Are Facebook ads worth it?
I get this question at least a few times a week. Probably more.
Mostly from people who have had some kind of bad experience with Facebook ads. Which is a lot of people, honestly. There are so many business owners who throw money at the “holy grail” and are hugely disappointed when they don’t get a massive influx of leads or sales instantly.
Which does suck. But if every Facebook ad was successful, then none of them would be.
The Bad Experience
I have a mate who was frustrated with Facebook ads for a long time. He whacked five bucks on an ad to promote his DJ Facebook page and got practically nothing for it. After spending around $150, he gave up on it.
A month or so later, when I was talking to him about it, he said he didn’t bother with Facebook because it was a waste of money.
The Good Experience
I’m promoting a webinar at the moment, and am using Facebook ads to do so. Right now I’m averaging around $1.00 – 1.50 per registration. And I know for a fact that these are highly targeted, qualified leads.
Now let’s say I get 300 registrants for $450. And let’s say around 100 of those people show up live. At the end of the webinar, I sell a membership at $97 per month.
If I manage a close rate of just 1% by selling to a single person, I make my investment back within five months. Not ideal, but better than nothing.
Past experience says that I can close at a rate of around 7-8%. But let’s be conservative and say I manage 5%.
If I close at a rate of 5%, I make back my ad spend in the first month and make pure profit for any months following.
This isn’t including anybody who can watch the replay.
Facebook Ads Work, If You Nail Them The Right Way.
You need great imagery, good copy, a compelling offer and plenty more.
But above everything else you need to do the Maths.
You need to know what kind of return you are making on your ad spend. And then think about if you can make a better return elsewhere. If you can, that’s where you should put your money. But if not, Facebook is the place to be.