Make Money on Facebook Ads

While many social networking sites don’t particularly like blatant advertising on their pages, Facebook doesn’t fall into that group. They are happy for people to advertise products and services to their users, and have even setup their own ad serving platform specifically for the purpose.

Have you noticed the sponsored ads on the right side of your Facebook profile? They look like this:

Well, unless you have been living under a rock, then you have certainly noticed them because Facebook makes sure that you do notice them for a reason, they want you to click on them. That is the process how they make their revenue. They charge individual advertisers a small fee every time someone clicks on an advertisement. In fact, this is how most search engines such as Google, Yahoo, and MSN generate revenues as well. I have nothing against those search engines, they are great. But I will not talk here about how to make money on them because it is a more advanced technique. It has the most user-friendly advertising interface. It is the best place for you to learn how to make money by placing pay-per-click ads. The bottom line is that their social ads are amazingly awesome & simple to learn. If you have ever wanted to make money online, then look no further than the Facebook advertising platform.

Let me tell you a simple thing that you should keep in mind as a marketer: We as humans are consumers. We cannot help it. There are things that we want and there are things that we need. Therefore, we are consumers. Think that how many things have you paid for this week, this month and this year? I have consumed a lot in my lifetime and I am sure you have to.

This is where Facebook comes in: There are millions of hungry consumers on Facebook. Millions of people just like you and me who want and need something. All you have to do as an affiliate marketer is fulfill this hunger of the consumer. Facebook provides the perfect platform that allows you to precisely target any group of consumers you want. This is how you will make your money on Facebook.

The funny thing is someone successfully completed your offer, which is what makes you make money. You just have to find out the right affiliate offer (which I will teach you how to do) and you will be able to take advantage of all the hungry consumers there. Trust me when I say, “There is money to be made on Facebook!” Take the advantage now.

Learn the Fundamentals

Are you ready to start to make money utilizing the extreme popularity of Facebook? I bet you are! Just follow the techniques and you will succeed. Let’s get started right away.

There is one fundamental truth in internet marketing and almost any functioning market that is ‘Supply and demand’. This is the thing what drives all markets, and it is what separates the sellers from the buyers of a product or service. Just as you have demanded an opportunity to learn how to make money on Facebook, I am supplying you with the information to do so. Keep it in mind in all your internet marketing ventures. Remember that we are consumers and we demand things. Supply and Demand drives all markets. You can spend money, or you can make money. Demanders give money, while suppliers receive money. So in order to make money, you must be a supplier. That is the thought process of an entrepreneur. But some people do not think about these fundamental truths or even comprehend that simple truth. This is the basic economics.

If you want to be the supplier that makes money on Facebook or anywhere else then you must be creative and learn to market your product, offer and or promotion in a way that makes people want to buy what you are selling. In the case of this report, this information is the product and I have marketed to you information on how to make money on Facebook, and that is exactly what you will be doing. But, in many cases on the internet, you will be selling or promoting someone else’s product or service and make a commission for each sell or lead that you produce for the product or service owner. This can take some creativity, you must think like a consumer to be great at marketing. What is it going to take to convert a prospect into a customer? What is it that makes someone pull out their wallet? Successfully answering these questions is what marketing is all about!

Let’s Make Some Money

Now I will show the way that I make money on Facebook and exactly the same way that you will. That is creating Facebook ads that are very effective and highly targeted. If you have no experience as an affiliate marketer (A person who sells other company’s products or services for a commission, you will learn about this in next pages.) then do not worry. The Facebook ad platform is very user-friendly and easy to learn in a matter of minutes. The reason that their ads are so effective is because of the precise targeting method that they allow. Every one saw the ads on the side of our Facebook profiles before. Even you may have clicked on an ad before and made the affiliate marketer some money (could have even been my ad, I continuously have ads revolving through their system).

Let’s see an example to know how targeted Facebook Ads can be:

Notice some things on the screenshot below:

1. This profile says that the person has an interest in golf.
2. This profile also says that the person has an interest in travel.

Now, take a look at how targeted those ads are! That is the power of the Facebook ad platform. The affiliate marketer who created these ads told the Facebook ad platform that they specifically want people that like golf and people who like to travel to view the ads. No other ad platform has this kind of precise targeting, that is why I love it and you will too! Now you are probably thinking, “So how does the person who created those ads make money?” If a person clicks on the ad and signs up for or purchases whatever the marketer is offering then the marketer will get paid a commission.

