Is your local business right for Facebook Ads?

There is a trend I see growing.

People want to be on every platform possible these days… but why?

As much as most Internet Marketers would like you to believe – not every business is a good fit for every tool/ traffic source/platform.

Here’s the key thing: You need to be where your audience is.

  • If you sell cupcakes in your local neighbourhood only, then LinkedIn probably isn’t going to be worth your time.
  • If you are a funeral director, then I doubt Snapchat will bring you much business.
  • If you do business consultancy, then a billboard is probably a waste of money.

And so with Facebook Ads – the platform fits certain businesses better than others.

I’m going to outline the process I use to find out if a business is suited to Facebook ads, and then also how to work out if you could justify hiring someone to run the ads for you if you don’t have time.

Put your business through this process to see if it’s a good fit.

Don’t have time to go through this whole process? Book a call now to discuss hiring me to do it for you.


Step 1.

The 2 main types of eligible local businesses.

Facebook’s ads platform is growing, maturing, and developing all the time, but there are two basic types of funnel that work for running ads, and different types of business will (or wont) fit into one of them:

  1. Direct response.

  2. Content.

The direct response funnel has a specific OFFER, which leads to a specific ACTION for a specific group of people.
Folks using the Content funnel either need more information from the client before making an offer, or they need to build trust before going in for the sale.

How to know if you are a fit for the direct response method?

Here’s the question for you to answer:
“Can I call you up, or walk into your business – and buy your stuff straight away?”

If yes, then you fit the direct response funnel.
If no, then you don’t. But you might fit the consultant model.

Examples:

Bike shop – can I just walk in and buy a bike? – Yes.

Spa – can I just walk in and say “give me a massage”? – Well, I might need to make an appointment, but basically, Yes.

Lawyer – Can I call up and ask for some lawyering? – No. I will need to give more info about what exactly I need, figure out the hours needed, the history etc before working out the price. A lawyer should use the content funnel.

Business strategy advisor – “Hi there, one business strategy please” – Nope, BUT – the advisor might offer a little product based thing that is suitable – e.g. a 2-hour business strategy audit

Branding companyNo, you can’t just order a new brand, you need to go through a process (more on this shortly).

Garage – yes, you can book a service or a tyre change etc.

Gym – yes, you can walk in and sign up for a class, or use the gym.

Dog walker – yes, you can book you dog in with a dog-walker.

Plumber – yes

Driving instructor – yes

Carpenter – possibly, but I expect lots of things require a custom price

Psychotherapist – yes

Cleaner – yes

Nursery – yes.

So, once I’ve worked out if the business type is suitable (or not) for Facebook Ads, the next thing I say is:

Step 2.

I speak with lots of business owners, and once I’ve learnt what their business is (and whether they’re therefore a good fit for Facebook Ads), the next question is whether they are a good to work with me.

This comes down to the numbers – here’s the process I go through, and you can apply it to your own business.

talktomeTell me about your business”

Specifically, I want to know:

  • Exactly what services do you offer?
  • How much are they?
  • Who is your target market?
  • How much does your average customer spend with you (what is their Lifetime Value)?
  • What is your ‘sales process’?
  • Do you have room to grow?

If you’ve just started up, can you cope with an influx of new customers?
If you don’t have a decent sales process, will you be able to turn leads into customers?
How much can you afford to pay for a client?

It might sound obvious, but running adverts is pay-to-play.

I build what we call ‘funnels’, a funnel might look like this:

Advert —> Landing page with contact form —> Consultation call —> Sale.

At each step along the way, people will drop off, can you justify the cost?

Lets put some numbers in there.

So, start with how much an average customer is worth to you. (if you don’t know this, it might be a sign that your business is too young, or that you need to refine and concrete other things first)

Let’s say you run a cleaning company.
You have a team of cleaners who go out to houses and clean them.

Let’s say you charge £10 ph for cleaning, and your average customer gets their house cleaned twice a week for 2 hours at a time, and stays with you for 12 months.

That means that your average customer is worth £2080. Some will be higher, some will be lower, but that’s fine.

numbers

Now obviously, that’s not £2080 worth of profit, you’ve got expenses and overheads – for simplicity’s sake, let’s say you make £200 profit from that £2080

Now, based on your experience, how many people who enquire about a clean actually become clients? Let’s say it’s 40%.

That means that each of those enquiry calls is in effect worth £80 to you.

So the question you need to ask is: How much are you prepared to pay, to make £80?

You might say that £30 is a figure you’re happy with.

That’s the figure you’ve got to work with, and your funnel needs to be analysed with that in mind, so if you’re paying £3 per click on your advert, and 30% of people are filling out the form – that works out at £9 per lead, but if its £6 per click and a 15% conversion rate on the form. That means each call is costing £40, so the funnel needs adjusting.

Run your own numbers through this, and see how much you can justify spending per lead, and therefore if its worth you hiring me to run them for you.

Don’t have time to go through this whole process? Book a call now to discuss hiring me to do it for you.

Anything not clear? Stick a comment below and I’ll help you out.

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