How to Calculate Cost Per Fan in Facebook

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Calculate the cost of each fan that joins your Facebook page to ascertain the effectiveness of your company's Facebook expenditures. A high cost per fan reflects a high overall Facebook budget but a low conversion rate, while a low per-fan cost indicates that your Facebook advertising is cost-effective. Use this information to determine whether you should increase or decrease your Facebook advertising budget.

Things You'll Need

  • Calculator
  • Add up all the labor costs that you or your company expended on managing your Facebook campaign. Multiple the hourly pay rate of each employee who worked on this project by the number of hours worked during the period. For example, you want to calculate cost per fan for the month of June. Linda earns $10 per hour and spent 40 hours working on Facebook; Mark earns $20 per hour and spent 10 hours working on Facebook. Use the following calculation:

    ($10 x 40) + ($20 x 10) = $400 + $200 = $600.

  • Determine your Facebook advertising costs. Click the "Advertising" link at the bottom of any Facebook page and then click "Manage Your Existing Ads." Click the "Billing" tab. Click a month to see how much you spent during that period. For example, assume you spent $500 on advertising.

  • Add together your labor cost and Facebook advertising costs. For the example, this would be:

    $600 + $500 = $1,100

  • Divide your total expenditures for maintaining and promoting your Facebook page by the number of fans. If you spent $1,100 in June and gained 55 fans, this would work out to $1,100 divided by 55, for a net cost of $20 per fan.

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