You will get mixed responses when you talk to people who have run Facebook ads. You’ll hear everything from how effective they were to how they needed to be pulled after a few weeks and written off as a loss. The mistake people make is assuming that Facebook ads are unreliable. Success and failure depend on more than ad copy, design, and audience targeting (although all of these are critical). Others may have skipped over measuring their Cost of Acquisition (COA).
The point: Don’t dismiss Facebook ads without understanding why they failed for someone. Furthermore, a failing campaign can quickly become fruitful after changing any of the things we have just mentioned. (Each component merits its own blog.) Today, we will focus solely on determining your COA because it is fundamental to getting the return your firm needs. If you don’t know how much a client is worth—or how much you can afford to spend to acquire one—then you’re putting yourself in a position to throw money away.
How Much Is A Client Actually Worth?
Ironically, the best way to determine how much to invest in Facebook ads is to determine what you stand to earn. One of the easiest mistakes is to treat each client as a single interaction or business transaction. Instead, consider the full value of the relationship.
Let’s say your average engagement brings in $7,500. That could be a flat fee for a case or a retainer. Most firms don’t stop there. Repeat business—like contract renewals or estate plan updates—might bring in another $5,000. Now, you’re looking at a $12,500 lifetime value.
But it doesn’t stop there. Let’s say that a client refers just one person to your firm—someone who ends up hiring you. You’ve just doubled the value of that initial client to $25,000. If you deliver solid results and stay in contact with the client via newsletters or social media, that kind of referral cycle is more common than you might think.
How Much Can You Afford to Spend?
The numbers we used in the previous paragraph are interchangeable and are entirely dependent on your firm and the average value of the cases you take. Although we arrived at $25,000, it will be different for you. The most important element is that you know what your client’s lifetime value is.
So, how does that factor into how much you can afford to spend? The good rule of thumb is to spend no more than 10% of a client’s lifetime value to acquire them. With the example of $25,000, your target COA would be $2500.
This also gives you a framework for considering your Cost Per Lead (CPL). If it takes you five leads to get one client, and you can afford to spend $2,500 to get that client, your target CPL is $500. If your Facebook campaign brings in leads at $200, and your conversion rate holds, you’re in great shape. Knowing what your COA is takes guesswork out of your budget. It tells you how much you can pay while expecting a return.
What’s Driving Up Your Costs?
Let’s say your numbers are off. You’re paying $600 per lead, and none of them convert. Or maybe they’re converting—but you’re spending $4,000 to get a client worth $5,000. That’s a fast way to burn through your ad budget.
Several things can inflate your COA:
- Weak Targeting: If your ad reaches the wrong people, your leads will not convert. Even a perfect ad will have a zero conversion rate if it reaches the wrong audience.
- Poor Copy – We have seen ads (with real money behind them) that do nothing more than tell people to call them. Like Facebook ads, copywriting is as much an art as a science.
- Poor Landing Pages—While the ad might get attention, you will lose whatever momentum you had if your website doesn’t match the ad’s message or fails to guide people to the next step.
- Slow or Inconsistent Follow-up – Leads go cold fast. If you’re not responding quickly and clearly, someone else will. Even people visiting your landing page must be reminded to fill it out.
- Lack of Retargeting – Most people won’t convert the first time they see your ad. Retargeting gives you a second (or third) chance.
If your COA feels too high, that’s not a reason to stop—it’s a signal to adjust. Better ads, sharper targeting, improved follow-up, or more compelling offers will impact your ad’s success.
Know Your Numbers & Take Control of the Outcome
Advertising without knowing your COA is like driving with your eyes closed. You might get somewhere—but probably not where you want to be. Once you know your average client value, your conversion rates, and your budget limits, you can build Facebook campaigns that aren’t just creative but effective.
You can’t optimize what you don’t measure. If you want your ads to work, start with the numbers. Spotlight Marketing & Branding helps law firms build campaigns that are both creative and profitable. Let’s talk.
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