Facebook Ads Costs/Profit Question

6 replies
Hi Warriors:

Hope the day went well for all.

Could you please tell me is there a good formula to use if somebody were to have a Facebook ad created today what percentage above their cost would be considered good by industry standards and what percentage would be considered acceptable?

In essence if you spend a 1.00 (I am using the lowest common denominator for illustration purposes) what return would the general marketer think is good over the dollar and what return would the general marketer not think is good but okay enough it was worth it?

I see on and off the Warrior forum all sorts of E-Books/courses on Facebook ads. I am not seeing the actual goal that Jane/John Doe would want in return for the dollar spent.

Finally please is the formula pretty regimented be it a Facebook ad/Google ad/Space Alien Ad or should we use different profitability based on the place an ad is viewed?

Thanks as always for the detailed and expert analysis.

May the coming year be all you seek.
#ads #costs or profit #facebook #question
  • Profile picture of the author ColdWritingLLC
    Originally Posted by Craig Fenton View Post


    Could you please tell me is there a good formula to use if somebody were to have a Facebook ad created today what percentage above their cost would be considered good by industry standards and what percentage would be considered acceptable?
    With all due respect... who cares?

    Does the industry standard affect your profits? Does it have power of your costs?

    It doesn't matter what everyone else does because no one else is you, and if you aren't always trying to increase your profit margin and decrease your cost then you aren't going to get far in business. It doesn't matter if you're off the mark by a foot or a mile, you still have to go the same direction and get there as efficiently as possible.
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    • Profile picture of the author Craig Fenton
      Hi Cold Writing:

      Thanks for reply.

      Have to disagree with you because there is a standard in anything or there would not be benchmarks for success/failure be it the local sports team, an employee or your bowling score.

      Being off a foot or mile matters because if it is a mile it may have taken the person's money allocation away from being able to do something more profitable. If life was only trial and error we all would have endless cash and income.

      What you are overlooking is if you were starting out if you don't know what you are seeking it is hard to know if you can put your energy elsewhere. Being so short sided surprised me. Here is an example as to why I asked (sorry it seemed to upset you).

      You start to sell a product tonight and you make X dollars. Although there is a profit if it is not in a general guideline you may not know if your time/energy/money should go to another project.

      If you were getting your first job wouldn't you want to know the difference between minimum wage, the average income in your industry, the average cost in your city/state? I would think most would. Going in you ascertain better information about the now/future/and do you take the plunge.

      Why do you think Clickbank products show gravity, people that sell Squeeze Page set up give numbers of conversions (40-48 percent is a heck of a lot better than 1.2), why is there software to let you know the profitability of money per subscriber? When a business buys 1000 leads why do you think they track the percentage of sales? Numbers are the life blood of everything from cholesterol levels to budgets.

      Thank you for your reply and have a great New Year,
      CF
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  • Profile picture of the author jasondinner
    Anything over break-even is generally where you want to be. lol

    Really all depends on your budget.

    The more you have to spend, the lower your ROI can be because of scale.
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    • Profile picture of the author Craig Fenton
      Hi Jason Dinner:

      Thanks for the reply.

      Would you always take any profit as a sign to continue or if you invested 100.00 each day and made 101.02 would you feel you would be better off taking the 100.00 off Facebook (as an example) and putting it toward ABC Website?

      Yes, the more you have the more you could scale but would it be fair to say if there is a total marketing budget be it 1.00 or 1,000,000 a point has to come that you would rather invest 100,000 elsewhere if it is making you 84 dollars on Site A since Site B may have the opportunity for better return scale or no scale.

      Have a great night.
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  • Profile picture of the author jasondinner
    Even if I lost money, but at least generated some revenue, I would still consider it a good start.

    If all I made was $101.02 after spending $100, the next phase would be to figure out how to make $110 with the next $100 I spend on there.

    It's all about testing and tweaking.

    And yes, if there is a better traffic source where you can get a higher return than another sourec, then of course you should run with that.

    However, sometimes you can only get so much traffic from said source and you need to tap others.

    So some will crush, some will do ok, some will be in the middle.

    I'll take them all
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    • Profile picture of the author Craig Fenton
      Hi Jason:

      Thanks for the explanation on your thoughts.

      I had never used Facebook advertising before. There are some Warrior Special Offers that I am looking at and wanted to get a good indication about the risk/reward (if that is a fair terminology).

      Have a great night.
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