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How to price Facebook ad/package services to nationwide businesses.

by Kevin Dee
10 replies
I have been looking at the best way to price services.

Here's what I will offer.

- Facebook ads
- Email campaign
- Build and manage funnel

I will be looking to package everything where the client can make a saving on the individual price of these services.

I want to offer Facebook ad services for a flat fee including ad spend. In order to get decent results, I will need around £2k/month in ad spend alone. If I myself take £1k as a fee, that's £3k just for Facebook ads.

Then I figure pricing the email campaign at £400 per month and the Funnel building and management at around the same.

The total is £3800/month including ad spend. To offer a decent level of discount, let's say to £2800/month, I will only be making £800/month for my efforts per client (which I can live with).

However, I feel that the cost to the client (in the UK) is very high compared to my level of profit (very low).

Any thoughts?
#ad or package #businesses #facebook #nationwide #price #services
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  • Profile picture of the author DABK
    Who composes the ads, who measures and tweaks? How often will you change ads/offers? How many different ads/offers at the same time/in a given period of time? What will you be responsible for, exactly? Running things or results of the running of things?

    Originally Posted by Kevin Dee View Post

    I have been looking at the best way to price services.

    Here's what I will offer.

    - Facebook ads
    - Email campaign
    - Build and manage funnel

    I will be looking to package everything where the client can make a saving on the individual price of these services.

    I want to offer Facebook ad services for a flat fee including ad spend. In order to get decent results, I will need around £2k/month in ad spend alone. If I myself take £1k as a fee, that's £3k just for Facebook ads.

    Then I figure pricing the email campaign at £400 per month and the Funnel building and management at around the same.

    The total is £3800/month including ad spend. To offer a decent level of discount, let's say to £2800/month, I will only be making £800/month for my efforts per client (which I can live with).

    However, I feel that the cost to the client (in the UK) is very high compared to my level of profit (very low).

    Any thoughts?
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    • Profile picture of the author kevd10
      Well, I will create and manage the entire campaign. So everything will be done by me. I will be responsible for creating profitable campaigns for new clients
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      • Profile picture of the author DABK
        How much effort/resources will you need to put into 1 successful campaign?

        What type of businesses are you after? (It's easier to sell twice as many shoes as twice as many mortgage loans; some business types have better margins; some business types are, usually, not businesses...)

        Will there be an initial setup followed by just running ads creating during initial setup or will you keep creating/changing ads/funnels?

        It seems to me that you're going to have a hard time... you're, at the same time, charging too little and not enough... too little to make you happy, to allow you to produce success, too much in relation to money they spend. Around here, and I'm not in England, managers/agents get 10-20%, not 33%.

        PS Listen to savidge4.

        Originally Posted by kevd10 View Post

        Well, I will create and manage the entire campaign. So everything will be done by me. I will be responsible for creating profitable campaigns for new clients
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        • Profile picture of the author savidge4
          Originally Posted by DABK View Post

          PS Listen to savidge4.
          You snuck your post in there first and basically said the same thing.. they should listen to you!
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        • Profile picture of the author Kevin Dee
          What would you recommend then if i'm going to have a hard time with this? My skills are in funnel creation, FB ads.

          If this wont work, do you think I am better off forgetting about it?

          Also, are you saying nobody is able to make big money this way?
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          • Profile picture of the author DABK
            What I am saying is that you have to be very clear on what you offer and how much time/effort it will take to deliver.

            You would also have to be clear on who would benefit and want what you offer.

            Me, as the business owner who hires you, have no responsibility to make sure you earn enough.

            You, as the person I hire to make more sales, do have a responsibility to make sure I make more sales, as many more as you promised.

            Before you think about pricing, think about the hungry crowd. Who's your hungry crowd? Can they afford what you offer? Can they actually use what you offer? (I've come across business owners with such a bad setup that, should I have gotten them the extra x% more calls, they'd have gone under... They would not have been able to deliver, people would have been unhappy, talk badly about them...)

            I know many who have cash flow and no profit though they think they have a great, profitable business.

            So, let's say it takes you 5 hours to put up an awesome ad for Facebook (create the ad and make it live). Let's say, you want to earn $250 for your 4 hours. Let's say that all you will do in the future will also take 5 hours a week and you want to earn $250 for your 5 hours.

            Let's say that you find yourself a mortgage broker who makes $5000 for each loan he makes, who thinks he's doing great as long as getting to sell one loan costs $500 or less, and that your ads are getting him 3 new loans.

