A framework for scaling coaching businesses with paid ads using leading and lagging indicators. Track cost per follower (under $1 for B2C, around $2 for B2B), cost per ideal follower ($11 average), and ROAS (17:1 target). The math tells you exactly when and how much to spend.
70% of your ad questions are actually math equations. And if you had the data, you'd already have the answers. That is exactly what Alex Hormozi told us when myself and my team went to visit him at his headquarters in Las Vegas. I've helped more than 400 coaches scale their business, and here are the metrics that we use that have helped our clients go from $0 a month to upwards of $75,000 a month. So first things first, right? You have leading indicators of your ads and then you have lagging indicators of your ads. Leading indicators are going to be things like cost per profile view, cost per follower, cost per ideal follower. Lagging indicators are your cost per booked call and your return on ad spend, right? Like you're almost like your cost per sale, if you will. So what we track is, you know, every single day we'll go and we'll track the spend. We'll look at the cost per profile view. We'll also look at the total number of followers that are coming in and we'll look at how many of those followers were ideal client followers, right? From there we can get the leading metrics. Okay, so we can get cost per follower. If you're in B2C, I would say you're looking for under a dollar. If you're B2B, I try to get mine like $2 or less. Quality percentage is just like, what's the quality of people that are coming in? For me, usually like 10 to 20% is kind of average. A lot of our clients have like 50%, 60%, sometimes 90%, which is crazy. And then cost per ideal follower— and you need to get to know these numbers for you. I know that our average last year was, uh, $11 cost per ideal follower, and we had a 17:1 return on our ad spend. So I know my numbers, therefore I know what I'm looking for, which is why you need to know your numbers if you want to scale. So those are the leading indicators. And then when it comes to lagging indicators, you want to look at your cost per booked call and your ROAS. That is what you need to know to scale your ads. And I mean, I guess it depends what kind of ads you're running. A lot of our clients, like we have clients doing $85,000 a month on follow ads, right? So that's just an example of that. But my point is, if you track the data, you will know what to fix. And if you want my tracking spreadsheet, just comment data and I'll send it over.
