Why your Facebook ad isn't profitable

My Facebook ad sucks! I don’t get enough traffic and that’s why I don’t get enough sales! That’s a common problem on Facebook. Sure maybe your ad sucks. But there is another reason why you don’t get enough sales.

To figure out if your ad is bad just take a look at the numbers. Do you have lots of link and website clicks? If yes, your ad probably doesn’t suck.

Maybe your ad is performing well but your website is the problem because it doesn’t look good or it’s not trustworthy. Maybe…

In 99% of the time the problem is that you don’t have a value ladder. You sell a product to a random visitor from Facebook. He’ll go to the checkout and maybe he’ll sign up to your newsletter and after some time he’ll eventually unsubscribe because he doesn’t want your updates anymore.

Instead you should offer your customer an additional more expensive product after the checkout. After the customer bought this product you’ll offer him a more expensive product and so on. That is a so called value ladder and it would look like this:

$ -> $$ -> $$$ -> $$$$

Sure not every customer will buy your second product. Lets assume your costs per sale are 12$ and your product price is 10$. That’s a bad deal for you.

What if every second customer buys an additional product of 16$?

Lets do the math: 10$(first customer) - 12$ (cost per sale)+ {10$+16$} (second customer) - 12$ (cost per sale) = 12$

That would be an average value per customer of 6$

If you add now an additional product for 22$ which is bought by every fourth customer how would it look after that?

10$ (first customer) - 12$ (cost per sale) + {10$+16$} (second customer) - 12$ (cost per sale) + 10$ (third customer) - 12$ (cost per sale) + {10$+16$+22$} (fourth customer) - 12$ (cost per sale) = 46$

With a three step value ladder the value per customer is 15.33$

That doesn’t look too bad. The only thing you have to do now is to scale your budget and make some profit.!