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• What I learned the hard way
• 4 or 5 different SaaS businesses
• Tried a lot of things. Failed at many of them!
• STOP. DO THIS NOW
  • Add the FB pixel to your site now
  • This will pay for your conference ticket
  • It’s free. It doesn’t slow your site down. Do it
• “Facebook Ads didn’t work for me”
  • -Everyone after the first try
• Can FB ads work for my business?
  • For most people, yes.
    • If your market is reachable.
      • If your market is 50k+ peoplethey’re in FB.
    • If you charge enough
      • $9 product? That’d be tough. $50 price point? That’s enough
    • If you apply the M.A.P. formula and iterate
• M.A.P. formula…
  • Making. Advertising. Profitable.
  • AOV / Average Order Value > 2x Cost Per Acquisition
    • AOV: How much do you make on initial customer sale? (Not lifetime value. Just initial purchase)
    • Example SaaS. 50% on Plan A, 30% Plan B, 20% Plan C
      AOV = (.5 * $20) + (.3 * $50) + (.2 * $100)
  • CPA / Cost Per Acquisition
    • Cost per click (CPC)
    • Landing page conversion rate (CR-LP)
    • Sales conversion rate (CR-SALES)
    • CPC * CR-LP * CR-SALES
  • Be wary of using lifetime value – when you start out you don’t know that customers who come through FB ads have the same LTV as you’ve seen in the past
  • If CPA is too high, how can you reduce it?
    • Calculate what CPA do I need to make this profitable (AOV / 2)
    • Use Facebook Newsfeed ads, not the other kind
    • Audience of at least 50k
    • Use “website conversions” as the campaign goal
    • Ad optimization
      • Targeting (audience)
      • Offer (marketing hook – what will make them stop looking at cat pictures)
      • Click through rate (images, headlines)
      • Relevance score (congruence, engagement)
    • Targeting ideas
      • Target more specific audience (to improve CTR / conversion)
      • Retargeting - target people who have been to your site (which is why you need the FB pixel)
      • Lookalike audiences (people similar to my existing customer list)
    • Optimizing your funnel
      • Offer types
        • Gated / free content (cheat sheet / template checklist / contest)
        • Loss leader (free book + S&H, lifetime offer, “Slice”)
        • Free trial / preview (retargeting). There’s no trust yet
        • E.g. “Free 20-video course” landing page
    • Work to get CPC to be less than half of AOV
    • If 9/10 trials don’t convert, adding 1 more conversion doubles your profitability
  • http://usermentor.com/facebookads.html

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