If you’ve been thinking about handing off your Facebook and Instagram ads for months and you keep deciding you can’t tell whether it would be worth it, you’re probably missing one number.
- Book Your Free Ad Strategy Session
I walk through the two numbers that tell you whether hiring an ads manager actually pays off, and I run them on screen so you can watch the decision make itself.
I also show why every month you wait is a month that math doesn’t get to work for you. Listen now and find the one number that ends the should-I-hire-someone loop.
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Kwadwo [QUĀY.jo] Sampany-Kessie’s Links:
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The Fear Behind Hitting Submit
You’ve been thinking about handing off your Facebook and Instagram ad management to an ad manager like me. You almost filled out the form to book the discovery call. Yet every time you’re like about to hit submit and commit to having that conversation, you get like this uncertain, kind of dreadful feeling. And the question behind that is, will these ads work for me? I don’t want to lose money. And I change my voice, you know, just to quote somebody who I’ve heard, not you, of course, and not to make fun, but I want to give space to that feeling. It’s a real feeling. So I talk to people in your exact situation every week. And it’s not the cost of ads management that holds people up. It’s not having a specific number, which I’m gonna tell you how to calculate in this episode, so you can clearly see how ads management. So you can clearly see how Facebook and Instagram ads management make sense for your business in a profitable
Cost Per Lead And Earnings Per Lead
way. Or if it doesn’t. So here’s what you need to know cost per lead and earnings per lead. Cost per lead is how much it’s going to cost you to get a lead on your email list or into your webinar registration from Facebook and Instagram ads. Earnings per lead is how much that lead is worth. Let’s take a funnel that a lot of my clients run, the webinar launch funnel. So you know your cost per lead is down here and your earnings per lead is up here. Your earnings per lead, you can calculate that by taking your total launch revenue, all the money you made after your cart closed after the webinar, and dividing that across the number of leads that registered for the webinar. And hopefully, what you have here is a gap. That’s the profit gap between my two hands. By the way, if you’re not watching on YouTube right now, you should click down in the show notes below so you can see this example and the screen share that’s coming up in the video form. And you can see my handsome face. All right, so let’s get back to it with this profit gap. That helps you know that profit gap, that profit per lead, how ready you are for Facebook and Instagram ad management. And what you’ll also realize, probably you listening right now, is that you’re ready for ad management if you have a sizable profit per lead. It more depends on how much money you’re willing to spend to bring in more leads because more leads equals more sales. And stop really quick. I need you to understand what I stand for, which is responsible growth advertising. Because you and me, we’re responsible to keep our businesses running so we can continue to serve our clients and our customers with the gifts and passions that we’ve been blessed with. And you and me, I am responsible, you are too, to your family, your loved ones, or if you’re if you’re not married or you don’t have kids, then yourself and your future self to run a responsible business. And the responsible thing to do is to calculate your cost per lead and your earnings per lead so that you can see how many leads you can bring in and how profitably so with that ads management fee of an ad manager divided across your leads per month. If you’re an online course grader or coach with a business that’s already working and you’re currently spending a minimum of $5,000 in Facebook and Instagram ads a month, here is the next step for you. Book a free strategy session with me in the show notes below. We’ll work out what a lead is worth to your business, just like we did in this episode, and then I’ll be able to tell you straight if it makes sense to hand off Facebook and Instagram ads management to me. That’s the only thing you need to do. Because guaranteed, unless you’re an ad manager like me, you should be doing other things in your business to grow your business faster, especially if you’re already making, say, over $250,000 a year, gross revenue. Your offer’s clearly proven, and now you want to get to these higher revenue goals so you can serve more people and start achieving even more of your own personal goals, right? Like for me, what matters is my business puts food on the table for my two kids and my wife. And we live here in Mexico. It’s important to us to interact in foreign languages with foreign cultures. What are your goals? You can get there quicker if you scale your business up responsibly.
