Hey, welcome back to the Life Coach Launchpad. My name’s BJ, and I’m here every week talking to you about all the online business things that, as it turns out, need to happen in order to have a successful life coaching business. I’m a business coach. I love to help life coaches make more money, get more clients, have more fun, and to do what they love to do, what they’re meant to do, and that’s coaching.

So let’s dive right in This last weekend I went fishing with my son He’s in third grade and he wanted to go fishing and we’ve never been fishing and I feel like that’s my job my wife certainly isn’t gonna take her and so we went and it was a great way to disconnect and I’m I’m really not embarrassed to say that I had thoughts of online business and growing coaching businesses in my head I had analogies of running ads.

That was what was running through my head because fishing is [00:01:00] just the perfect analogy for Here it is. With phishing, there is some sort of bait that we’re trying to lure the fish. And that is just like our lead magnet, or content, or whatever the ad is running to. We want to put something of value in front of potential clients and hope they go for it.

The right bait attracts the fish’s attention, just like the right content, which is both the creative and the copy, will grab the attention of the right people. Oh. Moving around to different places, fishing in different places, will show your bait to more fish. Some will take it, some fish, after they’ve seen your bait a few times.

will literally swim away from it. Some fish need to see it a few times. And that’s all the same with an ad. Some people need to see it once. Some people need to see it multiple times to either make a decision. Yes, I want that or no, I don’t want that. Who your ad [00:02:00] gets shown to is also just like which lake, which river, which stream you’re in.

If you want to catch trout, you need to be on a river. If you want to catch bass, you need to be on a lake. That’s really the extent of my fishing knowledge. But in the ad network, I’m talking about Facebook and Instagram ads. Primarily you get to choose who you’re being, who your ads are being shown to, which is great.

Which lake, which, which river, which type of body they’re being there. And if it was fishing with fishing, you can control the number of poles in the water, the more bait that’s out there, the more fish that are seeing you. That’s your ad budget upping your budget. We’ll show your ad to more people. Putting more poles in the water will show your bait to more fish.

I will stop there because I’m sure I could go on and on, but let’s get into the whole point of running ads and eventually I will introduce you to the most important metrics [00:03:00] of running Facebook ads because it’s these metrics that will tell you if your ads are doing well or not doing well. The whole goal of running an ad is to get more money out of it than you put in, right?

I’m sure you’ve heard someone talk about how expensive ads are. The question you need to ask is compared to what? If you’re collecting leads at 10 each, it sounds like a lot. I mean, especially if you want a lot of leads, that sounds like a lot of money. But what if you were getting an average of 20, 30, or more back from each lead?

That’s the Facebook ATM. If you could put in 10 and get 20 back, as in always double your money, let me ask you, how much would you put in? The answer is all the money, right? As much as you had. Of course, it doesn’t always work like that. That is what we’re after. [00:04:00] One very important point of all this is that the ad is just one part of the funnel.

The quote unquote funnel. I have a flow diagram that shows each of the important metrics that I’m about to go through. But it also shows how much of the funnel is the ad. I’ll give you a sneak peek that’s this much. If you’re on YouTube, you can see me making a small gesture. But it also shows how much of the funnel is everything else.

It’s all the other stuff that takes place off the Facebook platform. It also shows some industry benchmark values of the conversion of a new person coming onto your list to them actually becoming a client. Go to bjbutler. com forward slash 25 to get the free diagram. This is the 25th episode. Download it now so you can follow along with it when I get to the actual metrics, which is the whole point of this episode.

And the right amount To spend on each [00:05:00] subscriber doesn’t exist, just so you know. It depends on how much the average new lead ends up spending with you. If you have one coaching package that you sell, the math is pretty easy. You spend so much on ads, those new leads end up spending a certain amount on coaching.

Period. It gets more interesting as you have more things to sell them after they buy your main coaching offer, or if they don’t buy your main coaching offer. For example, they could buy a second round of coaching, a maintenance coaching package, something like that. But the more the average person buys, the more you can spend on ads.

It’s fun. It’s more interesting. It’s more fun. For example, I have a client who sells individual coaching, group coaching, and maintenance coaching program. She always has individual coaching available. If someone new to her downloads her lead magnet and goes through her email nurture sequence and ends up buying, great, [00:06:00] perfect.

