Are you sleepwalking your way towards bankruptcy?

It’s shocking just how many business owners do not know what their profit per customer is.

Especially as it is quick and easy to calculate using some simple “back of the napkin maths”…

For example: here is the quick-and-dirty method I would use to calculate my Profit per Customer as a FB Ads Coach


If this hourly rate came out to, say, £100. But I charge a client £150 for 4 hours work then my profit per customer would be £200.

£50 profit per hour x 4 = £200


See, when it comes to paid traffic doing a calculation like this really takes a lot of the guesswork out of it.

I know exactly what I can spend to acquire each new client…

Spending £200 would allow me to break even. And spending less means….more profit for me!

Without that understanding I could be spending hundreds…if not thousands of pounds to acquire a single new client.

Operating blind is a shortcut to the poor house.

See, your profit per customer number doesn’t have to be perfect. Just having something as a guide is far better than having nothing.

This is just one example. I could do the same thing for conversion rates. Click through rates and so on…

Know your numbers!

And, if you are in the process of using paid advertising to generate some hard numbers for your business then there are a couple of VERY IMPORTANT things I want to stress…

#1 – Patience

Give it time. Running an ad for 24 hours is usually not enough time to get any significant data.

Think of it like this…

Yes, you paid…but you don’t get to play right away 😉

FB ads is not a brothel. No instant gratification here.

Think of it as you wining and dining your potential customers before you get to see anything significant (data).

And none of the money spent on advertising is wasted. Because you get to see what didn’t work. You got feedback (and maybe a slap in the face)…

And then at your next opportunity you can use your newfound insight to take things a little further.

See, learning what doesn’t work is almost as valuable as learning what does.

#2 – Testing

One ad.

One Image.

One Set of Copy…

Simply isn’t enough.

Testing one set of creatives is not enough. I’ve heard numerous people conclude that “FB ads does not work”. Or “paid traffic doesn’t work” after doing just this.

The truth is changing simple things can make a bigger than expected difference. For example changing the contrast on an image to make it pop more.

There is always room to test. You can test image variations and get video views for a little as £1 a day. So there is no excuse to only test one set of creatives.

At the end of the day having metrics available is very valuable. Take the time out to get them. Even if it involves doing some simple “back of the napkin maths”.

And if you are still trying to pin down some numbers then remember, stay patient and test (A LOT).

It could be the difference between scaling your business up OR operating blind and going broke.

About the Author Andrew Sunil

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