What's up you guys Jason Wardrop here and in today's video
I'm gonna cover a really important really hot topic. I get asked this question a lot
But is when do I kill my face? But guess what do I shut them off? Right. So if like you're running a campaign and
You're your elite casas. Let's say 8 bucks. Ok, you're getting $8 per lead and it creeps up to ten dollars
Like do you actually shut that off or let's say she's staying at 8 bucks per lead
But you've run it for four to six to eight weeks
When is the best time to go through and actually shut that campaign off? Okay?
now we're gonna actually dive into some of the numbers here because it really is just simple mathematics and really knowing when to
Go through in cancer campaign or not. It comes down to the data. For example, like when I am running my business
Okay. I know some of the numbers and I keep track of the numbers
So that's one thing like if you're not keeping track of your numbers, you need a simple process
It really is not that difficult
Especially with Facebook Ads that they pretty much give you all the data that you need
To be able to go through and track what your cost per lead is what you're willing to pay
For the per for each lead and how much you make after generating so many leads
So we're gonna break that down all here
but like for my business I go through and we're selling our software right and I sell for fifteen hundred dollars on our webinar and
so
Typically on average I generate leads for my webinar for about eight bucks per lead
Sometimes it goes down to four or five maybe six bucks
but then it will sometimes creep up to ten to twelve or something like that and
Obviously like anything higher than that, like I know even if I'm paying like twenty dollars per lead. I know I'm still profitable
Okay, but knowing that I can generate leads for eighty or even ten dollars per lead
I don't really I'm not willing to pay that higher price per lead because I know I can generate leads for a lot lower
So let's just jump in and look at this for your business. Okay. So let's say your cost per lead is ten bucks. All right
And let's say you're generating on one hundred leads now guys. This is really important
a lot of people will go through and they'll run their Facebook ads and they'll generate you know, twenty leads and I'm like
Oh, well, I like Facebook guys doesn't work or I don't know. This is probably not for me
The truth is is you probably don't have enough data to actually know if Facebook ads is gonna work for you or not, right?
So like in when you look at statistics and you get into like all that smart people stuff
Like it talks about the law of large numbers, right?
And if you have too small of a data set, you're you're not really gonna know what your conversion rate is, right?
So like if you generate 100 leads and your conversion rate is 1%
Well, if you generated 10 leads or even 20 or even 30 leads and your conversion rate on those leads is 1%
You're really not gonna know if if like it's gonna work out for you
Okay So like I like to go through and start out with a minimum of 100 leads and let's say our cost lead is 10 bucks
So our total lead cost is $1,000. Okay, and let's say there's a few things that we need to look at here. Okay
So we need to look at the lifetime value of those leads and our immediate conversion rate
Versus even a longer-term conversion rate. So let's say over the first
30 days here. We've got a 1 percent conversion rate, okay
So what that means is we generate 100 leads and of those hundred leads we get one sailor
We get one deal to go through
Ok, and let's just say you're in real estate because most of my fuckers are and real say the real estate agents
Let's say you make five thousand dollars for every home you sell or home you list or whatever. It's going on or home
That's like bought through you. So you make five thousand dollars, which honestly in real estate. That's a pretty
Low end Commission like I know on average like they're with the agents
I'm working with or making anywhere between five to fifteen thousand dollars in Commission per closed transaction because typically you make 3% of
The sale price, right?
So obviously if you're selling a million dollar home, you could potentially make thirty thousand dollars on just that one home. Okay
So conversion rate in the first 30 days you're at five thousand dollars
which total profit if you're spending $10 per lead and
Your total lead costs after 100 leads is a thousand
Your total profit is four thousand dollars because obviously you made five thousand but you got the constant doing business and all that good stuff
Now if you look at this, okay, so you you went through and you made five thousand dollars
Well, you profited four thousand you spend a thousand dollars
technically
You should be willing to go up and spend as much as fifty dollars per lead
to acquire these hundred leads which would be a total lead cost of
$5,000 to get a one percent conversion rate in just the first 30 days now
I know before you guys like freak out and like well Jason, I'm not making any money then
Well, what happens is at this point you broke even okay?
So you went through you had the five thousand dollar lead cost
You have the one percent conversion which total profit after 30 days is zero dollars, and I get that
but for basically free you just acquired 99 other leads of people that you can go through and work with
alright now if we come down here if we look at the lifetime value over a
90-day period okay and guys like I had someone ask me I hid a video similar to this
Someone asked me last time like well Jason, what is my conversion rate?
That's gonna be different for every single person
it really depends on how well you are how good you are following up and how good you are with your sales techniques and how
Good you are is just like doing business now
You're not that good if you're not having like a 1 to 3 percent conversion rate in the first 90 days with really any leads
You got to improve yourself. You got to go through your 10 more seminars. You got to read more books
you just got to improve and develop as a
Salesperson right? So coming down here. We look the lifetime value over 90 days
So let's say that 1% is now at 3% Ok, so we went through we broke even right here, okay
So now we've got a 3% which totally cost. Let's say is still $10 per lead. Ok. It's $1,000
we get those 3 conversions at still $5,000 that we're making per conversion, which is
$15,000 which now after 90 days were profiting
$14,000 ok
So let's go back and let's say that our lead cost was actually $5,000 because we went through and we're now spending $50 per lead
Okay, so it's $5,000. So our total conversion
So after the first 30 days, we're making zero money, right which obviously it's not the goal
But if we can acquire more leads to work with to work with in the future, that's that's ideal, right?
