What Should Your Starting Facebook Ad Budget Be?

[@BenHeath]

Thanks so much for watching guys! Let me know what you think and pop any questions you have in the comments :)

[@nerf2752]

you said in video i can ask for somewhere around 30% of average customer value. but isn't that too much if the margin is low ? what will be the % in terms of profit share

[@designxbuild]

Bro, binge watched your videos...thanks so much mate. Love from Australia!

[@BenHeath]

Glad you like them :)

[@_qpiidTV]

So useful. I’m an artist trying to sell my music on Apple Music and I’m independent. I realised I approached the whole ads situation completely wrong. Luckily I didn’t spend to much. The ad pretty much wasn’t even shown to people so that was tricky to figure out. I think here you help quite a bit although I see I still have a long way to go.

[@Waldstein1]

For agencies and consultants, the only thing that this doesn't account for is the cost of hiring someone to do it for you. As an ads manager at an agency, i often find clients lumping in the cost that they have to pay us, which makes it hard to get them to put up a higher budget. Ben - if you're willing to share, I'd be curious to know how you handle these conversations with your clients?

[@ShelitaRN]

This was amazing! I've seen many FB ads videos and purchased several FB ads programs, and I've never seen any cover content like and what you cover! Thank you!

[@BenHeath]

Awesome, thank you!

[@GuyHarley]

Seriously valuable video with some seriously quick maths from you! Thanks Ben!

[@BenHeath]

Happy to help!

[@jasonstallworth]

Ben, is it wise to start spending $100 a day on ads (if the product already has a decent organic conversion rate?)

[@BenHeath]

Sure - provided you can afford to lose that initially :)

[@heysimmone]

Thanks Ben. Math question based on converting 10% of my leads to sales: If I need 10 customers per day that's 100 leads. How many people does my ad need to get in front of in order to turn them into a lead? View ad > click Learn More > Opt In for freebie > Convert to sale. I'm trying to make sure that my ad is getting in front of enough people. Thanks!

[@BenHeath]

That completely depends on what your lead rate from the ad is. You could have say a 1% CTR and a 10% conversion rate from page visitor to lead - but change those numbers slightly and you come up with a very different reach requirement.

[@MindfulnessTarot]

Another great video, thanks for being upfront and honest.

[@BenHeath]

My pleasure!

[@theironpatriot]

This has been one if the MOST HELPFUL VIDEOS in the subject and I’m so gradual I can across this! Thanks for posting. I’ve already joined your Facebook group and your Instagram. Thanks for this, Ben!!

[@BenHeath]

Hi Larry, thanks for the kind words - they are much appreciated :)

[@theironpatriot]

Ben Heath sorry for all the typos. But I’m sure you understood what I was saying. And thanks for replying. God bless you bro. Thanks again.

[@ghost_assassinz1877]

What would you recommend a starting budget for a relatively well sized construction company in New York City? If you don’t know the conversion rate can you just estimate?

[@Synthetic857]

Very useful video thank you. All this time you were talking about a monthly starting budget and here I was shaking nervously thinking dam $500 per day...

[@BenHeath]

Haha - happy to help :)

[@Synthetic857]

@@BenHeath So if you don't me asking, if within the first 7 days no sales should I just stop and start new campaign or change adsets and creatives before stoppping it completely? Thanks in advance.

[@trayavlon]

How do you work out a clients lead to conversation rate?

[@BenHeath]

Divide number of conversions by number of leads :)

[@premiumaccount757]

extremely helpful, thanks a ton ! Now I have a Clear view of what to invest when starting!

[@BenHeath]

Glad it was helpful!

[@kristinak608]

Thank you, Ben, for great video! But if I start with a low daily budget (just for example $15.00 a day - which is my expected purchase cost) and if I will have a CBO campaign with 3 audiences in it (just like you advised in your CBO video) - so will those $15.00 be enough to cover the three audiences? Or that’s too small amount if expected purchase cost is $15.00? Thank you

[@daisyhenderson2887]

Thank you for this video, I’m worried I won’t be able to begin my career in Facebook advertisement as I have dyscalculus, so even ‘simple maths’ doesn’t register well with me. Is there a more dumbed down version you can do explaining the maths calculations behind the explanation?

[@Maxtunes2590]

Hi Great video ! One question, there's a message from Facebook that says: "Primary text longer than 280 characters may result in fewer conversions" , should I follow that advice? what to do ?

[@tieuchan284]

Thank you for sharing Ben! I am just starting out in FB ads and really appreciate your vids!

[@BenHeath]

Best of luck!

[@tieuchan284]

@@BenHeath Thank you!

[@Bob-ce5nc]

Do you have a Video where you explain at which Point I should turn my Ads off based on the Statistik?