That’s, that’s, that’s the goal. If they bought individual coaching and after going through that program, they’ll have an opportunity to buy the maintenance program. But if they didn’t buy individual coaching, we still have their email address. They are still valuable. Just because someone doesn’t buy now or in during your nurture sequence, they still might buy eventually.

They will become aware of her group coaching program when those doors open. They might buy, they may not. If they do, they’ll have an opportunity to buy the maintenance coaching program after that. So there’s these three programs that they can buy in certain orders. And all these are ways of getting revenue from leads coming in from the ad.

So once they’re on their email list, they have some, they always have the potential to provide some value to your bottom line. But you [00:07:00] rarely hit a home run on your first ad, on your first try. I talk about how to create a set of creatives and copy that will test to see what your audience likes. And by the way, creative is the video, the image, whatever, the carousel, whatever you’re showing them.

It’s like a visual. That you are showing them in the ad. And then the copy is the words that go along with it. The copy includes both the headline and the primary description. So that test to create creative and copy, that’s in an episode from March called Facebook Ads for Coaches. That episode focuses on the 3x3x2.

It’s three audiences, three creatives, two sets of copy. It’s how to set up the creative and copy that goes into an ad. You know, it’s just a really good exercise if it’s your first ad, or really every ad that you put out there. If you plan on running it for a while, you want to be able to optimize it, which means you need to find which one [00:08:00] is most referred by your audience.

But how do you know which ad is winning? So that three by three by two, there’s 18 variations. How do you know which one is winning? You have to know your numbers. I’ll walk you through a few of the metrics that will help you figure that out. The look of the ad manager and exactly where the buttons are, they always change.

They’re naturally changing every year. I mean, often more, more often than that, you will likely have to configure the column to show the metrics that I’m talking about. They don’t all get shown by default. Right now I can select a columns configuration called performance and clicks. It’s pre configured and has everything you need.

But that’s true now, you may not be true when you go through to do this exercise. But, okay, here’s what you need to know about ad metrics. The first one, and I’m starting most general, is the CPM, the cost per 1, 000 impressions. That M is, [00:09:00] Cost per 1, 000 impressions. The impression is one person seeing it one time.

You have impressions versus reach. Just so you know, reach is the number of people that have been reached. If one person sees the ad one time, that’s reach of one and an impression of one. If that one person sees it twice, that’s a reach of one that with two impressions. And so the CPM is a function of how specific your audience is.

Basically the broader the audience, the cheaper. The more specific you pay more, it’s really the more into my in demand that your audience is, the more you’ll compete with other advertisers for that space. And that will drive the cost up. So if there is a particular audience that is known for buying a lot of stuff, advertisers will figure that out and it will be more expensive to show to that.

To that audience. For [00:10:00] example, that’s often true for, if you’re showing the zip codes with higher incomes. This is really driven by your audience. It’s not your creative or your copy. I’ve seen this number vary from about 20 per 1, 000 impressions up to about 90 per 1, 000 impressions. And it really is how specific.

how broad versus how specific your audience is. So that’s the cost per 1000 impressions, the CPM. The next is the overall click through rate. This is the CT, you have a CTR that’s overall and a CTR that’s just for the link. This is the overall and it measures your creative, your headline, and the first bit of copy that’s visible before you have to click More.

The overall click through rate accounts for any click, not just the link click. It includes the more button, any reaction, a comment. You’ll want to compare this number to past ads that you’ve [00:11:00] run. It’s hard for me to say that it needs to be a certain value, because I’ve seen multiple values work. But if you want to improve this number, you’ll experiment with the creative and the copy that’s visible before you have to click more.

So I’m getting more specific as I go on. The next is the link click through rate, the link CTR. This is how compelling the sum of your creative and copy is. It will tell you if you have painted a good enough picture of the transformation that you’re offering. You really want this number to be above 2%, but of course, you’ll want to compare it to your past ad performance.

If you want to improve this, it is a combination of everything. You’re creative and copy, but if your overall CTR is good, which means that people are attracted to your creative and what’s above the see more. [00:12:00] And the link click through rate isn’t, then what they’re reading after they click see more is not compelling.

They’re not being drawn into the narrative that you are offering them. And your copy needs to be clarified. Lastly is the cost per link click. It’s a result of cost per impressions and the link click through rate. It gives you an idea where you may end up in terms of your cost of acquiring a new lead, your subscriber acquisition cost.

