Disrupter School Guidebook: The Blueprint to Lead Generation and Facebook Ads
This is the math, thinking, and process I’ve used to manage Lead Gen efforts for as little as $10 a day to 7figure monthly profit targets.
Plus, some fun little tricks I use to get more insight and success than the folks I’ve replaced on these accounts.
Primarily, we have 2 ways of running Lead Gen efforts.
While lead gen ad unit ads are very straightforward.
Running traffic to a page has its own extreme advantage.
This is easily my favorite way to drive leads from Facebook.
The upside of owning the customer journey and the ability to qualify the traffic with custom conversion events on Facebook is an unfair advantage over lead-gen ads.
The barrier to implementing this tech is 100% worth it.
No matter how fun and exciting any technology is…
If our target audience
With our ads
Or even see them
Because it’s so different than how they try to use the platform on a day-to-day basis
It is ultimately a liability to our success to insist on relying on it.
Ultimately lead-gen ads running natively on Facebook was a fascinating advancing technology.
But now it pretty much has lost that edge.
In marketing, we’re always trying to find the edge to exploit.
Without it, this is the way of the VCR and even the DVD player.
Because our ads make their own bespoke audiences…
Each ad will draw the attention of a certain type of individual.
Depending on a brand positioning and the opportunities we’re driving leads for…
Different types of people are going to have wildly different values.
Cost per lead is generally the lowest quality metric to evaluate the business operational value of the lead…
In general, the lower the cost of the lead also, the lower the quality.
Lower cost leads create higher costs to the business when trying to monetize that attention.
It is extremely important to understand the quality of the lead before the conversion event occurs.
We should be able to know, using the lead form information, whether that lead is good, bad, or excellent.
We can make a conversion event for good & excellent leads and optimize towards it.
If we convert 1 out of 3 excellent leads
& if we convert 1 out of 10 good leads
& if we convert 1 out of 60 bad leads
That means that a lousy lead has to be 20 times cheaper than an excellent lead to be a profitable business investment.
You have to know this math.
Lead Gen is not always about trying to drive the highest volume of the highest quality leads…
If you can handle 20 calls a day and you only get seven excellent leads.
That means over 50% of the time, you are not monetizing attention.
That opportunity cost is a severe issue.
If you think of a lead as nothing more than an add-to-cart, only with the conversion rate being far more predictable…
We can run conversion campaigns for lead generation with the same logic, thinking, and strategy as anything in e-commerce.
It is vital to understand the unit economics of your marketing funnel and customer journey.
There are a few measurements that we need to know for each one of these stages to indeed be optimizable.
When we get this right, audiences don’t matter ever again.
Not knowing the average order value of a lead is arguably criminally negligent for any business operator.
We need to understand not only how much somebody is willing to pay for a lead.
We also need to understand what a transaction is ultimately worth
This is essential to strategy.
Ideally, you should know these numbers for every point in the funnel to conversion and afterward.
Finally, we have to understand that the unit economics of almost any business more or less function in similar fashions.
One of my favorite ways to use this thinking is actually to treat a lead as a purchase.
And from there, trying to mature my LTV.
- From Charley Tichenor, Founder of Disrupter School
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