Facebook Ad Spend Calculator – Figure Out Your ROI
The calculator below will help you determine how much you will need to spend in order to get the ROI needed to make a successful campaign on Facebook. Default numbers are provided to make it easier to see the outcomes. Change the numbers at the top to see how the results change at the bottom.
Instruction are posted below the calculator.
National Averages – Values On The Right
A. Landing Page Convert To Sales Call (5%)
How many people visit your landing page or website and then make a phone call? This is very important and can make or break a good sales funnel. Does your page have social proof? Are there enough testimonials? Do you show credibility. Those, along with a lot of other variables determine if that visitor is going to contact you or move on.
B. Sales Call Show Up (70%)
Ok… so someone called you and setup an appointment. Are they going to show up? One way to improve this number is to ask the caller to make small commitments. The more small commitments you can get from the caller, the greater the chance of them showing up. For example, ask them “Can you arrive 15 minutes for this appointment?”. Or ask them “Can you please go get a pen and piece of paper to write this down? I’ll wait for you to get it.”
C. Sales Call Conversion (20%)
A good marketing funnel will handle 90% of the sales, but good salesmanship is still needed because the national average states that you will only close 1 in 5 of the phone calls from clients or patients. Keep in mind that your numbers might be better, or even worse than the average. If it is worst, I highly recommend doing a little work to make this number better before adding more sales to the funnel.
D. Link CTR (1%)
This varies by industry but for the most part you want to be above 1%. The most important piece is the headline. Make sure you have a great headline that will grab attention and lead them to read the ad copy. And then great ad copy that gets them to take your call to action.
Business Specific Entries – Update To Match Your Business
E. Facebook AD Cost Per Click
This value will be very specific to your industry and will be somewhat difficult to figure out without doing some testing. To be safe, and to get a quick number, you can just use the average across all industries, which is $1.72.
F. Lifetime Value Of A Client
We need to know over a lifetime what is the average profit for the average client or patient. For example if someone visits a clinic and the clinic profits $100 each visit and that person will probably visit 10 times then the lifetime for that person is $1000. But now let’s say that over the course of 10 years, the past shows that every person will most likely come back again for the same or similar treatment plan, then the lifetime average is $2000.
G. Number of New Clients/Patients
Use this number to adjust to get the total that you need in Net Profit. You will want to adjust it until you get to the net profit that you would like to repeat every month.
These numbers are all calculations. You can view them, but you cannot edit these values. If you want them to change, edit one of the numbers above.
H. Total Sales
This is the total sales that you can expect and it is calculated by multiplying the lifetime value of a client/patient by the number of new clients/patients you entered.
I. Net Profit
Net profit is calculated by subtracting the Facebook Ad Cost from Total Sales.
J. Facebook Ad Cost
This amount shows you how much you can expect to pay for running ads in order to get the Total Sales or net profit necessary.
K. Landing Page Visitors
How many people will visit your website/landing page. A good landing page will lead the person through the page step by step, showing value, providing proof, and establishing credibility. Try changing the national average from 5% to 10% and you will see how a good landing page can dramatically change your entire funnel.
L. Sales Calls Booked
The percentage used to calculate this, Sales Call Percentage, changes quite a bit for each business because every person has different sales tactics. The good news is that you should already know what your percentage is. If not, do a little research into your past efforts and it should be pretty simple to figure out. Plug in your percentage in the upper right and see how all the other data changes. Better? Worst?
M. Sales Call Needed
How many phone calls are need to get to the net profit that you need. Simple. Work on your close rate and this will lower over time.
N. Reach Needed
This is important because if there is not enough people to reach, you will not get to the profit you need. Work on improving the numbers at the top right and this will be lowered. If you live in a city with a low population and you are targeting very detailed people, there just may not be enough people to reach.
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