Commission rates are varying wildly depending on the particular offer you decide to promote. They may make $2 per sign up or they could make $100, it really just depends. So hopefully, now you can see the power of advertising on Facebook. But absolutely there is more to learn and of course I will teach.

Perhaps you are thinking, “But how am I going to do this? How am I going to find the offers that will pay me a good commission?” Don’t worry; I will teach you everything you will need to know to get started. Let’s do it!

Learn How It Works (PPC)

Facebook charges you for your ads in two different ways. You have the choice of how you want to be charged. The first way is called Pay-Per-Click (PPC), you will be charged every time someone clicks on your ad. You can set your daily budget to any amount that you would like as the maximum spend value per day and you can also set the amount that you would like to be charged for every time someone clicks on your ad.

Here is a quick example:

I have set my daily budget for this ad at $25 and my max bid (charge per click) is 65 cents though you will not always be charged the max bid, in fact, most of the time it will be a good bit less. With this setup I am paying for at least 38 clicks ($25/.65 = 38.46 clicks. But you will pretty much always get more than that because you will rarely be charged 65 cents for each click). I could have had a max bid of 25 cents per click, even though Facebook suggests $0.57- 0.75 for this ad. With a max bid of 25 cents per click, I would be paying for at least 100 clicks ($25/.25= 100 clicks). But the only thing that happens when you have a max bid less than their suggested bid is that your ad will not be shown as often (fewer ad impressions). So you may miss a valuable click that could transfer into a conversion. Ok, so with this ad I am paying for at least 38 clicks, I believe that at least 1 person out of 38 clicks will convert on the offer that I am promoting. Obviously I will have to be compensated accordingly. I am paying $25 for those clicks, so my commission should be more than $25 when someone converts on that particular offer so that I can make money. So the goal is to find that highly converting offer that will pay off big. Do not be discouraged, do not give up. This can take time to find the right offer and the right ad content, but you can do it.

Learn How It Works (CPM)

The second way you can choose to be charged for your ad is called Pay for Views (CPM – M is the Roman numeral for 1000). With this option, you will be charged a certain amount per 1000 ad views or impressions. An impression occurs every time your ad is shown on someone’s page (whether that person clicks your ad or not). This looks like a good deal considering that CPM ads typically cost less. However, you are not guaranteed that anyone will click on your ad. But with the PPC option you will know every time someone clicks your ad because you are charged for each click.

CPM example: With this ad I would be paying for 100,000 impressions (0.25 per 1000)

Absolutely, the goal is to target a person as precisely as possible. You do not want people clicking your ad that are not actually interested in it. For example, to promote a weight-loss product, you need to target females that like to work out, exercise, diet, etc. Likewise, to promote a video game, you need to target males between the age of 15 and 25 that like video games, computer games, playing playstation, playing xbox, etc.

A Little Math

This is not the hard science. You just need to take time to experiment with different offers and you have to monitor your click-through-rates (CTR) and conversion rates to see which offers are performing the best and helping you to make money most.

The click-through-rate is the number of clicks divided by the number of impressions (Number of how many time the ad has shown). For example, if you run an ad that has 1000 impressions and you receive 100 clicks on those impressions that means the click-through-rate is 10% (100/1000 = 0.1 = 10%). Facebook will measure this for you in the Ad Manager which makes it much easier.

More important thing is the conversion rate. The conversion rate is measured by the number of conversions (someone completes an offer by purchasing or signing up to your promoted offer and thus you make money by commission) divided by the number of ad clicks. For example, if your ad gets 1000 clicks and you receive 50 conversions from those clicks then the conversion rate will be 5% (50/1000 = 0.05 = 5%).

Once you find a good performing offer with a good conversion rate then simply add more to your daily budget and you will make money more. Saying again, do not get discouraged easily. It may take some time to test and find out a good offer that converts well, but it will be totally worth it once you do find it. I currently have been running an ad that makes me over $50 a day consistently and I have other ads that perform similar as well (Although I can’t disclose that which ad I am running, it is business policy). As long as you make money more than you spend, you are doing things right. Now you will learn where to find out those valuable offers that pay you a commission in the next page.

Finding Offers to Promote

There are so many companies that will give you access to lots of very valuable affiliate offers. These affiliate offers are commonly called CPA offers. There are two type of CPA offers, they are pay per sale (you get paid a commission when someone buys a product) and pay per lead (you get paid a commission when someone signs up for a free trial or enters their personal information into a form which generates a lead for the company).

I currently get my CPA offers to promote on Facebook from the company Copeac. With Copeac you will have immediate access to thousands of high paying products or services to promote in different categories. You will need to sign up with Copeac or any other CPA Network to gain access to these offers (it is free of course).

