Facebook Ads Getting Expensive? Make these 3 changes...

If you're running paid ads and you're struggling to get a lower cost per result, whether that's a cost per purchase, cost per booked call, or cost per lead, I'm gonna show you 3 triggers that you can execute today to drop that cost per result, even if you're struggling with expensive CPMs. I know a lot of people that come to me that are struggling with CPMs. They think it's the end of their ad account and they can't do anything to fix it. If you can work on these 3 things, your CPM, as a result will go down and your overall cost per result will drop as well. So let's get right into it. I'll draw out a few things here and show you exactly how you can make this happen. So how I really look at this is there's 3 kind of layers that are gonna impact your cost per result and what triggers you need to pull, each kind of relates to each one of these 3 layers. So I'll go through each one, one by one, why it's important, and I'm just gonna give you the exact way that you can execute this today. No fluff, just getting right into it. So let's first focus on the first layer, which is gonna be your math. Now there's math on a few things here, and knowing your math is extremely important. If you don't know what you can afford to pay per cost per lead, like what, what's your minimum and what's your maximum goals here? If you don't know that, you need to know that first. What's your profit margin? How much are you actually allowed to acquire per customer? Down the road, what actually makes something profitable? Many people put these arbitrary number goals. They'll say things like, I only want to spend $1,000 to get a new client, or maybe they only want to spend, you know, $10 to get a lead. But it's not really based on anything besides they just think that that sounds like a good number. And, you know, for example, let's say I spend $1,000 and a client is going to pay me $3,000. That sounds cool. I'd like to do that. The thing is, you don't want to base your math just off of cool ideas. You want to base it off of historical data and what's actually realistic. And how you can actually do this and make this happen is by seeing what other people spend per customer, and then also just internally knowing what is the maximum you're allowed to pay, or internally you're going to allow yourself to pay per customer, per lead, and still be profitable. So the first time you're running ads, or if you're struggling with ads, you actually want to set that number higher but have a goal in mind of where you can get it lower too. So for example, let's say that you make $5,000 for a new customer that comes in on average, right? The first time I'm running ads, if I've never ran ads before or never really, really pushed ads, I'd honestly be willing to pay up to $5,000 for that first client. Sounds kind of crazy, but the first client, the first few clients that you get, you're really paying for data, you're paying for learnings, you're paying to figure out what creative copy audiences actually work. And after that first client, then you can really start to scale things up. And especially if you don't have a good system, like a good sales team, a good process, um, a good way of actually closing people, depending on this would be a high-ticket offer, right? Or maybe your landing page isn't converting as well. Expect that first customer or the first conversion to be anywhere from 1x all the way up to even 2x and sometimes even 3x. what that customer is actually gonna bring you. It's normal depending on how like bad your systems are set up. You could be at 3x. Normally I see people like right in between here, in between 1 and 2x to get that first customer from paid ads. So keep that in mind. After that point, every customer should be getting cheaper for you. You'll go from paying maybe $5,000 per customer for a $5,000 customer, and you'll be able to get that down even to $2,500, $1,000, etc. The point is, do the math, know what you are willing to spend for that first customer and lock it in place and then start to work it down over time. Super important to do that because if you know what you're willing to pay for a customer overall, that just trickles right down into things like cost per lead, cost per call, cost per show up, and then all the other things too. Like, what does my conversion rate look like? If you can start at the top and reverse engineer your math, you're going to be in a really, really good spot. Okay, so that's the first layer down, which is the math. Let's go into the second layer here, which is going to be testing, and more specifically creative testing. Now I talk about this a lot on my channel and with a lot of my clients, but something that doesn't really get spoken about enough is your creative inventory. I don't know, my handwriting is not the best, I'm just doing this quickly. Is your creative inventory— you want to base how many creatives you're running really based off of how much you're spending, okay? And let me just give you some baseline numbers that I find that works the best, and you can always tweak and adjust these a little bit based on how well or how poorly your ads are performing, and you can go from there. But the reason why your cost per result may be higher is not because you maybe think that you're testing more than enough creative, but you actually need to be testing more, or you think that you aren't testing enough, but