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When To KILL Your Facebook Ads – Facebook Advertising For Beginners 2019

When To KILL Your Facebook Ads – Facebook Advertising For Beginners 2019

What’s up you guys Jason Wardrop here and in today’s video I’m gonna cover a really important really hot topic. I get asked this question a lot But is when do I kill my face? But guess what do I shut them off? Right. So if like you’re running a campaign and You’re your elite casas. Let’s say 8 bucks. Ok, you’re getting $8 per lead and it creeps up to ten dollars Like do you actually shut that off or let’s say she’s staying at 8 bucks per lead But you’ve run it for four to six to eight weeks When is the best time to go through and actually shut that campaign off? Okay? now we’re gonna actually dive into some of the numbers here because it really is just simple mathematics and really knowing when to Go through in cancer campaign or not. It comes down to the data. For example, like when I am running my business Okay. I know some of the numbers and I keep track of the numbers So that’s one thing like if you’re not keeping track of your numbers, you need a simple process It really is not that difficult Especially with Facebook Ads that they pretty much give you all the data that you need To be able to go through and track what your cost per lead is what you’re willing to pay For the per for each lead and how much you make after generating so many leads So we’re gonna break that down all here but like for my business I go through and we’re selling our software right and I sell for fifteen hundred dollars on our webinar and so Typically on average I generate leads for my webinar for about eight bucks per lead Sometimes it goes down to four or five maybe six bucks but then it will sometimes creep up to ten to twelve or something like that and Obviously like anything higher than that, like I know even if I’m paying like twenty dollars per lead. I know I’m still profitable Okay, but knowing that I can generate leads for eighty or even ten dollars per lead I don’t really I’m not willing to pay that higher price per lead because I know I can generate leads for a lot lower So let’s just jump in and look at this for your business. Okay. So let’s say your cost per lead is ten bucks. All right And let’s say you’re generating on one hundred leads now guys. This is really important a lot of people will go through and they’ll run their Facebook ads and they’ll generate you know, twenty leads and I’m like Oh, well, I like Facebook guys doesn’t work or I don’t know. This is probably not for me The truth is is you probably don’t have enough data to actually know if Facebook ads is gonna work for you or not, right? So like in when you look at statistics and you get into like all that smart people stuff Like it talks about the law of large numbers, right? And if you have too small of a data set, you’re you’re not really gonna know what your conversion rate is, right? So like if you generate 100 leads and your conversion rate is 1% Well, if you generated 10 leads or even 20 or even 30 leads and your conversion rate on those leads is 1% You’re really not gonna know if if like it’s gonna work out for you Okay
So like I like to go through and start out with a minimum of 100 leads and let’s say our cost lead is 10 bucks So our total lead cost is $1,000. Okay, and let’s say there’s a few things that we need to look at here. Okay So we need to look at the lifetime value of those leads and our immediate conversion rate Versus even a longer-term conversion rate. So let’s say over the first 30 days here. We’ve got a 1 percent conversion rate, okay So what that means is we generate 100 leads and of those hundred leads we get one sailor We get one deal to go through Ok, and let’s just say you’re in real estate because most of my fuckers are and real say the real estate agents Let’s say you make five thousand dollars for every home you sell or home you list or whatever. It’s going on or home That’s like bought through you. So you make five thousand dollars, which honestly in real estate. That’s a pretty Low end Commission like I know on average like they’re with the agents I’m working with or making anywhere between five to fifteen thousand dollars in Commission per closed transaction because typically you make 3% of The sale price, right? So obviously if you’re selling a million dollar home, you could potentially make thirty thousand dollars on just that one home. Okay So conversion rate in the first 30 days you’re at five thousand dollars which total profit if you’re spending $10 per lead and Your total lead costs after 100 leads is a thousand Your total profit is four thousand dollars because obviously you made five thousand but you got the constant doing business and all that good stuff Now if you look at this, okay, so you you went through and you made five thousand dollars Well, you profited four thousand you spend a thousand dollars technically You should be willing to go up and spend as much as fifty dollars per lead to acquire these hundred leads which would be a total lead cost of $5,000 to get a one percent conversion rate in just the first 30 days now I know before you guys like freak out and like well Jason, I’m not making any money then Well, what happens is at this point you broke even okay? So you went through you had the five thousand dollar lead cost You have the one percent conversion which total profit after 30 days is zero dollars, and I get that but for basically free you just acquired 99 other leads of people that you can go through and work with alright now if we come down here if we look at the lifetime value over a 90-day period okay and guys like I had someone ask me I hid a video similar to this Someone asked me last time like well Jason, what is my conversion rate? That’s gonna be different for every single person it really depends on how well you are how good you are following up and how good you are with your sales techniques and how Good you are is just like doing business now You’re not that good if you’re not having like a 1 to 3 percent conversion rate in the first 90 days with really any leads You got to improve yourself. You got to go through your 10 more seminars. You got to read more books you just got to improve and develop as a Salesperson right? So coming down here. We look the lifetime value over 90 days So let’s say that 1% is now at 3% Ok, so we went through we broke even right here, okay So now we’ve got a 3% which totally cost. Let’s say is still $10 per lead. Ok. It’s $1,000 we get those 3 conversions at still $5,000 that we’re making per conversion, which is $15,000 which now after 90 days were profiting $14,000 ok So let’s go back and let’s say that our lead cost was actually $5,000 because we went through and