Let’s analyze what the initial costs for a beginner to test their first Facebook ad campaign should be. Based on our experience, we will describe the key cost items, explaining in detail the launch process, the methodology for testing advertising materials, and the nuances to pay attention to.
Let us share our observations on minimum budgets for tests: test methods and objects for testing
First of all, let me point out the tools and resources I work with, the sources of purchase, and the amount of resources required.
We prefer to work with US-based authors, following the principles of relevance: accounts from the US require the use of proxies and payment systems from the US as well. Usually, I choose one high-quality PPC link and three to five authors. I buy a separate domain for each account, so I need ten domains for ten accounts in total. The cost of drop domains is about $1 per unit.
Sometimes Facebook starts to interfere with checks, risks, etc. due to various checks and restrictions. In such cases, the problem often lies in low-quality proxies.
Next, we order creatives, although, at the initial stages, it is possible to create them yourself. Custom-made creos show better results than homemade ones. You will be able to observe the difference in the results and cost of a lead between professionally created and self-made ones.
To summarize, to maximize the result by offer and geo, we recommend preparing 10 creatives with different concepts:
- 3 creatives with a medical focus;
- 3 product creos;
- 4 others found through competitor analysis.
An example of a test
We usually use the 1-5-5 scheme, meaning 5 ad units with 5 unique creatives, allocating $10 for each ad unit. Thus, the daily cost per account is $50. Having launched 3 accounts, the daily budget reaches $150.
The minimum amount for tests with which you can theoretically make a profit
To evaluate the possibilities of a minimum budget for a positive result:
It is possible to make a profit even with $50, but there are certain conditions.
First, the choice of geo for testing. It is recommended to focus on Tier 3-4, as they offer the most favorable conditions for beginners with the cost of a potential lead from 0.5 to 2 dollars.
Secondly, the terms of cooperation with the affiliate program. Although they give 25-30%, in practice, it can go down to 12-16%. It is important to take into account the quality of the traffic, the effectiveness of creatives, and the attractiveness of the landing page.
And, of course, you need to make calculations.
If you pay $15 for an approved lead, then with an average cost per lead of $7.5, you will be pouring with zero ROI for 50% of the acquisition. With a lead cost of $3.75, the ROI will be 100%.
With a daily spend of $50 and a cost per lead of $3.75, you can get 13 leads. Of these, 6 will turn into sales with a 50% upsell rate and a bid of $15 per lead, which will bring you $90.
Thus, your theoretical net profit will be $40. However, these calculations are only approximate.
Expanding after testing
You have found the offer, and content, agreed on the increased remuneration and upsell from the PPC, and started expanding your business.
To expand, we use a 250+BM strategy with five ad units. To effectively increase volumes on accounts with high limits, you need to activate all advertising campaigns in the BM. After that, launch the first advertising campaign with a small budget – $2-3 to initially attract the attention of the audience.
As soon as the ads are activated and start consuming the budget, go to the payment section and perform a manual write-off. The filling process should be organized in 1-3-1, 1-4-1, and so on to ensure the best attention. Use only pre-tested content. Then it is possible to launch on a budget of more than $500, but with manual bidding. Set up automatic rules that will disable ad sets that cost more than your cost per lead.
We also recommend experimenting with different content options, and their elements, and paying attention to the customization of calls to action.
A little bit about farm
An account prepared for a campaign plays a key role in its success. When the process of creating such accounts requires excessive effort, time, and resources without any visible return, you should consider purchasing ready-made profiles.
But all-in-all, the choice between creating accounts on your own and purchasing them is yours.