you actually have plenty of creative and the problem lies somewhere else. So these are essentially the numbers that I like to follow. If you're at $100 or less of daily spend, you should have 4 unique ads live that are actively running. At least you can have a little bit more, but I'd say the minimum is 4. Now, what is a unique ad? A unique ad is gonna be something that is a totally different creative concept as a whole. So it needs to be the actual visual, It needs to be a different angle and it needs to have like different copy in the image. If it's a video, it needs to have a different hook. It needs to visually look different if possible, but definitely a different hook if it's a video ad. The copy, the headline, like the body copy and the headline, those can be the same. Audiences is the same. It's really about the unique number of like creative visuals. So if you're spending $100, that's just about where you should be As far as that goes. Now, if you are at $100 to $300, you should be between 5 to 6. If you are at $300 to $750 a day, you should be at 8 to 10. And then if you're at $750 plus a day, you should ideally be at 15 to 20. Now, like I said, these are baseline numbers. A lot of people out there will be like, oh, if you're spending any kind of money, you need to have 10 ads running. It's kind of dumb because you're not going to have enough budget to actually distribute and test all those 10 ads. So this is a really good framework to follow. Like I said, if you're spending $750 a day and you have all these winners, you don't have enough winners, you may need to be testing more. This isn't how many creatives you should test a week. This is at any given time, how many number of unique ads are live. And you may start the week off with your tests and you have 15 ads live and things are great. But after 3 or 4 days, a lot of them have lost and then only 3 of them are remaining. That means you probably should be testing more. So you can find more ads that actually stick around for a longer period of time. And that's the second layer that a lot of people miss is after they get their math dialed in, they don't really know how much they should or shouldn't be testing. And that is layer 2. So we've got math, which we spoke about, we've got creatives and more specifically creative inventory, which is a really big thing that a lot of people won't focus on. And then the last one is really gonna be scale and data. Now, they go hand in hand 'cause you can't scale without data, but what a lot of people miss out on is they're not optimizing their data the best way that they possibly could, which is hindering their scale. And if they have good data, they're not really scaling as aggressively as they should. So that's an easier one to answer, and I'll answer that first, and then I'll get into the right way to set up your pixels so you're actually getting the right data through. So if you're scaling, and when you find things that are working, you should be consistently increasing your budgets on your winners by 1.5 times to 2 times per day, every single day, as much as you can. The more aggressive you can be, the better. Easiest thing to do too is just to take your winners and put them into a CBO campaign at a higher budget. I have a lot more videos going way more in depth about scaling, so I recommend you check those out. This is a very high level, but really quick, I do want to talk about data before I end this video off. So if you feel like your cost per result is too high, and on top of it you're not the best leads. You want to optimize your pixel so you're only getting the best people into your world. And what that looks like is kind of something like this. So if you've got your ad and you're sending people to your landing page, and after that, let's say they can either opt in, they can book a call, whatever it is, but you get that person's information. Everyone, what they're doing is they've got their pixel over here, they're sending all this data back. Every single person that opts in is consistently being sent back. What that's doing is you're polluting this pixel with bad data, and you're not getting the best people that you possibly could. What you should be doing is instead something like this. You have your ad, you have your landing page, and you should have a filter in 2 different options and 2 different paths that people can be going down. First is one where you get their data and they're a bad lead, and they keep going, and the data does not get sent back. The other one is a good lead, and that time the data should be getting sent back to your pixel. So every time a good lead comes in, that data is going back. But every time the bad lead is coming in, that data doesn't get sent back. They go to a thank you page, some kind of nurturing sequence. And this is actually gonna allow your cost per result to improve and really your cost per, like, to acquire a customer. Because a lot of people will fixate on things like CPM, CPC, even their, like, cost per lead or cost per call, right? They'll really obsess about these different things. But the issue is if all these are really expensive, but your actual cost to acquire a customer is low, this number is so much more important than all of these numbers. So focus on this one, and those other ones will tend to follow. I hope you enjoyed this video. If you have any questions, please ask them below, and I'll see you in the next one.