we’re now spending $50 per lead Okay, so it’s $5,000. So our total conversion So after the first 30 days, we’re making zero money, right which obviously it’s not the goal But if we can acquire more leads to work with to work with in the future, that’s that’s ideal, right? So we make 5,000 or we spend $5,000 on the leads we make $15,000 and after 90 days, we’re actually profiting $10,000 right now one last thing that I want to go through and cover with you guys because obviously this is just in the first 90 days Some of those leads in the next six months They could still convert which then from the $5,000 lead spent if you’re spending $50 per lead You could actually see like a thirty thousand forty thousand dollar profit from those same leads Okay. Now if we come back up here now if you guys remember My average lead cost is about eight dollars. Okay, and I am still profitable like like if you’re a real estate agent right here I’m still profitable. Even if I’m spending like twenty to twenty-five dollars per lead. Let’s just say twenty dollars per lead But I know on average I generate leads for eight dollars okay, so I know that like I don’t have to spend more money on those more expensive leads because it doesn’t necessarily mean that they’re Better leads. Okay, especially when you’re going through and working with Facebook So what I do is anytime a lead It’s like I’ll go through and in my live cost per lead is twelve bucks I’ll usually let it run for a couple of days and if it doesn’t drop down to around the ten mark then then I kill It right just because I know like I don’t have to spend that much money to go through and generate my leads so I like to go through and have kind of like the high end is ten bucks and if it is at twelve bucks and It’s a newer ad set new ad campaign I liked a little run a little bit to see if it’s gonna drop down and if it doesn’t drop down then I kill it Okay so really guys When it comes to really killing your Facebook ads and knowing when to kill them it all comes down to understanding These numbers and if you don’t have enough data yet Get the day to spend the money to go through and get the data and so you can know with like exactness What you’re willing to pay for your leads, right? So If you’re going through and you’re averaging ten dollars per lead I probably wouldn’t go through if there’s if there’s a campaign that’s costing you more than fifteen dollars per lead. I Would probably kill that right? So like even though we went through this discussion where you can spend as much as $50 per lead Right here and you’re making five dollars. Your cost is five thousand dollars You’re making five thousand dollars back out, but your profit and your breaking even like yes, that works Theoretically in ninety days you’ll you’ll be making money But I like I like to I like to make money sooner, which I’m sure you guys are the same way So if it’s really higher than probably fifteen dollars per lead. I’m probably gonna kill that which if you look at that that totally cost is gonna be fifteen hundred dollars and then your profit after the first thirty five days is gonna be thirty five hundred okay, but then Afterwards so you’re gonna make profit thirty five hundred and then the next let’s say another two percent go through or three percent Whatever it is, you’re making an extra ten thousand dollars from those same 100 leads Okay so So that is kind of like looking at the numbers now as far as like a time frame go so like a lot of times people are like well my ads been running for six weeks and and Like I don’t know if do I just keep them running or when do I kill them? The truth is if you’re still getting a pretty good Cost per lead if this hasn’t hiked up like super high to like twenty bucks or anything like that I would just keep running that ad campaign the reason why is because if it’s in the range of what you’re willing to spend on Facebook Ads to generate one new lead and If that lead is in your market, it’s in your community Like let’s say you’ve got a local business to see your real estate agent. That’s someone you could potentially work with in the future Okay, so if you can find your email list and you know, you’re sending out emails you’re nurturing them. You’re educating them You’re letting them know that you are the top person to work with in your area Well, let’s say you’re even a restaurant or a local gym or whatever it is You get that person in and you’re nurturing them to the point that they actually convert into a sale All right, so long story short guys one. You got to know your numbers You got to know like what is your cost per lead? And what is your conversion rate? And how much do you make? Every single time a conversion or a sale or a deal goes through and they break the numbers down as simple as this guys look At your cost per lead. How much will it cost you to generate 100 leads. What’s your conversion rate in the first 30 days? What’s your conversion rate in the first 90 days? How much do you make per conversion? And what’s your total profit after the first 30 days knowing these numbers and after the first 90 days, okay So now once you know that you’ve got a pretty good idea of like, okay What’s my average lead cost and I’m willing to go a little bit higher above my average lead But not too much because I don’t I know I just don’t need to and then as far as like a time frame just go through and keep running that keep generating leads keep bringing new business until that lead costs hikes up so far or Until everyone in that community like if you got like a small fifty thousand radius Maybe they’ve all seen that and they’re just gonna annoyed by it. So just freshen up the ad just create a new ad Switch it up a little bit and you are good to go, right? so anyway guys, hopefully that was helpful for you all on knowing when to Actually go through and kill your Facebook Ads all comes down and knowing your numbers it comes down to knowing your audience and like how often they’re seeing the ad and With that said guys if you guys have any questions Drop a comment down below. And also if you guys want my free Facebook Ads mini course, I’ll hook you guys up with that Just drop a comment down below give the thumbs up to the video And also if you guys are brand new here, make sure you guys subscribe Because we launch new videos every single week on how to generate more leads make more money and grow your wrist So with that said guys, thanks so much for watching and I will see you all later

3 thoughts on “When To KILL Your Facebook Ads – Facebook Advertising For Beginners 2019

  1. Where is the link to your CRM lol. I see lots of links except to the main one or to a special offer 🙂 Also, is Adam available for me to ask some questions?

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