Asked: October 25, 20202020-10-25T22:07:20+00:00 2020-10-25T22:07:20+00:00 Facebook Ad Conversion? How Do You Calculate admin 113 Questions 222 Answers 74 Best Answers 4 Points View Profile admin How do you calculate the max you can afford to pay for a Facebook ad conversion? FacebookFacebook AdFacebook Ads 2 Answers Voted Oldest Recent james 1 Question 84 Answers 38 Best Answers 6 Points View Profile Best Answer james 2020-10-25T22:08:45+00:00Added an answer on October 25, 2020 at 10:08 pm I Would Like to Add More. It depends on the industry. For example I am wedding photographer. I want to make £1K clear profit on each booking, for this and based on my quality I charge £1500 minimum. Minus: 20% Tax plus £100 expenses for travelling etc. This leaves me with £100 which I am willing to spend for a FB ad booking. I have been at £150 before and it was okay as well as I was willing to do it, but now I am at £87 per new booking for the last 3 months, which is great. But you have to also calculate ad fatigue to this one. My audience is 40K. I just wont get steady £87 per booking as the longer I run it the quicker I burn through this audience and spamming is not a good thing. SO 2 months ads, 1 month off is what I am doing to keep the COB low to the point I am happy with the ROI. I hope this helps. 0 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp james 1 Question 84 Answers 38 Best Answers 6 Points View Profile james 2020-10-25T22:08:13+00:00Added an answer on October 25, 2020 at 10:08 pm I like using a average lifetime customer value and then you know what your average customer is likely to make you revenue wise. Then you factor in costs and where you’re at with your business. I.e. some people might expect to break even or even lose money to acquire customers to start with, just so they can build testimonials etc but others might want to make at least a 50% profit margin for it to be a sustainable business model for them. I hope that makes sense. 0 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Leave an answerLeave an answerCancel reply Attachment Select file Browse Featured image Select file Browse Save my name, email, and website in this browser for the next time I comment.