How to Budget When Starting Out With Paid Ads

How do you budget when starting from scratch with paid ads?

Giving yourself a chance to see results is key.

Here’s what we recommend to our clients. 

We recommend testing at least $5,000 -10,000 per channel over one month. 

That's the minimum needed to get a good feel for whether the channel is going to work.

On our side, we charge a monthly minimum plus a percentage of ad spend.

Clients get a good deal because it’s rare that you need to test for longer than a month. 

For example, you may need longer testing if you have an unclear sales attribution cycle. 

For some B2B companies, it takes 3 to 6 to 9 to 12 months to close a deal. 

That's when there's a lot more uncertainty about whether this is actually working. 

Sometimes in Month 1, you'll think you’re on the right track to the cost per lead.

Say you’ve set an acceptable cost per lead at a hundred dollars. 

If you reach $200 in Month 1, the channel has a good chance of being viable…

However, over the next two months of testing, you may find out you can't get it below $150. 

In other words, sometimes you need that extra time to get a more precise sense.

---> How do you prioritize within your budget?