But this just is the cost to get someone to land on your landing page. They then have to actually sign up for your lead magnet. If you see that it’s costing you 20 just to get someone to your landing page, there’s not much of a chance of you reaching your ad budget goals. You do want some people that turned away to be turned away from your landing page.

It weeds people out who are not your people. That’s its job. We [00:13:00] want the landing page to be accurate and compelling, but we also want it to repel the people who aren’t our people. I think of, okay. The cost per link click as it is the final result to assess the different creative and copy versions. It is the cost is get someone onto your landing page.

Assuming all versions are sending traffic to the same landing page. This is how we’ll compare the different versions, how we will judge them. You’ll definitely want to look at the cost per thousand impressions and the link click through rate to understand what is driving this cost per link click. The cost per thousand impressions tells us how in demand our audience is.

The cost per link click tells us how effective our creative and copy is at attracting people to click the link to the landing page. That’s really it. That’s all of the basics. Anyway, it’s been pretty amazing watching the platform evolve over the last five years that I’ve been running ads. There used to be more of a technical [00:14:00] barrier to just getting the ad up and running.

Over time, Facebook, or Meta as the company is actually called, has streamlined the process to make the setup much easier now. They give plenty of explanations in the Ad Manager, and they have documentation available to learn how to do it. So just knowing these metrics, learning from my previous episode about how to run a 3x3x2 creative and copy experiment, and all the documentation available online about Facebook, there’s no reason not to run an ad if you’re looking for more ways to get the word out about your coaching.

Also, learning these metrics, they’re applicable to any ad platform. They all use the same or similar metrics. Thanks. If you haven’t already, go download the free flow diagram that goes along with this episode. It’ll help you put the metrics into context and where they fit into place with the overall experience of a new person coming [00:15:00] in cold on your email list.

Download it at bjbutler. com forward slash 25. If you’d like help getting your ads up and running so that you can tell so many more people about the amazing coaching that you offer. You can set up a free mini session with me on my website at bjbutler. com. That’s it for today. I’ll talk to you next week.

Hey, welcome back to the Life Coach Launchpad. My name’s BJ, and I’m here every week talking to you about all the online business things that, as it turns out, need to happen in order to have a successful life coaching business. I’m a business coach. I love to help life coaches make more money, get more clients, have more fun, and to do what they love to do, what they’re meant to do, and that’s coaching.

So let’s dive right in This last weekend I went fishing with my son He’s in third grade and he wanted to go fishing and we’ve never been fishing and I feel like that’s my job my wife certainly isn’t gonna take her and so we went and it was a great way to disconnect and I’m I’m really not embarrassed to say that I had thoughts of online business and growing coaching businesses in my head I had analogies of running ads.

That was what was running through my head because fishing is [00:01:00] just the perfect analogy for Here it is. With phishing, there is some sort of bait that we’re trying to lure the fish. And that is just like our lead magnet, or content, or whatever the ad is running to. We want to put something of value in front of potential clients and hope they go for it.

The right bait attracts the fish’s attention, just like the right content, which is both the creative and the copy, will grab the attention of the right people. Oh. Moving around to different places, fishing in different places, will show your bait to more fish. Some will take it, some fish, after they’ve seen your bait a few times.

will literally swim away from it. Some fish need to see it a few times. And that’s all the same with an ad. Some people need to see it once. Some people need to see it multiple times to either make a decision. Yes, I want that or no, I don’t want that. Who your ad [00:02:00] gets shown to is also just like which lake, which river, which stream you’re in.

If you want to catch trout, you need to be on a river. If you want to catch bass, you need to be on a lake. That’s really the extent of my fishing knowledge. But in the ad network, I’m talking about Facebook and Instagram ads. Primarily you get to choose who you’re being, who your ads are being shown to, which is great.

Which lake, which, which river, which type of body they’re being there. And if it was fishing with fishing, you can control the number of poles in the water, the more bait that’s out there, the more fish that are seeing you. That’s your ad budget upping your budget. We’ll show your ad to more people. Putting more poles in the water will show your bait to more fish.

