In the last blog post, I presented you guys to an example Webinar Sales Funnel. I also made it clear that underspending in the initial stages of your campaign and cutting your investment too soon can hurt your business in the long run. Data gathering is extremely important. It lets us know what’s working and what’s not. Focusing on the short-term and being hesitant about your initial ad spend is NOT the way to go.

Now, we’ll dig deeper into the Webinar Sales Funnel and I’ll show you a better way to go about your Facebook Campaign. Firstly, ask yourself just how many attendees you need to at least break even with your current price point. In the last blog post, we only attracted 4 people with our ad spend. This wasn’t enough to get even a single conversion.

Imagine if we attracted 25 people to the webinar. Remember, our price point was $1000. With 25 Attendees and a 5% Conversion rate, our sales is 1.25, giving us a Gross Profit of $1000 from a single sale. Our Cost per Attendee was $25. So 25 Attendees will cost us $625, giving us a Net Profit of $375. This is a perfect example of why you shouldn’t cut your ad spending so early. Imagine if you had only invested $325. You probably wouldn’t have gotten that one sale, and you’d be at a deficit instead of turning a profit.

Here’s the golden rule. Think about your break-even point and understand exactly how many people you need to attract in order to gather data and make back your ad spend. Don’t cut off your ad spend before giving your campaign the correct amount of sales opportunity in order to generate revenue.

Let’s go one step further. What if we attracted 100 attendees using the same metrics? Well, that would mean 5 sales and a Gross Profit of $5000. The cost of generating this profit would be $25 x 1000 = $2500, and our Net Profit would also be $2500. Compare this to the previous example. By quadrupling our investment ($625 to $2500), we’ve multiplied our Net Profit by approximately 7.5 times over ($375 to $2500).

This highlights the importance of understanding your conversion profit levers. Basically, your conversion profit levers are the things that you can incrementally improve in your campaign to make your numbers better. Having an ROI of 100% is great. But how about a 200% ROI? Or even a 300% ROI. These things are simple to achieve once you understand the principles and metrics. And in order to understand your conversion profit levers, you need to gather sufficient data. Without the numbers we had before, we would have never known that increasing our investment could generate even higher returns. In the next blog post, we’ll carry on with our Webinar Sales Funnel and I’ll give more examples of conversion profit levers that could be utilized to fully optimize the profits it generates.