Article · ~10 min read

Prospecting and Retargeting Campaigns

Demand Curve Free Beginner

This is the cleanest answer to the exact question of how to divide cold and warm budgets when you are just starting. It gives you a concrete number to start with (roughly 80% cold prospecting, 20% retargeting) and a simple rule for when to shift it, instead of vague theory. Demand Curve teaches growth to early founders, so the framing assumes you are working with a small budget and no in-house media buyer.

  • Start around 80% prospecting and 20% retargeting, then move toward 70/30 only if retargeting cost per acquisition is clearly lower after about 30 days.
  • Retargeting looks great on paper because it converts warm people cheaply, but it cannot grow you: every new customer still has to enter through cold prospecting first.
  • Size your retargeting budget to how much prospecting traffic you are actually driving, not as a fixed slice of total spend.

The question it answers

  1. How do retargeting and cold prospecting budgets actually split when I'm just starting?

Read with it

  1. Video · ~15 min How to CRUSH Facebook Ads with a Small Budget in 2026 Ben Heath
  2. Before you obsess over the exact split, it helps to see why prospecting and retargeting exist at all and where each one sits in... Demand Curve Essay · ~8 min read Why social ads break the traditional funnel (Growth Newsletter #303) Demand Curve
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