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What is the minimum spend per month to qualify for monthly invoicing Facebook?

What is the minimum spend per month to qualify for monthly invoicing Facebook?

Quick Answer

The minimum spend per month to qualify for monthly invoicing on Facebook ads is $500. So if you are spending at least $500 per month consistently on Facebook ads, you can apply to pay your advertising invoices monthly rather than upfront.

Facebook Advertising Payment Options

When you set up a Facebook ads account, there are two main payment options:

  • Prepay – You add funds upfront to your Facebook ads account balance, then spend from that balance to run ads. This is the default option.
  • Monthly Invoicing – You are billed monthly in arrears for your ad spend from the previous month. This option is only available once you reach a certain spending threshold.

With Prepay, you have to keep adding funds manually to your account balance to keep the ads running. This can be inconvenient when running a lot of ads.

Monthly Invoicing allows you to pay in arrears, so you don’t have to worry about constantly topping up your Facebook ads account. Facebook will bill you at the end of each month for the previous month’s ad spend.

Minimum Spend for Monthly Invoicing

To qualify for Monthly Invoicing, you need to be spending a minimum of $500 per month consistently on Facebook ads.

So if you’ve spent $500+ on ads for the past 2-3 months, you can apply to pay monthly. Facebook will review your spending history to approve Monthly Invoicing.

Some key things to note about the $500 minimum spend:

  • It’s based on your total ad account spend, not individual ad set spend.
  • It needs to be $500 of actual ad spend, not just budgeted amounts.
  • The threshold is per-country. So if you advertise in multiple countries, you need to spend $500+ in each to qualify for monthly payments there.

Overall, you need consistent monthly ad spend of at least $500 to convince Facebook that Monthly Invoicing is worthwhile for your business and advertising efforts.

How to Apply for Monthly Invoicing

If you meet the minimum spend requirements, here is how to apply for Monthly Invoicing on Facebook:

  1. In Facebook Ads Manager, go to the Billing section.
  2. Click on the Payment Settings link.
  3. Under Payment Method, click on Switch to Monthly Invoicing.
  4. Facebook will ask you to confirm your eligibility. Click Continue.
  5. Agree to Facebook’s Monthly Invoicing Terms.
  6. Facebook will review your account and ad spend history.
  7. If approved, you will get an email confirmation that Monthly Invoicing is activated.

The review process can take a few business days. As long as you’ve consistently spent $500+ over the past few months, approval is very likely.

Benefits of Monthly Invoicing

Here are some of the key benefits of using Monthly Invoicing for Facebook Ads rather than Prepay:

  • No need to manually add funds to your ads account – one less hassle.
  • More flexibility with budgets and spending.
  • Easier financial planning and tracking – get all your ad costs in one monthly invoice.
  • Don’t have to worry as much about topping up your account to keep ads running.
  • Better aligns ad costs with business billing and cash flow cycles.

For larger advertisers running a lot of Facebook and Instagram ads, Monthly Invoicing can save a lot of time and effort compared to Prepay.

Other Facebook Payments Options

Besides Monthly Invoicing and Prepay, there are a couple other payment options for Facebook advertising:

Agency Invoice

If you manage Facebook Ads for multiple clients, you can use the Agency Invoice option. This allows you to consolidate all your clients’ ad payments into one monthly invoice.

To qualify, you need $5000+ in monthly ad spend across all your managed accounts.

Mailed Check/Money Order

For advertisers unable to pay online, Facebook allows you to mail a physical check or money order to cover your ad costs. This is rare, and not as convenient as online payments.

But it allows some flexibility if you can’t pay electronically for any reason.

What Happens if You Go Below the $500 Minimum

Once you get Monthly Invoicing activated, what happens if your monthly spend goes below $500 in any given month?

In most cases, nothing happens immediately. Facebook won’t switch you straight back to Prepay the first month you go under $500.

However, if you consistently underspend the minimum for 3-4 months, Facebook may switch your account back to Prepay mode.

So you need to keep a close eye on your spend if it starts dropping below $500 consistently. Take action to increase spend or be prepared to go back to Prepay mode.

Some options to increase spend if needed:

  • Raise budgets on existing campaigns
  • Launch new ad sets or campaigns
  • Enter new geographic markets
  • Expand to new platforms like Instagram or Messenger

Essentially, you need to keep total monthly ad spend above that $500 cutoff to keep the benefits of Monthly Invoicing.

