5 Reasons Why You Should Not Build Your Agency Solely On Facebook Ads

Many companies have jumped onto Facebook Ads in hopes of getting tons of leads with this platform. Considering Facebook has about 1 billion active users worldwide, the appeal of this platform is indisputable.

You can target your prospects by their interests or by which pages they’ve liked. This makes it possible for you to find receptive prospects in the shortest time possible. 

This may be controversial, but if you’re an agency owner, you should definitely think twice about building your agency on Facebook Ads alone. 


Here are 5 good reasons why not to do it.


#1 – Closer’s Patience

Marketing is a means to an end. People care about sales, and it doesn’t matter how good your funnel is at marketing in delivering leads, if your client cannot close them, you lose the battle. 

We all know Facebook leads are not as high quality as PPC, organic, referrals, etc. Normally, we justify this by the cost per lead, which will be much lower, but it also implies a lower closing percentage.

The problem is that when it comes to closing deals, every business has a certain level of patience. You have to know your clients. If they are not following up and if they are not going to be aggressive at closing the deals, stay away from Facebook Ads. 


#2 – Facebook changes

Facebook Ads is all about targeting with data, and Facebook is changing all the time. Many of their problems right now have to do with regulations on data. 

Of course, you might be growing and scaling your business with Facebook, but what happens if they change the rules of the game as they did in the Real Estate sector in 2019 when it was discriminatory to segment real Estate ads by age.

The more and more data gets complex and regulated, the more difficult it will be with Facebook Ads. We are not saying you should not use Facebook, but don’t build up your 100 clients’ portfolio solely on the back of Facebook Ads. 


#3 – Targeting

We have around 100 clients on Facebook at Hite; it’s not that we don’t sell it.

But think about it, If you need a roof, do you go to Facebook to find a roofer? 

How can you target people needing a roof? Is it because they are married? Is it because they like puppies? It’s really hard to target on Facebook. You are betting on the masses. Just think about the logistics.


#4 – Long Term Revenue and Churn Rate

Recent statistics on the lifetime value of clients show that for clients doing SEO, the lifetime on average in the US is 12 to 24 months, for PPC 6 to12 months, for Facebook Ads 3 to 6 months. 

Start collecting data on the lifecycle of clients. At Hite, we know Facebook clients are short-term clients, and many times, we sell SEO and give them Facebook for free, because we know clients on SEO will stay a lot longer.


#5 – Facebook Ads Support

It’s so hard to run a company at scale when dealing with delayed Facebook customer support. 

Of course, it’s beneficial to have Facebook as part of your campaigns but try to find the top 100 agencies in the US and find one which relies solely on Facebook Ads as their core service. You won’t find it. 

Scale Your Agency With Digital Agency Hacker

You shouldn’t rely solely on Facebook ads. Build your agency for the long term, not just what will bring you a quick buck this month. 

Focus on reducing your churn rate and spend time building a long-term agency funnel that works for you! For more information on everything, you need to scale your agency, visit Digital Agency Hacker.