Dave Churchville – Making Facebook Ads profitable for your SaaS – MicroConf 2017 Attendee Talk

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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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