The practical art of lead generation with Facebook Ads

Become an expert at using Facebook Ads to attract quality B2B leads for your business.

Kim Barrett, founder of "Your Social Voice" agency and host of "The Kim Barrett Show" podcast told us how to calculate your budget for Lead Generation Ads. This is an important first step before you can verify and scale your Facebook Ads

In the following article, we'll go over the following three steps:

1. How to formulate your lead generation budget

How much should I spend on my ads?

2. The verification method

Verify your ad (before you scale).

3. 5 Facebook Lead Generation Funnels

Direct takeaway, no fancy or overly complex stuff.

1. How to calculate your budget for lead ads

The question you should ask yourself BEFORE you even start any ads. Despite this, few think about the calculation before creating their lead ads

Another mistake many businesses make is optimizing their ads for the lowest possible Costs Per Lead

With lead ads, the goal is not to get the cheapest leads. The goal is to be able to spend the most to get a lead and a customer.

Two examples to explain:

Vendor A and B have the same product, the same margin and the same conversion rate. Nevertheless, the approaches of the "Beginner" and "Professional" differ fundamentally, as we demonstrate in the following calculation example

A) The mathematics - Beginner

• "Your product / service" - 5,000 CHF turnover

• Willingness to spend / cost per lead 200 CHF

• CVR 10%: One in 10 leads becomes a customer

• Cost: 2.000 CHF to close a sale

• Advertising budget: 10,000 CHF = 5 sales

• 5.000 CHF front-end revenue / ROAS (Return On Ad Spend): 2.5

B) The Mathematics - Professional

• "Your product / service" - 5,000 CHF sales

• Willingness to spend / cost per lead 500 CHF

• CVR 10%: One in 10 leads becomes a customer

• Cost: 5.000 CHF to close a sale

• Advertising budget: 50,000 CHF = 10 sales

• CHF Front-end revenue / ROAS (Return On Ad Spend): 0

At first glance, the beginner does a better job than the professional - see Return On Ad Spend or Front-End Revenue - and you're probably wondering why the professional has to pay more for their leads. In fact, you see this pattern more often because as you scale up an ad campaign and increase ad pressure, ad networks charge a higher price per click / impression / view time.

For the performance evaluation, however, not only the front-end turnover should be considered, but another value should be included in the evaluation: the lifetime value.

This is exactly where the wheat is separated from the chaff, or rather where the beginner and the professional differ from each other. Lifetime does not refer to demographic data such as the age of the customer, but to the time in which the customer has been in a relationship with the company. This period of time can range from a few days or weeks to months to years and differs depending on the business model

Let's continue the example and associate a lifetime value of 10,000 CHF per customer

A) Beginner

15.CHF 000 front-end revenue

+ 5 x 10,000 CHF turnover in the back-end

= 65,000 CHF total revenue

B) Professional

0 CHF turnover in the front-end

+ 10 x 10.000 CHF turnover in the back-end

= 100.000 CHF total turnover

Conclusion from our example

Only those who know the Customer Lifetime Value and take it into account when calculating their ad budget can scale their advertising campaigns

In the calculation example, the professional has CHF 35,000 more revenue than the beginner, which corresponds to a plus of about 54%

2. The verification method

Before you try to scale your ad campaigns, you need to verify your campaign. This doesn't have to be complicated, and can be kept quite simple.

Most people focus on the offer, targeting, or campaign and ad structure before using this method. EXACTLY this is where most marketers get it wrong in the lead generation world: Most people skip verification and go straight to scaling.

BEFORE building a campaign, however, you need to test your offer, your hook, your lead, and just about EVERYTHING to make sure you have an effective message that meets the market need. ONLY THEN should you scale your campaigns.

Kim Barrett recommends Lead Generation Ads from Facebook to give you a solid foundation for scalable ad campaigns. So don't also make the mistake of testing niche, offer and copy

Which audience works best? Use demographic data, areas of interest, and behavioral patterns of the best converting users for optimization. Test what appeals to people. Change product names, headlines, and body text

Once you know how to ideally offer your product or service to an interested audience, you can scale your campaign.

3. Five Facebook Lead Generation Campaigns

Once you've been able to VERIFY that your offer is working, you can move on to amplifying it with these five key Facebook lead generation campaigns.

1. the application

Ideal for the hotter target groups which can be reached via retargeting. The usual process is an opt-in via a sign-up form or calendar booking.

2. the webinar

The tried and true classic webinar - which relies on people registering and then following your argument for 60-90 minutes to ultimately break through old beliefs and learn how and why you can help them better than anyone else. Share your knowledge and don't forget to add value

3. the Mini-Webinar / VSL

You can call it the "Mini-Me". A short and specific webinar/ VSL (Video Sales Letter) with the main goal of selling something. The best way to sell something is to convince the audience that they really need what you're selling - and the best way to do that is to show them how you solve their problem. Tip from Kim Barrett: Offer video in two versions, the first video on the first page and the second video on the thank you page.

4. The two-step

This is a very simple variant where you offer a lead magnet (ebook, guide,...) for download after an opt-in and then on page two (thank you page) you have another video with an offer to book a call.

5. Self-Liquidating Offer (SLO) / Lead Magnet

This is a lure, lead magnet or giveaway that you promote to capture your leads' contact information. The offer should be an opportunity to surprise your audience with immense value.

How you benefit from these campaigns

In return, you also get as much value as possible, even if it's just a huge list of email addresses - which, by the way, is a very powerful tool for sending follow-up newsletters and promotional materials.

Building a self-liquidating offer or lead magnet is not rocket science. What happens AFTER you set up your funnel is actually the hardest part: nurturing your leads along the Customer Journey - which is exactly what Pedalix offers with its automated solution for modern B2B marketing