 Hey what's up guys welcome to a new video. So in this one then I want to set the record straight when it comes to $5 Facebook ads just because it's such a popular topic. So many people are adopting that as a strategy. Certainly a lot of the people I talk to whether it's in the comments section or on the one to one calls. So many people they just automatically go to using $5 per day as their budget. So in this video then I want to set the record straight once and for all of whether using $5 as a budget works. If it doesn't then why not and if it does then when should you be using $5 as your budget. Now before jumping to it I just want to quickly mention now I'm back to doing regular uploads so there will be new videos every single week. I'm also going to start doing the free one to one consultations as well. So in every single video whoever leaves a comment will have a chance to win a chance to speak to me one on one and just go through anything you want to go through whether that's a store review questions about Facebook ads. The other day I helped somebody pick interests for an ad set. So if that is something that you want the chance to win all you have to do is dead simple is leave a comment in the comment section below. Make sure you tune into the next video and the winner will be announced then. With that being said then guys let's get into the first point. I've got my phone in front of me so forgive me if I keep looking away. And the first point I want to mention is that when you set the budget for your ads then the daily budget is pretty much irrelevant. The main key factor to monitor when it comes to your spend is the total amount spent rather than the daily budget. Regardless of whether you set your daily budget to $5 or $10 or $20 that won't be the deciding factor whether an ad set performs or not. What will be the deciding factor is how long you let it run for and how much you actually spend. So to give you an example then I did a video on this recently just to quickly mention and the topic was how to monitor your Facebook ads so what do the numbers actually mean. And there was a clear correlation then between the ad sets I showed in the video that once an ad set hit about 120 pounds ad spend then at that point that was when it started to optimize and started to bring in good results. It's important to mention as well is that these ad sets were conversion ad sets within a conversion campaign which is the only type of ad sets the only type of campaign objective in which Facebook talks openly and actually mentions the words optimization. And in their own words you can go and Google this if you go to the Facebook business help center. They give guidance into how to get the best out of your ads and they say themselves then that you need 50 conversions per week for an ad set to optimize. So ad sets optimize on an ad set level not within a campaign not within an ad but within an actual ad set. So what that means is that if that ad set doesn't get 50 conversions in the space of seven days then you're not going to be getting the best results that you could possibly get out of that audience. So only then so only with WC campaigns does the daily budget actually become relevant because what this essentially means is that if you don't give your ad set enough budget per day for it to produce that 50 conversions per week then essentially the ad set isn't going to optimize. Now what I found through my own personal experience is that once you get to the point where you've spent X amount depending on what the niche is. So just to give you an example then I'm in the dog niche. Openly I talk about it openly on my channel and watch ad sets reach kind of like 120 pound plus then at that point do they start to optimize because that gives Facebook 120 pounds of ad spend 120 pounds worth of data to test to go out there put my ads in front of a different range and variety of people and then at that point it starts to learn who's responding to my ads who's buying my products and then it goes out and starts to show my ad to more people like that. To summarize point one then try not to think of your ads in terms of what the daily budget is because that won't be the deciding factor between whether your ad actually succeed or not. The deciding factor will be how much you actually spend on them especially if not more crucially if they're a WC ad set if it's conversion ad set then only spending $5 per day. The chances are you won't get enough conversions within the space of a week for that ad set to optimize. So in that respect then $5 Facebook ads will not work for you. Now if you do the mass $5 per day over the course of a week is $35 divide that by the 50 conversions it works out about 70p or 70 cents depending on what your currency is obviously. So if you are achieving purchases for that cheap then your ad sets will be delivering optimally because you'll be achieving those 50 conversions. So when it comes to running WC ad sets then focus on the total amount spent rather than the actual daily budget. Moving on to point number two then and that is that Facebook is a business and they make money by how much money people spend on that how much money people spend on ads and one of the ways these advertisers compete against each other in order to drive up the price of ads so Facebook make more money think about it is common sense they're a business they want to make as much money as possible just like we do they their platform is a bidding platform so if I come into the market and I'm willing to spend 500 pound per day or 500 pound per conversion versus somebody who's only spending $5 or $5 per conversion then who's going to get the favorable results who's going to get access to the highest quality audience is going to be me because I'm showing willingness to spend more than the next person if that makes sense now Facebook don't openly say this themselves but think about it it makes sense if a customer if I've got two customers emailing me about products that must be there in two days time or they're going to cancel their order one of these customers has spent say five pounds with me and the other customer has spent 300 pounds then of course it just makes commercial sense to focus on the people who are spending the most money first it's important to note as well I don't you're taken away from this that in order to be successful with Facebook I need to spend as much money as possible because that's not the point what you need to couple it with is an ad that gets good feedback and gets a good amount of engagement again going back to the point that Facebook is a business and if you look at things from their point of view they want as much money as possible so to do that they need to get as many advertisers possible so to do that they need to get as many users so as many people with Facebook profiles using their using their platform and they need to get those users on the platform for as long as possible so they have more time to show them ads it's a commercial business it makes sense so for them to do that they also need to give their users a good experience because if they keep showing crappy ads to people people are going to get annoyed and they're going to stop using Facebook and therefore Facebook won't be able to make as much money through advertisers spending money on ad budgets so they're the two kind of going off topic here but they're the two indicates to keep an eye on your engagement rate and your total amount spent so that's point number two then which Facebook is a bidding platform and the fact that if you're using a really low budget which five dollars per day is considered quite low then expect kind of like not the best quality audience unless you've got a super relevant ad think about it if you're running ads every single day day in day out at five dollars per day and then I come into the same space as you and even if I only run ads for say fifteen dollars per day then I've got triple the budget you have and in Facebook's eyes I'm going to be more favorable again these are Facebook's words themselves but they're a business they want to make as much money as possible it just makes sense and with all that being said then guys they're the main points I wanted to mention in this video but just to give you a quick summary then just in case I didn't make myself very clear then five dollar Facebook ads they do work but only if you give them enough chance to actually work so if you're running five running them for three four days is not going to be enough you need to let them run for probably at least two weeks because the key number we want to be focused on here is the total amount spent rather than what the actual daily budget is you can go into your ad manager now and change the budget surround between five dollars per day hundred dollars per day twenty dollars per day and the only thing that changes then is that how many people are going to see your ad that day at the end of the day think of your budget as a tool and the more you spend the more data you're going to get back in return and that is the only thing that changes and with that being said guys that wraps up the video thank you very much for watching if you have any questions whatsoever literally doesn't matter whether you've got 10 whether you got five whether you got one and they're super detailed whatever they are just make sure you leave a comment down below because I always get back to every single person and also don't forget if you want that chance then to win the one-to-one consultation call all you simply have to do is like the video and leave a comment down below and finally then if I've got some free ebooks that have got really good feedback recently so if you want to jump in and be part of those you can download them 100% free make sure you check out the links in the video description below and with that being said thanks again for tuning in I really hope you enjoyed it and hopefully see you in the next one cheers