How to Earn Through Facebook with CPA Offers

Social networking marketing is one of the most popular ways to advertise any product. You have control over so many targeting factors within your campaigns. For example, with Facebook you can target country, city, age, gender marital status and interests. If you have a product that is for a specific group of people located in a certain country within a certain age group and gender then focusing your advertising efforts through Facebook is a great choice.

Social networking advertising provides a great opportunity for people but the problem that I’ve found is many people do NOT know how to set up and test campaigns on Facebook. When I first started out with Facebook I knew absolutely nothing and had no one to mentor me throughout the process.

Use this guide to become familiar with the interface and how to set up your campaigns for optimization.

People have started out with CPA (cost per action) offers which pay you per action, for example, a visitor comes to your website and signs up for a dating network which you are promoting. The “sign up” action will pay you $5-$8.75 per sign up through your website. This is the average rate being offered by many CPA networks which can be very lucrative for you if you know how to optimize your campaigns and you’re paying much less in advertising compared to the payout you are receiving through the network.

Your objective is to optimize your campaigns so your payout is double or triple what you’ve paid through advertising networks.

The Strategy…MYPC_BACKUP

I advise anyone who is starting off with Facebook to start with dating offers because the concept is very simple and easy to understand. Never use offers which are paying extremely high rates per action and avoid email submit offers as the payout tends to be very low. Secondly, many CPA offers tend to shave your earns by at least 80% which is not always the case but you always have to worry about not getting credit for a conversion.

Find an offer which pays $4+ when a visitor signs up and the conversion has been completed and make sure that you can setup a campaign with Facebook with an audience reach of at least 50,000 people. Having a high audience reach will allow you to test the campaigns you have setup and allow you to optimize them with a stable amount of people left even after your optimization is complete. Using a low audience will be fine for the initial stage of testing but once you optimize you will have NO one left to advertise your offer to.

Here are the phases to follow…

Phase 1:

Always start by creating 4-5 ads with different images and a budget of no more than $20 per campaign. The objective is to send and receive 20-25 clicks to the campaign you have setup.

We are trying to determine what image has the highest CTR (click-through-rate).

Don’t pay attention to what offers you have chose and what the conversions are since this is what we will be working on as we go through the optimization process. Make sure NOT to stop your testing until you have received at least 20-30 clicks for that campaign as this will give you a good indication of what image has the highest CTR. The goal is to be above the 0.1% CTR or even 0.2%, 0.3% which is excellent. Remember to set the campaign budget at NO more than $20 in the beginning however if you feel you need to test a little more to find the highest image CTR, than add another $10 to your budget.

In phase 1, the bidding strategy is very simple, you should bid high as possible because your objective is to get as much traffic and clicks to your campaign so you can find the image which has the highest CTR rate. You’ll notice that when you launch your campaign that one ad with an image will outperform the others which are what we are looking for.

It is important not to worry about any other factors other than your images and finding out which image has the highest CTR.

 

FACEBOOK_03

 

Many people often ask about the EPC and what is a good EPC conversion?

First, EPC stands for Earnings-Per-Click and in order to find out what is the best EPC rate for any offer is very simple. You want to make sure that your EPC rate is above the CPC you are paying because anything below means you are losing money. If you are paying CPC of $0.65 then you want to make sure that your EPC $0.70+. Once the campaign has ended and you have an EPC of $0.70 then you have made a profit of $0.05 per click.

A campaign with 5000 clicks means a profit of $250.

Phase 3:

The bidding strategy is very simple and not many people know how Facebook determines what ads to show more frequently. With this strategy Facebook will show your ad even when you drop your CPC by 50% and it all has to do with CTR.

Starting with a high bid of around $.8 or $.9 CPC because new ads which have been listed will get clicks much faster and then the Facebook algorithm will look to display ads with the highest CTR. If you have an ad which has been optimized using the strategy above then you can start a campaign, bid high to increase the frequency it is shown and if the CTR is high, you can drop the bid and let Facebook take over which in most cases they will show your ads because of the high CTR. The high CTR means that you are paying less CPC and getting high conversions once you find that winning offer.

If you have ads which are NOT performing well you can always create another campaign and test them there but keep the well performing ones on their own.

Follow these simple rules…

  • Never test more then 4-5 ads in one campaign at the same time
  • If CTR is high, then CPC will go down on its own but lower after 100 clicks in intervals of $.5 and $.10.
  • Lower your CPC down but make sure you are still receiving traffic and your CTR is NOT hurting
  • The CTR determines everything so if CTR is high then you’ll make money so keep an eye even when adjusting bid.
  • Don’t pay attention to suggested bid as it applies mainly to fresh new ads, but CTR only matters

FACEBOOK_CTR

Phase 4:

This is the fun part because by now you should have at least one profitable campaign and making money. At this point it’s time for you to make a choice…

Adjust how many times per day your ad is shown so you can keep your offer profitable longer. This works on the strategy of finding a converting offer which has been optimized following the steps above and then to make sure that people don’t get sick of the ad or offer, you only show it until you get 100 clicks daily. With this strategy your earnings will be lower but the campaign life spam has just increased by a couple of weeks.

or…

Increase the daily budget and the bid to get your ad shown much more which means more CTR and more money but sooner or later Facebook users might get sick of your banner and stop clicking. This means that the CTR will suffer and you have just decreased the life span of the campaign. The only way that you can keep the life span going using this strategy is if the audience is huge and I’m talking 300k, 500k and 700k+