You’re likely going about Facebook ads the wrong way. Imagine creating attractive ads, setting a budget, and hoping the magic works. Only three weeks later to have spent over $500 without any results. Let’s explore how you can run Facebook Ads for your small business without you wasting money in this post.
Facebook usually suggests a daily budget of $20 to $50.
But ma’am, Ignore this.
Instead, figure out how much one customer is worth over their lifetime in your business. If a customer usually spends $200 in a year and your profit margin is 40%, that means you make $80 in profit per customer.
You can spend up to $60 to $70 acquiring that customer and still make a profit.
Start with just $5 or $10 daily during your first week. This isn’t about you being stingy (even if you’ll need to be sometimes:-)…
It’s about collecting data without losing money while Facebook’s algorithm learns who your customers really are.
Imagine you’re just opening a new coffee shop. Would you prefer to set it up in a town of 50 million random people or in a neighborhood of 50,000 where half of them are coffee lovers, who already visit Starbucks?
The answer is obvious, right?
Same with your marketing, you might be targeting a broad audience, believing that more people means more sales. And that’s not correct.
Facebook’s algorithm works best with focused audiences of 50,000 to 500,000 people.
If you target too broadly, Facebook shows your ads to everyone, wasting your budget on people who aren’t interested.
So just aim for those who have already expressed interest in your competitors, industry publications, or related products.
In the same breath, don’t expect one ad to do everything. Think of your campaigns as a conversation rather than a sales pitch.
- Present a value-driven video or post, without selling, to cold audiences. You might say, “5 mistakes people make when choosing [your product]” or share a behind-the-scenes look at your process
- Retarget anyone who watched 50% or more with a case study or customer testimonial that shows your solution works.
- Reach out to engaged viewers with your actual offer like a discount, free consultation, or a purchase link.
This sequence typically costs 60% less per conversion than using a single ad because you’re building trust before you even ask for money.
Lastly, focus on your Cost Per Result based on your actual goals. If your aim is to drive website traffic, track the cost for each landing page view. If you’re generating leads, track the cost per lead form submission.
And if you’re selling products, track the cost per purchase.
Check this number every three days. If it’s consistently going upward, it means your ad creative is stale or your audience is saturated. If it’s trending downward, you’re off the bone, heading to the meat.
Scale by increasing your budget by 20% every four days.
The difference between successful Facebook ads and money wasters isn’t always about the budget size. Most times, it’s about you being strategically clear.
Understand your numbers, target precisely, and scale based on your performance data. Happy scaling.