What should be the minimum ads budget for beginners?
One of the frequently received queries that I receive is “How much budget should I start with?”
According to me, it’s the wrong way of looking at the equation because I always encourage people to start with the minimum budget as possible especially when you are asking this question as a starter, you won’t be having a lot of money.
Always start with less money with the minimum amount of budget possible.
Also, do not focus on that part of the equation because increasing the budget is the easier part of the equation. The most important part is that you should focus on the conversions i.e, how many conversions you are getting.
Let’s support you are starting with as low as 100 rs per day as your ad budget and you are getting 50 clicks (just for an example). The most important thing is, out of these 50 clicks, how many people are you able to convert.
If you are able to convert 5 people to your lead opt-in page out of 50 people, you have a conversion rate of 10%.
So now, what you need to focus upon is how you can take your conversion level up.
So out of every 50 people who land on your page, how you can convert not just 10%, but 15% or 20% or 25% people.
So you need to focus upon the funnel side of the equation. You need to focus on how you can take those conversions up!
How you can take those opt-ins up!
Or maybe if you have an eCommerce website, how you can take those cart abandonments down!
How you can make those sales levels go up!
So basically, that’s the side of the equation that you need to focus upon.
Whatever number of clicks I’m getting in terms of percentage, how can I increase the conversions?
So if you are able to increase the conversions, then increasing the budget is a very simple part of the equation.
Even a two-year-old can do it! That’s not what the problem is!
You can increase the budget from 100 rupees per day to 1000 rupees per day to 10,000 rupees per day or 1,00,000 rs per day!
It’s something that can be done with just two simple clicks. It hardly takes 30 seconds.
Let’s not focus on what your ad budget is and focus on the conversions.
Start with the minimum budget possible and focus on the conversions. So when your conversions go up, you can automatically increase your budget and stay in the profit zone.
So in short-
- Start with a low budget
- Focus on your conversions
- Focus on your funnel.
- And then, increase your ad budget.
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