# Minimum Facebook Ad Budget? Here's What I Think...

Channel: Ben Heath
Video: https://www.youtube.com/watch?v=fDvazaXXvfs
Duration: 9 min
Language: English
Words: 2012
Transcript page: https://viewrankai.com/tools/youtube-transcript/fDvazaXXvfs

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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 your minimum Facebook ad budget. What's an acceptable and appropriate minimum Facebook ad budget? Something I get asked about all the time, particularly with new Facebook advertisers. So I'm going to cover some some things around what I would recommend and and also how you should think about a starting Facebook ad budget and how that should change as as time goes on. Before I get into that, I just want to very quickly ask you to smash that like button. Please click that thumbs up button and of course subscribe to my channel if you are new

[0:29] and haven't done so already. So I'm in an example Facebook ad account right now and I'm at the campaign level in an example campaign. Um if you follow my stuff, you know I'm a big fan of campaign budget optimization, so I'm usually setting budgets at the campaign level, which is what you can see right here. If you're not familiar with campaign budget optimization, I'll include a link um in the video description below to another video that talks all about that and how

[0:50] to use it and all that sort of stuff. Okay. First question to sort of address is is it okay to start with a really small budget? Now I've put in here £5 a day, you know, could be $5 a day, something like that. Could you start with that sort of budget? $150 a month. And the answer is yes. You can start with a very small budget. The most important step to getting good at anything, Facebook advertising, like anything else, is to get started, to get your feet wet, to give it a go, to make mistakes, to learn, all that sort of

[1:20] stuff, right? So actually you can start with a small budget, but don't think that a budget of £5, $5 a day, something like that, is going to do incredible things for your business. A £5 a day, $5 a day budget is for testing. It's for experimentation. It's very very unlikely to be a needle mover

[1:40] for your business. And that's because you just have to think about how any sort of marketing uh platform, any advertising platform like Facebook works, right? A 10x return on ad spend is really good for most businesses. Now some businesses, particularly service ones with high average customer values, achieve a much higher um ROAS than that, return on ad spend. But, a 10x ROAS, 10x return on ad spend, is is is pretty good, right? For a lot of e-commerce business, it'd be very good. If you're spending $5 a day, and you're getting a 10x return on your ad spend, you're generating $50 a day in

[2:13] revenue. For the vast majority of businesses, even if it's just you, it's probably not hugely exciting. $1,500 a month in revenue, you've got costs coming out of that. I can't imagine you'd be very excited by that. I certainly wouldn't be. So, you need to keep that in mind. Now, if you run start running a campaign on $5 a day, and you are seeing a 10x return on ad spend, you should be very excited, not because of the money that that's generating, but the fact that you can very quickly and easily scale that budget. And if you're already generating a 10x ROAS at a $5 a day budget, you

[2:46] should be able to generate really very good results with them with with higher budgets that actually do mean something. Instead of generating $1,500 a month in revenue from it, you could be generating 10, 100 higher than that, times that. Um these things are are certainly possible. So, it When you get started, you need to think about this. It it it's the most important thing is not necessarily the

[3:09] number, it's the mindset. Right? So, I've given a $5 a day as a minimum that I think is appropriate to start with. Um to sort of the average person who's perhaps got a one-person company, um doesn't have much money to play with potentially, certainly where I started. And I don't think that'd be a terrible

[3:29] place to start. Bearing in mind that that's for testing, you need to work it out that it works at that level before you then scale, etc., etc., as I mentioned. But, of course, your starting budget, or your minimum budget, should depend somewhat on your circumstances. So, what I would always recommend is that you start with something small, start with something that you can afford

[3:49] to lose. No one should ever go broke because of a Facebook ad campaign. You should not be spending your rent money, your whatever on a Facebook ad campaign. Don't do it. Um but you equally need to spend something that actually means something to you. So, I I mentioned $5 a day minimum. There are many people and many businesses where $5 a day, um $150 a month means absolutely

[4:16] nothing. There's no point them doing it. They're not even going to bother checking it. It's just not interesting. You know, a business of any sort of size is just not going to mean anything to them, right? If you've got a seven-figure business, even spending, you know, $50 a day is almost certainly going to mean absolutely nothing. So, you need to start with a number that you're actually going to care about, that you're going to check. You know, if I ran a $5 a day budget,

