August 1, 2020

FB Ads Test Results | Reached $199 MRR

Timothy Kim @gza

Big week for us, got our first Agency account.

Header

About two months ago we went against every conventional bootstrap startup wisdom and decided to run Facebook ads to our MVP.

At the time we only had our reporting feature ready (automation still in the works).

Why?

We had a couple of questions to answer.

  • What's our initial CPL/CPR (Cost per Lead, Cost per Registration)
  • Would users actually pay for our service as is?

We had been working on the MVP for about 3 months, and our trial users were only other agency buddies that we asked to trial the app.

They were the ones that helped us shape the first list of features and test out the app for us.

We were scratching our own itch and replacing 3rd party tools we were using internally in our agency but we had no idea still how we would go about customer acquisition or growth.

A little background, TryMetric was born from our agency, KonvertLab, we're a FB and Google Ads agency for SaaS companies.

A lot of our previous clients came to us to figure out their CPAs for them but most of them had raised money so had a decent budget to test.

Our initial plan was to go to somewhere like AppSumo and do a lifetime deal.

However, this would've only answered one of our questions.

It would've given us a nice base of users who could recommend features but we already had that from our network.

We thought about many other options but we focused on what we had:

  • A great promotional video
    Try Metric Explainer
  • All branding + website assets finished (https://www.trymetric.com)
  • Tons of experience acquiring customers through FB Ads for SaaS companies

We decided to run a small test on FB with our promotional video to see what the initial numbers looked like.

Our goal long term is to figure out a simple formula of

LTV - CPA = Profitable.

We needed to find a scalable channel regardless.

Initial FB Ads Test Results:

  • Total Spend: $300
  • Total Leads (Opt-ins): 17
  • Initial CPL: $17.65
  • Trials Started: 5
  • Initial CPR: $60
  • Paid User: 1
  • CPA: $300***

Results

We planned on spending $1000, but we shut the ads off here.

I personally enrolled everyone of our trial users and even though it was such a small sample set, every single one of them said that they would've upgraded to a paid account had the app been finished and the automation feature was live.

Obviously, we took that with a grain of salt, but still, the fact that we were able to get a $17 CPL was enough validation for us to know that we had enough interest and a viable funnel, therefore, a viable business model.

These were also results that we got without any optimizations or a completed funnel. The fact that we even got these numbers had us really excited about the possibilities.

We decided here to stop the tests and finish building out the rest of the automation feature.

We just completed the automation feature a couple of weeks ago and we've been testing it vigorously with our initial base of trial users.

Lastly, the 1 paid user that we acquired from our test run upgraded from our $49/month plan to $199/month!

For this upcoming week.

Our main feature set is done and we spent the past week finalizing our FB ads funnel so we can turn them on again this week.

We'll keep you updated with how things shape out.

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