Tolerances Around the $500 Minimum

Facebook doesn’t enforce the $500 minimum spend exactly. There is actually some tolerance built in.

Based on reports from advertisers, you can actually spend within $100 below $500 and still keep Monthly Invoicing.

So minimum spend seems to be:

  • $500 +/- $100

In real terms, the threshold seems to be around $400 – $450 in monthly spend.

But to be 100% safe, you’ll want to aim for $500+ consistently. Don’t leave it to chance and risk getting switched back to Prepay.

Special Cases for Lower Minimums

In some limited cases, advertisers may be able to get Monthly Invoicing approved with lower minimum spend:

  • On a new advertising account, the minimum may be just $100 for the first 1-2 months.
  • Certain sales reps may be able to get exceptions approved for accounts spending $300-400.
  • Spend from other Facebook company ad accounts (Instagram, Audience Network, Messenger) may count towards the minimum.

However, these are exceptions and not the norm. The standard published minimum is $500.

So you shouldn’t count on getting Monthly Invoicing approved below that, unless you have special circumstances.

Minimums for Other Facebook Ad Account Features

Beyond Monthly Invoicing, Facebook enforces minimum spend requirements for access to other ad account features:

Feature Minimum Spend
Facebook Sales Channel $1500 monthly
Lead Ads $150 daily
WhatsApp Click to Message Ads $500 monthly

So be aware that higher minimum spends unlock more advanced advertising options on Facebook.

Minimums for Facebook Partner Programs

Facebook also sets minimum spend requirements to access their partner programs for agencies and resellers. For example:

  • Facebook Marketing Partner – $25,000 in past 6 months
  • Instagram Partner Program – $3000 per month
  • Facebook Managed Services – $3000 monthly

Having Partner Badges allows you to manage Facebook ads for other brands and get additional technical support. But the spend minimums are significantly higher than for Monthly Invoicing.

Spend Minimums for Other Advertising Platforms

It’s not just Facebook – minimum monthly ad spend requirements are common across many popular advertising platforms and networks. For example:

  • Google Ads – $150 monthly minimum as of 2022
  • Bing Ads – $100 monthly minimum
  • Taboola – $20,000 monthly for Direct Publishers
  • Outbrain – $100,000 lifetime spend

So Facebook having a $500 threshold for Monthly Invoicing is in line with requirements on other advertising platforms.

Tips for Meeting Minimum Spend

Here are some tips if you are currently below the minimum threshold but want to qualify for Monthly Invoicing:

  • Consolidate spending into one ad account if you have multiple.
  • Increase budgets on existing campaigns incrementally over time.
  • Launch new ad campaigns to reach new audiences.
  • Test expanding into new countries/regions via Facebook ads.
  • Consider spending more on Instagram or Messenger ads too.
  • Create repeating promotions to drive consistent spending months.

Ramping up ad spend should be done strategically andAlign with your business growth plans. But when executed well, it can open up key Facebook advertising features.

Partnering with a Facebook Ads Agency

If your in-house team doesn’t have the capacity to manage $500+ in monthly Facebook ads, consider partnering with an agency.

Many agencies easily spend $5000+ across their managed accounts. Having them run your Facebook marketing could fast track you to Monthly Invoicing eligibility.

When interviewing agencies, ask specifically about their minimum managed spend and managed account size. An established agency with large clients can likely meet Facebook’s minimums by adding you to their managed accounts roster.

Conclusions

The key takeaways on Facebook’s minimum spend for Monthly Invoicing:

  • Standard minimum is $500 in monthly ad spend.
  • You need consistent spend for 2-3+ months to qualify.
  • Apply via Facebook Ads Manager billing settings.
  • Stay above $500 after approval to avoid reverting to Prepay.
  • Increasing spend opens up more Facebook ad features over time.

Meeting the minimums demonstrates to Facebook that you are a serious advertiser on their platforms. Monthly Invoicing rewards bigger spenders with convenience and flexibility.

Carefully ramping up monthly spend allows businesses to access Facebook’s full advertising capabilities and build successful ad campaigns. The $500 threshold is an initial milestone that shows you are ready for advanced options like Monthly Invoicing.