# THIS Business Generates The BEST Facebook Ad Results

Channel: Ben Heath
Video: https://www.youtube.com/watch?v=4nhW9V6elOw
Duration: 15 min
Language: English
Words: 3083
Transcript page: https://viewrankai.com/tools/youtube-transcript/4nhW9V6elOw

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[0:00] hi guys it's ben heath from lead guru and in this video i'm going to talk about the business type that generates the best possible results with facebook ads i know it's not drop shipping it's not affiliate marketing it's nothing that's popped up overnight it's something that you're very familiar with but you might be surprised to hear the answer that i'm going to give in a minute now before i get in touch i want to very quickly ask you to hit that like button and subscribe to my channel if you haven't done so already that really helps me out okay so what business type produces the best results of facebook ads and

[0:32] the difference between the type of business you have and the results you see from facebook and instagram campaigns is enormous and i'll explain that more about that um in a minute but i think this is a really important question it's really important for people who want to offer facebook advertising services or own facebook ads agencies like i do you want to work out which type of business you can most easily produce the best results for and it's also really important if you you're into marketing you've got some facebook advertising skills and you're wanting to start a business you're thinking what type of business should i start what's going to

[1:01] deliver the best results what's going to where am i going to have the most success and the type of business that produces the best results facebook ads always just no questions asked is low competition businesses that have a high average customer value now you can probably start to see why that would be beneficial low competition it's not that hard to stand out from all the other facebook advertisers advertising a similar thing high average customer value each time you get a customer it's worth a lot to your business and i'll i'll give some examples and explain high average customer value businesses are often service-based businesses you almost certainly going to spend more

[1:43] on a service for the most part than you are on most products now there are exceptions like you know houses and cars and things like that but for the most part services are going to cost a lot more than than products do so they tend to be services and low competition facebook advertisers tend to be local businesses so you end up with businesses like roofers um i famously talked about interior design companies before a lot these so you know it could be b2b as well but these sorts of businesses where when you hire that business to do whatever it is you're going to do you're likely to spend thousands tens of

[2:19] thousands of dollars with them but there aren't tons of alternatives that you could use so let's take the example of a roofer okay how many roofing companies are there in your local area that you could potentially work with well it's probably a handful depending on where you live there could be lots but that's not going to be anywhere near as much as say if you're selling a e-commerce product on facebook you know if you're selling apparel or jewelry or you know some of the more popular ecom product ranges you might be competing against ten thousand twenty thousand facebook advertisers selling the exact same thing to the exact same audience you're trying

[3:06] to reach the same people now you might be differentiated in terms of that but that's not going to talk about here your customers if you're selling say jewelry on on facebook ads could buy from 10 000 other facebook advertisers most likely however if you're you've got a leak in your roof and you want a roofer how many other roofers could you hire might be 10 might be you know if you're in large city might be 30 40 okay how many of those roofers are advertising on facebook two or three probably that's it so if you're a facebook advertiser and you're thinking right i can compete against

[3:45] 10 000 other people advertising shoes or i can compete against three roofers and i can guarantee there'll be marketers in those 10 000 that are far far better than the than the roofers in your local area the competition there makes it so much easier to succeed and to stand out if you're advertising roofing services in a local area where there are only 30 40 businesses that could provide the services that you provide to the customers you're advertising to only three or four of those advertising on facebook as opposed to this other side of things where you're you know if you're selling shoes the customers could buy from

[4:22] 50 000 different companies 10 000 of which 20 000 of which you're advertising on on facebook so that's that's the competition side of it that is just absolutely massive and what that means is that you don't have to necessarily build a massive brand in order to get a competitive advantage you don't have to come up with epic ad creative with influencers and all this sort of stuff that you often have to do on say the larger e-commerce scale because as i said if you know i'm sure you've had this experience where you're into something you search for it online um you know i did this recently with a

[4:52] with a home gym you know with a pandemic and everything i wanted to set up a home gym in my garage um and then my whole news feed just home gym equipment boom boom boom throughout so you've had that experience right you have to do a lot to stand out in that environment because there's so many other providers whereas with the roofer you don't you could literally probably advertise your services advertise a free survey for example and it can work because you stand out people will click through they'll become leads the other part of it is the financial side of it i'm gonna do a little bit of

