How Fast Can You Really Earn $1,000 Using Facebook PPC?
By: Chef Rose Mis
I would really like you to put your thinking cap on for a couple of minutes and work through this post with me. This is going to annoy the heck out of alot of people, but there are a couple of things that NOONE is talking about in black and white numbers and the numbers are REALLY important.
There is a really big buzz going on right now about Facebook PPC Marketing. Jonathan Budd is launching, what I am sure is going to be, a fantastic Facebook PPC Marketing course very shortly. Mike Klingler is providing a fabulous Facebook Marketing training in his Marketing Mastery coaching program. Jonathan's videos show that he spends about $250 – $275 a day on Facebook PPC (over $7,000 a month) and Mike recently spent over $23,000 testing Facebook PPC so that he would have relevant numbers to provide accurate information to his coaching students.
All of that is fantastic. They are able to afford that kind of a marketing budget (both are multi-million dollar earners). Both of them are Master Marketers. Both of those guys have awesome marketing funnels set up so they are recouping their expenses QUICKLY.
What is the actual cost of a lead? Mike recently shot a video showing that Jonathan is paying anywhere from $1.95 to $5.95 per lead (averaging out to $3.63 per lead). Mike says that with Jonathan's "double lead strategy" this is a GREAT price, one that he personally was not able to achieve. He qualified the entire conversation by stating that Jonathan is a Direct Response Marketing genius and that for anyone that is not, expect the price per lead to jump by at least 2 to 5 times. At the low end that represents a $4.00 lead; at the high end, a $30.00 lead; averaging out to about $7.90 lead for regular people like you and me.
So, what happens now that the lead is in your marketing funnel? In order to be able to quickly recoup your advertising expense, you are going to have to SELL something to that person that they really want to buy. But here is the thing, that lead opted into your list to get your FREE information. Your FREE information needs to be so valuable that they have no choice but to BUY something from you because not to do so would be silly.
Here is where the first stumbling block happens for 97% of the marketers out there. They don't have a FREE product of their own to give away. So, they refer their lead, that they just paid $7.90 for, to an affiliate site for that FREE offer. Most times, the marketer is not even setup to capture that lead's information with their own autoresponder so that they can personally follow up with that lead. However, you can bet good money that the provider of the affiliate offer has a proper marketing system in place and will continue to market to that lead as long as they choose to stay on that list. This means that you are helping to build someone else's list and their business … on YOUR dime. You have got to build your own list and business … FIRST.
Now something very interesting happens. The FREE offer goes out over the course of 7 days and it is a wonderful training. The lead is made an offer on day 7 to purchase another training course valued at $197 for $27. They think this is FABULOUS, so they buy the training course. You earn a 50% commission of $13.50. woooHOOO … You just earned enough money to cover the price of that lead.
Not so fast. Here is the bad news. There is a 30 day money back guarantee on the product., so you don't get paid for at least 30 days and more like 60 days in most cases. How long can you last if you have to wait 30-60 days to get paid an affiliate commission if you don't have a 60 day advertising budget setup?
However, if you have your own product to offer for free and you are marketing directly to that lead yourself, when you offer an upgrade for $27 that you created yourself and your lead buys it from you, YOU get paid directly and you pocket 100% of the sales price. And you can keep on building a relationship and marketing to that lead for as long they stay subscribed to your mailing list. This is an essential ingredient in building a business that is going to last long term.
How many people are going to buy your product the first time they hear about it? 10%, 30%, 50% …??? Alot of that depends on how relevant it is to what that person is looking for and how much value they feel they received from your free product. Alot also depends on the relationship that you are building with them through your emails, newsletters, free trainings, etc.
For example, my business coach, Sandi Krakowski, gets a tremendous response to her offers all the time. Her offers are LASER FOCUSED on giving her list what they have told her they want to buy from her. How does she know what they want to buy? She ASKS them. Then she creates the product that will help solve their problems.
So, let's say that 30% of your leads decide to purchase as soon as you offer them an opportunity to buy from you. You generated 10 leads and that cost you $79.00 ( 10 x $7.90). You sold 3 upgrades at $27.00 and you earned $81.00. You recouped your original $79.00 and you made $2 profit. That will keep you in the advertising game.
Here's the second piece of bad news. The sad truth is that most offers do not convert at 30%. Most marketers are overjoyed with a 10%-12% conversion. If you are paying $7.90 a lead, you are going to go broke selling a $27.00 product. With a 10% conversion you won't do much better selling a $47 product either. And starting off with an offer for $80 is pretty risky. Most people today are not willing to hand over that kind of money if you don't have a great relationship with them. And it takes time to build that.
You really have got to think this type of advertising all the way through to ensure that it can work for you. You must track and tweak everything to get the results that you are looking for. PPC advertising, be it on Facebook or Google, is NOT something to do when you have no money. There are lots of other FREE advertising venues that you can use that will help you develop a well defined marketing and sales funnel and keep the roof over your head.
Here is something to remember, the real VALUE of a lead is determined over the lifetime of their relationship with you. If you try to rush the know, like and trust part of relationship building (think about dating someone you would like to get to know better), there is a good possibility that they will leave to find someone who treats them the way they want to be treated. Which means you have to be very conscious of exactly when you are making your offers during the different stages of this process and the price points that you are offering them at.
I recently offered a low cost ($97) blogging with WordPress training to my entire list. I had just added several hundred brand new people to my blogging list. I had a hundred or so people on my regular mailing list with whom I had been communicating regularly for several months and I also had people on my list that were there because of my business opportunity.
I learned a couple of things when the results sorted out. Firstly, it was too early in the process to offer a "paid for" training to many of the people on my blogging list. I flat out turned them off. My regular mailing list wanted more "network marketing" specific training and the folks on my business opportunity list had not been properly educated on the value of using a WordPress blog to assist them with building a business. Several people unsubscribed from my list because they felt that I was another one of those marketers just trying to get into their wallet (at least they felt comfortable enough with me to tell me WHY they unsubscribed). And no, I didn't earn the $1,000 I wanted to create because I jumped the gun and it was not an offer that was appropriate for everyone on my different lists. Track and tweak EVERYTHING until you are getting the results that you want.
There is no doubt in my mind that you absolutely MUST monetize your leads as quickly as possible so that you can recoup your advertising expenses. However, this is a process and "quickly" probably means something different to me and you and the people on our lists.
The cure for jumping the gun is to make sure that you have a 30 – 60 day advertising budget, even if it is as little as $10 a week. If you can't afford that, then don't even think about PPC at first. Learn how to test and tweak through Social Media, article marketing, video marketing. There are LOTS of ways to do this for free and you will be developing a marketing funnel for your target market that delivers real value and helps you sell your own products so that when you do PPC advertising you get into profit faster.
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About The Author –
Rose Mis is the author of “ Dead Blogs Don’t Lie ~ 7 Secrets To A Wildly Popular High Traffic Blog”. She is the creator and Executive Chef of the internet's only Award Winning Attraction Marketing Training Kitchen. Rose has been recognized as one of the top MLM / Network Marketing bloggers in the world and is a featured blogger at thatMLMbeat.com. You are invited to stop by the Kitchen anytime you have any questions about blogging, marketing or mindset. Rose is here to serve YOU.