Don’t believe the hype about Facebook ads cost!
Dear reader,
Did you buy into the hype surrounding Jonathan Budd’s Facebook Ads for MLMers?
I never was a fan of this program in the first place. It looks like I’ve been proven right.
Facebook Ad click through rates are declining while Facebook Ad Costs are increasing.
Industry tracking of 11,000 Facebook ads shows they perform at about half of the industry average performance for PPC ads (pay per click). Meanwhile the costs of buying those Facebook ads has increased. In short, you pay more for less clicks on your Facebook ads than you used too.
The article says the industry average click through (number of times someone clicks on the ad) is about .10%. Meanwhile Facebook ads averaged only .06% in 2009. In 2010 Facebook ads declined to .05%. That’s a 20% decrease in performance! Meanwhile those Facebook PPC ads
In 2009 with Facebook ads you received .06% clicks for an average cost of $.27 per click.
In 2010 with Facebook ads you received .05% clicks for an average cost of $.49 per click.
Now, I’m sure Jonathan Budd’s Facebook advertising program had some good content. I’m sure he taught people how to create better ads and pick better keywords. However as you can see from the results above if you were buying Facebook ads in 2010 it cost most of you more money, to get less clicks, than it did in 2009.
I don’t mean to pick on Jonathan Budd. He saw the popularity of Facebook and knew that he could make a bunch of money teaching people how to put together Facebook ads. He’s a smart guy.
Ask yourself this question: When people go shopping, do they go to Facebook? (answer: NO)
When people go shopping they go to Google to search for the product or go direct to the store like Amazon or wherever. They don’t go to Facebook to buy products.
Facebook ads can be good. I’ve even used them in the past and will use them in the future but they are not the “silver bullet” to MLM success. There is no silver bullet. You should be using 3-5 different marketing methods (at least) to promote your business. That way if one method fails your business doesn’t dry up.
Did you buy into Mr. Budd’s Facebook program? What do you think? What do you think of these stats? Are you still making money from your Facebook ads? Have the costs increased dramatically?
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