Simple Math To Find Break Even
Now let’s run some simple numbers. So the numbers can be ran like this: let’s assume your cost per lead is $2, and you have calculated that when your leads go through your funnel, whatever your funnel may be, that they are worth $4 to you. I’m gonna put $2,500 a month as my ads management fee. By the way, you from the future, this fee is not a quote to you, and in the future, most certainly could be higher than this that you see on the screen. Out of integrity, I need to tell you that. And let’s say that the monthly ad spend is $5,000. And now we’re just going to read through the chart. $5,000 spent on ads means that you’re getting $2,500 leads per month. A lead is worth $4 to you. And when you subtract the $2 it cost you to get that lead, and also you subtract my ads management fee, which is spread across those 2,500 leads, then your profit per lead is one dollar. And if you made it here, that means you love the numbers. The beauty is in the numbers, right? That ads management makes even more sense as we scale up the amount of leads that you bring in. You’re already ahead in this scenario, profiting $2,500 per month. Not to mention, and this is, you know, I’m not your financial advisor, but not to mention all the cool credit card benefits that you get because you hooked up a credit card that aligns with your own values to your ad account. For example, me, I have a credit card that gives me travel points because I like to go and stay at hotels or Airbnbs when I go overseas. And look, this is probably the best thing in the episode here. Break even is at uh you’re breaking even at 1250 leads a month, which represents your $2,500 in ad spend. Every lead after that is profit. Now, if you’re profitable, then most definitely you should have started ads sooner. And this next step on the chart shows you that. So if you’re spending five thousand dollars a month, then that means you’re bringing in two thousand five hundred leads a month. My fee divided across those leads is a dollar, right? And then you’re profiting a dollar per lead, so you’re two thousand five hundred dollars ahead per lead. As soon as you increase ad spend to ten thousand dollars a month, oh my gosh, ten thousand dollars. That’s just a lot of credit card points. Follow the math, then you’re bringing in five thousand leads a month, and then my fee per lead gets less because it’s divided across more leads, double the leads, right? And your profit per lead goes up. Now you’re making a buck fifty per lead, and your profit per month has increased to seven thousand five hundred dollars a month. You’re seven thousand five hundred dollars ahead. If you go up to fifteen thousand dollars a month, which is where a good number of my clients are spending here or above, you’re bringing in seven thousand five hundred leads a month. My fee per lead has gone down to thirty-three cents per lead. That’s what you’re paying for ads management, right? And then your profit per lead has gone up to a dollar sixty-seven, and that would be twelve thousand five hundred dollars of profit per month. The table is showing how my ads management fee doesn’t increase, it’s the number of leads that do, and so the ads management fee gets cheaper per lead when you spend more, and I need you to understand the profit doesn’t grow in a straight line, it grows faster than the ad spend does. So every month that you don’t calculate your cost per lead and your earnings lead and run the math, that’s a month where you’re losing out on this marvelous math that the table is showing. And it’s not because you’re super cautious, it’s not even that like the cost of ads management is too high, it’s just that you haven’t yet done the responsible thing because you don’t have the number that would tell you whether or not ads management is right for you at this time, so you keep waiting for a feeling instead. Now, one
Scaling Ads Without Losing Profit
thing I want to make clear about this, it assumes as we spend more money that your cost per lead stays the same. That almost is never the case. Cost per lead can creep up and normally does creep up as we spend more in Facebook ads spend. However, you’re working with me, and I’ve worked with tons of course creators and coaches with already working businesses, and you know what I know? How to build a funnel that converts even better. For example, I have a client right now who we’re working on her tripwire offer. That’s the offer that’s on the back end of a free opt-in, like a free lead magnet opt-in. And on that thank you page, it says, like, buy my thing, you know, and because we align that offer right, we message it right, it starts to sell. And she normally on a every week basis is recouping 20 to 35%. Actually, it might be a little almost as high as 40% sometimes. Let’s just go conservative. She’s recouping 20% of her ad spend from sales that come from the tripwire. And then that means that she’s got buyers who are even more likely to buy in the future, and those folks are being added to her list. Not to mention, if you’re running ads to a webinar, ooh, I love helping clients improve their webinar funnel conversions. That’s what I did when I was coaching inside of this like high-level coaching program with a bunch of online course creators and coaches that had businesses that were already working. We’re talking grossing annually, 300k to like over a million dollars. We doubled down on the numbers in their webinar funnel, or that would move the needle and basically increase webinar conversions. And that’s one of the benefits I bring to my ads management clients. Before we
Stop Being The Bottleneck
say goodbye, I want to share with you something that I saw with businesses that are crushing it, like making a lot of money. Those business owners understood the things that they should be doing and the things that they should not be doing. Almost all of them had an ads manager that they were paying. And I’m talking about the businesses that were like, say, 800,000 a year in revenue, up to like 1.2, 1.8 million dollars a year in revenue. They weren’t usually doing their own social media, they weren’t running their own ads, they were paying somebody to run their ads. Just like the episode, hopefully, you heard me interview Shannon Matson a couple of episodes back, because she’s the perfect example. From the get-go, she understood that her time, if she wanted to grow her business the way she wanted to, as quickly as she wanted to, her time needed to be spent on a few things in her business that she was really good at and that gave her the highest return on her time. See, I see folks who contact me or I meet, let’s say, in online forums, maybe when I’m speaking, or or who I meet when I’m speaking in like an online summit or to somebody’s group, and some of them have a business that’s doing well, but they are the bottleneck. Or maybe that’s you listening right now. You are the bottleneck, and it’s okay. Like, well, it’s not okay. I mean, if your business is working, I understand because you and me, we built our business from zero, right? I mean, I didn’t inherit a trust fund that I could invest into this business, did you? Okay, so you built your business from zero too, and that means you understand how to do all the things that grew your business to a point, but to keep growing, you have got to relentlessly get rid of the things that you’re not passionate about and also get rid of the things that have a lower return on your time so that you can spend your time doing the more valuable things in your business so that your business grows faster. Since you’re still here, I guess you already gave me permission to get a little deeper. I like hiring people because as I work my passions and gifts and serve people that need them, I’m also able to be a job provider for folks who want to provide for their families. You can do that too. And if you already have a team, then you understand what that’s like. Having folks on your team who do the things that maybe you’re not so good at or the things that you are good at, but that you’ve let go so that you can do the responsible thing and keep growing your business so you can serve more people and have more impact and meet those personal goals that you have and want to achieve for yourself and for your family. And so, my advice, or and so the whole little point of this little extra talk, which congratulations for being here, most of the other people listening to this episode are gone by now. But I know like you’re one of the real ones. And the point is, is if you want to grow from here, you can’t keep doing the things that got you here. You’ve got to switch up how you operate a business in order for your business to continue to grow. All right, until the next time you see me or hear from me. Take care, and I’ll see you in the next one. Bye.

