“How much should we spend on Google Ads?”
Wrong question. Here’s the right one: “What’s a customer worth to us?”
The Backwards Approach
Most businesses pick a random monthly budget—$1,000, $2,500, whatever feels reasonable—then hope it works out.
That’s like saying “I’ll spend $50 on lottery tickets and see what happens.”
Do The Math First
If your average customer is worth $5,000 in lifetime value, and you can afford to spend 20% on acquisition, that means you can spend up to $1,000 to get one customer.
Now we’re working with actual numbers, not guesses.
If your cost per conversion is $200, you’re profitable. If it’s $1,500, something needs to change.
Start Small, Scale What Works
Don’t blow $5,000 in week one. Start with a smaller test budget—maybe $500-$1,000—and see what happens.
Which keywords convert? What’s the actual cost per lead? How many leads turn into customers?
Once you know those numbers, scaling becomes simple math.
The Profitability Trap
Getting cheap clicks feels good. But if those clicks don’t convert, you’re just wasting money efficiently.
A $10 click that turns into a $5,000 client beats a $2 click that goes nowhere.
Focus on ROI, not cost per click.
When To Pause Everything
If you’re spending money and getting zero conversions after a reasonable test period, stop. Don’t keep feeding a broken campaign hoping it magically improves.
Figure out what’s wrong—bad targeting, terrible landing page, wrong keywords—then fix it before you spend more.
Google Ads works when you know your numbers and optimize based on results, not feelings. Start there, and the budget question answers itself.