5 Business Models for Making Money with Facebook Ads

August 3, 2015

5 Business Models for Making Money with Facebook AdsAmong one of the most preferred and also the very least effective versions I see in brand-new company prepare for start-ups is the holy grail, Facebook ads.


Offering cost-free solutions to entrepreneurs, while getting their share of the advertising profits.


Making the grade would require you to have”rush hour” type traffic on your website– possibly a minimum of 10 million unique views each month– which would take an insanely longtime to hit that milestone.


That’s a specifically hard obstacle or impossible target to hit in your first year or 2 of marketing, also if you use every traffic source under the sun. While you are doing all this, naturally, you require deep funding to maximize the profit potential, content as well as expanding the overall revenue.


Sounds like a tall task but there is some ground rules and business models which will help you carve out a market using just Facebook ad revenue to start….


This traffic method will help you understand how online advertising really works, and more so on using Facebook. When I first took a look at it, I was overwhelmed and actually thought i needed a Harvard Business Degree (HBD) to sort through all the fancy terms and such.


1. A site owner gets paid when a visitor clicks on an ad.


This model, called pay per click (PPC), is the one most commonly offered to entrepreneurs, looking to profit. For the advertiser, this is the cost-per-click(CPC) model. The goal is for your visitor to be redirected to the site or product being advertised. The average click-through rate hovers around 5 percent, with a payment of a few cents for each, so don’t expect to get rich quick on this one and can cost alot of money just testing out a campaign. Keywords and highly targeted long tail keywords are key and critical to make this type of traffic source work, not just more money.


2. Get paid every time an ad is displayed on your site.


With this model, advertisers pay for the number of times an ad is shown regardless of whether it is clicked on. Technically, this is called pay per view (PPV), pay per impression (PPI) or pay per mille (PPM), which is a thousand impressions. Advertisers see this as cost per impression (CPI) or cost per mille (CPM). Advertisers will pay even less for this one, since they don’t like to pay when your visitor ignores their ads. So you really need alot of traffic to make this one work, but it can.


3. Your visitor must take action on ad before they get paid.


With this variation, no payment comes to you until your visitor get redirected to the ad site and performs a desired action there, such as filling out a registration form. This is called pay per action (PPA) or pay per lead (PPL). The advertiser sees it as cost per acquisition (CPA) or pay per performance (PPP). This model arose a few years ago to mitigate the risks of click fraud, and works really good as a lead generator.


4. Share of revenue from ad action initiated by your visitors.


This is a variation of the preceding model, called performance-based compensation (PPP). It has the best potential to maximize your income, but the results are totally unpredictable. Advertisers see it as a method of shifting the risk on untested ads or products to you, and the potential to make money with this type of model is somewhat risky in my opinion.


5. Fixed compensation rate for a Fixed time period.


This strategy is one of the best ways to make money online. You just negotiated with someone for just putting an ad on your blog or website, which means marketers set a price each day (CPD), independent of the ad’s presence or your site’s unique visitor count. As well, it’s guaranteed that the marketer will be pretty helpful determining useful stats from this type of Facebook ad campaign, so long term incomes predictions is not too likely.


It’s really vital to recognize that shipping of products has changed to a more modern technology to ship and has actually takes longer than, in the previous couple of years. The advertisements you see daily could transform as your website content adjustments, much like adsense, as well as every site visitor might see various advertisement changes based upon their profile and also passions (Behavior Marketing). Currently ad marketing is commonly auctioned to the highest bidder, and buyer in in seconds, while you raise your hand in the air, or click the mouse, vice versa.


This does not at all change the fact that it’s difficult to make any kind of money on ads in the very early days of a brand-new start-up, it’s just too new. Also Facebook needed virtually 5 years and also 300 million people, prior to it ending up, making money online from advertising and primarily marketing to large masses. With the competition fierce in today’s marketing on A lister websites such as Twitter, Pinterest, Search Engine Journal, B2B marketing or any other high end site.


If you desire to make money Facebook from ads in any of the above 5 marketing models, then your very first action should be, is to ramp up the traffic on your blog or website. In short, it’s time to start considering advertising and marketing revenue, on Facebook or on your blog, as part of your business, and should not be alienated from your budget.

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