Hey my fellow metric driven marketers,
I’ve noticed a lot of people doing webinar funnels with Facebook ads and I wanted to give you something pretty cool that I’ve created for myself and my clients for 2017.
In the last 12 months, I have built 7 cold traffic webinar funnels across 7 different niches, for myself and clients.
I wish I could say that 7/7 are crushing it but the truth is:
2/7 are crushing it
3/7 are doing okay
1/7 is doing well on the registration & attendance side of things but is yet to convert well into sales
1/7 hasn’t launched yet
And this is what I’ve learned:
To convert cold traffic (at scale), you need to know the handful of ‘optimization metrics’ that impact your ROI (Return On Investment).
In a nutshell, the 5 optimization metrics that impact your webinar funnel ROI are your:
1. Cost Per Click (CPC) – The amount Facebook charges you for each click on your ad
2. Registration Rate – The percentage of visitors (Clicks) to your webinar registration page who register for your webinar
3. Attendance Rate – The percentage of webinar registrants who actually attend your webinar
4. Close Rate – The percentage of webinar attendees who buy the offer you present on the webinar
5. Offer Price Point
For example, if your:
CPC is $2.
Registration rate is 20%.
Attendance rate is 50%.
Close rate is 6%.
Price Point is $500.
Then, if you spend $1,000 on advertising, you’ll have:
500 clicks (because $1,000 / $2 = 500)
100 registrants (because 500 * 20% = 100)
50 attendees (because 100 * 50% = 50)
3 customers (because 50 * 6% = 3)
If you have 3 customers @ $500, your total revenue is $1,500…
And your profit is $500 (because $1,500 revenue – $1,000 advertising = $500 profit)…
And your ROI is 50% (because $500 PROFIT / $1,000 advertising = 0.5 = 50%).
Note, some people divide REVENUE by advertising (instead of PROFIT by advertising) and consider this ($1,500 revenue, $1,000 advertising cost, $500 profit) to be 150% ROI and break even to be 100% ROI; I consider this to be 50% ROI and break even to be 0% ROI because I view funnels and traffic like an investor and investors consider break even to be a 0% return.
So that’s how the numbers work…
If you improve any of the 5 ‘optimization metrics’ I mentioned above, your ROI will improve.
If you improve 2 or more of the 5 ‘optimization metrics’ I mentioned above, your ROI will improve exponentially.
For example, holding all else equal, if your registration rate increases by 50% (from 20% to 30%), your ROI increases from 50% to 125%.
If your registration rate increases by 50% (from 20% to 30%) AND your attendance rate increases by 50% (from 50% to 75%), your ROI increases to 238%.
If math scares you, don’t worry because my spreadsheet calculates everything for you!
In fact, my spreadsheet actually goes a few steps further…
It breaks down Cost Per Click (CPC) into the 2 micro metrics that create it:
1. CPM (Cost Per 1,000 Impressions) – The amount Facebook charges you for your ad to show up on Facebook 1,000 times
2. Click Through Rate (CTR) – The number of clicks your ad gets divided by the amount of times it shows up on Facebook
It also accounts for 2 pricing options:
1. A paid in full option and
2. A payment plan option
It’ll automatically calculate your immediate ROI (from full payments and initial payment plan payments) and your lifetime ROI (from all payments) if you enter in:
1. The price point of the paid in full option
2. The price point of each payment included in the payment plan option
3. The number of payments included in the payment plan option
4. The percentage of customers who take your paid in full option
5. The success rate of payment plan payments beyond the first charge
It’ll also account for the cost of your merchant fees if you enter in your rates – For example, Stripe charges 2.9% of sales plus $0.30 per transaction.
The spreadsheet is created in a way where you can compare your funnel’s actual metrics with what your metrics need to be to:
1. Break even on your ad costs
2. Achieve your ROI goal (eg. Make $2 in sales for every $1 you spend on advertising)
Here’s my favorite part…
It’ll even highlight your funnel’s actual optimization metrics green, orange or red depending on whether they’re:
1. Good (better than your goal)
2. Okay (between your goal and what they have to be to break even) or
3. Bad (worse than what they have to be to break even).
Click the following link to download the spreadsheet (no opt-in required):
If you have any questions, feel free to private message me on Facebook (Ricky Baldasso) 😉