How to Advertise on Facebook (Part 3 of 3)

Alright, here it is… Part 3, and the final part in the series on How to Advertise on Facebook..

If you have not yet listened to Part 1 or Part 2, you should probably go back and listen to them now. They are already loaded up and they’re ready for you to enjoy and get a lot out of.

You COULD listen to this one first.. It won’t totally throw you off, but the other two episodes in this series are filled with other helpful stuff about running an AD on Facebook.. Because you’re listening to this now, I’m sure you’re going to like them also.

This part, (Part 3) will answer such questions as..

“How much should I spend?”
“What should my target cost be?”


And a whole of other stuff related to Budgets with Facebook Ads, and also.. I’m going to talk about the results of your Ads. After they’ve been running for a 48-72 hours.

Let’s first talk about Budgets. Here are 4 Rules I suggest you pay close attention to..

Before I jump into the rules. I want to seriously warn you that it’s unlikely you will get it right on your first few goes. You must be prepared to lose some money. No one get it’s perfectly profitable on their first go. How much you will lose will depend on your appetite. Just make sure you learn from your mistakes in detail so every time you try again, hopefully you’re one step closer to the winning formula.

So listen to this episode and all episodes knowing that there are no guarantees.

Here are my 4 Rules with Ad Budgets on Facebook..

Rule #1

If you’ve never sold the product or service before away from and outside of Facebook. You’ll be a little disadvantaged because, you don’t know how much it costs to advertise your product and get a sale ANYWHERE. Therefore you don’t have anything to compare it to. So Rule 1 is… if you haven’t sold your product or service before… be prepared to grit your teeth a little more while you figure out what you should be spending to get 1 sale.. Or 1 sign up.. Or 1 of anything that your target is.

Rule #2

It takes Facebook some time to feel out your audience.. And search for people who who are most likely to buy your product, based on their previous behaviour on Facebook. Every time Facebook shows your Ad to someone… it learns from it. Did the person look long, or quick, or ignore it all together. Did the person click on your Ad. go to your website and read more about it?  And of course… did the person sign up or buy whatever it is you’re selling?

Facebook will put these different people into different groups behind the scenes.
I believe that.. Contrary to lot’s of people’s belief that..  Facebook will try and give you the best results based on your budget.

Rule # 3

Be patient, and be prepared to give facebook 72 hours to try and find your best customers. This might mean that the first 72 hours are a total whitewash in terms of your budget.. And remember.. There’s no guarantee your ad, or any ad will work. If after 72 hours, there’s no good results.. Record that Ad in your “Never Use Again” pile. Each time you write an ad, and launch an ad, you’ll get better and better at it.. And closer to the dream of profitable ads.

Rule #4

Your budget will change depending on the price of the thing you’re selling. You will tell Facebook.. Each day you can spend $50. Or $100, etc.  If you’re a restaurant owner for example.. And you’re trying to attract more people to come in and try your awesome food… it’s a more easy sale. Because, everyone eats food.. And lots of people like trying new restaurants.

It’s not a “hard sell”, you wouldn’t need to spend $500 , or $200, or $2,000 to get 1 person to bring their loved one in for a Dinner of 2… Right?  Make sense?

But if you’re a home builder… and you’re selling New Homes.. That’s a much bigger sale. There’s LESS people eager to do that at any given moment.

There’s a lot more people who will eat dinner tomorrow night… than there is people who will buy a new house tomorrow night.

Of course, it’s relative… the revenue and profit is more for a house. My point is.. You’ll need to spend more to get someone to agree to having a new house built, than you will to trying out your restaurant.

Alright, that was the basic overview of the Budget Rules for Facebook Ads. I could talk for 2 hours on that one topic alone, but I’m just keeping it short for this podcast.

Let’s move into the RESULTS section.

What do the results mean, when you look at your ads after they’ve been running for a while?
I won’t go into the terminology and acronyms that you’ll see on Facebook.. Because you can just hover your mouse above it to get a description of what it is.  For example… CPC  means Cost Per Click… how much it costs you, every time someone clicked on your ad.

