Make Profit With THIS Facebook Ads Budget Strategy

In this article, I’m going to go through a quick Facebook ads budget strategy, specifically helping you understand what kind of budget you should use with your Facebook advertising, and how to utilize it in the best way.

But first, the truth is…

This is something that’s going to be very dependent on individual needs, and it’s very different for every business.

It’s difficult for me to say any specific numbers that are good for you because, for some, a budget could be from $150 a month to $500,000 a month.

But with that said there is a way you can figure out your budget so that you have a good idea of what you should be using when running your ads.

Facebook Budgeting And The Learning Phase

If you are being very anal and sticking to Facebook's best practices you’ll know they recommend you get at least 50 conversions per week.

So they can stabilize the performance of your ads for the best results and get out of their learning phase.

So let’s say you’re CPA or breakeven point is $50.

This basically means, for every sale at $50 you break even on your ad spend, to stay out of the learning phase you would need 50 conversions per week.

So for this example, that would be 50, $50 conversions which makes it $2,500 per week or $10,000 a month you would need to spend and make in sales.

Or let's say you sell a service at a break-even point of $500, that would be $25,000 a week or 100k per month.

Text diagram example of budget needed to to get out of the Facebook ad learning phase.

Facebook Budgeting Mistakes To Avoid

Now, if you think this is how the budget works then I want you to know this is completely wrong because:

  1. Not every business has this kind of money to advertise and it’s far too much for businesses to pay.
  2. I’m constantly in the learning phase and it’s hardly been any detriment to my ad success.

So basically if you're familiar with my videos or blog, you’ll know I don’t really care much about the learning phase.

Especially when you're always having to change ad creative and doing tweaks, you are pretty much nearly always out of the learning phase.

So then the question remains…

How Should You Budget Your Facebook Ads?

In order to know the best strategy to use for your budget will depend on a few things.

Such as…

Do you have a proven funnel?

Are you in the testing phase, where you don’t know if your ad, creative, or sales page is going to work?

And, If you are in the testing phase, how good are you as a direct response marketer to get your ads, copy, and creative up to scratch so you can start hitting that breakeven point?

All of these things will be a starting point to understand your overall Facebook budget strategy.

What You Must Prepare For When Budgeting Your Ads

Because, if any of that applies to you, then you need to know this and that’s to be prepared to lose money at the beginning.

Because the truth is, it’s going to take some time and figuring out to get your message to match with your audience and get that to convert to your break-even point.

So you need to find out how much money are you prepared to lose to figure this out.

Now, when I say loose, I’m not saying you need to lose thousands of dollars because you can test with a small amount such as $300.

Depending on how much your product or service costs, but you want to make sure it’s enough money that if you lost it tomorrow, it wouldn’t matter that much.

But saying that…

As a business owner or advertiser, this is what it’s all about, there is always going to be a level of risk at some point.

And as long as you calculate the risk to the best of your ability, the rewards can be HUGE.

Because when you find the winning funnel you can literally take your business and ads to the next level.

Working Out Your Budget

But with all this said...

A quick strategy I recommend to start with is knowing what that number is for your business.

Whether it’s $1,000 or $20,000 and use that in a way to find your winning funnel.

So, Whatever that number is for you this will be the starting point of your advertising spend.

Diagram showing flow for a strategy of what to do with facebook ad budget.

Because then, what you want to do is use a daily spend of breaking that money up so you don’t zap it up quickly.

This is why I recommend a daily budget over a lifetime budget but I always recommend testing with a daily spend.

What Is A Good Daily Budget

And a good starting point to test with is a daily spend of at least a minimum of $50 a day, but if it’s less that’s fine too.

The main goal is to spend enough so you don’t zap it away and to help you find your proven funnel.

Now something to mention here.

If you do use a low budget, expect slower results.

If you're using an overall $1000 budget with a daily ad spend of $10 a day.

It’s going to take far longer than if you had a $10,000 budget with an ad spend of $100 a day.

Now, there’s nothing wrong with slower results just be patient, as this is the key to finding a winning Facebook funnel with the smallest budget possible.

So you're ready to scale your campaigns to the next level and To help you test ads with the best possible chance of utilizing your budget.

Get Even Better Results With Your Budget

Now that you know the fundamentals of Facebook ad budgeting, I recommend looking more into Facebook ad targeting to further improve your results and reduce costs.