The BEST Facebook Ads Niches for Easy Profit

my agency has run Facebook ad campaigns for more than 2,000 businesses over the past 9 years in every industry that you can think of and because of that data and that experience I know exactly which businesses find it really easy to get fantastic results with Facebook ads in this video I'm going to show you what those businesses are I'll explain why it's so easy for them to crush it with Facebook ads and if you stick around to the end I'll explain which Niche I would go into today if I had to start all over again

okay so the best niches for Facebook ads let's start by actually defining ad so the best niches for Facebook ads in my opinion are those where it is really easy to generate a lot of profit and high return on ads SP numbers and there are certainly certain business types that find it much much easier to generate High return on ad spend numbers than others and that's what we're going to be focusing on uh in this video so before I get into some specific examples I want to start by talking about the main characteristic that all

the businesses that find it really easy to get great results with Facebook ads have they all have this one main characteristic and that is High lifetime customer values okay I I cannot emphasize that point enough that high customer lifetime values is absolutely key if you want incredible Facebook ad results and honestly to find it quite easy now there are a number of different businesses that fall into that category and they do so in different ways I want to break those down into subsections and go through those but the the main and early point to understand

is that high average customer values is everything so why is that so important well if you think about how Facebook and Instagram advertising works it's an auction system all advertisers are competing against other advertisers and we're all paying roughly the same amount to reach people now we might have very different results we might have very different return on adspend numbers but in terms of the cost per thousand Impressions if you want to advertise to the same demographic in the same location as another Advertiser trying to advertise to the same demographic in the same location you

are more or less going to see the same cost you're going to see the same cpms cost per thousand Impressions now if you take a business that generates say $30 per customer and another business that generates $3,000 per customer it's going to be so much easier for the business that generates $3,000 per customer to generate a profit and to acquire customers to generate leads to generate sales for a low enough price to make a healthy profit if you 10x or 50x the value that you get from a customer you very rarely have to 10x or

50x the cost to acquire that customer so let's say you've got two businesses one operates in an industry where the average customer value is $50 another one operates in Industry where the average customer value is $500 the business that has customers that worth $500 each will almost certainly not pay 10 times as much to acquire a customer as the business that has customers that's worth $50 each they might have to pay three times or four times so the larger the customer value the more the differential is likely to be between your cost to acquire a

customer and what that customer is actually worth allowing you to see better return on ad spend numbers better roest numbers and also increased profitability so we know that high customer lifetime values is really important and within that there are sort of two subsections I like to break companies into in terms of how they achieve High life-term customer values and they're quite different and they advertise very differently and it's worth going through each separately the first is businesses that charge a lot of money and by that I don't mean businesses that are expensive for their Niche

for their industry I mean they operate in a space where it is typical to charge a lot of money so you think a lot of businesses related to Home Services for example let's take roofers the average customer when they hire a roofer to either maybe do some repair work or put a whole new roof on their home um the average customer is going to be worth thousands if not tens of thousands of dollars depending you know on the properties where they're working that sort of thing so they have high average customer values if we take

a car wash for example the average customer might be worth $15 $20 maybe less than that uh depending if it's you know automated or done by hand and if they buy anything else etc etc so way lower average customer values just based on the industry in which they operate the second subsection of businesses that achieve High customer lifetime values are those that get their customers to buy from them many many many times each individual transaction might be quite small but they just get so many transactions from their customers that over their lifetime the customers are

worth a huge amount of money if you think about uh grocery stores supermarkets being a classic example McDonald's is probably one of the most famous examples where um they used it as part of their training for new staff members that they wanted their staff to treat each customer like they were worth $50,000 over their lifetime because that apparently is about the average of what a customer is worth a McDonald's customer is worth to McDonald's is about $50,000 is what they'll spend over their lifetime um they're not obviously spending anywhere near that on each individual transaction

each time they come in it might be you know $20 might be 10 might be 30 depending on you know how many people they come with how much they order but it's going to be a small amount right but the idea is they coming again and again and again and again over their lifetime and therefore they are worth a huge amount of money so that's that's sort of the other category of business the the subsection of businesses that have high customer lifetime values and in those scenarios the lifetime becomes a lot more important whereas with

those other types of business I mentioned where it's typically a oneoff fee or most of the the the money that you collect from a customer is going to be within that initial transaction anything home services related being a good example if you're buying a car it would be similar most of the value that you get from a a customer is when they actually buy the thing now quick and important side note both of those things I just talked about they are changeable a lot of business owners aren't aware of this but often you can tweak

your offer so that it targets a portion of your Market where people do typically spend a lot more um you could decide to not offer the lower value things and focus on higher value that would increase your your customer lifetime value um and you can also find ways to get people to buy again from you more and more and more to increase your customer lifetime value that way improving your product or service that they want to buy adding in subscription models remarketing there's all sorts of things that you can do there and I just wanted

to quickly mention that because a lot of business owners think oh well I don't meet that criteria therefore this won't work for me Facebook ads can work for you anyway but if you want to make it easy you do want to work on this and increase your customer lifetime values and you can almost no matter what industry you're in you can almost certainly improve your customer lifetime values from where they're currently at and of course there are businesses that combine the two subsections and are able to create monstrously high average customer lifetime value so where