If you’re new and you don’t know that stuff.. You will see it as you go along.

I’ll focus more on the principles of your results, which is more important anyway, I believe.

Here are my 4 Rules for Reviewing Your Facebook Ad Results..

Rule #1

When you’re starting out.. You want to focus on just 1 thing… just 1. Don’t be tempted to look at all the other lines of info you can look at in your reports. You just need 1 thing…

Your Return on investment. That’s it. How much money did you spend, and how much money did you get back. Everything else is secondary to that main result you need to watch.

If you spent $100.. And got $0 back. Change your Ad , Change your Offering / your deal, Change your Message … don’t worry about the other results like CTR, CPC, etc. You can look at that as a Phase 2 after you’ve found what product gets the best result. And the best result might only be.. Spend $100 and get $50 back… but, at least then you’re on the right track.

Rule #2

Be prepared to not make a profit on Day 1. Lots and lots and lots of companies… do not make a profit until 60 days down the track…

Meaning, to get 1 customer from Facebook… it might of cost them $100 to get… and the 1 customer only purchased something for $50 when they first responded to the ad on Facebook.. .. so they are $50 behind… But what happens 2, 30 or 60 days later… when that customer buys again.. And again. That is often the only time the business will draw a profit from that original cost of winning that customer.

This is not uncommon. And, it’s one of the big reasons why people fail with business. Including online and offline. They don’t see the big picture… and they don’t play for the long game. They will keep trying 40,000 different ideas and strategies to be rolling in cash within 2 hours of launching their latest campaign… and they’ll ignore the handful of ideas that got them to the break even point…

Break even is great.. Break even means you can win countless customers… and you only need 1 of them to every pay you another $10.. For you to be profitable. SO imagine what happens when 40-60% of them.. Become regular clients of yours.. And they cost you nothing to win over in the first place… See what I mean?

Rule #3

Never rest on a good enough result. Ads get old and stop working, but even during “dream runs“ when you’re spending $100 and getting $200 back and you’re so happy because it turns out yes you really are a genius just like you knew you always were.. You should still be testing new ideas and getting more of these dream ads up and running.

Nothing lasts forever, so find the winning ad before you need it.

Rule #4

Facebook wants to spend your money. If your daily budget is $100… and at the end of 2 days… Facebook has only spent $30 out of the $200 it should have… it means your Ad did not win in the minute by minute Auction, that is Facebook Ads.

So you might need to consider increasing your Bid.. and your Ad will outbid other ads to be shown on people’s phones and computers.. Rather than being beaten 95% of the time and rarely showing up… because that’s how it works. Whichever business bids more for that tiny square of space on that 1 persons phone.. Will have their money spent.

The other thing to consider is a more attractive ad. The more people that like your ad and click on it, and generally interact with it… to ‘learn more’ etc, the more Facebook will show your Ad.. and therefore your budget will be spent.


As far as a introduction and the basic principles of Advertising on Facebook goes.. I think we are done!

How did you like that?

Did you learn something?

I didn’t go into the How to, .. the click here, click that.. Because 1) I think you can learn that yourself. 2) it would be too long and too difficult to explain in a blog post.

If you liked this 3 Part Series on Facebook Ads.. and you want more,  you’ll love the book I wrote on Facebook Advertising, and you can get it for free. The book touches on these same topics BUT it goes into several others, and goes into more detail across the board..

The book was written and designed so you could go from Never having launched an Ad on Facebook to actually doing it..

And it also takes someone from having tried and failed.. To showing them a roadmap on how they could get Facebook’s ads profitable.

And here is something very cool for you.. if you want to learn MORE about Facebook Ads, here is a way you can get a free copy of my book called ‘ How to Get Facebook Ads Profitable – Even if you’re new, or if you’ve tried and failed before. To get your free copy, just go to

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