Facebook is pricing most marketers out of the market (& how to make it work for you)

read in the news today that Facebook is reporting record earnings ..

… and they’re mostly due to increased cost-per-click.

Simple model:

get marketers hooked with cheap prices, then once they’ve built their marketing systems around FB advertising, jack up the prices.

A bit like eBay did in the good ol’ days…

anyway, even if you don’t feel the pinch that hard just yet, soon enough you will, because they’ll keep increasing the CPCs …

(it’s not actually FB doing something ‘evil’, it’s a classic ‘auction’ thing: the more people are interested in something (like a click), the higher the price.

and: as more and more marketers discover FB for themselves, well, CPCs are only going to go up and up)

Which brings us to the ‘dirty truth of Internet Marketing’:

All that free/cheap traffic glut is making you a sloppy marketer!

When there’s lots of free/cheap traffic, well it doesn’t really matter if your marketing works, some of it will stick.

But, as competition increases, and with it the actual cost of your traffic, some random ‘sticky even’t isn’t going to cut it anymore.

PROPER paid traffic forces you to take your business, and your marketing seriously!

There’s no such thing as as a magic ‘traffic&conversion’ bullet.

Everybody’s business is different.

Meaning: YOU, the business owner, have to take responsibility for your own marketing & sales-funnels.

Meaning: you TEST & OPTIMIZE them until they’re ROI positive.

And with increasing CPCs, that means you better do this quickly!

My take:

  1. There’s one simple sign if someone takes their business seriously or if they’re playing the ‘hey, I’ll buy another traffic course and maybe I’ll get lucky


    this time’ lottery: if all your effort is focused on building ROI-positive marketing & sales-funnels, and you’re doing it using PAID traffic, you’re taking this whole thing seriously. Otherwise you’re just f***in’ around. Sorry about the harsh words.

  2. Look at the market-place: it’s full of snake-oil peddlers selling you anything but this one fundamental truth in the previous sentence. More free traffic, more social media traffic, more SEO tools, more sales-psychology. All freakin’ icing-on-the-cake, but NOT the ONE-AND-ONLY fundamental focus you MUST have in place if you want to succeed!

Your take?

Feel free to vent like Yellowstone’s Old Faithful ….





  1. I’m not even sure why to build a fan page much anymore. You can’t reach your fans without paying. You do build the know/like factor, which moves them a step closer to buying. But to think you can reach for fans for free with a post, well is only true for a small %. Enough for testing before you spend $. But how much does it cost to build an audience, and how much maintenance do you have to do to keep the audience engaged? Is there a better way than fan pages?

    • Norman,

      I’d only ever use a fan-page to ‘divert’ traffic to an optin. Once you have subscribers on your email list, you some sort of control over the flow of the conversation,…

      … with fan-pages (or anything else where you’re at the mercy or someone else’s temper-of-the-day) you have much less control as you rightly point out

      so, for me it’s email all the way


  2. It’s not that FB is pricing people out of the market –
    It is though, that supply ad demand will always see the cost of the supply increase, as the demand also increases.
    there are ways to still maintain those low CPC’s – by entering Niches that are not yet being pummelled.
    However, there is also another reality for those in the situation where ‘niche hopping’ isn’t productive – and that is simply that you must also raise your prices to make sure you are still in the market.
    The TRUTH that ROI converting funnels – fed by paid traffic is the only serious way to go – means that if the cost at the top of those funnels goes up, so too must the cost of the bottom. (price of product)
    Stay in the game – just adjust so you can keep winning 🙂
    Thanks as always Veit.

    • yup, agree with you 100% Walt – for 99% of marketers the sweetspot is the ‘high prices, high customer service’ quadrant, as far away as possible from ‘competing with the 800lb gorillas of ‘low-margins-mass-volume’ (the equivalent of Walmart or Amazon in your market) … something I keep hammering home in Covert Controversy😉


  3. Nice post Veit, thanks! Its true, CPC has gone up drastically and FB is always changing their algorithm to give less and less organic reach. There are still ways and tricks to get more organic reach and engagement, but they’re not consistent.

    In regard to Norman’s comment, sure you might not get the free reach you got before, but that doesn’t mean fan pages can’t be great marketing tools. Even if you just use the fan page to run your ads, its still worth it (since making a fan page is free). I never spend money on getting new fans on the fan page though. If you boost your posts on your fan page (don’t forget to target your audience), you’ll get people liking your page anyway.

    Walt, great advice on adjusting your business to stay in the game! Thanks.

    • Brian, thanks for the comment.

      regarding running a ‘like campaign’ … the big advantage is that you typically get higher engagement from people who are already familiar with you/your page. And that means higher CTRs, which in turn mean lower CPCs…

      but yes, over time people will ‘like’ your page anyway



  1. […] with ‘the end in mind’ as hinted at in yesterday’s post – and build your funnels from the core value proposition backwards (take note if you’re […]

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