# Facebook Ads NOT Profitable? Do This... Channel: Ben Heath Video: https://www.youtube.com/watch?v=pZqdkZM7Bqc Duration: 10 min Language: English Words: 2092 Transcript page: https://viewrankai.com/tools/youtube-transcript/pZqdkZM7Bqc --- [0:00] hi guys it's ben heath from lead guru and in this video i'm going to talk about what you should do if your facebook ads are not profitable if your campaigns are not delivering the results you need them to do for you to continue running them for you to scale them what should be the thing that you do what should you test that's exactly what i'm going to talk about in this video before i get into that i just want to very quickly ask you to smash that like button and subscribe to my channel if you are new and haven't done so already i release facebook advertising related [0:25] content all the time and this video being an example okay so let's um i'm an example facebook ad account here and let's say i've got a i've got a draft campaign new conversions campaign and it hasn't got any results because it's in draft mode and this is for demonstration purposes but let's say you come into your ad account and you know you're looking at things and you see your results it's you calculate your cost per conversion or maybe you've got a different campaign objective but you've got a cost per conversion you go through and you work out okay i'm costing this much in advertising to get a new customer [0:55] my customers are worth this much to me once i factor in cost of goods or costs of delivering the service you know what i'm about to describe applies to both product-based and service-based businesses and online businesses as well of course um it's just not profitable you know that's what this video is for it's people that have campaigns that are delivering some results it's not just it's just not doing it well enough and if you're delivering just zero results nothing i've got a different video you should go through i'll include a link in the description but if your campaigns are delivering some conversions some purchases some leads but just not [1:24] enough and they're not profitable as a result and there's a number of things you can test to help improve that scenario there's one i'm going to focus on and before i get into that a lot of people will test things like um new ad creative new targeting options landing pages and those things are all great don't think that you just have to test what i'm going to talk about in a second you can test all that other stuff and go about improving them and isolating the variables and improving those over time is how you deliver fantastic facebook ad results right but the quickest and most reliable way [1:56] to go from a campaign that isn't profitable to one that is is to increase your average customer value increasing average customer value is such a underutilized strategy that people don't often think about in terms of their facebook advertising because they put facebook advertising in their in a box right and to get better facebook ad results you need to be working on your targeting options and your ad creative and your copy and just in facebook things but that's not true i'll give you an example to help explain why increasing average customer value is so important let's say you're selling shoes and you're selling a pair of shoes 50 [2:34] let's assume that it costs you thirty dollars cost per customer required so your cost per purchase is thirty dollars so your advertising cost is thirty dollars you're generating fifty dollars in revenue once you factor in um the cost of the pair of shoes to you the cost of sales perhaps of distribution costs and things like that almost certainly isn't profitable okay however if you were to say sell a bundle of four pairs of shoes for 200 maybe you offer a little bit discount but just for argument let's say two hundred dollars it's not going to cost you four times as much in advertising costs to acquire [3:09] that customer so it's not like your cost of customer required is going to go from 30 to 120 it might go from 30 to 60 or 75 okay something like that and obviously there are exceptions to all this but in general that's what we're going to see and that's very interesting because when you work out the numbers you go okay 30 to generate 50 or let's say 75 to generate 200 or 75 to generate 200 is clearly the much better option and the the difference there is the average customer value provides much more revenue but getting more money out of customers often doesn't lead or doesn't come with [3:50] a proportional increase in your cost per conversion of cost per purchase it's why the best performing facebook ad campaigns in the business to see the best results for facebook ads are basically always high-end service providers you know it's a kitchen designer that charges fifty thousand dollars to design and install a kitchen because that that uh business won't think anything of spending five hundred eight hundred dollars to acquire a customer they're like yeah sure easy they can easily afford to do that because they make so much from the customer now i'm not saying you should just you know tear up your business and go with high average customer value [4:23] businesses although that may be something you want to do but there are ways that you can increase your average customer value um as a business owner right now just almost straight away things you can you can do so obviously there's lots of things that are talked about in this in this space you can offer upsells so when someone buys something you can try and get to buy something else either through a one click upsell system you can remarket people um to get them to buy again and again and again and these are things you definitely want to be doing but i think one of the quickest and [4:51] easiest ways to increase average customer value is to take whatever it is