Can Facebook Ads Convert on Low Budgets?

(and what budget is enough)

Author

Andy at Growth Catalyst Club
September 23, 2024

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When it comes to running Facebook ads on a tight budget, you might wonder if they can actually bring in customers. The short answer is yes—they can.

Starting with a small budget, even as low as $5 to $20 per day, is a good way to test your offers. The exact amount depends on the price of your product and the overall value of your sales funnel.

Typically we start at a minimum of 1x of the expected cost per per action per day.

But here's something to keep in mind: getting more customers at the same cost might become harder over time. Ad costs can increase unless you keep introducing new ideas and angles in your advertising.

Also, it's better not to rely on Facebook's estimated results. In my experience, those numbers aren't very accurate. Focus on the real data from your campaigns instead.

If you're targeting countries outside of the US, advertising costs are generally lower. This means your small budget might go further. However, it may take a few days of consistent spending before your ads start showing positive results. A general rule is to spend at least three times the expected cost per action(your acceptable CPA) before deciding whether to continue or stop the ad.

The lowest budget you can spend is $1 on Meta. My friend Dennis Yu has been teaching a $1/day strategy for a while (check him out on YouTube)

Focus on spending more not less!

To improve your chances of success, consider adding more products or upsells to your sales funnel. This can increase your average order value, giving you more room to spend on ads while still making a profit.

This way, you're not just relying on Facebook ad costs to determine your profit margins!

Remember, Facebook is good at helping you reach initial customers. But as you reach more people, you'll need a solid plan to keep growing. Having additional products or services on the backend allows you to spend more on acquiring customers because you know you'll earn more later.

So, what's the bottom line?

  • Start with a budget that you're comfortable with, even if it's small.

  • Make sure your ads are engaging and that the customer journey works smoothly.

  • Keep an eye on your campaigns, but don't worry if you don't see immediate results.

  • Sometimes, the best approach is to let your ads run while you gather enough data to make informed decisions.

In the end, it's not just about how much money you spend. It's about spending it wisely!

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