Transcript
Hey, how’s it going? It’s Chin Gregory. And in today’s video, what I’m going to share with you is how we were able to slash one of my client’s lead costs by 99%. So what it was costing them to acquire a lead, we were able to slash that cost by 99%. I’m going to show you exactly how we did that in today’s video. But first, if you could go to learnwithchin.com. That’s where you can schedule a free strategy session with myself, where I will help you develop a Facebook marketing campaign for your business that will significantly grow your revenue. So if you’re interested in doing that, just go to learnwithchin.com.
Now, when it comes to Facebook ads, my account managers, who were the individuals in my business and my agency that managed Facebook ads for my clients, I like to give them a lot of responsibility. And especially when they’re starting out, when they’re brand new, because the way that you get really good at Facebook and generally the way you get very good at anything is being exposed to lots of different variables, lots of different scenarios, and being able to make mistakes. And so we had a new client and this client had just been onboarded and their objective was to get lots of qualified leads for that business. That’s what we were doing for this client. And so one of my ad managers was working on this account and they ran the account. We’ve been testing for the first couple of days, and we’d spent $312, zero leads, right? Complete [inaudible 00:00:01:28].
So I looked at this. I do a few review with the account manager and I looked at it and I said, all right, as I was about to write out an entire long response of, “Hey, this is what’s wrong, you should change this.” I wanted to give the account manager an idea of figuring out himself. I just wanted to give him an opportunity to figure out exactly what was wrong himself, because that’s the only way he’s going to get better. So rather than writing out this long response, I said, “Hey, look, we spent $312 and got no leads.” And a lot of you listening to this have been in that situation yourself before where you’ve tried some type of Facebook advertising. You’ve poured money into it and it just had no results. And that happens a lot. But the important thing is how do you come back from that? How do you fix that? And how would you steer the ship back in the right direction?
So I said to my ads manager, I said, “Look, okay, this didn’t work. What we just did here with these Facebook ads, it didn’t work at all. We spent $300 and we got zero leads.” And so rather than write out a long breakdown of what you should do, I said, “Hey, go take a few hours and then come back to me and give me some recommendations on what you think we should do to fix these campaigns.” And if you understand what he put in, the recommendations he gave versus what should be done, you’re going to be in a very, very strong position to always know why your ads aren’t working, how to fix them really, really quickly.
So he came back and he was like, “Um,” and he laid out these recommendations and it was everything along the lines from changing the ad set, changing the bidding strategy, different audience targeting, different headlines, different copy, all stuff that was really, really good best practice when it comes to specifically running Facebook marketing. Right? And he’s been well trained. Obviously I trained him myself. He’s been well trained in knowing the nuances and ins and outs of Facebook ads. But as he gave his recommendations to me, I said, “Look, these are great recommendations, all right? These are great recommendations for fixing the ad if the problem was the ad.” So I said to him, “Look, go and think big picture, think big picture why this isn’t working, not so much granular as in what’s not right with the ads.”
So you went back and he went and looked at it big picture. And he came back and he said just one sentence to me. He said, “The value proposition is wrong.” Bingo. And this is where you always want to start with your Facebook marketing. If your ads aren’t working the way that you want, before you go in and start trying to change something to do with the Facebook ads themselves, almost nine times out of 10, I’d say 99 times out a hundred, it is a value proposition issue. Which means that the value proposition that you’re putting out into the market, or the offer, isn’t what the market wants. And that’s not necessarily because your business or your service isn’t what the market wants. It’s just the understanding that Facebook operates very differently because most businesses operate in a warm environment, right? So they either get lots of referrals and word of mouth, or they use search marketing a lot, SEO, which means that people are coming to their business generally very warm or with incentive.
Now Facebook has the opportunity to essentially grow your business as much as you want. But the understanding has to be made that it’s a colder audience. And because of the colder audience, before you can do anything in terms of the ads, you’ve got to validate your value proposition. So this was the agreement we came up to and I said, “All right, fantastic. I love the fact that you’ve done that. Now, go back with our copywriters and come up with a one sentence value proposition that really captures the essence of the problem that this business is solving. Once you come up with that one sentence value proposition, we can test that. And then when we test that and we validate that, then we know we can start making changes with the ads.”
So he went with our copywriters, came back, they had a one sentence value proposition. Actually, I think it was two sentences. We put that back into the ad campaigns. We ran that and we went from spending $300 and having zero leads to now getting leads for less than $2 a lead. All right? So I think we’re up to 75 leads. And for this particular business, their conversion rates are really high and the lifetime value of a customer for them is very, very high. So getting them 70, I can’t remember what exact number was, but getting them that many leads for a cost per lead of under $2 was very, very beneficial for them.
So to recap, what was the problem? Okay, why was this ad not working? It wasn’t a granular reason about the ad specifically. It was more of the value proposition. And if you’re really trying to figure out why your ads aren’t working, the very first thing you want to go ahead and do is check your value proposition. Okay? Can you explain to a cold audience in one sentence, what is the value proposition of your business? What is your business value? What problem does your service or product solve? Once you’ve validated that, that’s only when you can go in and start looking at the granular Facebook ads and see what’s going on with the ad campaigns, the ad sets, the targeting, the bidding. Once you’ve got the value proposition and the offer validated, then you can go in and start looking at all that granular stuff.
Now, if you found this video helpful, and you would like my help in creating a Facebook marketing campaign for your business, go to learnwithchin.com, where you can schedule a free strategy session with myself and we can talk about actually putting together one of these Facebook campaigns in your business that will significantly grow your revenue in a very short space of time. That’s learnwithchin.com. But that’s it from today’s video. I’d really love to know what your takeaways are. So please comment below. I mean, I love reading your thoughts and I love reading what you’ve got out of this video. Just comment below, join the conversation. But other than that, my name is Chin Gregory. God bless.