So we make 5,000 or we spend $5,000 on the leads we make
$15,000 and after 90 days, we're actually profiting
$10,000 right now one last thing that
I want to go through and cover with you guys because obviously this is just in the first 90 days
Some of those leads in the next six months
They could still convert which then from the $5,000 lead spent if you're spending $50 per lead
You could actually see like a thirty thousand forty thousand dollar profit from those same leads
Okay. Now if we come back up here now if you guys remember
My average lead cost is about eight dollars. Okay, and I am still profitable like like if you're a real estate agent right here
I'm still profitable. Even if I'm spending like twenty to twenty-five dollars per lead. Let's just say twenty dollars per lead
But I know on average I generate leads for eight dollars
okay, so I know that like I don't have to spend more money on those more expensive leads because it doesn't necessarily mean that they're
Better leads. Okay, especially when you're going through and working with Facebook
So what I do is anytime a lead
It's like I'll go through and in my live cost per lead is twelve bucks
I'll usually let it run for a couple of days and if it doesn't drop down to around the ten mark then then I kill
It right just because I know like I don't have to spend that much money to go through and generate my leads
so I like to go through and have kind of like the high end is ten bucks and if it is at twelve bucks and
It's a newer ad set new ad campaign
I liked a little run a little bit to see if it's gonna drop down and if it doesn't drop down then I kill it
Okay
so really guys
When it comes to really killing your Facebook ads and knowing when to kill them it all comes down to understanding
These numbers and if you don't have enough data yet
Get the day to spend the money to go through and get the data and so you can know with like exactness
What you're willing to pay for your leads, right? So
If you're going through and you're averaging ten dollars per lead
I probably wouldn't go through if there's if there's a campaign that's costing you more than fifteen dollars per lead. I
Would probably kill that right? So like even though we went through this discussion where you can spend as much as $50 per lead
Right here and you're making five dollars. Your cost is five thousand dollars
You're making five thousand dollars back out, but your profit and your breaking even like yes, that works
Theoretically in ninety days you'll you'll be making money
But I like I like to I like to make money sooner, which I'm sure you guys are the same way
So if it's really higher than probably fifteen dollars per lead. I'm probably gonna kill that which
if you look at that that totally cost is gonna be fifteen hundred dollars and then your profit after the first thirty five days is
gonna be thirty five hundred
okay, but then
Afterwards so you're gonna make profit thirty five hundred and then the next let's say another two percent go through or three percent
Whatever it is, you're making an extra ten thousand dollars from those same 100 leads
Okay
so
So that is kind of like looking at the numbers now as far as like a time frame go so like a lot of times
people are like well my ads been running for six weeks and and
Like I don't know if do I just keep them running or when do I kill them?
The truth is if you're still getting a pretty good
Cost per lead if this hasn't hiked up like super high to like twenty bucks or anything like that
I would just keep running that ad campaign
the reason why is because if it's in the range of what you're willing to spend on Facebook Ads to generate one new lead and
If that lead is in your market, it's in your community
Like let's say you've got a local business to see your real estate agent. That's someone you could potentially work with in the future
Okay, so if you can find your email list and you know, you're sending out emails you're nurturing them. You're educating them
You're letting them know that you are the top person to work with in your area
Well, let's say you're even a restaurant or a local gym or whatever it is
You get that person in and you're nurturing them to the point that they actually convert into a sale
All right, so long story short guys one. You got to know your numbers
You got to know like what is your cost per lead? And what is your conversion rate?
And how much do you make?
Every single time a conversion or a sale or a deal goes through and they break the numbers down as simple as this guys look
At your cost per lead. How much will it cost you to generate 100 leads. What's your conversion rate in the first 30 days?
What's your conversion rate in the first 90 days? How much do you make per conversion?
And what's your total profit after the first 30 days knowing these numbers and after the first 90 days, okay
So now once you know that you've got a pretty good idea of like, okay
What's my average lead cost and I'm willing to go a little bit higher above my average lead
But not too much because I don't I know I just don't need to and then as far as like a time frame
just go through and keep running that keep generating leads keep bringing new business until that lead costs hikes up so far or
Until everyone in that community like if you got like a small fifty thousand radius
Maybe they've all seen that and they're just gonna annoyed by it. So just freshen up the ad just create a new ad
Switch it up a little bit and you are good to go, right?
so anyway guys, hopefully that was helpful for you all on knowing when to
Actually go through and kill your Facebook Ads all comes down and knowing your numbers
it comes down to knowing your audience and like how often they're seeing the ad and
With that said guys if you guys have any questions
Drop a comment down below. And also if you guys want my free Facebook Ads mini course, I'll hook you guys up with that
Just drop a comment down below give the thumbs up to the video
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Because we launch new videos every single week on how to generate more leads make more money and grow your wrist
So with that said guys, thanks so much for watching and I will see you all later