[4:40] I'm just I'm not interested. It's not even going to bother me in the slightest, okay? I have to spend something that means something because if it means something, then I'm going to go and put time and effort into improving the campaign, into working it out, into doing all these various things. So, you for a minimum budget, you're looking at that sweet spot where I can afford to lose it. It's not going to hurt me if I lose it. I'll be absolutely fine, but I'd rather not lose it, and I do care about what I've invested, okay? So, perhaps for a small business, that might be, you know, $300

[5:09] a month. You might be like, I can afford to spend $300 a month. And let's say you set aside 6 months worth of budget to test this and make it work. So, you've got $1,800 as your budget over a 6-month period and going, I don't want to lose $1,800. No one wants to lose $1,800, but if I do lose $1,800 over 6 months, it's

[5:26] not the end of the world. And that might be an appropriate starting budget. $300 a month would obviously be double $5 a day. It'd be $10 a day. Um but that might be an appropriate starting budget for someone to go with that I as as I mentioned meets that sweet spot. And of course, no one wants to lose the money. When I'm saying it needs to be something you can afford to lose, you're thinking, "But, am I going to lose the money?" You may do. You may not set up campaigns right. It may not land with your target audience. There's all sorts of reasons why you may lose

[5:53] that. And it's important to go into a budget decision with that in mind, going, "I could lose this." Now, a lot of people balk if I say, "Look, you might lose the $1,800 over the next 6 months testing." Like, they'll think, "Oh, okay. Well, I won't do it then." You go, "Yeah, but you got to think about the risk versus reward

[6:09] here." Um is it worth the risk of losing $1,800 to test an ad platform that could be a consistent generator of clients and customers for your business? In the vast, vast majority of cases, the answer to that question is going to be yes. It's absolutely worth the risk. It's still a risk. You could lose it, just like any marketing venture. Could

[6:32] always lose the money. Um but, is it worth it? I would say so. For the vast majority Provided you can afford to do that, I would say for the vast majority of businesses, it's absolutely worth the risk. Because if you come out of that 6 months with an advertising platform, a marketing channel that can consistently and reliably generate customers for you, it's going to be worth many, many, many, many times what you've what you've

[6:54] invested and what you've risked there. So, certainly worth doing, but that's that's what I wanted to to discuss. So, just a quick recap. Yes, you can start with as little as $5 a day. That is okay. Just be aware that's for testing. That's not going to do anything for your business long term. You will need to scale. And then, try and find a minimum budget that's appropriate for your circumstances. It should be something you can afford to lose. It should also be something that actually means something that you're not just don't care about. Try and find that sweet spot for your business. You know, you could have a really large budgets

[7:24] where maybe that's maybe that's $1,000 a day. You know, if you've got a a seven-figure, eight-figure business, you could be thinking, well, I you know, not seven, it'd be more like eight figures plus eight-figure plus business thinking, yeah, $1,000 a day, anything less than that I just don't care about. It could be as little as $5 a day. It depends on your circumstances. Hopefully that's been useful. Before you go, couple of free things I want to quickly mention. The first is a free webinar I've created called three killer Facebook advertising strategies to double or more your revenue. And in this webinar, I break down the three sales

[7:53] funnels that we use for our clients all the time that deliver fantastic results, very much tried and tested. And I show you them in detail. And I show you which one you want to use depending on your products and services. Very, very important point that a lot of Facebook advertising experts don't talk about enough is that you can't have a

[8:08] one-size-fits-all funnel. You need a different approach for e-com than for service businesses. You need a different approach for a $10 product versus a $600 product. So, I talk about all that stuff in that webinar, completely free. Link is in the video description below. I'd strongly recommend you go ahead and check that out. Other free thing I want to talk about is my Facebook Ads Mastermind Group, which has just under 60,000 members, one of the biggest communities of Facebook advertisers in the world. An amazing place full of people just like you trying to get better results with Facebook Ads. They're asking questions, getting them answered. I do free live

[8:40] trainings in the group um regularly. So, that sounds like something you want to be part of, we'd love to have you in there. Go ahead again, click on the link in the video description below. That'll take you through to the group. Um request to access, you'll be popped straight in. We'd love to have you in there. And I will uh see you on the other side. If this video's been useful, please give it a thumbs up. Please um comment below to let me know, that's always appreciated. I'm not able to answer all the comments anymore. Um there are that many coming in, which is fantastic. But, I do see them all. So, I

[9:04] will see all the comments coming in. I will I do do my best to to answer as many as I can. Um subscribe to my channel if you're new. And uh yeah, best of luck with your Facebook ad campaigns, guys. And I'll talk to you soon. Bye for now.

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