The Math Has Changed On Facebook Ads... Here's What You Need To Know.

So over the past several months, and I would say close to 2 years, um, the math has changed on Facebook. And due to those changes in math, what happened is that campaigns and funnels and products and services and companies that used to do really, really well with Facebook ads, they're not doing as well right now. So what I want to share with you guys today is basically how the math has changed with some specific examples of funnels that are working really well right now and funnels that might not work as well right now so that you can adjust your sales process accordingly based on what we're seeing for our agency clients, based on what we're seeing for our own, um, products and services, and based on, you know, a lot of spend on ads and basically what's working right now. Now before I dive into that, I wanted to invite you to get our formula to create and launch Facebook ads that work every single time no matter what you're selling. Uh, you know, the past 6, 7 years we've been kind of, uh, perfecting the way we run Facebook ads for our own clients and for our own businesses. And we've generated a lot of money, uh, we spend a lot of money as well on Facebook ads. And, you know, I did the math, and last year alone we launched over 6,000 ads for our clients. And out of that group of ads, we distill what's working, what's not working. So if you want to get your hands on what's really working right now to create and launch ads that are really effective no matter what you're selling, go to 100mframework.com, 100millionframework.com. Get your copy there. It's on sale right now. We don't know how long the sale is going to last, honestly, um, but you can get your copy. It's super inexpensive right now, and it will show you how we're launching and our process methodology to launch and create ads that work really well. Again, no matter what you're selling, we've tested this on over 350+ clients and it works really well and keeps on working. So let's talk about the math and how the math has changed. So this comes after, you know, I was talking to one prospective client for the agency, a prospect that came, they saw, they saw us online, they saw one of our ads because we do run ads to acquire customers and whatnot. And, uh, he came and he said Okay guys, so we've been running this funnel, uh, successfully for the past, you know, couple months. Uh, I would say they, they run it successfully a couple months ago. That's the right way of saying that. And, uh, and it's not performing anymore, right? It's not working anymore. We tried everything and, uh, it's, it's simply not working. It's not as profitable as, as it used to be. We used to have an 8x ROAS on this funnel and now it's not working. So we started talking about, okay, what the funnel looks like and how does it work. And he's like, okay, you guys are asking me a lot of questions about the funnel, but I want to hire you guys to run my Facebook ads. What's the deal? And I told him, listen, dude, we need to take a look at the funnel, right? Like, that's what we do for every client is we take a look at their funnel, we take a look at their sales process, because Facebook and Instagram ads and traffic and all that stuff, it's only part of the equation. If we're only taking a look at the ads we're never gonna win for you. I wanna win for you. So we started talking about that and, okay, what does your email sequence look like and how— what are the price points and whatnot? And one of the things that he said is like, okay, we have this product, we're selling it for $2,000 coaching program. I'm like, okay, that's cool. How long have you been selling that for? And he's like, well, we started selling it a couple years ago. And, and my question was, okay, have you noticed that the profitability has gone down? And he's like, Yes, tremendously. Uh, we used to get calls for, you know, book calls for $50, $70, and whatnot. Now we're paying $200, and the math doesn't work out. And he's like— and I asked him, okay, what else are you selling to these people? He's like, that's it, that's what we got, that's it. So I started asking all of these questions about this funnel because, uh, you know, it's no wonder that a $2,000 product can work really well with advertising. In fact, it is working, and we're gonna help him make them work better. But the reality is that if you were making a lot of money with a $2,000 course a couple years ago, now you're going to be making less money. That doesn't mean that the campaign will not be profitable, but if you were used to 8, 7, 6 times your money back, 6x ROAS or whatever, and today you might be facing 2x ROAS or 1.8x ROAS, right? And the reason because of that, the reason behind it is because the math has changed. Now it's more expensive to acquire a customer on Facebook. And it was, let's say, pre-pandemic, right? 