How Much Should You Spend On Ads To Get The Best Results?

Eric Deeran recommends starting ad campaigns with $20-$30 daily spend across nine ad buckets with multiple variations. After $200-$300 spend, pause underperformers and scale winners. Most clients see ROI within $800-$1,000 total spend, though results vary widely.
Chapters
One of the common questions that we get, uh, when people are thinking about working with us is about ad spend. And the common question we get is, do I have to allocate like $5,000 off the rip for ad spend? And the answer is no. I'm going to walk you through kind of what we think through as far as how we test and what we do to test to basically protect as much ad spend as we can. So we're risking as little money as possible. Um, so then we can actually get you quicker results. So one of the major things that I always recommend is when you are launching a campaign, we start at $20 to $30 a day, basically have 9 different buckets of ad types, which I won't go through in this video. That's something that we do with our clients, but we have 9 different buckets of ad types. Uh, we make all those. You have 9 to 15 to 20 ads in that ad set. We're typically doing like a CBO campaign on that first ad or on that first campaign. And then we're letting all of those get spend at $20, $30 a day. We start there after about 4 or 5 days. What I typically see is 2 to 3 of those ads are gonna get all the spend, and 2 to 3 of those ads are gonna get the majority of the results. And so we are then going to analyze after about 4 or 5 days which ones got results, why they got results, and then basically from there we will turn off some of the other ones, the underperforming ads, and then scale the ones that got all the spend and a cost per result that is favorable, and essentially cost per result being lead, cost per lead that's favorable. And then we look at, is that lead qualified? And so we're looking for the cheapest cost per qualified lead, and then we're simply scaling those ads specifically. So after about 4 or 5 days, that's only $200, $250, $300 in spend. And then we're only scaling the ads that are bringing us qualified leads. So for instance, if we have ads that are bringing us qualified leads at $100, for even numbers, then we would only be scaling the ads that bring us qualified leads that then turn into qualified calls. And then it would just be how quickly can you close a deal from that. But most of our clients are ROIing or closing a deal within the first $800 to $1,000 in spend. Now, obviously there are averages. Some people are way less. I had one client close like a $25,000 deal off $400 in ad spend. And then there's also other ends of the extreme where maybe you might have to spend $2,000, $2,500 to get your first client. But we are never just chucking $5,000 in ad spend and just saying, okay, I hope it works, right? Because I think that's a common misconception a lot of people have. We are starting at $20 a day, $20, $30 a day. We're figuring out which ones are working, and then we're scaling those systematically without risking too much money, but we're only scaling the ads that are bringing us qualified leads and qualified calls. And then it's just up to you to close those deals, which is something that we help you with to make sure that you're closing those deals. So hopefully that answers anybody's questions around what you should be doing with ad spend, and maybe you're running your own ads and I would never recommend just chucking $5K a day at your ad campaigns because it will almost never perform because you're giving Facebook way too much money way too fast. I always say Facebook's kind of like a, a toddler. You give it little bits of money and then as the campaigns start to grow up into like a teenager, you give them a little bit more money and then when they become a full grown adult, you can increase and give them even more money, right? You never want to start your campaigns with a lot of money because when you give a lot of money to a toddler, what do they do? They burn it all, they throw it away, they, they waste it. Right? And so I like that analogy of thinking, how do I scale my campaigns? Is you scale them as they prove themselves and give you more results, and then you continue to allocate more budget as they give you better and better results. So hopefully that helps. We'll see the next one.










