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Facebook Offers $50 in Free Ads to Small Biz

By Stephanie Rabiner, Esq. on September 20, 2011 6:41 AM

When it comes to Facebook, small business owners may soon have a new incentive to operate on the site.

Targeting an estimated 9 million member entrepreneurs, the company will announce a plan this week to offer $50 in free Facebook advertising to 200,000 small businesses.

As with all freebies, there are some things--both legal and not--that you should consider before signing up.

1. Your Customer Base

If your answers are a resounding "no" to the following questions, the offer is probably not worth the hassle.

  • Are your customers on Facebook?
  • If so, do you interact with them on the site?
  • Would you benefit from Facebook advertising?

2. The Contract

Read carefully, as many free deals aren't so free after all.

  • Are there any conditions to receiving the free Facebook ads?
  • What if you already pay for Facebook ads?
  • Are you locked in for a specified period or amount?
  • Are there automatic charges once the $50 is gone?
  • If so, when must you cancel your ad account?

3. The $50

Be sure to find out just how far $50 goes--the time you put into the project may prove to be more valuable.

  • Are ads calculated on a cost-per-impression or cost-per-click basis?
  • What is the base rate?
  • How many people will be reached?
  • Can you target the ad by location, age, gender, education, interests, etc.?
  • How long do you have to use it?

To sum up the above, before your sign up for Facebook small business ads, you need to do your homework.

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