[5:19] massive but nothing too messy in case you know i know a lot of marketers sort of naturally don't like uh the math side of things um let's say you're a roofer average customer value might be let's say 12 000 i don't think that's unreasonable you could you go from relatively inexpensive repairs that are going to be less than that but to full roof replacements that they're going to be considerably more than that let's say your average customer value is 12 000 okay i would say that for a roofer if you're advertising in a country like the us um you should be able to generate leads quite comfortably for 50

[5:53] each that should not be much of a challenge in fact i would say that a high quality facebook ad campaign most likely produced better results than that but let's say 50 each and let's say you convert one in five which again someone who's really good at their job has competitive pricing is probably going to uh produce a higher conversion rate than that but let let's be pessimistic around it okay so generating at least 50 each you're converting one in fives that means your cost per customer is 250 because you need five leads per each customer would you be willing to pay two hundred and fifty dollars to acquire

[6:26] a twelve thousand dollar customer on average absolutely now of course now that twelve thousand dollars you've got cost of materials you've got staff to pay etcetera etcetera but that campaign is undeniably going to be profitable like it's it's almost impossible for you to not make that profitable unless i don't know you mess up the roof and you have to pay damages or something it it's so difficult for that not to work whereas if you launch a a campaign for an e-com uh situation where you've got high competition low average customer value it's very very easy for that campaign not to be profitable in fact you have to often

[7:02] work really hard to make that campaign profitable once you've factored in cost of advertising cost of goods and all that sort of stuff whereas with the roofer that's not true at all you know i've i've got um i've talked about i've got a case study in factorial website you can go to lead guru to credit uk where we worked for where we've put together information on an interior design company that we ran a campaign for i can't remember the exact number but it's in the 60s is the return on ad spend that we produced so for every this uk based company for every pound we spend on

[7:31] facebook and instagram ads we generated more than 60 pounds in revenue and again that is really quite easy to do because if the average customer for that business is something like 50 000 pounds you know that's still spending that comes out something like 800 pounds per new customer so you your budget to acquire a new customer is very healthy very very healthy but it's still massively profitable which is fantastic and and the thing is you know let's say let's go back to the roof for example you've got twelve thousand dollar average customer value if you were advertising a service that had an average customer value of a hundred

[8:06] and twenty dollars so that would be uh one percent of the average customer value you know twelve thousand dollars down to 120 that's what one percent of the average question value but it's not like you're going to generate leads for one percent of the cost so your cost per lead isn't going to go from 50 down to 1 which would be 50 cents okay no chance there's no way of generating leads now you might generate leads for 20 so you could 100x your average customer value but only increase your cost per lead by two and a half times i mean that is such a big such a fantastic situation to

[8:45] be in not to mention that a lot of these businesses that are low competition high average customer value they're local their service providers there's i mean there's just tons you know i i've mentioned a couple there but you could have lawyers in all sorts of fields um you know accountants bookkeepers although that can be provided remotely so that increases the competition but there are so many anything to do with the property you know kitchen fitters bathroom fitters um landscaping um things that people spend thousands often off dollars on that you need a local company for it's gonna be very limited competition um these businesses just perform

[9:23] super super well so not only are you looking at better lower competition levels um much better finances you're also so well protected going forward if you've got like an ecommerce business and you're operating at a 2x roast and that works for you right now if the cost of facebook ads increases at all you might be in a position situation where your campaigns are no longer profitable whereas the local service business the uh high average customer value low competition business could see a doubling in their customer acquisition costs not really about an eyelid when we work with these sorts of businesses we're never scaling based on always the

[10:02] row has gotten too low it's always based on their capacity it's always like okay we start working with a roofer we get them enough business so that they're just maxed out over the next uh three months we have to turn the campaigns off that happens all the time it's always the way those go because those campaigns sit at a 40x row as you know they're not they're not worried if that goes to a 32x roast okay um it's just all about them getting capacity in their own internal systems and and things along those lines so it's not you know it's not super exciting it's not super interesting to think of the

