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How do I as a local business owner set my budget for FB ads? It is mainly up to you, how much ROI you need & how much skilled you are, and how much you can spend, the more budget the better results. The best advertisers in the world generate the maximum ROI possible from the budget you give them! HOW? Set Clear Goals - Establish specific, measurable objectives for the ad campaign, such as lead generation, sales, brand awareness, or website traffic. ROI Targets: Determine the desired return on investment (ROI) or cost per acquisition (CPA). Now we know what we want and suppose that is Lead Generation, our goal is to get 20 new clients Now Let's move on to the main part, how do I set a budget for my FB ads? Once's we have clear objectives now things will much easier. First Understand Customer Lifetime Value (CLV) CLV Calculation: Calculate the average lifetime value of a customer. This helps in understanding how much can be spent to acquire a customer profitably. Now let's suppose our CLV is $1500, hmm... so 20 x 1500 = $30,000 Now to generate $30,000, first you should know your advertising ratio What is the advertising ratio? It is how much you make per $1 spent on advertising, some have 5 some have 3 some have 36 like Alex Hormozi Now if you are a beginner and you haven't advertised ever but you have knowledge of how to promote then we will take your advertising ratio minimum which is 1:2, because if you have less than that you are a horrible advertiser it's better you stop doing it! Now we know our desired revenue and our advertising ratio, we will just divide our desired revenue by the advertising ratio then once we get the answer we will plus 10% of that answer to that answer and that will be our AD BUDGET! But why we will add 10% more than our advertisement ratio? As trends come or algorithm changes getting desired results from Facebook becomes hard that is why we added 10% more but that does not mean we only increase our budget and rely on it, we also use our expertise to spend as little as possible to acquire customer even though our budget is high then too and you should do the same, this most of the time gives us more than what we aim for or at least give what aim for. So now let's calculate our budget in this case, $30,000 divided by 2 + 10% of the outcome which leads us to $15,750 which means $825 maximum you can spend to generate 1 client! Remember with enough skills we can maximize our advertising ratio and lower our cost to accomplish desired outcomes! But how do I maximize my advertising ratio? Follow Aum Param to become an expert in advertising along with me! #marketing #advertising #facebookads #digitalmarketing

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