How To Make Sure That Your Facebook Ad Campaigns Will Be 100% Profitable…

  • Too often, companies, brands, advertisers and marketers jump onto Facebook Ads without a plan or a clear idea of what success really means for them.

“Tactics without strategy is the noise before defeat.” -Sun Tzu

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In this blog post I'll walk you through the metrics you should track, why they matter, and how you can use these metrics to get every of your ads profitable and even save money by getting better results from your ads per dollar you spend. (I first learned this concept from Jason Hornung

Facebook Ads (Key Performance Indicator Calculation)

  • STEP 1: Know your average order value and cost per acquisition (For example, your products sells at $1000 for a one time payment and with no upsell, your average order value is valued @ $1000, in order to have 2:1 sure return you should not spend mope than $500, so your cost per acquisition is valued @ <$500)
  • STEP 2: Know how many leads you need to generate (For example to generate 100 customers, divide 100/by your average sales conversation rate, for example 100/3%=3333, so you need 3333 leads to generate 100 customers for your business.
  • STEP 3: Clicks ( Divide your needed leads by your landing page conversion rate, 3333/20% = 16,667, so you need 16,667 clicks to generate 100 customers.
  • STEP 4: Cost per Click (Multiply cost per acquisition by 100 customers divided by clicks needed, so that will be 50 x 100  / 16,667 = < 0.29 CPC
  • STEP 5: Cost per Lead (CPC times 5 , so that will be < 1.49 Cost per Lead)

That's it, always base your Facebook Ads performance with your KPI's and I assure you that you'll always be profitable in your campaigns 🙂

<img src=“michaelhyatt.jpg” alt=“michaelhyatt” title=“michaelhyatt”>

- Michael Hyatt

Author, blogger, speaker, and the former chairman and CEO of Thomas Nelson Publishers

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