To be successful at Facebook Ads do you need to sell a $300-500 product?
Let's assume you get an ad that generates a consistant cost per lead (free opt in) at $3.50
In this example, let's work from a foundation of 1000 leads (because the math is easy).
So for 1000 leads we will pay $3500.
Now let's say we send these leads into a short funnel including five value add emails with the sixth email being a pitch for a paid a product priced at X.
On that final pitch email let's assume a generous email open rate of 35% and a click through rate of 25%.
That means 250 people are going to see our sales page.
Now with a sales page converting at 10% that means 25 people will buy the product.
So working backwards we can determine that if we are to break even on our investment the price of the product will need to be roughly $140.
Obviously there are many factors that influence how well a sales page converts including the price of the product, but again the sake of this is to take a general average.
Based on these figures my conclusion is that unless you're selling an extremely high priced item, and in less you plan on putting these leads into a long-term funnel (so as to attempt to increase your sales conversions), Facebook ads are not right for you.
I would love your opinions and look forward to any hole poking.
Thanks!
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creztor -
Thanks
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