[10:32] the local service business being the one that produces the best results facebook ads but it's absolutely true if you're an agency owner these are the best types of businesses to work with 100 these are the ones that you can come as close to guaranteeing results for as possible and if you're let's say a marketer you want to launch your own business you're probably more leaning towards like an e-commerce setup or something i would encourage you to think about starting the [Music] starting a local high-end service business that's absolutely if i was you know couldn't operate in the facebook ads industry as an agency which is obviously

[11:07] my core of expertise and i was just cut down to nothing that's absolutely where i'd start how i do it obviously i don't have the skills is i would partner with someone i would partner with someone that is a roofer that is an architect that is a landscaper and i would say let's enter into business i will handle all the marketing i will ensure that we have a steady stream of leads and customers you could handle the deliverables and there's lots of people that have those skills that have landscaping skills or have um architect skills but they no idea how to market a business and that's another thing why not only is

[11:40] there low competitions because they just stand out but you see a lot of the marketing to say if you look at the marketing that your local local roofing businesses do it's awful not always there are exceptions but a lot of it is so old school you look at their websites and they haven't been touched in a decade and they just look terrible it's so easy to get a competitive advantage there so that's really what i would encourage you do and i often get asked like what would i do if i started again and couldn't operate in the facebook ads world um i would run facebook and instagram ad

[12:07] campaigns for a you know high-end landscaper um who i'd partner with they'd handle all the actually doing the work i'd handle all the customer acquisition and i think that would work incredibly well in fact i know it would but given the experience that i've got the challenge will be finding someone to to take up on that but you know there's a lot of people in those spaces that would just love to not think about customer acquisition and just get on with the um doing roofs all the time or um you know fitting bathrooms all day long as opposed to oh do i have to post on linkedin and get

[12:41] customers and go to networking groups and all that sort of stuff okay so maybe that's a little bit long-winded but i really wanted to to break this down because i'm gonna have more content on this in the future i think the type of business that you have um makes such a huge difference to your facebook ad performance and i'm not saying by the way that you shouldn't run facebook ads for e-commerce businesses on uh that's not true at all like you could have fantastic success what i'm saying is to get those campaigns profitable and to get them delivering a high roast is much harder than for these local

[13:12] high-end service providers um you're never going to get a 60x roast with a with a ecom business i mean just no chance no chance you're probably really happy with the forex roast a lot of the time that's probably profitable now of course with e-commerce businesses because you're not advertising locally you're advertising to much wider audiences there's the opportunity to scale there and you might be saying yeah but if i just have a local business in my town how can i scale it well you could also then open another one in the next town over another one in the next town over and you could expand that way

[13:41] but but there is scaling can't happen as fast um so there are definitely advantages to to running facebook ads frequencies but what i'm saying is the best results from a roast return on aspen standpoint it's local high-end service providers often things to do with the home or high-end local b2b services where you know like the roofer can pay 250 to acquire a customer if you told a lot of businesses that it's gonna cost you 250 to acquire a customer they'd be like what i could never afford to pay that okay so uh yeah that's what i recommend okay before you go a couple of things i want to quickly mention the first is

[14:17] our facebook advertising services so my company lead guru is a facebook ads agency we create manage and optimize facebook and instagram ad campaigns for our clients and particularly if you're a local service business but if you're an ecom business or any campus we work with businesses across the board and we can certainly work to uh to improve your results and get you great results on the platform and you're interested in working with us you can book a call with one of my team members link is in the video description below free 30-minute call no obligation we do ask that you have a 3k minimum budget because that's we need that

[14:46] to be able to work with you really um so we do ask you have that before you put the call but if you meet that criteria go ahead and get that call booked in and hopefully be working together and helping you improve uh improve your results um if you enjoyed that video please give it a thumbs up comment below to let me know i think people are going to find this topic quite interesting so please pop that in the in the comments if you did what you think about what i'm saying if you've seen the same sort of thing and subscribe to the channel and i'll

[15:11] talk to you guys soon thanks a lot guys bye for now bye

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