What is the value of getting someone to Like your Facebook page? Hitwise released research that claims that a Facebook Like will produce 20 additional visits to your site over the course of a year.
If that’s true, it’s easy to back into an allowable cost-per-like. You can follow along with this Google spreadsheet.
Let’s use the example of an ecommerce website. If your target is 1 order and your conversion rate is 1%, then you need 100 visits to generate 1 order.
If 1 like produces 20 visits, then you need 5 likes. Next, plug in your average order value (AOV) and target ROI. That tells you how much you can spend in total on Likes (Max Like Spend). Divide that by the Likes Required (5) and you get a Max Cost/Like, $3.33
The same logic applies to a lead gen business. In this example, I’ve calculated a target Cost-Per-Lead, which is then the same as my Max Like Spend. If you want, you can add in a line or two for Target ROI or other conversion metrics, but I kept it simple:
Check out the Google doc to see my formulas.