Lesson 6: Customer Value & How Much to Spend on Ads

One of the most popular questions I get asked about Facebook & Google ads is how much should I spend to get results?

I want to help you to determine what is a good budget but I also want to educate you on how to think this through properly.

Determining how much to spend on advertising is NOT a guess.

There IS math involved.

In order to figure out how much you should spend on advertising there are a few questions that need to be answered.

In this episode I will go through a few business model examples to give you an idea on how much you should be spending in order to bring new customers effectively into your business.

Here are your 4 variables for advertising budget consideration we will be discussing: 

• ATV: Average Transaction Value (Average Sale) 
• ACV:  Average Customer Value 
• CLV: Customer Lifetime Value
• CPC: Cost Per Conversion 

You may be thinking I have this ITTY BITTY business - this does not apply to me.

But OH it does! Not having this knowledge and mindset is how your business stays itty-bitty.