[@kaydeebug24]

Hey Ben thanks for the video! For the e-commerce side of things how would you recommend scaling? I watched your other video "How to scale a Facebook ad budget" and you used the example of $100 to $1,000 but my budget is starting at $20 a day. Do you have a percent number that you recommend scaling every 5-7 days? For example, increasing 10%? Thanks!

[@KKonzuk]

Incredibly valuable content. Thank you!

[@BenHeath]

Glad you enjoyed it!

[@LostCreekFishingAcademy]

For the acceptable customer acquisition cost, do you put that as your total campaign spend? Per day?

[@dertester1]

The issue though is that when you start from nothing you have absolutely no clue about the conversion rate, right? That's one of the most important variables and never gets explained how to set it, or what would be an average rate, etc. How should we set that value if we never did any ads before?

[@lindsayclark6531]

Your content is amazing, Ben! Thank you for such clear, no-frills direction. What if you're running more than one ad campaign at a time? Do you divide the budget amongst the different ad campaigns or do you recommend running just one campaign with several ad sets to begin with?

[@BenHeath]

Thanks a lot Lindsay :) I would just run the one campaign to start with and use multiple ad sets. I only run additional campaigns if I have different product ranges or different offers to advertise.

[@lindsayclark6531]

Thanks so much for the quick reply, Ben!

[@ariannabidi]

@@BenHeath Hi Ben, and how do you do when you have more than one campaign goal? Did you happen to make a video about it?

[@elliotbaker3757]

Do you have a course on how to create Facebook ads for courses ? I have spent so much money on courses and got more value from your 8 minute video you made about Facebook ads for courses

[@BenHeath]

Hi Elliot, I don't I'm afraid - perhaps one for the future. Glad to hear it :)

[@lucialarotonda6542]

Hi Ben! Your videos are super useful thanks! My question is as follows: I understood and followed you regarding the budget when we are thinking in terms of leads and customer conversion. But what happens when we are in a really first instance with the Facebook page? I mean we still have almost no followers so our first objectives will be related to awareness and engagement to increase the reach of the page. How should I plan the budget in this case? I’d appreciate any insight you could provide me with. Thanks a lot and excellent job with your videos 😊

[@BenHeath]

Thanks Lucia, I wouldn't actually start with reach and engagement, even in your situation. I would start by priming your Facebook page and then moving straight on to conversion campaigns if you can. You can find out how to prime your Facebook page here: kzbin.info/www/bejne/i2ayY554qq6qo6c

[@lucialarotonda6542]

@@BenHeath thanks so much for taking the time to answer and give me your feedback 🙏🏼 great I’ll have a thought about it. I had seen the video previously but I hadn’t been able to find the objective of page likes. I went through the comments and I found the explanation and the way to find it, so now I’ll think about this strategy you mentioned. Thanks!

[@adeyemiwaleconcept4328]

Always on point... Thanks Ben.

[@BenHeath]

My pleasure!

[@charanebot6423]

Thanks for this. It is really valuable and needful to have such a good evaluation and expectation before starting. Makes so much sense.

[@BenHeath]

Glad it was helpful!

[@terrywang0922]

Hi Ben, I was wondering if there is a manual payment method option for ad account user in UK? I am just trying to add money to ad account manually instead of set a spending limit to the account. Thank you

[@CromaCampusOfficial]

Thanks for sharing this is really for beginner

[@BenHeath]

My pleasure 😊

[@samanthalang7212]

Any advice anyone where I have started running an ad but none of my budget has been spent by facebook and its just there?

[@leonardosmol2800]

well explained, but how much should I spend per day?

[@BenHeath]

That's what the whole video is about...

[@observer3359]

Thank you Ben, can you please make a video of how to manage your facebook ads ? it gets messy with all boosted posts, remarketing ads, lead ads, conversions ads all running at once. I often find myself lost and dont know how much money am spending anymore

[@BenHeath]

You are very welcome. I have recorded a video on Facebook ad campaign structure: kzbin.info/www/bejne/inO2pquIlLaUb5I And one on optimizing Facebook ad campaigns: kzbin.info/www/bejne/mJqzkH-pnNyGorc I think you'll find both of those very useful :)

[@AradMor]

Hey ben, What are the steps I should go through in order to realise my lead to customer conversion rate?

[@BenHeath]

Hi Arad, you just need to divide the number of customers you get by the number of leads. So let's say you had 10 customers from 100 leads. Then you do 10/100 = 0.1 = 10%

[@nadiaa.216]

Thank you so much for the informative video. But I was wondering how do we get the lead to customer conversion rate?

[@BenHeath]

You are very welcome Nadia. To calculate that conversion rate you need to divide the number of customers by the number of leads. So if you generated 2 customers from 10 leads. You divide 2/10 which equals 20%

[@leeshonnefarrow651]

Great video Ben! Good Job!