            Your point of view, you've put in 5 hours for setup and 5 per week, or $250+250*4.333 the first month, 250*4.333 each other month... Simply, you want a bit over $1000 a month for what you did.

            Broker's point of view... I spent a bit over $1000 the first month and 250 set up and got $15000. That means, I got to spend a bit less than $1400 to make 15000. This is awesome.

            You do the same setup to a person who sells wedding dresses for an average of $2000 who thinks one new sell is worth $140 at most. You get this person the same results you got the mortgage broker and her point of view will be:
            I've spent close to 1400 in setup and 1 month of marketing with this guy and all I got was 3 dresses/ $6000. This guy ain't worth it!

            I am saying, I don't know how good you are at what you do, but if you're good and can deliver, you can still fail if you don't choose the right businesses to work with... And if you don't charge accordingly.

            How to know who to work with and how much to charge? Do a survey. Walk into some businesses and ask them to help you (a survey in person, if you will). Do research online...

            Also, keep in mind that, in every business, there are some people who are cheapskates, people who don't know their numbers, etc., and it's your job to screen them out and only work with the ones who fit your definition of ideal client. Do you have such a thing, your own definition of the ideal client?

            Best thing is when whatever you're charging them makes you think you're charging them a lot and they think they're getting a great deal. People who think of marketing as an expense not an investment are hardest to deal with... Providers who deliver in such a way that marketing is an expense not an investment should get out of business or up their game.

            Originally Posted by Kevin Dee View Post

            What would you recommend then if i'm going to have a hard time with this? My skills are in funnel creation, FB ads.

            If this wont work, do you think I am better off forgetting about it?

            Also, are you saying nobody is able to make big money this way?
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  • Profile picture of the author savidge4
    Right off the bat, the first number I don't see listed anywhere is the ad creation itself... its not cheap. The second number is the e-mail writing. You are literally not factoring the 2 things that will actually cost you time and money.

    Here is the thing..you are wanting to bring the number down.. and the reality is you should probably be taking it up. Breaking this out a bit and what I charge US dollars for.
    • Facebook ad creation 4 per month $600 ( that's $150.00 per ad - meaning artwork )
    • Ad spend no money here obviously
    • Managing ad spend I charge 20% so if we are at $2650 ( USD ) per month is $530.00 a month
    • E-mail management I charge $1.00 per address as a base generally cap at around $2000 to $2500. this being an email sent 4 times a month - the more you send the greater the number. This includes the e-mail creation and any funnel that may be needed.
    My number is $6000 USD or 4500 BP's and to be honest that is probably on the low side considering the number of ads created and the number of email shots per month.

    The TIME and money is in the content creation.. be it the emails themselves, the funnels and the artwork for the ads... so for you to run your number down to 800 BP's is like saying you will work for 8 BP's per hour and more likely even less.

    The issue is you are looking at this through your view of "Expensive" but the reality is your not expensive.. your flat out to cheap.

    The other thing I noticed in your post " However, I feel that the cost to the client (in the UK) is very high compared to my level of profit (very low). " One has nothing to do with the other.. you need to consider your cost vs THIER return... the greater their return, the more you can charge.
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    • Profile picture of the author kevd10
      Thanks for this. Some great points I hadn't even thought of.

      My point about the price vs my profit was that the price being high will lead to lower conversion rate, meaning I would need to make up for that with a higher fee
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      • Profile picture of the author savidge4
        Originally Posted by kevd10 View Post

        Thanks for this. Some great points I hadn't even thought of.

        My point about the price vs my profit was that the price being high will lead to lower conversion rate, meaning I would need to make up for that with a higher fee
        Read what you are saying.. or better yet, my translation of what you are saying... I will have fewer conversions that pay me more.

        Making 2500 BP profit per client is equal to 3 times the work with 3 clients paying you 800 BP.

        All things being equal and we will say your max workload is 10 clients.. over time which is better for YOU? 8000 BP's or 25,000 BP's?

        It has been said on this forum time and again.. it is just as easy to land a cheap client as it is one that will pay more for the same thing

        I will be honest and say there was a time I crunched my Gross just to get clients... BUT for the ticket items you are talking, cant say I ever have, because they are literally a time sucks, and there is barely ever enough money for that.
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  • Profile picture of the author linensrange
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  • Profile picture of the author savidge4
    Let me add this.... Start with the FB funnel, get your 10 to 20% of ad spend, just ensure you charge for the creatives.

    By doing this, this puts your foot in the door... Success begets success... If you are please with the FaceBook campaigns, keep in mind I also do this and this and this. You would then have a proven track record.. and the friction to closing addition deals drops considerably.
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