Facebook Ad Optimization: Why Facebook Ads Are Not Effective

facebook ad optimization
In order to do  Facebook ad optimization, you MUST know ONE thing for sure
1. KNOW your KPI(s)
They are your key performance indicators.
For those of you who don't know what your KPIs are, you CANNOT make intelligent decisions on your campaigns.
Here's why.
There's SO MUCH out in the market teaching about facebook ad optimization – people telling us how they're getting .01 cents a click…or they're spending $1.00 per webinar registrant…

The Truth About Facebook Ad Optimization

There are ‘experts' teaching that we need to have our campaigns at levels THEY'RE getting leads at.
First of all…our business is NOT their business.
So STOP comparing yourself to everyone else.
This is the reason you NEED to know your KPIs.
Because you might have a campaign that's crushing it, and you don't know it because you're spending $2.00 a webby registration (for example) … but the dude you listened to last week says you should get them for a buck.

I see this CONSTANTLY.

People making facebook ad optimization decisions based on:
  1. what some other dude is doing
  2. their own interpretation of how good or bad things are without having a measurable kpi
The second one is MOST IMPORTANT.
Let me give you an example.
If you have a product selling at $100, then your KPI is $100.
That means you can spend up to $100 to ‘buy' a customer and break even.
That's the number you want to understand for your personal facebook ad optimization to work.

You want to ask yourself  “What is my break even point?”

Of course, it doesn't stop there – because we have to reverse engineer this bad boy.
Because not every person who enters our funnel will buy.
So, WHAT is the percentage of buyers from the people who opt-in?
Let's say it's 50% (for easy math)
That means you're break even point to ‘buy' an opt-in is $50.
You follow?
I'm making this really simple because I don't want to write a book here…but that's what you need to do.

To get the best Facebook Ad Optimization, break down the process and figure out your KPIs along the way.

So in closing, if you were getting an opt in for $50 (using the example above), you wouldn't be wasting money at all.
You'd be breaking even. That means you're getting your customers FREE.
And anything else sold to them after this point is 100%.
Is it the best funnel/example? Depends…
And that's my point.
YOU have to decide what you're willing to spend per customer. And that's all based on what you have on the back – end to sell them.
So before you make any rash decisions to turn ads off…or, on the other hand, pump more money in…
Comments and questions welcomed below 🙂 

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Joey Ragona

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