Method · · 5 min read
What a follower is worth: how to set the investment ceiling
Without a ceiling, every follower campaign looks cheap or expensive depending on the day's mood. A ceiling turns opinion into a clear standard.
The starting point isn't the market price of a follower, but what a customer is worth to your business. How much revenue does a new appointment, purchase or contract represent over the whole relationship?
Three questions to reach the ceiling
- What is the average value of a customer to the business?
- Of every hundred qualified followers, how many typically start a sales conversation?
- Of every ten conversations, how many become customers?
With those three answers, you can work out the approximate value of a qualified follower and, from there, how much it makes sense to invest to get one. The calculation belongs to the business itself; any generic market figure is just a reference.
The ceiling as an operating rule
Once the ceiling is set, it starts running the routine: campaigns that go over the limit are adjusted or stopped, and the ones operating below it get more investment. The decision stops being a hunch and becomes something you track, day after day.