Does Facebook Advertising Work For Service Providers?

0:00hi guys it's been Heath from lead guru in in this video I'm gonna answer the question does Facebook advertising work for service providers can you profitably generate leads when advertising on Facebook and Instagram if you're a service based business now most people who just use Facebook and Instagram as users as platforms on as advertisers they're obviously see ads quite regularly but most of those ads are going to be for e-commerce products they're gonna be usually a relatively inexpensive product you click through to the ad you go through to the website you purchase that's that's the most common ad you're going to see on both platforms and because of that most people sort of

0:38assume that that's the only type of business that can really have success with Facebook going to come advertising and that those are the only sort of things you can advertise you can't advertise an expensive service you have to advertise relatively inexpensive products that's not the case and in fact I would argue that service providers can have more success than ecommerce companies with Facebook and Instagram enticing and that's because their average customer value is so much higher so if you think we take a couple of scenarios let's say I'm selling a $40 product on Facebook well if it cost me $10 in advertising cost to generate a

1:11$40 sale that's a 4x return on adspend which is pretty good you're doing quite well but let's say for example you're advertised you're offering a five thousand dollar service okay now it's going to cost quite a bit more in advertising cost to generate a customer that's willing to spend five thousand dollars with you because of course is a much more considered purchase so it's not going to cost you anywhere near ten dollars but let's say instead of it costing you ten dollars it costs $500 okay but instead of your customer being worth $40 they're worth five thousand dollars which means your return on adspend the ROI that you get is ten times what

1:55you're putting in so if every $500 you spend on ads you're getting five thousand back as opposed to with the e-commerce model where you're putting in ten dollars worth of cost and getting $40 back for extra time ad spend so we tend to see that from all the different businesses we work with all the different clients you work with we actually prefer to work and we find that but results come from service based businesses service providers because they are rich customer values are so much higher and it doesn't it cost more to generate a service based customer that it does obviously to sell a product but not proportionally so so your return

2:27on adspend is usually better as one of the issues with that is that it might cost five hundred dollars to generate a five thousand dollar client and a lot of service businesses when they first not advertising on Facebook they don't give it long enough so they just sort of put their ads up they spend maybe a couple hundred dollars trying to sell her let's say a five thousand dollar service could be more and could be less of course and they guide it we've got a few leads but no one converted after let's say two or three hundred dollars that's too early you know you should be probably willing

3:00up to pay up to let's say a thousand dollars to acquire a five thousand dollar customer if your average customer value is higher you can pay a lot more in advertising cost to get a new customer through the door and you should factor that into your testing process and and all that sort of stuff and things like that another thing that another reason why people think that Facebook and Instagram enticing isn't really well-suited to service based businesses is the fact that there's no intent now a lot of marketers are talk for quite a while now about you meetings have intent to have success online say for example they

3:36usually focus on Google advertising Google AdWords Google Ads is now called because people obviously searching for the specific service you're looking for and that can work very well I've nothing against that platform but the issue you'll find with that is that all your competitors know that those people have intent and there's not many people in the marketplace that have intent you know it let's say you're a roofer well okay there's a small small percentage of your target market that are searching for roofing services but there's a much much larger proportion much larger portion of your market that know they've got a little issue with their roof

4:12perhaps is a little leak they need to get it fixed but they're not searching with intent right now those people you can get with Facebook and it's gravitating only the people that have intent and actively looking are the ones you're going to get with something like Google Ads because it's a small pool of people and all your competitors know that that's a great audience to go after the cost of advertising to those people it speeded up massively by your competitors it's very very expensive so if you're a service provider and you've run you know Google ad campaigns you may have seen astronomically high cost because for a

4:44very small number you know generate lead cost and then of course convert the people into clients for much much less so does Facebook advertising and Instagram sizing work for service providers absolutely actually think it works better for service providers we see the best return on adspend with the customers that have really high average customer values which are nearly where sales riders that we do with e-commerce companies I would strongly recommend that you give it a go now before you go one thing I'll quickly mention is my Facebook Ads mastermind group so this is my free Facebook group it's full of awesome people advertise on Facebook so

5:36some of them are Facebook ad agencies some of the business owners marketers and companies there's over 9,000 people in this group it's growing all the time and it's a fantastic community where everyone's really hoping each other out so people post questions they get aren't their questions answered by getting me and other experts to do Facebook advertising so if you're looking for better results looking to connect with other people and really level up your game I would strongly strongly recommend that see where you're at enjoying there will be a link in the video description as they're completely free go ahead and join I'll approve the request and we'll

6:04see you in there that's guys bite