companies where they get you to spend a lot of money with them each time you purchase but you also then purchase again and again and again a lot of the most valuable companies in the world manage this is part of the reason why they're the most valuable companies in the world think apple right every time you buy a new iPhone or a new laptop that gets a lot of money and you're probably not doing so once and then never doing so again or not doing so again for another 10 years you might be buying one

of those every year or every couple of years there's um sort of extra products you know you might buy headphones and all sorts of other things around it that are relatively expensive so Apple managed to get you to spend a lot of money each time they buy and buy again and again and again it's why it's one of the most if not the most valuable company um in the world okay so let's dig into those two a little bit more cuz you're probably watching this video because you're trying to work out what to sell or

you're trying to work out if what you sell is going to be suitable for Facebook and Instagram ads or perhaps be able to tweak what you sell to to make it work so let's get some let's get a bit more specific with some examples so the easiest businesses to advertise with Facebook ads are local service businesses with you guessed it high customer lifetime value so we've already talked about things anything to do with Home Services is a is a great example there are others but that's a whole category there's lots of different types of of

businesses in there if you think about if you're going to remodel your home if you're going to do a big renovation that's going to cost tens of thousands if not hundreds of thousands of dollars depending on how big your home is right that's a huge customer lifetime value and one of the first businesses that actually started running Facebook ad campaigns for was an interior design company uh and their average customer lifetime value was about 75,000 UK based £775,000 um now when each customer is worth £75,000 it's really difficult for that campaign to not be really

profitable because if you think okay let's say that company's willing to spend 10% of what a customer is worth to acquire a customer that means their acceptable cost to acquire a customer is 75,000 they were converting something I believe like one in 12 so that still gives you an acceptable maximum cost per lead of 600 plus P that's about 620 625 so we were generating leads at the time for a tiny fr that less than 10% of that so it's just you have so much wiggle room and it is so easy to get those campaigns

to be profitable and to achieve really high return on ad spend numbers right um you might be able to generate a 100x return on ad spend a 50x return ad spend even a 20x return ad spend would be amazing for most businesses well if each customer is worth 100 Grand it's a lot easier to do also one of the best things about these types of businesses is that you are usually only advertising locally because the service can only be delivered locally and that means you're only competing against other local advertisers and how difficult is it

to create say the best Facebook ads in your town for landscaping services High average customer values large target market but a local business there's not going to be many other landscapers in your town advertising on Facebook Instagram the ones that are advertising on the platform how good are the ads really probably not great spend an afternoon watching some of my videos and you will know how to create the B best Facebook ads in that industry straight away you'll be number one and you can dominate that local market it's a lot lot easier to dominate that

sort of market and have the best Facebook ads in that space than if you're trying to sell sports apparel and you're going up against Nike and you know like businesses that have enormous marketing budgets and hire great professionals and all that sort of stuff it's a lot easier to to operate within those local market another big reason why it's so easy to get great row ass with those is that the competition is either non-existent or very minimal now it's not all plain sailing for these types of businesses there are of course challenges and that is

that the deliverable is hard delivering these Services requires a lot of moving Parts takes time requires a lot of people so it's quite difficult for these businesses to scale it's not like an e-commerce business where if you sort of crack the code on your marketing your advertising is working really well and you can just scale that because the deliverable is really quite easy just more stock more shipping and that's it right quite straightforward it's much more difficult with these local service based businesses uh to be able to do that um so what we often find

and we work with a lot of clients that have this type of business and we love working with this type of client because we know we can get fantastic results for them is that we know going into it that they're likely to turn their ads off at some point and they're going to turn their ads off because they run out of capacity we work lots of business like this and we will we know exactly what we're doing we get them loads of leads we fill them up and they'll say look this has been amazing but

we're full can you turn our ads off for a couple of months uh and then we'll revisit once we've got more capacity because it is difficult to scale so that is whilst it's much easier to advertise and get a really high return on that spend that is the potential drawback is that scalability it's absolutely still possible lots of businesses do it but it does become more challenging in comparison to some other business models and one that I'm going to talk about quite a bit in a minute now it's much harder to advertise businesses that have

a high customer lifetime value which we want but because of primarily repeat purchases as opposed to that one big um transaction and that's because firstly the product or service or whatever you're offering it has to be really really good to get people to buy again and a lot of business owners even marketers think that whatever it is they're advertising is fantastic and sometimes it's okay sometimes it's average which the average is the average remember but sometimes it's not exceptional and really the things that do well from a repeat purchase standpoint getting people to stick around

and use it again and again and again for a long time and they often have to be exceptional it can also be tricky from a Cashflow standpoint because if you have a high customer lifetime value because customers buy again and again and again again you might break even maybe even make a loss on that initial transaction and you're going to make that back and then more than make that back but it's going to take time so you might actually be running a cash deficit by acquiring customers advertising because you just don't get the cash back

