Eric Deeran walks through paid ad math for video businesses using two real client case studies. Aim for a cost-per-acquisition around 10% of your package price, and expect 5 to 10x return on ad spend. He shows how $350 in ads can land one client and breaks down when to hire help as volume grows.
What's going on, guys? In today's video, we're going to be talking about how much you need to spend to get video clients using a paid ads system. This is a question. I got a lot recently, so I figured I'd make a video on it and just explain exactly how it works, what you should expect, and what you can do to start getting video clients on demand immediately. So how much do you need to spend to get video clients? It's a great question. So let's talk about a couple of client results that we have and just break that down. So two clients here. We have Max, who got a 40k retainer, and we have Nick, who got a $147,000 deal. So as of the time of this recording, Nick, to get this 40k retainer, had spent about $350 total to get that one retainer. And basically what this looks like is we had $350. We booked four calls, and then one of those calls closed. So when you do the math on that, if you do $350 divided by four, that gives us about an $87 cost per call. So this is great, because if I know that I have an $87 cost per call and I need four calls to get one client, then all I have to do is spend $87 per call as much as I possibly can, right? Because if I can do that, then what that means is I can then repeat this action over and over and over again. And I know every four calls I take, I close one sale, and every one sale equals about $40,000 right here. Right? And so because of that, I can repeat this action over and over and over and over again. And I know how to actually scale my business. And that's what we're trying to do here is we have an ATM installed into your business to where you can put in $87 and then you can get out one single call. And then we do that over and over and over again for as many calls as we can possibly handle. Right? And so that's the math breakdown. That's what we're shooting for now. For Nick, he. He had spent about $3,000 to make 147,000. Now, out of that $3,000, we booked about 12 calls. And from the 12 calls, that means each call was about $250 per call. And this is just because Nick is targeting a different industry, Right? So that's the only reason why that might be a little bit more. And then out of those 12 calls, I believe Nick closed about six clients and here for an average of 24,000, about 24k each. And so because of that, that adds up to about 147k. And then that is how he's able to repeat that. And he's probably closed more at this point. And he just repeats that action over and over and over again. And then that's the idea, right? So the whole goal here, guys, is that we have a certain amount of leads, certain amount of those turn into calls, and a certain amount of those calls turn into clients. And typically what you're going to be shooting for as far as a cpa, which means a cost per acquisition, you're going to be shooting it for about 10% of your total package price. Now we're shooting for about 10% of our total package price. Reason being is because that puts us at about a 10 to 1 ROI. And then one of the other common questions we get is what is the typical ROI that I should be expecting? I'd say a decent ROI or will be about 5 to 10x. It's typically what we see now because of this. That means for every $1 you put in, you get 5 to $10 out on the back end, which is great, right? So if you have a $24,000 package, you should expect to spend about $2,000 to get that client. If you have a $40,000 package, you should be able to expect about a $4,000 cost per acquisition. Right? That's just pretty typical. Now, there are cases, like I showed you here, where Max spent $350 and landed a 40k retainer. That doesn't happen all the time. But then you see people like Nick, where he's spending, you know, $3,000 to make $147,000. I just like to set expectations on the lower end and then supersede those expectations. Obviously, if you get a better ROAS and a better CPA. But most people will be very happy with a 10x ROAS because that means for every $10 they put in, they get $100 out. For every $1 they put in, they, they get $100 out. And most people are super happy with that because, like, you're not gonna get that return in the stock market. You're not gonna get that return in any other vehicle. The only place you're gonna get that return is in your own business. And now you have an ATM that basically prints you. We call it a client atm. It prints you clients every single month. Right. And so then it just becomes like, how quickly do I Wanna grow, right? How many calls can I handle? How many people do I need to hire to handle the clients that I'm bringing on? If I can't take the calls anymore, how can I hire more people to then take the calls for me? And how can I start to take that stuff off of my plate so I don't have to be the one doing everything right? And so that's really what we're shooting for is we have a system that brings in leads, calls and clients every single day. And they're your ideal market and ideal avatar. It's someone who you want to work with and you're able to bring those people in, hop on the phone with them, see if they're good fit, and then pitch them your services and close them if they are a good fit. And now you don't have to be. You know, one of the biggest reasons we do this is because you don't have to be worried about where that next client is coming from and you don't have to be desperate on the phone because you know that you have back to back calls throughout the week. You don't have to worry about, oh, if I don't close this person, I'm not going to eat right. Which is a huge kind of weight that gets lifted off of our clients shoulders once they actually get this system up and running because they don't have to worry about where that next person's coming from. So I just wanted to make a quick video explaining what that looks like, what you should expect as far as how much it costs to get a client and then what you should be looking at as far as roas and return on ad spend and then just some examples from clients that we've actually worked with setting up the system. So if you guys have any other questions, let us know. And hopefully you enjoyed the video. Shameless Plug. If you want to learn more about how we might be able to actually help you at Master Filmmaker, there should be a link below this video to schedule a demo with our team and then we can chat and see if we can actually help. So that being said, keep being awesome, we'll see you in the next video.