I will stop there because I’m sure I could go on and on, but let’s get into the whole point of running ads and eventually I will introduce you to the most important metrics [00:03:00] of running Facebook ads because it’s these metrics that will tell you if your ads are doing well or not doing well. The whole goal of running an ad is to get more money out of it than you put in, right?

I’m sure you’ve heard someone talk about how expensive ads are. The question you need to ask is compared to what? If you’re collecting leads at 10 each, it sounds like a lot. I mean, especially if you want a lot of leads, that sounds like a lot of money. But what if you were getting an average of 20, 30, or more back from each lead?

That’s the Facebook ATM. If you could put in 10 and get 20 back, as in always double your money, let me ask you, how much would you put in? The answer is all the money, right? As much as you had. Of course, it doesn’t always work like that. That is what we’re after. [00:04:00] One very important point of all this is that the ad is just one part of the funnel.

The quote unquote funnel. I have a flow diagram that shows each of the important metrics that I’m about to go through. But it also shows how much of the funnel is the ad. I’ll give you a sneak peek that’s this much. If you’re on YouTube, you can see me making a small gesture. But it also shows how much of the funnel is everything else.

It’s all the other stuff that takes place off the Facebook platform. It also shows some industry benchmark values of the conversion of a new person coming onto your list to them actually becoming a client. Go to bjbutler. com forward slash 25 to get the free diagram. This is the 25th episode. Download it now so you can follow along with it when I get to the actual metrics, which is the whole point of this episode.

And the right amount To spend on each [00:05:00] subscriber doesn’t exist, just so you know. It depends on how much the average new lead ends up spending with you. If you have one coaching package that you sell, the math is pretty easy. You spend so much on ads, those new leads end up spending a certain amount on coaching.

Period. It gets more interesting as you have more things to sell them after they buy your main coaching offer, or if they don’t buy your main coaching offer. For example, they could buy a second round of coaching, a maintenance coaching package, something like that. But the more the average person buys, the more you can spend on ads.

It’s fun. It’s more interesting. It’s more fun. For example, I have a client who sells individual coaching, group coaching, and maintenance coaching program. She always has individual coaching available. If someone new to her downloads her lead magnet and goes through her email nurture sequence and ends up buying, great, [00:06:00] perfect.

That’s, that’s, that’s the goal. If they bought individual coaching and after going through that program, they’ll have an opportunity to buy the maintenance program. But if they didn’t buy individual coaching, we still have their email address. They are still valuable. Just because someone doesn’t buy now or in during your nurture sequence, they still might buy eventually.

They will become aware of her group coaching program when those doors open. They might buy, they may not. If they do, they’ll have an opportunity to buy the maintenance coaching program after that. So there’s these three programs that they can buy in certain orders. And all these are ways of getting revenue from leads coming in from the ad.

So once they’re on their email list, they have some, they always have the potential to provide some value to your bottom line. But you [00:07:00] rarely hit a home run on your first ad, on your first try. I talk about how to create a set of creatives and copy that will test to see what your audience likes. And by the way, creative is the video, the image, whatever, the carousel, whatever you’re showing them.

It’s like a visual. That you are showing them in the ad. And then the copy is the words that go along with it. The copy includes both the headline and the primary description. So that test to create creative and copy, that’s in an episode from March called Facebook Ads for Coaches. That episode focuses on the 3x3x2.

It’s three audiences, three creatives, two sets of copy. It’s how to set up the creative and copy that goes into an ad. You know, it’s just a really good exercise if it’s your first ad, or really every ad that you put out there. If you plan on running it for a while, you want to be able to optimize it, which means you need to find which one [00:08:00] is most referred by your audience.

But how do you know which ad is winning? So that three by three by two, there’s 18 variations. How do you know which one is winning? You have to know your numbers. I’ll walk you through a few of the metrics that will help you figure that out. The look of the ad manager and exactly where the buttons are, they always change.

They’re naturally changing every year. I mean, often more, more often than that, you will likely have to configure the column to show the metrics that I’m talking about. They don’t all get shown by default. Right now I can select a columns configuration called performance and clicks. It’s pre configured and has everything you need.

But that’s true now, you may not be true when you go through to do this exercise. But, okay, here’s what you need to know about ad metrics. The first one, and I’m starting most general, is the CPM, the cost per 1, 000 impressions. That M is, [00:09:00] Cost per 1, 000 impressions. The impression is one person seeing it one time.

