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Today I want to talk about the verbiage “allocating your monthly ad budget”. How much should you spend and what kind of ads should you spend it on?
Who should, well not necessarily who should you be targeting, well yes -Who should you be targeting? We’re going to be talking about it. There is actually a breakdown,
I have a formula for you and I have details for each of those formulas.
How should you be allocating your monthly Facebook ad budget?
Alright, so how should you be allocating your monthly Facebook ad budget? What kind of ads should you be running?”
First of all, when you have your Facebook ad budget, this is going to be unique, this piece is one kind of gray areas that is going to be unique for each person. So that gray area is how much you can budget each month. Okay, so that will be different for each person.
Some of us are bootstrapping this, some of us are starting out with “I can afford $1 a day and that’s stretching it,” okay that’s great!
Some of us are like “Dude, put $500 a day into it” or “I want to spend $500 a day” so one of the things that’s always talked about in my Mastermind, well not always but we talk about it in my Mastermind, is if we want to get this kind of revenue, this kind of money, how much should we be putting into Facebook ads? We are figuring out a formula for us.
Now for real estate agents, we don’t know that formula because most of us don’t track our numbers. We don’t go okay this many ads gets this but what you can do is, you can work backwards.
How much is a typical transaction gross to you, minus your expenses, how much does it cost to get leads, all of these things. What is your conversion rates? You need to know your conversion rates so you can go backwards and see what those numbers are.
So today we are actually going to talk about, let’s just say you have a budget, and I am going to use a budget of $100 a month as an example, because it makes it really easy for me to do the math like that in my head.. I am going to give you percentages you can use that will work the same.
60% of your budget needs to go out to cold traffic
First of all, allocating your monthly ad budget, 60% of your budget needs to go out to cold traffic, okay? Cold traffic, people who have not liked your page, they’ve never engaged on your page, they’re not on your email list, they are completely unmixed, you have zero connection with them.
30% of your ad budget to warm traffic
30% of your ad budget to warm traffic and that is your page like, people who’ve already viewed stuff, audiences, website audiences, your email audiences, that’s warm traffic. They’ve had a little bit of a connection with you.
10% of your ad budget needs to go into retargeting
Accordingly, 10% of your ad budget needs to go into re-targeting. Very specific re-targeting, if someone landed on a search page on your website, then you would re-target them with seller specific stuff or buyers specific stuff. If they landed on the CMA page of your website, you would re-target them with seller specific stuff. That is re-targeting.
Put the bulk of your budget into cold traffic
So you need to put the bulk of your budget into cold traffic and let me explain this again.
60% of budget, it’s local, ideally it’s a homeowner and they are unconnected to you in anyway. That 60% is cold traffic.
The next one is warm traffic, 30% to a warm audience, that’s your engagement audience, your website, your email, your videos, your likes, things like that.
Then like I said, 10% retargeting, specific pages on your web, like they visited specific pages on your website and you’re doing follow up or they’ve responded to a specific opt in and you’re doing follow up.
So most of us will be focusing on that 60% and 30%, the 10% is for really more advanced stuff as you get going, as you get your whole system going.
Right now, let’s focus on that 60% cold traffic and that’s where you’re going to be running your post engagements that I talk about, that’s where you’re going to be posting page like ads.
You will be running some opt-in ads, but really those opt-in ads should be going to your warm traffic, so that’s where you should be going.
One of the big things is you want to have at least,is to know if your ads are doing well, if your page is doing well, you need to have a page reach over the last 7 days of at least 3x your page likes.
If you have 0 page likes you need to have at least a 10,000 reach through your post and your ads. I know some of this is beyond what a lot of you know, we go into this inside of Leads and Leverage. It’s like impossible for me to go through them right now, but those are some numbers if you have an inkling of what’s going on those are some numbers.
Again, number one- cold traffic 60%, number two- warm traffic 30%, and number three- retargeting traffic 10%.
Alright, so this is a super short post.
I gave you those numbers, and I walked through what they mean.
If you have questions, when you have questions, ask them in the comments below.
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