Hi there,
Thanks for reaching out. Happy to give you some initial thoughts and guidance on your situation with the LinkedIn Ads and the low conversion rates you're seeing.
It sounds like you're hitting the classic B2B SaaS challenge...
Getting paid ads right for B2B, especially SaaS for SMBs, can be tricky. You've got longer sales cycles usually, multiple decision-makers, and the cost per acquisition (CPA) or cost per lead (CPL) is often naturally higher than B2C because the audience is smaller and more specific. The $80 CPL for a webinar signup on LinkedIn you're seeing, while certainly painful, isn't unheard of on that platform, particularly if you're targeting specific job titles or company sizes. LinkedIn is expensive, plain and simple, but you pay for that granular B2B targeting.
However, the bigger red flag you mentioned is the dismal conversion rate from that webinar sign-up to actually starting a trial – only 5% or less. This tells me the issue might be less about the *cost* of the lead itself and more about the *quality* of the lead or what happens *after* they become a lead. Paying $80 for someone who was never really interested in trying your product is indeed wasting money.
Let's look at your LinkedIn targeting first...
Even though LinkedIn offers good B2B targeting, it's easy to get it wrong. Are you absolutely positive you've narrowed it down to your Ideal Customer Profile (ICP)? For a project management tool for SMBs, are you targeting the right company sizes (50-200 employees was mentioned in one of our B2B examples as a common SME range, but yours might be different)? Are you targeting the actual decision-makers or influencers for adopting a new tool like this? Think job titles like Head of Operations, Team Lead, maybe even CEO or founder in smaller businesses, Project Managers, etc. Sometimes people broaden targeting too much to try and lower the CPL, but then you just get junk leads. A narrower audience, even if the CPL stays high or goes up slightly, should theoretically yield higher quality leads if the targeting is spot on.
We've definitely seen this with B2B SaaS clients. On LinkedIn, really dialing in the targeting is key. We worked with one B2B SaaS client targeting specific decision makers and whilst their initial CPL was high, by really refining who we showed ads to based on their exact ICP, we managed to get their CPL down significantly, in their case to around $22. That's still not cheap, but much more manageable than $80, and critically, the quality of leads improved because we were reaching the right people.
Also, consider the ad creative and messaging. Even with precise targeting, is your ad copy speaking directly to the pain points SMBs face with project management that your tool solves? Is the creative visually appealing and relevant? You mentioned testing creatives, but keeping on testing different angles, value propositions, and even formats (image, video, carousel) is crucial on platforms like LinkedIn to find what resonates best with that specific, busy audience. Video ads, for example, can sometimes qualify leads better because people have consumed more information before clicking and signing up.
The funnel after the lead capture is a major point...
Honestly, that 5% conversion rate from webinar attendee to trial is the most concerning number you mentioned. It strongly suggests a disconnect between the webinar and the product trial. Ask yourself:
-> Is the webinar content truly valuable to your target SMB audience? Does it address real problems they face or just showcase features?
-> Does the webinar effectively transition attendees towards the trial? Is there a clear call to action? Is the pitch for the trial compelling and tied back to the value shown in the webinar?
-> Is the process for signing up for the trial right after the webinar frictionless? Any complexity or confusion there could cause massive drop-off.
-> Is your trial offer compelling? Are SMBs hesitant to start a trial for a project management tool? Is it easy to get started and see value quickly?
Sometimes the issue isn't getting people to the webinar, but what happens immediately after. It's like driving traffic to a website that doesn't convert. You can spend infinite money on ads, but if the website (or in your case, the webinar content and trial offer/process) isn't doing it's job, you're always going to struggle. For B2B SaaS, we find that a truly free trial (no credit card required initially) usually works best to lower the barrier to entry and get people using the software. A demo is useful, but it requires more commitment than a free trial, and people often want to poke around themselves.
Improving your funnel conversion rates here, even by a few percentage points, could have a huge impact on your effective CPA. If you doubled your conversion from webinar attendee to trial to 10%, your effective cost per trial from LinkedIn would drop from around $1600 ($80 / 0.05) to $800 ($80 / 0.10) just like that, without even lowering the initial CPL. This is often overlooked but incredibly important.
Should you pivot platforms?
You mentioned considering Google Ads. This is definitely a smart idea to explore, especially if your target SMBs are actively searching for solutions to their project management problems. The traffic quality from Search ads is often much higher because you're catching people at a moment of high intent – they know they have a problem and are looking for something to solve it. On LinkedIn, you're interrupting their feed; they might fit the demographic/job title, but they aren't necessarily in problem-solving mode right at that second.