You have impressions versus reach. Just so you know, reach is the number of people that have been reached. If one person sees the ad one time, that’s reach of one and an impression of one. If that one person sees it twice, that’s a reach of one that with two impressions. And so the CPM is a function of how specific your audience is.

Basically the broader the audience, the cheaper. The more specific you pay more, it’s really the more into my in demand that your audience is, the more you’ll compete with other advertisers for that space. And that will drive the cost up. So if there is a particular audience that is known for buying a lot of stuff, advertisers will figure that out and it will be more expensive to show to that.

To that audience. For [00:10:00] example, that’s often true for, if you’re showing the zip codes with higher incomes. This is really driven by your audience. It’s not your creative or your copy. I’ve seen this number vary from about 20 per 1, 000 impressions up to about 90 per 1, 000 impressions. And it really is how specific.

how broad versus how specific your audience is. So that’s the cost per 1000 impressions, the CPM. The next is the overall click through rate. This is the CT, you have a CTR that’s overall and a CTR that’s just for the link. This is the overall and it measures your creative, your headline, and the first bit of copy that’s visible before you have to click More.

The overall click through rate accounts for any click, not just the link click. It includes the more button, any reaction, a comment. You’ll want to compare this number to past ads that you’ve [00:11:00] run. It’s hard for me to say that it needs to be a certain value, because I’ve seen multiple values work. But if you want to improve this number, you’ll experiment with the creative and the copy that’s visible before you have to click more.

So I’m getting more specific as I go on. The next is the link click through rate, the link CTR. This is how compelling the sum of your creative and copy is. It will tell you if you have painted a good enough picture of the transformation that you’re offering. You really want this number to be above 2%, but of course, you’ll want to compare it to your past ad performance.

If you want to improve this, it is a combination of everything. You’re creative and copy, but if your overall CTR is good, which means that people are attracted to your creative and what’s above the see more. [00:12:00] And the link click through rate isn’t, then what they’re reading after they click see more is not compelling.

They’re not being drawn into the narrative that you are offering them. And your copy needs to be clarified. Lastly is the cost per link click. It’s a result of cost per impressions and the link click through rate. It gives you an idea where you may end up in terms of your cost of acquiring a new lead, your subscriber acquisition cost.

But this just is the cost to get someone to land on your landing page. They then have to actually sign up for your lead magnet. If you see that it’s costing you 20 just to get someone to your landing page, there’s not much of a chance of you reaching your ad budget goals. You do want some people that turned away to be turned away from your landing page.

It weeds people out who are not your people. That’s its job. We [00:13:00] want the landing page to be accurate and compelling, but we also want it to repel the people who aren’t our people. I think of, okay. The cost per link click as it is the final result to assess the different creative and copy versions. It is the cost is get someone onto your landing page.

Assuming all versions are sending traffic to the same landing page. This is how we’ll compare the different versions, how we will judge them. You’ll definitely want to look at the cost per thousand impressions and the link click through rate to understand what is driving this cost per link click. The cost per thousand impressions tells us how in demand our audience is.

The cost per link click tells us how effective our creative and copy is at attracting people to click the link to the landing page. That’s really it. That’s all of the basics. Anyway, it’s been pretty amazing watching the platform evolve over the last five years that I’ve been running ads. There used to be more of a technical [00:14:00] barrier to just getting the ad up and running.

Over time, Facebook, or Meta as the company is actually called, has streamlined the process to make the setup much easier now. They give plenty of explanations in the Ad Manager, and they have documentation available to learn how to do it. So just knowing these metrics, learning from my previous episode about how to run a 3x3x2 creative and copy experiment, and all the documentation available online about Facebook, there’s no reason not to run an ad if you’re looking for more ways to get the word out about your coaching.

Also, learning these metrics, they’re applicable to any ad platform. They all use the same or similar metrics. Thanks. If you haven’t already, go download the free flow diagram that goes along with this episode. It’ll help you put the metrics into context and where they fit into place with the overall experience of a new person coming [00:15:00] in cold on your email list.

Download it at bjbutler. com forward slash 25. If you’d like help getting your ads up and running so that you can tell so many more people about the amazing coaching that you offer. You can set up a free mini session with me on my website at bjbutler. com. That’s it for today. I’ll talk to you next week.