Budgeting for Facebook Ads: How to Spend Your First $500
If you have a limited budget, every dollar counts. You can't afford to throw money at the wall and see what sticks. You need a plan. If you have $500 to spend this month, here is exactly how you should allocate it for the best chance of success.
We recommend a 70/30 split for beginners.
70% on Cold Traffic ($350)
You need new blood. If you don't show ads to new people, your business will shrink. Spend the majority of your budget on "Prospecting"—finding new customers who don't know you yet. Use "Interest Targeting" or "Lookalike Audiences."
30% on Retargeting ($150)
This is where the profit is. Spend the remaining money showing ads to the people who clicked but didn't buy. These ads are cheaper and convert much higher. This $150 will likely bring in more sales than the $350, but you need the $350 to feed the system.
Don't Spread Too Thin
With $500, don't try to sell 10 different products. Pick your one best-selling item and focus all your money on that. It is better to have one winning campaign than 10 weak ones.
Saving Budget on Creative
Don't waste your $500 on hiring a graphic designer. Use Stirling to generate your ads for a low monthly cost, so you can keep your $500 for the actual ad spend where it belongs.
