The following is an excerpt from The Conversion Code. Order now to receive exclusive bonuses.
Your specific business goals and access to resources should dictate the mix of ads, marketing, and brand plays you deploy. In most cases, here is a good way to think about what each option produces:
• Ads can get you a high volume of leads that are cold.
• Marketing can get you an average number of leads that are warm.
• Brand can get you a small number of leads that are hot.
So, for example, if you have a lot of people on your team who need leads and you have the right systems and processes in place to properly follow up with them, which is required due to them being cold, ads make perfect sense.
If you are only interested in high-quality leads that are easy to convert, you should invest more in building your brand, but do so being okay that your lead volume will below.
When compared to ads or brand, marketing falls somewhere between the two. It won’t get you the most leads, but it won’t get you the least leads. It won’t get you the hottest leads, but it won’t get you the coldest leads.
Here is how I would advise you to think about your overall approach to budgeting. You need to allocate money for ads, marketing, and branding. The percentage you put into each one should be based on the overall size of your budget:
• A small budget would be 50% ads, 25% marketing, 25% brand.
• A medium budget would be 33% ads, 33% marketing, 33% brand.
• A large budget would be 50% brand, 25% marketing, 25% ads.
If you are serious about making Facebook ads (or any other paid channel) a consistent driver of customer acquisition, you need to have a decent and ongoing budget.
For some perspective on calculating your total marketing budget, keep in mind that the average business invests 13% of their revenue back into their marketing. If you are growing fast and have good margins, feel free to go higher. If your net profit is low, you may need to reduce the percentage you reinvest.
Make sure your budget and content creation plan includes stuff built for your sales team to use. Companies that spend more than $2,500/year on content specifically for salespeople have a 17.3% higher close rate than companies that spend less than $500/year.
Another, less scientific, way to determine your budget would be to ask yourself, “What is a monthly budget that I can afford to lose but commit to for a year to see how this goes?” It’s a lot like a trip to Vegas or investing in NFTs: even though you might hit it big, you have to be okay with losing every single dollar.
If you need an ROI immediately, you’re going to end up quitting before the plan starts to click. Don’t get me wrong; you can get leads and customers today with Facebook ads just like you can burn calories and build muscle today by going to the gym. But you aren’t going to get in shape (or build marketing funnels that work) without consistent commitment.
Winners are willing to lose before they win. They’re willing to invest, lose, and learn. Thankfully, you won’t lose nearly as often by using The Conversion Code as a guide.
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