Budget for Facebook Ads, important or Not?
If you are a health coach or a fitness coach and running your own business then Facebook Ads is the worst way you invest in generating leads but it’s the worst because you don’t know the right amount of budget you should invest in Facebook ads to achieve your target.
Just like in fitness and health before starting anything for improvement it’s important to understand which point we need to focus on more and how, in short, we plan for a path toward improvement. If you are a coach or a trainer you already may know that.
Same with the Facebook ads if you want to generate leads for your business and need more ROAS ( Return On Ads Spend) the first thing you should know about is how much you need to spend on Facebook ads to achieve your goal.
Know your ads Budget is the first place where you have to reach before moving to another place.
Now the question is, how you find your Facebook ads budget if you are a health or a fitness coach?
Don’t worry allow me to be your guide so that I can help you to reach the place where you can find your dream budget, I mean a budget that generates leads for you. HAHAHA!
First thing first before starting the journey I need you to know what your end goal is, what revenue you want after you stop running Facebook ads as a reward I mean ROAS.
let's take an example you need $10,000 in the end after you stop running the ads after 30 days.
Now for $10,000, how many clients you need to achieve that goal? If you charge $1000 per client that means you need 10 clients to achieve the target of $10,000 per month.
Revenue Goal /Cost of an offer = No.of sales you need
Now the question is if you want 10 clients then how many leads you want to generate to get those 10 clients. so let's start with how to find the number of leads need to generate to get 10 clients in a month. Remember not all the leads are converted into your clients.
So to find the lead first you need to know what is your sales conversion rate is. By that, I mean how many leads of yours like to convert into your clients you can check it with the help of your past records or if you don’t know what your sales conversion is remember one thing sales conversion depend on the offer you put on your ads, the industry you are in If your offer is low maybe your conversion rate is high as compare to high rate offer. Your conversion rate may be between 1–10%. to understand more let’s assume you have a 5% of conversion rate.
Now, lead= Number of sales we want / sales conversion
so if you want the revenue of $10,000 and your conversion rate is 5%, then the number of leads you need to generate is 200. you can also calculate it by putting your number in the formula mentioned above.
Finally, we are close to our destination, you have your revenue goal, the number of sales you need to do to reach that revenue, and lastly the number of leads you need to generate to do those sales.
But here is the thing before you know your Ads budget, you need to know what is your Cost Per Lead. Cost per lead means how much you have to spent to turn a lead into your loyal client.
Loyal client it’s sound cool right. HaHaHa! then why not find some loyal clients for you and your business.
Anyway if you don’t know your cost per lead it can be between $3–10. Warning: if you are running ads keep the cost per lead as low as possible.
To make it more understandable for you let’s assume your cost per lead is $4.
Now, ads budget = number of leads you need to generate * cost per lead
If you need 200 leads to have 10 clients and your cost per lead is $4. then your total ads budget for the month is $800 approx.
Now you have your budget, you need to spend at least $800 in Facebook ads per month to generate a revenue of $10,000 per month.
Now maybe you think who am I to tell you this ads budget thing. Well, my name is Tushar, I help health and fitness coaches with generating leads using Facebook and Instagram Ads. Let me know If you think that I can help you connect with me on my LinkedIn, copy and paste the below link in your Linkedin profile search option.
Please also let me know if this article helps you.