In this episode we're going to talk about should you be using the cost per click metric when budgeting for Facebook ads , and I'll tell you the answer of what I personally use in a moment . But first I want to give context to this little chat . I'm speaking to you if you're a course creator and a membership owner .
I very clearly do not usually address no , I don't actually address e-com business owners . Ie you have a website with like 20 or 30 products and you're using Facebook ads to drive traffic to those websites . I'm not an expert in e-commerce at all . I am an expert in online courses .
I've been coaching , as in consulting online course creators , sales marketing funnels , how to build out a team so you can reduce your overwhelm and increase your impact while growing your profit , memberships and , obviously , facebook ads now for over three years .
But that skill set , that Facebook ad skill set , is very different from an e-commerce Facebook ads skill set . Just wanted to clarify that because I have been getting some requests to manage ads for people who basically have an e-commerce setup .
Again , I'm not talking about what we would describe as D-commerce , digital e-commerce where you have , say , a bundle of three things that you're selling and you're sending traffic to that . That's different . That's okay . I can help you , my advice and strategies apply to you . But if you got a 20 product store , that's a whole different . That's a whole different .
Ads game , friend , alright . So cost per click or cost per result ? I like to look at cost per result when I'm budgeting for Facebook ads for myself and for clients . But there's an even more important question that you want to be asking yourself when budgeting , let's say , for an upcoming launch , and that question is is what kind of cost per acquisition ?
I say cost per acquisition because you could have a free launch or a pay launch , right ? So what kind of cost per acquisition ? Because you could have a free launch or a pay launch , right ? So what kind of cost per acquisition can your business support in order to hit the profit and revenue goals that you want ? All right .
So , yes , cost per lead , cost per result , cost per sale is better in my mind . Here's how you could budget . Look at your previous launch First . Make sure you know this number EPL earnings per lead . That would be the total revenue of your previous launch divided by the total number of leads .
And right here you might ask Quajo , but I had Facebook ad leads and organic leads for the previous launch . So how do I calculate that earnings per lead ? Well , did you separately track your Facebook leads ? If you did , like I recommend I've talked about this on previous episodes and Instagram .
So if you had a separate landing page , opt-in page , registration page for your previous launch that you only sent Facebook ad traffic to , such that it's connected to your CRM , your email CRM , you know , like ActiveCampaign , convertkit , kajabi , what have you and those leads are tagged as Facebook ad leads , then you can go back to and look at those leads and look
at the people that purchased and see exactly how much revenue came from Facebook ad leads . In which case , calculate the cost per lead or the earnings per lead . Sorry for those Facebook ad leads .
If you didn't do that , do it for this upcoming launch , but if you didn't do that for the past launch , then you can just take the total revenue divided by the total leads and run with that number your earnings per lead . Okay , what you want to be looking for .
Let's say , for example , you had a $30 earnings per lead , then you can say that your cost per lead this launch . If it's , say , two dollars and fifty cents , that is great . But , worst case scenario . Your business can tolerate a $15 , maybe even a $20 cost per lead with Facebook ads , and that would be worst case if your ads went south .
And so that's how you're planning . I recommend be conservative . Your last launch was successful , great , so you want to pour a bunch more ad money into this next launch . Be conservative in your numbers , because just because your ads worked great last time doesn't mean they'll work equally great this time .
They could be , they could work better , but you want to just have sound planning . So what I mean is is , if you're shooting , if you had a $30 earnings per lead last time , maybe you do your planning based off of a $25 earnings per lead for this upcoming launch , and then you have some leeway again if things don't go as planned .
And so this is why I believe cost per result matters more than cost per click . But here's some other things you should consider , like looking at your funnel for the previous launch to see what funnel elements you could , what funnel conversion steps you can improve upon . For example , what is that opt-in rate on your landing page ?
At around 30% , if it was great I'm talking about cold traffic , by the way If it was like way lower , like 10% . Spend some time rejigging that landing page , so you know , according to best practices , so that you can increase that opt-in rate . What about your email open rates ? You know were they near 30% ?
What about your email click-through rates to the sales page ? You know post-webinar , were those , you know , 1% to 2% . If they weren't , can you do things like ?
I'll give you one specific tip make sure that the sales page referenced in your emails is actually very clear , like is it separated from the other chunks of writing and it says click here to go to the sales page ?
You might choose different wording , but it's being specific , rather than when you mention your program , you just highlight and underline that word with a link but then you don't explicitly say click here , right . So I would call that an embedded link and some people skip over that .
We would think in this day and age everybody gets that a blue or purple word that's underlined means that that's a link and you can click on it , but not everybody does . So how about we make that really clear for your readers so they can go , and readers , email subscribers , launch registrants so they can go and get help from you .
Maybe you redid some of your emails last time . What I would recommend is updating your ad copy for this upcoming launch . Did you test enough last time ? How about go look at your previous launch and look at the two best performing pieces of ad copy ? We just did this for a client who's currently in launch at the recording of this video .
So the previously two best performing pieces of ad copy take those , look at them , look at the very top portion of the ad copy and maybe come up with two more different hooks , so to speak .
That way you're seeing and you're testing the very top , say , two to three lines of text that shows up above a graphic on a Facebook ad or maybe above a video on a Facebook ad . You're testing those in this upcoming launch to see if One of them can't best your previous Best cost per lead . Another another trick here is to just look at .
Maybe you did some organic posts that went viral , you know , or at least had more views , and these posts would be related to your webinar launch , right , or your challenge or your bootcamp what-have-you . But maybe you did some of these posts for your previous launch organically and these posts got way more views than your regular posts do or did .
So look at those posts and see were there some commonalities ? Were there some new things that you wrote in the captions that you might be able to come and bring in and incorporate into your ads for this upcoming launch to help your upcoming launch perform better ? But these are the questions that you wanna be asking yourself .
As you ask that main question what is the cost per acquisition that my business can support so I can hit my revenue goals ? And here's something that you might also be interested in I got a new lead magnet . It's called the seven biggest mistakes . That course creators make that burn through their cash and kill Facebook ad results .
That link is in the show notes below . It's not just a list , it's actually because I don't like fluff , so it's actually concise four to five minute videos of my solution for each mistake .
So you know why the mistake is so bad , how you can improve the mistake too , based on my experience managing ads for Facebook ad clients of mine over the past three plus years . So I hope this episode finds you well . Take care , be blessed and I will see you in the next one . Bye .