Hernan Vazquez says most advertisers pick arbitrary cost targets like $100 per application without knowing what the market actually charges. The real cost per lead depends on your location, niche, and ad quality. Treat ad spend as research: buy the data first, find out what things actually cost, then set your targets backwards from there.
So what you want to understand is that sometimes we set out these KPIs, sometimes we set up these metrics. We say, okay, we want to pay at most $100 per application or $50 per book appointment. We want to pay this, we want to pay that. The reality is that the market will decide how much you're going to pay based on your area, based on your niche, based on how effective your ads are and all of that. So what you need to think about is this. When you're buying ads on Facebook, when you're running advertising on Facebook, or Google or YouTube, you're basically buying data. You're basically telling Facebook, hey Facebook, here's $5,000, $3,000, $150, it doesn't matter. Here's some money, give me some data. Tell me exactly how much am I going to be paying per click, how much am I going to be paying per lead, how much I'm going to be paying per booked call, per webinar lead, per booked appointment, per whatever, right? So once you understand that, then you work backwards.
