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Double Your Money With Facebook Ads

Double Your Money With Facebook Ads

This guide is a simple and interesting method utilising Facebook Ads to turn a quick profit. As long as we spend less on advertising than the commission we receive from selling a product, we are making money! If you want to learn how to advertise on Facebook, check out our guide.

If you’d like to register a cheap domain for use in this method, I would strongly recommend Domain.com due to their low prices on domain names.

There are two methods for this model – simple and complex. We can either direct the user straight to a product or use a funnel system. I’m going to cover both methods with their pros and cons. The premise for the model is this simple maths:

(Conversion Rate * Clicks * Commission) – Cost of Clicks = Profit

For example, let’s imagine we are promoting an online course in which we receive $50 in commission per sale.
The conversion rate for the product is 0.5%, e.g 1 in 200 visitors to the page will purchase the product.
This means we will have to get 200 clicks on the ad for under $50 to be in profit, this translates to $0.25 per click to break-even.

Higher commission products give you more room to advertise but will have a smaller conversion rate!

Find the Facebook ads manager here.

Simple Method:

This method is very simple. All we have to do is create an advert with a link in and promote it. I’d recommend trying this out if you don’t want to have to create a website. Ensure you set your bid-per-click on Facebook ads at a constant profitable rate, otherwise you Facebook will adapt the price you pay and you may lose money. I’d suggest trying multiple products, each aimed at different niches. It is vital you target your ads to the correct audience. In the example below, I am promoting a guide on starting a woodworking business. I targeted it to men over 40 who liked woodworking magazines. Make sure to work exactly how much you can spend on ads and still be in profit before you start.

Here is an example advert I ran promoting a straight affiliate product.

The cons of this method are that the conversion for this method will be lower. You also aren’t building a list of customers to re-market to later on. Click costs will also be higher, as people are less likely to click on a paid offer. The complex method below utilizes a free sign-up offer and therefore foregoes all of these cons.

 

Complex Method:

This method requires a landing page where you can harvest the emails of your ad-clickers and is, therefore, best suited to those already running an online business. If you aren’t, why not get started? Check out this guide on starting a blog!

In this case, we are directing our Facebook users to a free offer in which we collect their email address. Once they have their give-away, direct them to a sales page in a follow-up email. Even if they don’t purchase, we now have the option of sending them other offers. The maths for this one is slightly different because we’ve added an extra step to take into account, you will need to learn the conversion rate of the free offer through trial and error. This offer page will have a much higher conversion rate, meaning you will find it easy to grow an email list this way, but the paid offer will obviously convert less.

This is an example of a free offer which you would promote. Taken from problogger.com

The benefits of this method are that as long as you get an email conversion on your free offer, the ad money hasn’t been wasted. If you are selling one of your own products after, you are more likely to get a conversion after giving something away. This is due to an interesting effect known as the psychological contract. This is where if somebody gives us something for free, we feel inclined to give them something in return.

The cons of this method are the set-up requirements. If you are already running an online business, this isn’t a problem and you should use the complex method for sure. Overall, the complex method is a far better investment, and I’d recommend it if you have enough experience in creating a squeeze page and maintaining an email list. If you want to create a site for this method,
I’d recommend hosting with SiteGround, as they offer a fantastic first-year deal.

 

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