to think
how can I create a sequence of ads that moves people
through those phases. It takes cold audiences
and it warms them up and it gets them in the
right mindset to buy. (upbeat music)

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