The Question
What is a good price to pay for opt-ins from my Facebook ads? I know the lower the price, the better, but is there a number you shoot for?
The Answer
You have to know what your numbers are the entire way. Actually, I was just talking to an attorney a little earlier today who does Medicaid stuff. That’s Medicaid for people who are trying to have their medical bills or nursing home expenses covered.
What he told me is that each one of those cases is worth $6,000 to him. So what that means is that you can spend $5,999 to get a case and still make a dollar, right? I’m not saying that you should aim to spend that much money, but let’s say your goal is to get phone calls booked and it costs you $300 to book a phone call.
So if we do some reverse math, let’s say 20% of people that opt-in to your offer book a phone call. If you’re doing a good cheat sheet, it should cost you no more than $10 per opt-in, and that’s really high. We’ve got motorcycle attorneys that are getting a dollar, two-dollar opt-ins.
But You Have To Look At All The Different Steps:
First you have to figure out how much money do I make when somebody retains me? And it can be a little difficult if you’re a personal injury attorney or contingency-based. But let’s say, how much does it cost for somebody to retain me?
Let’s say you’re the Medicaid person and you make $6,000 every time someone hires you. So, then, figure out when I get a phone call, what are the percentages that I close? Do I close 50%, or do I close 40%, 20%, or 70%? What’s the percentage of people that I talk to that hire me? Let’s say you close 50% of the people that call you, and they end up hiring you. That means you can spend $3,000 to get a phone call and you’re going to break even if you’re making $6,000.
What’s A Good Price For An Opt-In?
Then you figure out how much it costs to get an opt-in and what’s the percentage of those people that are opting-in that are booking a phone call?
So, when you know what all of these numbers are, then you can figure out how much a good price for an opt-in is for you. If you close 50% of your cases and you make $6,000 every time somebody hires you, that means that basically on average, you make $3,000 per phone call.
And if you’re spending $500 or a thousand dollars to get somebody on the phone, you’re still very profitable. So just look at it that way and then work backward.
The Key Is To Know Your Numbers
This means that a good price to pay for opt-ins really depends on how much money you’re going to make. If you’re selling a ten-dollar product and it’s costing you a hundred dollars to sell it, that’s not a good ROI. If you’re selling a six-thousand-dollar product and it’s costing you a hundred dollars to sell it, that’s an amazing ROI.
You just have to know what all of your numbers are, and then you can answer that question of how much your opt-ins should cost for Facebook.
