How does facebook decide on price for promoted posts?

[simpson7647]

Hi all, I'm looking for some information on how facebook decides on the price it charges to promote a post.

Currently on one of our facebook accounts that has 1400 friends, it costs roughly £4.30 to promote the post - how do they come up with this?

When we create a facebook page for facebook for the new business, I'm aware the promoting posts will differ as we get to choose the potential reach as well as price.

How does everyone feel this way of advertising works?

Is the estimated reach more or less correct with what they state?

Many thanks,

Kind regards,

Ryan,

 

[DoveComputers]

The price of promoting your business on Facebook:

You pay for the amount of traffic/reach that you want to attract to your page.
It also varies if you change the location, age or gender etc...
OR
You can pay per click on your page or post e.g 60p per click

 

[Uzair Kharawala]

We've tried promoted posts in the past and I'm not a big fan of it. I'm sure some of you have had more success with your campaigns.

 

[fisicx]

Is there any point in this? Very few of those 1400 freinds will ever use your services, most have already forgotton why they even became a friend in the first place. Those who already use your services will do so again anyway so where is the benefit of paying for your post to be promoted?