[@BenHeath]

Thanks a lot Leeshonne - much appreciated.

[@caslvmbo9849]

Thanks a lot Ben, really valuable! Only have 1 question left, why are you using you acceptable cost per lead if you're willing to spend more (acceptable customer acquisition cost)? What's the difference?

[@BenHeath]

Hi Cas - thanks a lot. The difference is that you won't convert 100% of your leads into customers. Therefore you need to generate leads for a lower amount that your acceptable customer acquisition cost to reach that target.

[@keenashirin662]

Hey Ben, a question about the conversion rate. What are the factors that affect our conversion rate? Is there a rate that we should aim for? Thanks!

[@BenHeath]

Hi Keena, everything about your campaign affects your conversion rate. Better campaigns produce more conversions :)

[@jackhendricks5399]

Hi Ben, great content and you are so helpful. Cheers! 👋

[@BenHeath]

Thanks a lot - glad to hear it.

[@tylermorton9019]

Hi Ben, do you have a video on creating a sales funnel?

[@BenHeath]

Hi Tyler, I cover that in detail in my Facebook Ads Insiders course but don't have KZbin videos on it I'm afraid.

[@ayushthaker6882]

So so so so helpful

[@BenHeath]

Glad to hear it :)

[@BaconMountainMan]

Very helpful. Thank you!!

[@BenHeath]

Glad it was helpful!

[@ayyazahmad1055]

Thanks for such an informative video, Ben! Is there a video on audience exclusions? I have been trying to look for something on that because with CBO, is it a good idea to exclude audiences especially for an ecommerce business where old customers can keep coming back for new products? or should that be done specifically in a retargeting campaign?

[@BenHeath]

Thanks for letting me know Ayyaz :) I haven't created one on audience exclusions. But I don't worry about excluding audiences unless the company is offering a discount of something along those lines that only applies to new customers. Then we will exclude previous customers from all ad sets.

[@observer3359]

Also what is the process you use to with every facebook ad client. e.g. onboarding -> budgeting -> ad creative -> etc.

[@BenHeath]

I'll add that to the to-do list :)

[@vmoris8762]

Great video, VERY usefull!

[@BenHeath]

Glad you think so!

[@RobertMarzullo]

Great content Ben! Thank you very much for sharing your knowledge!

[@BenHeath]

Glad you enjoyed it!

[@dimanikitin8278]

Hi Ben, thanks for the video! Could you clarify where am I supposed to get conversion rates from if I'm just starting? Also guessing? And by average customer value, do you mean customer lifetime value?

[@BenHeath]

For your specific products and services you'll have to run some tests or ask someone who has experience in your space. You can use lifetime customer value but some businesses don't because of cash-flow issues

[@dorosnezeritis460]

Great video! Do you keep track of every number in Excel per client?

[@BenHeath]

Thanks a lot Noris. No I don't but you could

[@ronslavick]

What about the FB pixel and learning phase? For example, if your CPA is $10 you need to spend at least $500 a week to get the 50 conversion out of the learning phase? Do you think this matters?

[@BenHeath]

The learning phase isn't a big enough problem to artificially increase your budget to avoid.

[@themanthemyth7950]

Great vid as aways Ben! If one is selling a $ 30 Product, how long will you leave the campaign running before you trash it? Currently I have one, and just testing using $10 bucks a day. So far, one sale :) :) :), which is like 60 bucks a sale. Should I increase the buget to have a better chance of hitting more people? Or should I stop it after a couple weeks? Should I wait for each custumer to see atleast 3-4 of my ads? I have about 22 link clicks to the promo page...

[@BenHeath]

Thanks a lot. In general, I like to assess performance over a 7 day period. If you are profitable over that time, I would look to increase the budget.

[@psychxx7146]

Finally a spreadsheet

[@BenHeath]

Hahaha

[@jingyiseak9198]

Awesome video again Ben! Thanks a lot. :) Just a question, I did this calculation and I came up to a starting budget of only $300 a month. That is only enough for me to run 3 ads at $10 daily for 10 days. Which is not enough for me as I have a few A/B test, and I would like to run more ads after I have the winners from these A/B test. Should I decrease my daily ads budget to $5 per day? Or what should I do? Thank you.

[@BenHeath]

You are very welcome. With just $300 per month I wouldn't run more than 3 ads in your ad sets. Otherwise you'll overload Facebook. I would either spend more or accept that it is going to take some time for you to test.

[@jingyiseak9198]

@@BenHeath I see. Thank you very much!

[@Victory290809]

Very informative! Thank you for making this video! 👍

[@BenHeath]

Thanks for letting me know - glad to have helped

[@relaxwithsam5940]

I have a question what legal requirements do you need to have in place before you start a ecom business

[@BenHeath]

Completely depends what you are selling and where you are selling it.