Keywords you might test for Google Search Ads could include things like "best project management tool for small business", "easy team task management software", "affordable PM tool for startups", "alternatives to [competitor]", etc. Doing some thorough keyword research to understand exactly what your target SMBs are searching for is crucial. This type of intent-based marketing often yields leads that are further down the funnel and potentially higher quality, although CPLs can still be competitive depending on the keywords.
Another platform to consider for reaching SMBs, although it's less precise for B2B than LinkedIn or Search, could be Meta (Facebook/Instagram). The B2B Agency example noted that Meta can work for small businesses using limited B2B targeting options like "small business owners" or "business page admins". While probably not ideal for capturing high intent like Search, it might offer lower CPLs for lead generation that you could then try to nurture through email sequences or retargeting. We've seen good results on Meta for B2B software signups, sometimes at much lower costs than LinkedIn ($7 per trial was one example). It's a different approach – more about building awareness and generating volume leads to nurture rather than capturing immediate high intent.
Ultimately, deciding whether to pivot or stick with LinkedIn involves looking at a few things:
-> Your budget: LinkedIn generally requires a higher budget to see meaningful results due to the higher costs.
-> Your sales cycle and capacity: Can you effectively handle and nurture leads from different platforms with potentially different levels of intent?
-> Where your ICP spends their time: Are they truly active and receptive to B2B pitches on LinkedIn, or are they more likely to be searching Google when a problem arises?
-> Your offer: As discussed, is your webinar/trial offer strong enough to convert leads no matter the platform?
It's not uncommon to run multiple channels concurrently once you've found success on one, but given your current struggles and the high CPL on LinkedIn combined with poor downstream conversion, exploring Google Search Ads sounds like a sensible next step alongside fixing that webinar-to-trial conversion rate.
Here’s a quick overview of actionable things you could try:
| Area | Recommended Action | Why |
|---|---|---|
| LinkedIn Targeting | Review and tighten ICP definition and targeting options (Job Titles, Company Size, Industry) to only reach the most relevant SMB decision-makers. | Ensure you're paying for the *right* eyeballs, not just any eyeball to lower CPL initially. Quality over quantity. |
| LinkedIn Creative/Messaging | Continuously split test different ad copy angles and creatives that speak directly to SMB pain points your PM tool solves. Test video vs image vs carousel. | Find what resonates best with your specific target audience on LinkedIn to improve CTR and initial lead quality. |
| Webinar Content/Offer | Evaluate the webinar content. Is it solving a real problem for attendees? Is it compelling? Does it build sufficient interest in your product as a solution? Ensure a strong, clear, and easy call to action to start a trial. | The huge drop-off post-webinar indicates a major issue here. Fixing this is crucial for making any lead generation effort profitable. |
| Trial Offer/Process | Make sure the trial sign-up process is as simple as possible. Consider offering a truly free trial without requiring a credit card upfront. Make it easy for new trial users to see value quickly. | Reduce friction to convert interested leads into active users. A seamless onboarding experience can significantly boost conversion rates. |
| Explore Google Search Ads | Conduct thorough keyword research to identify terms SMBs use when searching for project management solutions. Set up targeted Search campaigns focusing on these high-intent keywords. | Tap into an audience actively looking for a solution, which often results in higher quality leads compared to interruptive social ads. |
| Retargeting | Set up retargeting campaigns on LinkedIn, Meta, or the Google Display Network to reach people who visited your website, engaged with your ads/webinar, but didn't convert. | Keep your solution top-of-mind for people who showed interest and potentially convert them later at a lower cost. |
As you can see, there are quite a few angles to consider. It's often not just one thing, but a combination of factors – the platform, the targeting, the creative, and crucially, the post-click experience and the offer itself – that determine success with paid ads, particularly in B2B SaaS.
Why getting expert help might be a good shout...
Navigating these different platforms, understanding the nuances of B2B targeting and sales cycles, optimising funnels, and continuously testing can be a full-time job. For a startup, resources are tight and you need to see results efficiently. Someone with deep experience running campaigns for B2B SaaS, who understands how to diagnose these kinds of issues – whether it's the platform, the targeting, the offer, or the post-lead funnel – can often identify problems and implement solutions much faster, saving you significant ad spend and accelerating your path to finding profitable acquisition channels.
We've worked with numerous SaaS clients, including those targeting B2B, helping them refine their strategy, lower their CPA/CPL, and improve conversion rates further down the funnel. Sometimes an outside perspective from someone who does this day-in, day-out can spot things you might miss when you're in the thick of it. Based on the case studies and experience we've built up, we have a good handle on typical benchmarks, what strategies work for different types of SaaS, and how to structure campaigns for success and scalability.
If you'd like to discuss your specific situation in more detail and explore how we might be able to help, we're happy to book in a free consultation to go over everything. There's no obligation at all, but it could give you a clearer roadmap for tackling these challenges.
Regards,
Team @ Lukas Holschuh
