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I discuss the minimum budget for Google Ads and how much you can expect to spend based on your business goals, what you’re trying to sell, and your industry.
You have a non-technical client who has no idea of Google Ads. He just needs sales. Who doesn’t? He asks you, what budget do you require to run my ads? What is the minimum budget you use and how to explain to him the future roadmap with that budget? Great question, and I have answered this previously as well because this is one of the most asked questions. How much budget do I need to get going or get started with Google Ads? It all depends on the cost per click. If your click is a dollar, then you need less money compared to if your click is $50. Right? So you need to first decide, okay, how many clicks do you want per day onto your website or landing page? Then you multiply that by the average cost per click and that will give you the daily budget and the monthly budget. But what we also do is we tell the client, okay, how quickly you want to test or grow your account because if there’s no data in the account, we need to test.
Now, if you are running at $10 a day compared to $100 a day, you are going to get the data ten times slower than what you would get if you were spending more per day. So you have a testing budget, first of all, and you educate the clients so that you manage their expectations. Oh, yeah, but I wasted so much money. No, it’s not about wasting. If there’s no data in the account you’ve got to test, there’s no other way around it. So if they are not happy with the testing, then you don’t want to take on that client because you are setting yourself up for failure. Secondly, you manage their expectations and tell them, look, first 20 days we are going to test. Then the next 20 days or so, we will be optimizing. And the optimization is always on an ongoing basis. And then after 40, 50, 60 days, we should have the account optimized to where we want to be, the ROAS, order, ROI. Which we are looking to get.
So that is all about managing the expectation. The best way to do this is something like this. You create a mind map or a graphic like this, where you say, this is Google Ads, this is Facebook Ads. This is where we are driving. The traffic is going to cost us so much. And if you work out what your offer is, your order page, conversion rate, everything is worked out from here. And then we can see whether our funnel is going to be profitable or not at the conversion rate which we are shooting for or aiming for. And then you can say, okay, I’m on step one, my metrics are Okay. Or, The KPI is as per what our projection is. Step two is fine. Step three, where the problem is we are not getting that conversion rate. And then you don’t need to change anything else except optimize this or change a few things around, move the buttons, or change the colours of the buttons or the headline or the call to action, or whatever you want to do to start optimizing and split testing over here where the leakage is in the funnel. And that’s how you would do that.
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