Performance Based vs Monthly Retainer Pricing for Facebook Ads

Here at Farideh.com, we offer performance based Facebook advertising services BUT – we don’t do it for just anyone! Here’s what’s required for us to consider a performance based payment option:Recently a friend tagged me in a Facebook group discussion about performance based Facebook ads payment for their ads management.

The original post was about a Facebook ad that said something along the lines of “Don’t pay til you get results!”

Perhaps you’ve also seen these ads?

Sounds pretty amazing right?

Is it true? Do you REALLY not pay for results until your Facebook advertising delivers?

Yes and No. There’s a bit more to it than that. Read on and I will reveal ALL the untold secrets…

Now back to that Facebook post and discussion – there was a flood of comments in the post discussions ranging from:

“That’s a scam!”

“I would never run my business like that. You can’t guarantee results.”

“Whoa…that’s awesome”

Here at Farideh.com, we offer performance based Facebook ads services BUT – we don’t do it for just anyone!

Here’s what’s required for us to consider a performance based payment option:

First, let’s go over the regular ol’ monthly retainer

The traditional way to pay your Facebook Ads Manager is with a monthly retainer. You pay the fee of $2,000-10,000 a month regardless of the results they get for you. Just a note – your ad spend is ON TOP of the monthly retainer that you’ll be paying your Ads Manager.

What is performance based Facebook ads management?

With a performance based structure,  you pay a commission on the results your FB Ads Manager delivers.

Typically this percentage ranges from 10-30% (depending on your vertical) or sometimes it’s a straight fee (For example: $100 per lead).

If your Facebook Ads Manager drops the ball and you don’t see a certain amount of sales – you don’t pay.  (Make sure you’re still on the right track with your ads manager by going over these red flags)

Do you qualify for performance based pricing options?

Here’s the thing, most people DO NOT qualify for performance based Facebook ads management. Here’s why:

Ad spend. If you’re not looking to make more than $10,000 a month – then it often doesn’t make sense for a Facebook ads manager to take you on. 10% of $10,000 is only $1000 and believe me – running your ads is A LOT of work.  

If you’re planning to make more than $10,000 a month – congrats! You are still in the running for performance based pricing.

Funnel Set up Fees.  You’ve probably already heard of a sales funnel for your online business – but did you know you also need a Facebook ads funnel?

Your Facebook ads funnel displays ads at appropriate times to select audiences throughout the flow of your sales funnel. It’s completely within Facebook and requires both a strategy and technical set up.

Do you have all of your landing pages, thank you pages, custom audiences, and retargeting set up for each freebie, webinar, paid offer and upsell you want to promote through Facebook ads? Have you been running the right ads to the right people? Are your properly tracking the ROI on your sales from FB ads?

If not, then you’ll need to pay set up fees which range from $5,000-30,000 (depending on how many products you have). This set up fee covers the creation of your FB ad funnel and the first month of ads management while your funnel is being tested, tweaked and optimized.

This may seem pricey, but it’s a short-term investment for a long-term return. If you want to make at least $10,000 a month, you’re looking at $120,000+ of income per year.

If you’ve got your Facebook ads funnel in place – congratulations! You’re still in the running for performance based pricing.

Proven Product. In order to qualify for “don’t pay til you get results”,  you’ll need a proven product. Does your product sell? Is it priced for profit? Is there a place for the advertiser to make a commission? 

If you’ve been selling your course with success and you’re now ready to scale to a higher profit margin, performance based pricing is great option for your Facebook ads management.

If you’re just starting out selling, you’ll likely be on monthly retainer until your funnel is tested, your product is proven, and your Facebook Ads Manager knows they’ll be able to make a commission – while you make a profit!


Why we offer performance based Facebook ads services

Performance based pricing is riskier for a Facebook ads agency as we invest a large amount of setup time without a guarantee of payout beyond the first month. Here’s why we offer this pricing option:

  1. We put skin in the game and clients love it. It shows you that we want your launch to go as well as you do.
  2. Our client’s cash flow. We specialize in online course launches (and e-commerce). The bulk of our clients are online course creators who see big pay days with months in between. They get the bill when they have money to pay. 
  3. Everyone makes more money.We check your ads on evenings and weekends – 365 days a year.  A performance based structure is motivating for our team. They know their efforts will pay off.

Think you qualify for performance based Facebook ads management and interested to see if our team can help you? Fill in our intake form and schedule your call.

 

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Julie-Headshot Farideh’s knowledge of tech and Facebook ads is something I didn’t have, but needed to make this launch a success…. Working with Farideh is amazing. She’s knowledgeable, professional and easy going. Plus, she helped make my launch successful and stress-free. That’s as good as launches get!
Julie Parker, beautifulyoucoachingacademy.com