in from those customers uh for an extended period of time so without funding that can also be difficult and on top of that advertising those types of businesses is often hard from a competition standpoint you need to be a much better Advertiser because you're usually competing against other competitors that probably don't just operate locally like with the previous uh subsection examples uh they probably operate nationally or internationally they're probably funded they're probably um really good at what they do they have marketing experts involved agencies Etc so the bar in terms of quality of advertising to

acquire customers is that much higher so on the face of it these businesses are a lot trickier to advertise even though they do have higher customer lifetime values and businesses that fall into to this category are going to be things like software uh media consumable products it's one by the way that all businesses that operate in those sorts of spaces they've all been moving to subscription models um over the last however long it's been and and every business seems to be trying to convert itself into a subscription model uh where possible and this is why

because it increases lifetime customer value which makes acquiring customers on the front end that much easier you can afford to pay a lot more to do it uh so you think about all the media you consume it's all on a monthly subscription now even things like consumer you know like the the food you cook in your own home home has been converted into a subscription business think hellofresh and Gusto and I know there's different versions around the world but I'm sure you can you can think of an example right so all these businesses are moving

to that subscription model because they want the high lifetime customer value and if the product's good enough um you can get really high customer values because people don't cancel their subscriptions they keep buying again and again and again um and then that allows you to pay a lot more on the front end so businesses in this subsection of those um that have high customer lifetime values they're harder to advertise hard to get it right but if you do they can be insanely profitable and that's why I wanted to include them uh within this video as

the best niches for Facebook ads because the ones that have the best possible results results you can't believe that are massively scalable that have incredible row ass they often fit into this category it's hard to win from a competing G competitor standpoint it's hard to do the deliverable and get that good enough to keep the customers around for long enough for that lifetime value to be high enough but if you do these are the ones that can see the best possible results um with Facebook ads cu if you think about let's say you created a

software and it helps automate a task that people previously had to um spend a lot of time doing that's quite an easy thing to sell if it's if it's a you know a good uh SAS offering you might charge relatively low amount for that $30 $40 a month something on those lines for for this software could be could be even less right so in that sort of scenario you could be looking at a cost to acquire a customer of $20 that wouldn't be unrealistic and provided that SAS product is good and people stick with it

they might stick with it for years on average which means your lifetime customer value at $30 $40 a month whatever ends up being in the thousands of dollars so you could end up having a scenario where you're paying $20 to acquire a customer that's worth $1,500 on average now yes it takes time for that to come through um but those numbers are incredible and that allows you to get incredibly aggressive on the front end with your ad campaigns and massively scale and spend a lot of money because you know you're going to so much more

than make up front the back end I mean that example comes out at what that's a 75x return on ad spend um and you can operate with that at scale so that's as I said that's why I wanted to clud these business because if it can work well these businesses can be insanely profitable and insanely successful when running Facebook and Instagram ads now at the beginning of this video I said that I would share what I would do today if I had to start all over again and I didn't have money I didn't have the

audiences I have I didn't have the connections I have um I just had like the knowledge that I've got that the Facebook ads um expertise and experience like what would I do where would I what what what Niche would I go into uh how would I approach this personally I would go for the local service business that has a customer LTV of at least $5,000 and i' I'd hopefully like to get that um significantly higher and I would operate in that sector and we've discussed in this video that there are challenges with it but because

the economics are so favorable and the competition when it comes to advertising is so so easy to beat if I was to operate in that industry and start a business start a local service based business I would just never have to worry about acquiring customers it would just always be really easy and I think if you're in a business where you always can generate lots of customers at short notice relatively easily it's almost impossible to fail firstly and secondly it's actually really difficult to not succeed massively over time the challenge then of course if I

was to go into that sort of business would be to find a way to scale to many locations and hire teams and get great people to to do the deliverable that would become the challenge because the custom acquisition based on my Facebook ads expertise would be very very easy in that space um and I think if you can afford to acquire a lot of customers and you're able to acquire a lot of customers you're always going to have Revenue coming in that's going to allow you to hire good people to build out the back end

so that's what I do if I wanted the easiest possible way to to get great results with Facebook and Instagram it's not what we do as an agency we work with all different types of businesses and I love that as well because I think we get so many different looks different types of businesses we get to strategize we get to be creative and we get to work things out in different places I think the people that work for me become much better Facebook advertisers by having to work with lots of different types of businesses and

learning lots of different ways of doing things which is fantastic and if you're interested on Services by the way there is a link um in the description you can book in a free call and find out more um about how we can get you better results and take the workload off your hand and all that sort of stuff um so I love that we have gone down that route but I I think there'll be a lot of people watching this who just want to know what's the quickest easiest path to success if I was to

start again and and that would that would be my answer now no matter what Niche you operate in or will be switching to based on the information that you found out about in this video it is very very important that you get your campaign structure right and in this video I share my new and updated recommended Facebook ad campaign structure we found that with all the changes happening to Facebook and Instagram ads recently we've had to change the way we do things from a structure standpoint and I show you exactly what we're doing right now

what I'd recommend you do in this video here