So several people hit me up asking me how much to spend on Facebook ads when starting out.
Here’s what you should expect in terms of how much you should be spending and your initial ROIs. I’m going to assume that you’re selling a product at $50. I’m also going to assume you’ve already reverse engineered your marketing funnel and you have somewhat of a proven funnel.
Day 1: If you spend $100 -> expect to make back $50. So youre spending double the selling price of your product. Starting out your ROI is -50%.
Day 2: At this point, you gathered some data and you’ve optimized your campaign. If you spend $100 -> expect to make $75. So your ROI on the second day is now -25%.
Day 3: You’ve optimized your campaign even more. If you spend $100 -> expect to make 100$. Your ROI is breaking even at 0%.
Day 4: You keep optimizing. Now your ROI is profitable at +25%.
This is the general rule of thumb. Use this general guideline when you’re running ads. I see plenty of marketers getting discouraged when they don’t have a profitable campaign running right off the bat. It takes about a week or so to hit a +50% ROI after optimizing every single day.