[@BenHeath]

I'd look into the starting a business in your country process.

[@relaxwithsam5940]

So ive found a product in the jewellery market and im from the uk

[@sujitg31]

Thanks, Ben for the awesome content :) One question though - I am getting mixed results and unable to calculate the metrics as suggested by you. I have started FB ads very recently. One source of getting my customers is through FB ads while the other is from my email lists ( thru email marketing). how do I separate my FB sales from the sales that I get via my email list? How do I get accurate data?thanks in advance

[@BenHeath]

Thanks a lot. I usually trust the Facebook metrics because your sales are unlikely to be completely one or the other. A customer may receive an email and see a Facebook ad. In which case BOTH had a hand in generating the sale.

[@joshmccabe7187]

Another great video! I believe I saw you using e-books before and I was wondering if you have a link you share to download in your eail or do you just include a file of the PDF e-book in your email to them?

[@BenHeath]

Thanks Josh. For our 5-Part Facebook Ad Template we share a link directly to the file in the email that is sent to people after they opt in.

[@danielezabrini9857]

Like your videos Ben!

[@BenHeath]

Awesome Daniele, glad to hear it.

[@basvb100]

Hi Ben, Thank you so much for all this info! I was wondering if there is an absolute budget minimum for facebook ads. Like i.e. if you go below 5$ per ad per day, would it give facebook not enough room to work things out smoothly? Thanks a lot in advance!

[@BenHeath]

Hi Bas, I don't think it's worth the effort with less than $10 per day.

[@iknowyou6725]

@@BenHeath But cant you test ads with 5 dollars per day?

[@CombatFit]

Great video Ben! Very helpful. I was wondering when it comes to FB campaigns does the budget change across cold/traffic compared to retargeting those who visited the site and would you calculate the spendings for both as the acceptable cost per lead? Any help would be much appreciated, Dean

[@BenHeath]

If you want to do that you can but I don't think it's necessary :)

[@CombatFit]

@@BenHeath okay, also when it comes to cold v warm audiences. Do you recommend doing a separate campaign with adverts that link to the website and capture leads. Then another campaign to retarget those who visited the website?

[@alexfroloff6353]

GOLD!

[@BenHeath]

Thanks Alex

[@saschan.6070]

Awesome content, Ben. As always. Is this the MONTHLY or DAILY budget?

[@BenHeath]

Daily :) Thanks a lot

[@saschan.6070]

@@BenHeath ​ @Ben Heath I figured! Thank you. Any tips on building small budgets? Or, convincing a client why they'll never scale or make the sales they expect with a $400/month budget on an $160 AOV.

[@TEGA1984]

Hi, why are Lead to customer conversion rate and acceptable cost per lead not applicable to E-Commerce?

[@BenHeath]

Because most ecommerce businesses will (and should) go directly for purchases :)

[@jaredignacio4580]

If I were able to identify how much I am willing to pay to aquire a customer, should I use Bid Cap now?

[@BenHeath]

I'm not a big fan of bid caps so I wouldn't - they interrupt delivery too much for my liking.

[@jaredignacio4580]

@@BenHeath would you prefer cost cap lets say when I reached 50 conversions?

[@mmjewels8506]

How can you figure out your conversion lead?

[@BenHeath]

If you're just getting started you'll have to take an educated guess - perhaps ask someone else who offers the same service. If you're generated customers before it's simple. Just divide the number of customers you've generated by the number of leads you've generated. So if you've had 20 customers and 100 leads it looks like this: 20/100 = 0.2 = 20%

[@kayuapi80]

Thanks Ben, I'm starting to see the light at the end of the tunnel. I think all ths while my ads is very messy. Thanks!

[@BenHeath]

That's awesome Fadzli. Glad to have helped :)

[@tlynn8120]

i wanted to test more than 3-5 audiences so i created 3 top level campaigns with my budget allocated over all 3. Is this ok? Or should i decrease my audiences and put all into 1 campaign?

[@BenHeath]

That's not how I would do it. I would stick to the one campaign and the max 5 ad sets. But when one targeting option doesn't perform as well you can pause that ad set and test a new targeting option. You don't need to test everything at once.

[@tlynn8120]

good to know. "you dont need to test everything at once". good quote!

[@sedociyes]

I will sell a product at 190$ and I am willing to pay 20 dolars for a customer. I want 20 customers per month so my starting budge it should be 400. That's okay but how should I calculate my daily and weekly budget based on this math? Could you please clear this one for me?

[@BenHeath]

Sure - I'd divide 400 by 30 :)

[@khaledsiraj9114]

i think you miscalculated the starting budget as it should be the acceptable cost of customer multiplied by the intended number of converted customer $100*5=$500 not $500*5=$2500? am i right or wrong?