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Mar 12, 2018

Are you a Facebook ad newbie and not sure how well your ads are performing?

One way to know if your ads are performing well (or not well) is by looking at your costs to acquire a customer.

In other words, the cost per acquisition (CPA) is how much it costs to get one person to sign up to your course, purchase your product or whatever your final objective is.

======= Calculate Your Ideal CPA ======

But first, answer the following two questions to calculate your *IDEAL* CPA.

1) What is the value of your customer? Estimate how much each customer spends on your products / services.

2) What percentage of that value are you willing to spend to get that customer? 10% 50% 100% ?

For example, if an average customer spends $50 on your products, what percentage of that money are you willing to give up to get that customer? That is your ideal CPA.

====== Monitor Your Cost Per Result ======

Let’s say your ideal CPA is $5. Start running your advert and look at the Cost Per Result column in your Facebook Adverts Manager..

>>> If the value is $10: STOP the ad. It’s not working
>>> If the value is $2: CONTINUE with the ad. It’s doing great.

>>> If the value is just a little above your ideal cost such as $6: TWEAK the ad by changing the image or editing the text until the Cost Per Result comes below your ideal cost of $5.

You can now start running multiple ad-sets with different images and text, using this method to TEST which advert combinations work best.

***Run with the winners and drop the losers***

The more money you can spend on customer acquisition, the better! You can make more money, scale faster and beat your competition.

(Please note, if your ad doesn’t lead directly to your core offer, you will have to do some extra maths to work out your ideal CPA. For example, if it takes 100 people to sign up for your webinar to get one customer, you can calculate your ideal CPA by dividing the amount of money you’re willing to spend to get a customer by 100 first.)

May Allah bless you with success in your ads, your business and everything else...

Nabila S Ahmed 

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