What do your ads really return?
Facebook, Instagram, Google: cost per customer, break-even point and net profit, from your own numbers.
Your numbers
High intent: the person is already looking for a plumber. Pricier click, better conversion.
The real number is in your ads manager. This is only a starting point.
Use more than 1 if customers come back: that is where ads become profitable.
Net profit per month, ads paid
−$160
At these numbers, the campaign costs you money every month.
Clicks per month
222
Leads per month
17.8
New customers per month
5.3
Revenue generated
$2,400
Your break-even point
What you pay per customer
$187
Profit a customer leaves you
$158
The only number to remember
Your break-even point: the cost per customer above which each new customer costs more than they leave you in profit. Compare what you pay per customer with the profit a customer leaves you. As long as the first is lower, you can raise the budget.
Why jobs per customer change everything
A customer who buys once rarely pays for the ad that brought them. A customer who comes back three times in the year usually does. That is why recurring service and follow-up matter more than the click price.
The starting values are not promises
Click costs and conversion rates by platform are only starting points. The real ones are in your ads manager, and depend on your trade, the season and local competition.
Questions
Google or Facebook?
My campaign is not profitable. What do I change first?
Essential $499/month, or Growth $1,999/month with managed ads and Google profile. Prices in CAD, plus GST/HST. See both plans