Within the Copeac interface you are able to generate your very own unique link (referred as your affiliate link) to any offer so that you are able to track all your statistics (such as your conversion rate) on all the affiliate offers you are promoting. You will be able to see that exactly how many people have clicked your ad, exactly how many people have converted (bought the product or filled out their personal information) on your ad.

Statistics are very valuable because you need to compare different offers so that you can find out the offer that is getting the best conversion rate (conversions/clicks). Once you find that highly converting offer, you are ready to kick up the budget in Facebook and generating a lot of extra money!

More Affiliate Products to Promote

Another great place to find products with high commissions to promote is Paydotcom. You need to register there as an affiliate and search the marketplace to find thousands of great products that convert really well (Registration is free).

You can easily promote any of the products or services there simply by clicking “Promote” under any item in the marketplace. You will then receive your own unique Uniform Resource Locator (URL), your affiliate link for each product you decide to promote. Every time someone buys a product through your affiliate URL you will receive the commission and make money.

The image below shows how you can tell what your commission will be on a product in Paydotcom. See that this offer pays 50% of $29.95, so a $14.98 commission. With Paydotcom you can track all your affiliate statistics just as you can with Copeac.

Another place to get great offers to promote on Facebook is Click2Sell which is similar to Paydotcom. You can search thousands of quality products that will convert really well. Again you can keep up with your statistics so that you can compare which products are converting profitably.

Another idea to find offers to promote on Facebook is dating websites. Although dating websites are typically harder to get through Facebook’s advertising guidelines but they do really well once you get them through. Here are some dating websites that you might want to think about promoting by targeting men:

• SinglesNet
• Mate1
• True

Facebook Money – An Example

Now, let’s do an example using the offer from Paydotcom.com above:

Let’s say you have a daily ad budget of $25. Here you get paid a commission of $14.98 for every conversion, therefore you need at least 2 conversions to make a profit (2x $14.98= $29.96 – $25= $4.96 profit).

Can you answer these questions?

• What is the most you should spend per ad click if the conversion rate is 2% (in an average 2 people out of 100 will convert)?

Answer: 29 cents.

The reason: With a 2% conversion rate you will need 50 clicks for 1 and you are paid $14.98 per conversion so you should not spend more than 14.98/50 = 0.2996 or 29 cents per click. (This would allow you to break even. So you should set your cost per click at less than 29 cents to make a profit.) Also, remember that this is just an example, conversion rates change all the time, so therefore, you could still make a profit if your cost per click was 29 cents and the conversion rate moved to 4% in real life.

• What is your return on your investment (ROI) if you make 3 conversions and the daily budget is $25?

Answer: 79.76%! (Can you make that in the stock market?)

The reason: 3 conversions x $14.98 = $44.94 in revenue. $44.94 – $25 budget = $19.94 in profit. Profit divided by Budget gives the ROI, so, 19.94/25 = 0.7976 or 79.76% return on investment!

Landing Page Success

A landing page is the page that a customer will land on after clicking over your carefully crafted Facebook ad. It is crucial to have a great landing page in order to improve conversion rates on some offers. Facebook does not allow any landing page to ask a person for personal information (name, address, email, etc.) unless it is for an e-commerce transaction and also the ad must clearly state that a product or service is being sold. For this reason, you have to get little more creative to help your conversion rates rising and make money.

Some offers that you will find in Copeac or in any other CPA networks will have landing pages that Facebook does not allow. So you must be creatively got around Facebook’s advertising guidelines by a simple tweak here to get your ad approved.

The tweak is have a professional graphic artist to make you an awesome landing page that will convert like crazy or make it yourself (If you have the knowledge of web designing) according to the Facebook’s advertising guidelines. I use ScriptLance or freelancer.com for all my landing pages. With them you can easily create a landing page project and they have experienced graphic artists to bid on your project so that you will get a very good price for your landing page. I usually do not pay more than $30 for my landing pages. That is definitely worth it because you will use that landing page for as long as your ad is able to make money.

I know that you are thinking, “I have to spend some money!” No, because you do not have to do this all the time. Sometimes the company will provide you with a great landing page absolutely free. You just need to ask your affiliate manager if the advertiser supplies landing pages (Remember, you may decide to do this later).

This is a simple process. You just provide the winning bidder on your ScriptLance or freelancer.com project with your affiliate link of the product or service that you are going to promote. The design artist will create a landing page that resembles the page of the link that you provided them.