2, 3 years ago. So that's example number 1. Example number 2, I was talking to a friend earlier this morning. He's a great entrepreneur. He's, you know, he's super smart and whatnot. And, uh, and we were talking about, okay, what's working right now? And he was like, okay, I want to launch this webinar funnel, right? Do you recommend webinar funnels? Do you, do you still think that they work? Because I've been through Russell Brunson's Um, Webinar Funnel Secret and Dan Lok's Webinar Secrets and this and that, the other guys. And I'm noticing that a lot of people that were doing evergreen webinars, they're not doing them, they're not making them anymore, at least for the price that they were selling them for. And we started talking about it and I told him, listen dude, uh, what we realized as well is that if you're selling products through a $997 webinar, right, which was the run-of-the-mill, I don't know, year and a half, 2 years ago, pre-pandemic and whatnot. I remember that we were running ads for Dan Henry back in the day at that time, and we were crushing it with a $997 offer to an automated webinar. And it was an hour and a half long webinar and whatnot. And I told him, listen dude, it still works. Like, don't get me wrong, that thing still works. But those funnels at $997 as a first purchase, um, those funnels, they used to work really well back in the day. You could effectively get a 2, sometimes a 3x, 4x ROAS, meaning, you know, for every dollar that you spend, you will get $4 back. But right now, those are mostly acquisition funnels. That means that you are going to be paying close to $1,000 to generate a $1,000 buyer. Is that good? Is that bad? It doesn't matter, right? It's not that Facebook stopped working. That has changed. Of course, you know, some things have stop working, the data, the tracking. Apple doesn't like Facebook and Facebook doesn't talk to Apple and whatnot. And all of those things are solvable, by the way. They're really solvable and they're pretty easy to solve. But the main point is this: the math has changed. So if you had a funnel, a webinar funnel, you were selling a $997 product and, you know, and now it's not performing, it's not that, you know, Facebook ads suck, it's that the math has changed. So what you need to do is you need to raise your prices, you need to do regular serious business stuff, which is you need to raise your prices, right? If you were selling a $997 product, you can increase it by 50% and just do that and don't change anything in the product, right? Uh, you can do that. You can sell more stuff to the current people that you're getting, which is the main point of advertising. The main point of advertising is not to make you a millionaire on the front end. It can do that. It can do that. But if you want to go from having a product to having a business, then you need to have more than one product to offer to these people, right? It happens a lot with e-com folks. E-com folks that used to sell like little gadgets, $5, $7, and whatnot, they used to make a killing because they were making like $2 to $3 for each gadget. Now they're losing money on the front end. Now again, that's not necessarily a bad thing, but the reality is that the math has changed. Uh, recently we launched an acquisition funnel which you might be seeing the ads around and whatnot, and if you go to 100millionframework.com, you can check it out. But, uh, we it, and we realized that the cost to acquire a customer on Facebook 2 years ago, it might have been $40, $50. Right now it's $100, $120, right? And if you don't adjust the math in your business, it's never going to work for you. I'm not talking about only Facebook. I'm talking about Facebook, YouTube, TikTok, Snapchat, whatever, right? The main point is that you make the math work for you. So the math has changed. Facebook ads have changed too. But the main point is again that you make the math work. So again, if you were running an effective $997 evergreen webinar funnel, now it might not work as well, or it might work. You might still get buyers, but the cost per lead went up, right? The cost per acquisition to acquire a customer went up. Now, if you were running an effective call to, you know, book a call to high ticket, then the cost per book call went up, right? Maybe you were paying $70, $80, $90 per book call. A couple years ago, a couple months ago, but now you're going to be paying $150, $200, $250, right? So you need to make the math work, and it's really, really hard to try to battle those raises in prices because you're competing against millions of other advertisers. It's much easier to turn around and try to fix your funnel with pricing, being more effective with your sales process, having more touching points, acquiring more media to, uh, to, to reach to those people And all that good stuff. Okay, so I hope that this makes sense. Again, if you want to kind of rule out the fact that the ads are not working, if you want to get a formula to write and launch ads that work every single time, no matter what you're selling, go to 100mframework.com. It's 100mframework.com. It's on sale right now. We used to sell it for 5 times the price. Now it's on sale. It's a relaunch price. We don't know how long it's gonna last. So get it while it's hot. Of course, there's going to be a couple of upsells. You're welcome to take them or not. The framework alone, it's really, really valuable. So I hope that this is helpful. If you have any questions, feel free to reach out. Thank you for watching, and I'll see you guys really, really soon. Bye-bye.