that you're currently selling and make it into a bundle of other highly related stuff so i gave the example of shoes right um i could sell one pair or i could just sell four pairs you know as the bundle offer or perhaps i could sell three pairs and six pairs of socks you know there are almost certainly this products and services products and services that are highly related to what it is that you're trying to sell that you could add on that would be useful and helpful for your customer but massively increase your average [5:29] customer value and maybe stuff that let's say once they bought the pair of shoes maybe someone needs to buy another pair anyway or another pair of socks or you know let's say you're selling you know let's say the shoes that you're selling are for soccer they're soccer boots right um well what's that person also gonna need they're gonna need shin pads and they're gonna need long socks and they might need um a top they might need a ball they might need all sorts of things right that you could quite easily bundle in so i would very much encourage you to take some time and think about what is it i'm really [5:59] trying to sell what else that's related to that product or service do my customers need like if you're an accountant could you also sell you know and you're doing wanting to do year end tax returns could you also sell bookkeeping services could you also sell um some sort of admin services could you sell like remote receptionist services could you sell some legal services and in order to offer these things in addition you may well need to partner with other businesses or find other suppliers to supply with this stuff but if you can increase your average customer value from 50 to 200 or increase your average customer value [6:39] from 350 a month to 600 a month that could be the difference between your campaigns being not profitable or kind of okay just about doing all right and being incredibly profitable you can spend ten times as much acquire many many more customers and have a much more successful business there's there's very rarely a setting change within the facebook ad platform that's going to produce a you know a 3x improvement in results let's say you've got a 2x row as we change one thing and it goes to a 6x4 os almost never happens unless you've got campaigns that are set up poorly and there are big mistakes made [7:13] which sometimes happens but but it's rare right the campaign's set up well um it's very rare you're going to get that jump but you can do it with average customer value very much so you can very much 3x your average customer value and that result in at least three times better results because as i said the cost per purchase cost per lead cost per conversion is unlikely to increase to the same extent you know let's say the kitchen design at fifty thousand dollars we might be able to generate leads for fifty dollars each okay if we were selling a you know car washing services for thirty dollars um it's [7:51] let's say twenty five dollars because the math is easier it's not like we're gonna then be generating leads for 40 cents just not gonna happen right um it's not proportional to sell that 25 car washing services you might still be paying you know five six seven dollars a lead way that's way way closer to fifty dollars a lead than the revenues are twenty five dollars versus fifty thousand okay so hopefully that makes sense increase that average customer value and that is the first thing i would do first go to is to get that average customer value sometimes you can just increase price as well that's worth noting [8:27] sometimes you can just increase your price if you're charging too little you don't want to become uncompetitive of course which is why i'm a big fan of the the bundling option it's not like particularly if all your competitors aren't doing it because your customers are going to find it more difficult to price shop so if you're selling you know not just a pair of soccer boots but also socks and you know something they can just look at your soccer boots and go okay they're 70 pounds versus this other company that's selling them for 62 i'll go with those um but if your whole bundle is 110 [9:02] but you've also got as i said chin pads socks shorts three tops and you know it's much harder to compare pricing okay hopefully that's been useful right before you go a couple of things i want to quickly mention the first is our facebook advertising services so my company lead guru is a specialist facebook and instagram advertising agency and we create manage and optimize campaigns for our clients so if you want better results with facebook ad campaigns we can almost certainly help you get there we do have a minimum budget requirement of 3k per month um if that's like something you're you're either at or very much [9:34] close to getting to and you're interested in our services you can book a call with one of my team members below just go ahead and click on the uh link in the video description that will take you through to a page on our website you can just book a slot straight into into the calendar that works for you and no obligation we can just find out what it is that you uh are looking to achieve see if we can help we may well have worked with a business like yours in the past um we often have and um and yeah hopefully we can help you move forward [9:59] and upwards um if you found this video useful please give it a like please subscribe to my channel if you haven't already and of course comment below to let me know comment below with your questions with your thoughts i'd love to see all that sort of stuff um and uh yeah i will talk to you guys soon thanks a lot guys bye for now --- About this transcript Read from YouTube's own caption track and laid out by ViewRank AI (https://viewrankai.com). 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