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.