Can you actually spend $5 a day on your Facebook ads and get profitable results?
Absolutely. You can. But it all depends on the goals and strategies you have for your Campaigns.
Campaign Objectives such as Reach, Page Post Engagement, Video View Audience can get great results for $5 per day. These campaigns are great to get brand awareness and build a warm audience which you can then retarget.
But, if your objective is getting people to register, opt in or purchase – you’ll want to use a Conversion campaign and this is where a $5 daily ad spend will not likely get you the results you’re hoping to achieve. It does depend on your niche and your offer. While it is possible to get .50 cent opt ins, you will more likely be looking at anywhere between $2.50 and $15 for an opt in – depending on the offer. So you can see if you are spending just $5 on Campaigns which you’re are optimising for Conversions you would expect to get anywhere between 2 Leads per day or 1 Lead every 3 days.
If you've got a revenue goal of $10,000 and the program that you're selling is $997 and you're sending them through a webinar funnel, you're going need 10 sales (obviously!) Based on typical conversion benchmarks for a Webinar Funnel, you’d be looking at a Facebook Ad spend of $3,343. Which means you need to invest $111 per day into your Facebook Ad Campaigns to achieve these goals.
That is based on benchmarks such:
Cost Per Click – $2.50
Webinar Registration Page converting at 25% (the minimum you want it to be converting at)
Webinar attendance rate 60% (for Evergreen Webinar)
Now if you get your Cost Per Click to $1 while your Webinar stats remain the same, the Ad spend required to achieve the same $10,000 revenue goal dramatically reduces to $45 a day (still a bit more than $5 per day 😉 )
This is showing you that your ads, with all these benchmarks, with it all dialed in, should be profitable.
However, if you have a webinar registration landing page that’s converting at only 10%, with a $2 Cost Per Click you can expect to invest $6,687 to generate the same $10,000 in sales. So this is where you can see it’s important to understand the data at every step of your funnel. It makes a massive difference to your bottom line.
Now if you have a Webinar to Sales Call Funnel for a High ticket offer and you're wanting to make $10,000 and your program is $5,000, the ad spend required here would be around $2,286 which is a daily ad spend of $76.
That is based on benchmarks such:
Cost Per Click – $3
Webinar Registration Page converting at 30%
Webinar attendance rate 60% (Evergreen)
No Show rate for Booked Calls 30%
Sales Call Conversions 25%
So if you were to spend $5 a day, that's $50 over 10 days, Considering you’re looking at $10 per Webinar Registration – that would be 1 opt in every 2 days. Then each booked call would cost approximately $200 which would take 40 days to get just ONE booked call!
Take into account that the Facebook algorithm likes you to get 50 conversions on your ad set per week for your Ad Set to optimise. So again, if you're spending $5 a day and you get one opt-in every 2 days days at $10 that will only be 3 or 4 opt-ins per week which is not feeding enough data to your pixel or the algorithm to optimize and start helping your ads to perform as best as they can.
Investing more into your Facebook Ads you'll get more data on your pixel, Facebook will optimize your ads faster and therefore, you'll get better results. You will be able to make quicker decisions regarding the performance of your ads. $5 a day can just be like pulling off a bandaid slowly…
Investing at least $20 a day to your Ad Set allows you to give audiences a fair test and you can get the data on your pixel much faster which will help you make decisions quicker and get results faster so that you’re not dragging things out over a month wondering why your ads aren’t working. Well, because you're not investing enough into your ads to get those results and to make the data and make the decisions.
If you’d like a copy of my Webinar Profitability Calculator you can get it here
You'll wonder HOW you ever ran Facebook Ads before it!
For more resources and tips for profitable Facebook Ads for high ticket offers, join my free Facebook Group – Facebook Ads for High Ticket Coaches and Consultants