Social Media

Is Your Social Media Actually Making You Any Money?

Stop guessing if your Facebook and Instagram posts work. Here is how to tell if social media is bringing in real customers or just wasting your time.

AI Summary

This article breaks down how small business owners can track the real financial return on their social media efforts by moving past 'likes' and focusing on phone calls and sales. It offers practical advice on manual tracking, setting realistic budgets, and identifying which platforms actually drive profit.

Look, let’s be honest. If we’re sitting at the pub and I ask you how your business is going, you’ll tell me about your latest jobs, the headache of finding good staff, or how busy the phones are.

But if I ask you, “How much money did that Facebook post you put up yesterday actually make you?”... you’d probably just stare at your schooner.

Most business owners I talk to in Brisbane are in the same boat. You’re posting on Instagram or Facebook because everyone says you have to. You’re seeing likes, hearts, and the occasional comment from your mum.

But likes don't pay the power bill.

In the marketing world, people call this "ROI." In the real world, we call it "not wasting money." If you’re spending three hours a week making videos or paying a kid five hundred bucks a month to "manage your socials," you need to know if that money is coming back to you with friends.

Here is the first thing you need to realize: Google and Meta (the people who own Facebook and Instagram) have designed their apps to make you feel good, even when you aren't making sales.

They show you big numbers.

"Your post reached 5,000 people!" "You got 200 likes!"

So what? If 5,000 people saw your sign on the side of the Gympie Arterial Road but not one of them pulled over to buy what you’re selling, that sign is a failure.

We need to stop looking at followers and start looking at the till. If you aren't seeing more phone calls, more walk-ins, or more bookings, then something is broken.

Most people think tracking results is some high-tech wizardry. It’s not. It’s just about being organised.

This is the simplest, oldest, and most effective way to see if your marketing works. Whether you’re a plumber, a lawyer, or you run a cafe in Paddington, you (and your staff) should be asking every single new customer: "Just out of curiosity, how'd you find us?"

If they say "Facebook," write it down. Keep a simple spreadsheet or a notepad by the phone. At the end of the month, if you spent $1,000 on ads and only two people said they found you on social media, you know you’re posting for nothing and it’s time to change tactics.

Want to know if your Instagram followers are actually local customers? Post a deal that is only on Instagram.

"Show us this post for a free coffee with your breaky wrap." "Mention this video for 10% off your first service."

If nobody mentions it, your audience isn't paying attention. If the shop is full of people showing you their phones, you’ve cracked the code.

If you have a website where people book jobs or buy products, you can use special links that tell you exactly where a visitor came from. It doesn't cost anything to do this, and it stops the guessing games. You’ll be able to see that $50 spent on a specific ad resulted in three bookings worth $600. That’s a win in anyone's book.

This is the cost most small business owners forget.

Let’s say you spend five hours a week taking photos, writing captions, and replying to comments. If your hourly rate is $150, that social media habit is costing you $750 a week in labor.

Is it bringing in more than $750 in profit?

If not, you’re better off spending those five hours on the tools, out quoting jobs, or even just at home with the family. My honest take? Most owners shouldn't be doing their own social media day-to-day. You should be using local experts or even getting your team involved to save your own time.

Actually, having your staff get customers is one of the smartest ways to lower your costs while keeping your pages active. They’re on the front lines anyway; they might as well snap a photo of a finished job.

Not every post is going to result in a sale immediately. That’s just not how people work. Think about how you use your phone. You’re usually scrolling while watching TV or waiting for a coffee. You aren't always ready to buy a new hot water system right that second.

We look at it in three stages:

This is where you show up in people’s feeds. It’s about staying "top of mind." When their toilet eventually overflows, you want them to think of you because they saw your funny video last week.

How to measure: Are people sharing your stuff? Are you getting more followers from your local area?

This is when someone has a problem and they’re looking for a solution. They go to your page to see if you look legit. They’re looking for photos of your work, reviews from other locals, and a phone number that works.

How to measure: Are people clicking the "Contact Us" button on your profile? Are they sending you private messages asking for quotes?

This is the goal. This is the phone ringing or the quote request landing in your inbox.

How to measure: Real sales. Cold, hard cash.

I see two big mistakes constantly.

First, businesses treat social media like a billboard. They just post "BUY FROM ME" over and over again. It’s boring. Nobody goes on TikTok to be sold to. If you want to get business enquiries on platforms like that, you have to be helpful or interesting first. Show people how you fix a problem. Show the behind-the-scenes. Build some trust.

Second, they give up too early. Social media isn't a tap you turn on and get an immediate flood. It’s more like a garden. You have to plant the seeds, water them, and wait a bit. Usually, it takes 3 to 6 months of consistent work before you can accurately measure if it’s working for your bottom line.

If you’re a small business in Brisbane, how much should you actually spend?

If you’re doing it yourself, your cost is time. If you’re hiring an agency or a freelancer, you’re looking at anywhere from $1,000 to $5,000 a month depending on what they’re doing.

If you’re spending $2,000 a month, you need to be seeing at least $6,000 to $10,000 in revenue from that channel to make the numbers work (depending on your margins). If your agency can't show you how their work is leading to those numbers, they’re probably just blowing smoke.

Don't let anyone tell you that "brand awareness" is enough. Brand awareness doesn't pay your mortgage. You need to close more sales from the leads you get, otherwise the whole exercise is a waste of breath.

If you’re feeling overwhelmed, here is my advice. Stop trying to be everywhere.

You don't need to be on Facebook, Instagram, TikTok, LinkedIn, and Pinterest all at once. Pick one where your customers actually hang out.

If you’re a tradie, Facebook and Instagram are usually your bread and butter. If you run a boutique or a gift shop, you might find that selling on Pinterest is a goldmine because people go there specifically to find things to buy.

Once you pick one, do it well for 90 days. Track every single enquiry. If the phone doesn't ring more often after 90 days of solid effort, kill it and try something else.

Marketing isn't an art project. It’s an investment.

If you put $1 into a vending machine and nothing comes out, you don't keep putting dollars in. You kick the machine and find another one.

Social media is the same. It can be the best thing that ever happened to your business, or it can be a giant black hole for your cash. The only difference between the two is whether or not you’re actually measuring what matters.

Stop looking at the likes. Start looking at the leads.

If you want a hand figuring out which parts of your marketing are actually working and which parts are rubbish, give us a shout at Local Marketing Group. We’re based right here in Brisbane and we don't do jargon. We just care about making sure your marketing makes you money.

Talk to us here and let’s grab a coffee (or a beer) and sort it out.

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