Getting Expensive Leads from Facebook Ads? There’s Something You Need to Know

I run Facebook ads for my business quite regularly. My motives are list building, mostly, but brand recognition (“SAY MY NAME!”) is important as well.

However, I get the sense that a lot of people who come to me for Facebook ad help are mostly interested in spending money right before (or while) they have the possibility to make a lot of money. Yes, I’m talking about launches.

Maybe you’re trying to fill a group coaching program or sell your product or open the doors to a membership site. You’re spending SO much time and energy on all the pre-launch content, the sales page, social media posts, promo emails – you name it. It makes sense to try to leverage all that work by getting more people onto your list right before and during your launch.

That’s part of the reason why you host a webinar or run a challenge or have a free video series, right? For list building purposes. And it makes a TON of sense to use Facebook ads to let more people know about the awesome free content you’re putting out there.

Until you discover: the ads you’re running are bringing in leads, but EXPENSIVE leads. You did not expect to get just a handful of new subscribers for your budget. “Aren’t I supposed to be able to get leads for like 50 cents? WTF??”

Sorry, friend. When you wait to run ads until launch time, you run the risk of discovering too late that Facebook ads can be fucking expensive. And sometimes there’s nothing you can do about it.

Watch this video to learn about 2 factors that can result in some really expensive leads from Facebook ads, and what you can do about it (the transcription’s below):

Learn how to use Facebook’s free Audience Insight tool here. And if you’d like to get professional help with your campaigns, click her to check out your options for how we can work together.

In the coming weeks, I’m going to be teaching you about creating landing pages that convert here on the blog. I actually spend more time working with clients on their landing pages than putting together their ad copy, images and targeting. Like I said in my video rant, getting traffic from Facebook ads is easy, but turning that traffic into subscribers is a whole different ballgame.

If you have any specific struggles when it comes to creating landing pages for your free opt-in content, jump down to the comments and holler at me there so I can make sure to address them ASAP!



Hey guys, I’m Claire from I wanted to make a quick video for you today because there’s been something on my mind that I notice a lot of people are struggling with. It’s this question of how much your leads are costing you when you run Facebook ads. A big part of what I teach is using Facebook ads primarily to build your list, then selling to your list or selling with custom audiences, website visitors using Facebook ads but primarily via email. Email marketing can be really, really effective to land sales.

However, when you have to pay for your leads, it gets to a point where it doesn’t make sense to pay because you’re not going to be able to make that money back if not enough people convert.

Let me give you an example. You want to spend $400 to get 200 new leads. You’re giving yourself $2 per lead. Some people might be like, “Whoa, whoa, whoa! That’s really expensive.” But if your product is a thousand dollars and one out of those 200 people who get on your list buys, you’ve got a $600 ROI. That’s pretty good. But if your value per purchase is a lot lower (and most people have products and services that don’t cost a thousand dollars), Facebook ads can be tricky to make that money back.

Then on top of that, there’s this question of “What if your leads are a lot more than $2?” That has been a trend that I’ve seen since about July of last year. Suddenly, Facebook ads got a lot more expensive. I would say that that’s probably due to competition: just a lot more people learning about them, getting on board, saying, “OK, I’m going to try this out. I hear so many people talking about how they use Facebook ads, or a lot of the business owners I look up to use them,  and they make tons of money off of them.”

The swimming pool, if you will, has just gotten crowded. What happens is that it forces up your cost per mille, or the cost to reach a thousand people with your ads.

There are two reasons why you might be getting really expensive cost per conversion. The first one might be that, simply, the competition. The number of people who are targeting Marie Forleo’s fans in their ads, is astronomical. It might be partially my fault because I think I mentioned that I I target Marie Forleo in my interest, which I actually don’t do anymore because it didn’t work out for me in the end. That interest didn’t end up converting good quality leads for me.

Everyone and their mother is targeting Marie Forleo. Everyone is targeting Tony Robbins or ProBlogger. Those can be some really expensive interests. If you want to run your ads at a certain time, you don’t have any control over Facebook’s cost per mille, or CPM. If it costs $20 to have your ads shown a thousand times, that’s just what it costs and there’s not necessarily much that you can do except change your targeting.

On top of that, I know that a lot of small business owners don’t have a ton of people or many different interests that they can target. Because Facebook doesn’t let you target the fans of any business – that would be incredible. But it’s really the big names, Amy Porterfield, Marie Forleo, John C. Maxwell, these are the names that pop-up so more and more people are targeting them.

The second thing is your landing page. I’m currently running ads for somebody who is getting a really high click-through rate on their ads. To me that means two things: the ad is really good and the audience is really good because it’s getting a high click-through rate. By high, I mean, 3%-4%. Anything better than 2% in my book is good. But when you’re getting up to 3%-4%-5%, sometimes more, when you’re targeting people who have visited your site, then you’re in great shape.

But just getting a high click through rate is not enough. You need the people going to your website to actually convert there. If you are putting all your eggs in the Facebook ad basket and just expecting to be able to put money into some ads and expect 500 subscribers in 2 days, which I actually heard somebody was trying to get, it’s unrealistic. You need to be spending time on your landing page as well as on your ads. You really need to know what is your conversion rate. So that you can estimate how much it could cost you to get these leads. This idea of leads should cost x, they should be 50 cents or a dollar or less than $2 or even 2 or 3 or 4, I will not guarantee that for any of my clients. You should really understand that there’s a lot more to it than just putting together a campaign.

Again, so much of it has to do with competition. A lot of it has to do with your landing page. If you’re having a hard time getting inexpensive leads, yeah, you do want to look at your targeting. That’s important. You might say, “Okay, well, I’m targeting probably the biggest business owners. Some of the most popular interests to target. Let me see if I can find some interests that are still relevant,” because relevant is really important. But not necessarily as well-known. A great way to do that is using the Audience Insight tools. I will leave a link to how to use that in this post. The other really important thing is to look at your conversion rate on your landing page.

Cool? I just wanted to put that out there because I’ve actually been getting emails from people who are working on other people’s Facebook ads saying, “My client wants x. They want cheaper leads.” I’m like, “You know what? You don’t have control over how much Facebook is charging for ads.” Really understand that going in before you start running Facebook ads that your target audience, your landing page, all of that is an experiment. You need to go into the experiment like you would go into a casino. Spend money that you can possibly lose because especially when you’re beginning, or even when you’re launching something totally new and you haven’t sent people to that landing page for your webinar or challenge or whatever, you haven’t sent them there yet so you don’t know what that conversion rate is on cold traffic. You have to be willing to lose some money in order to actually make money with Facebook ads.