Facebook Ads, which has recently been rebranded as Meta Ads and include advertising on both Facebook and Instagram, remains a powerful advertising platform with features that competing platforms haven’t quite mastered yet. For those selling white-label PPC solutions, offering Facebook Ads is a must. In this article, we’ll dive into white-label Facebook Ads pricing so that you can set yourself up to make a profit by reselling Facebook Ads management.
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What is white-label advertising?
White-label advertising is a model in which an agency, media company, MSP, or other SaaS reseller—that is, you—purchases advertising products and services from a white-label platform provider and resells them under their own brand name to the end client.
In other words, with white-label advertising, you don’t have to handle the delivery of advertising services, such as ad creation and campaign management, in house. Instead, you can rely on a white-label team of experts who have the experience and skills (and time!) to deliver these services even better than you may be able to with in-house resources.
There’s no doubt that Facebook ads should be part of your product portfolio if you’re in the digital marketing space: Facebook has a wealth of information about its user base, and this robust bank of data allows advertisers to target very specific audiences, enabling them to achieve higher conversion rates.
However, as valuable as Facebook Ads is when it comes to digital advertising, it takes specialized skills and expertise to really get the most benefit out of the platform. Interface updates, algorithm changes, and privacy developments are all ever-evolving factors that impact how Facebook Ads works. It takes continuous learning and use of the product to master it.
That’s why white-label Facebook Ads are a welcome addition for any SaaS reseller who wants to grow their profits while delivering an excellent, high-ROI service to their clients.
Facebook ad pricing explained
If you were to use Facebook’s ad platform directly, you could start running PPC ads for as little as $5 per day. It’s unlikely to get much traction from such a low-budget ad, because Facebook’s ads improve the more data it can gather from user interactions with ads. At only $5 per day, it would take a long time to gather enough data. However, the point is that users can start advertising on Facebook with very limited budgets, and they can scale up as needed as their budgets increase or ad performance improves.
When it comes to white-label Facebook Ads pricing, the final price your clients pay will include the following components:
- The actual ad spend on Facebook
- The fee you pay to your white-label digital advertising provider who is delivering the service
- A small portion of any membership fees you pay to use a platform as a white-label SaaS reseller
- A markup of your choice
As you can see, this leaves room for a ton of variability when it comes to white-label Facebook Ads pricing. The biggest variables are how much your clients wants to spend on Facebook Ads each month and how much of a markup you want to add on the cost of having white-label experts fulfill this service on your behalf.
Since the ad budget is ultimately up to the client, let’s dive into the exciting part: your margins as a reseller.
White-label Facebook Ads pricing: Margins
Once you have your cost for the white-label services you purchase and resell to your clients, you can choose your profit margin.
There are a few ways you can go about this:
- A flat fee covering your cost plus your desired margin, such as 50%
- Variable pricing for Facebook Ads covering your cost plus a percentage of the ad dollars spent
- Tiered pricing covering your cost plus an additional fee, with different fees for different ranges of ad spend
Let’s consider some examples for each of these scenarios.
In the first scenario, let’s say your cost as a reseller is $1,000 to deliver Facebook Ads management for a client for one month. You could charge them $2,000 monthly, for a 50% margin, regardless of how their spend varies.
In the second scenario, you might charge the client $1,000 or more to cover your cost of ad management services, plus a percentage of their ad spend. For example, if they spend $5,000 one month, you might charge them a 15% fee of $750, for a total of $1,750. The next month, if they spend $10,000 on ads, you would charge them $2,500, $1,500 of which would be profit.
In the final example, you might have a tiered price of Facebook ads that looks like this:
- $1,500 for ad budgets under $5,000
- $2,500 for ad budgets between $5,000 and $10,000
- $3,500 for ad budgets ave $10,000
These numbers are only meant to illustrate how you can structure your pricing to control your profit margins: the real costs will depend on your white-label PPC vendor and your client’s budgets.
Tips for an effective white-label Facebook Ads pricing strategy
Whatever your final costs look like, there are a few tips and best practices you can keep in mind to ensure that you stay profitable while still attracting plenty of clients to ads services. Here are some of our favorites.
Consider your audience segments
If you’re like most SaaS resellers, your client base can probably be broken down into several distinct audience segments. For example, you might have start-up clients with limited budgets but great growth potential, growth-stage clients, and enterprise clients who are looking to consolidate their digital spending.
When establishing your white-label Facebook ads pricing, make sure to consider the needs of each segment of your audience, and create an appealing tier or offering for them.
Bundle your Facebook Ads with other services
Product and service bundles are a win-win situation: you get to sell more and increase the value of each client, while your customers get to purchase more of the services they need from a single vendor, simplifying their procurement, streamlining their spending, and likely saving some money overall.
When you add Facebook Ads to your portfolio of services, create some bundles with other popular products or services that would be appealing to the same client.
For example, you might consider creating a bundle with white-label social media marketing. You can position these as working synergistically, since audiences will see a cohesive social media strategy and ads being served on the same platform, strengthening the overall impression of the brand.
Emphasize the value of advertising through a recession
With talk of a recession either looming or already underway, some SMB clients may be more hesitant to spend on advertising, or they may significantly reduce their budgets. As a white-label Facebook ads reseller, take the time to help your clients understand that continuing to run ads throughout a recession has proven time and time again to be a winning, market-share growing strategy. As competing advertisers pull back, it’s the perfect time for businesses to win over larger audiences that will help them weather the financial downturn and come out victorious on the other end.