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How I Generated $21K In Profit In 1 Month For a Client Using Facebook Ads

Discussion in 'Advertising, Marketing, Social Media' started by Mac, May 14, 2018.

  1. Mac
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    Mac Bronze Contributor Speedway Pass

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    Hey Fastlane fam,

    I've been on the forum for a few years now. Read MJ's book when I was 17 out of high school (now 21).

    Here's some background of my journey:

    - Started copywriting on Upwork when I was in university, made very insignificant returns.

    - Almost didn't apply for a FB ads gig because I thought I wasn't "qualified" to handle it.

    - Decided to apply anyway... and ended up managing over $50,000 in ad spend for them.

    - Also dropped out of university.

    - Started off very bad at FB ads, generating leads for $60-$70 plus... but didn't give up. After 3-4 months I got their lead cost below $10 on avg and helped them sell around 200 cars.

    - Mutually agreed to separate, was down to my last $2K in savings in a foreign country (Thailand)... tried many ecommerce ventures until one finally "hit".

    - Brought that ecomm venture from $0 - $730K in revenue within the last 9 months.

    - Reinvested most of the profit into inventory and ended up in a cash flow crisis for many months. Almost made it to the other side... still putting in the hours to make it happen.

    - Finally decided to pick up clients and manage their FB ads to help myself get out of the hole.
    ______________________________________________________________________

    That leads me to my latest results... which I think you can benefit enormously from.

    I wanted to give back to the community... because most of my business philosophy stems from this forum.

    And since many on this forum are in the Ecomm industry... I believe there's not enough talk going around about how to scale Ecommerce sales with Facebook Ads.
    ______________________________________________________________________

    So here's an overview:

    Last month a client came to me looking for help scaling their Ecommerce store in the fashion niche.

    Here’s some stats about their store:

    Conversion Rate: 1%

    Branding was on point, targeting millenial women.

    Private supplier dropshipping store with high margins of 60%+.

    It’s very hard to get high margins if your branding isn’t on point.

    They were already doing $100 - $200/day… but couldn’t scale further.
    ______________________________________________________________________

    Here’s what we did to bump them up to $21,000USD in profit:

    1 - SCALE LLAs across continents

    This is super simple. All we did was split the Placement type by Desktop & Mobile & IG for both EU and USA.

    That would give us 6 campaigns running 1% - 10% Lookalike audiences in each campaign.

    Here’s all the Lookalikes (LLA) we run. For every campaign that’s a winner, we will slowly launch 1% of each LLA each day, as long as it’s profitable. We kill them if there’s no sales by at least $13 spent.

    2 - Target “Friends of Page Likes”, segment by a broad interest like Shopping & Fashion.

    That way people are going to see in their Newsfeed that their mom/sister/friend likes your brand… and you can get cheap purchases through this method.

    3 - Generate massive ROI’s of 4x-20x with DPA re-target ads for VC 1 Day, VC 2 Day, VC 3 Day, VC 5 Day, VC 7 Day. ATC 1 Day, ATC 2 Day, ATC 3 Day, ATC 7 Day, ATC 28 Days.

    We use a proven copy template for each window… continuing the conversation and finally closing with a sale on each day.

    For the copy, we use the “fruit bowl” technique - a popular strategy coined by Frank Kern. Each day we offer a different benefit / offer that pulls in different categories of people.

    Benefits may be free shipping, running out of stock… or a discount to pull in people on the edge.

    4 - Here’s a killer strategy that NOBODY’S using. And… it generates huge ROI.

    Launch DPA ads to cold lookalike audiences 1%-10%... but make sure your messaging is adapted to a “cold” audience.

    Something like… “This luxury chocolate-maker from Belgium is offering these delicious chocolate sets for 25% off today. Free shipping on top!”.

    5 - Re-Target EVERYTHING

    We launch re-targeting ads to people who engaged with FB Post/IG Post/Viewed IG Profile/Viewed Facebook Page/Engaged With FB AD/POST/Engaged with FB Page/Messaged Our Page… and basically anything we can get our hands on.

    Yes, we also split them by 1 Day, 2 Day, 3 Day, 5 Day… all the way up to 30 day windows… with split-tested copy on each step.

    It’s still a work in progress… because it takes quite a bit of effort to set up.

    6 - Cycle in new offers daily and segment your products with the Trackify Pixel.

    Since we start scaling $5 budgets to 1%-10% LLAs… within a month usually our campaigns start dying out.

    This is why it’s crucial you start testing multiple products / offers daily.

    We always launch new LLA audiences based on specific products so that our Pixel doesn’t get confused. Even if the store is a niche store.

    If your first winner is a shovel… then your pixel is going to be searching for shovel buyers.

    But… if you use Trackify to start collecting data early on… then you can create unique LLA audiences for gardening gloves / pest repellent / sheers… and it will be more likely that you will find buyers for these specific products.

    Here’s all the LLA audiences we use. Yes, we use every single one… always:

    PageView NEW 1%-10%

    ViewContent NEW 1%-10%

    ATC NEW 1%-10%

    Purchase NEW 1%-10%

    Initiate Checkout 1%-10%

    Top 25% NEW 1%-10%

    Top 10% NEW 1%-10%

    Top 5% NEW 1%-10%

    Newsletter/Wheelio NEW 1%-10% DONE

    LTV 1%-10%

    API

    Instagram Engage NEW 1%-10%

    Instagram Profile Visit NEW 1%-10%

    Instagram Post Engage NEW 1%-10%

    Instagram Post Save NEW 1%-10%

    Facebook Engage NEW ** 1%-10%

    Facebook Page Visit NEW 1%-10%

    Facebook Ad Engage NEW 1%-10%

    Facebook CTA Button NEW 1%-10%

    Facebook Message Page NEW 1%-10%

    Facebook Page Save NEW 1%-10%

    Now adding in "PurchasedUpsell, ViewCategory, EventSegment".

    Plus… we use 1%-10% ATC, PUR and VC for specific products, too... with unique LLAs made using Trackify.
    ______________________________________________________________________

    TOOLS/APPs

    > Qwaya for rapid scaling and ad scheduling. This is how we launch dozens - hundreds of adsets at $5/day budgets.

    > Trackify for advanced pixel segmentation.

    > Proven email “flows” for Klaviyo that generate order rates of 2%+.

    > Any sort of email pop-up app. You can use Wheelio/Privy/OptinMonk. Whichever you prefer.

    > Social proof buying apps.

    Hope that makes sense. If you have any questions, let me know.

    I'll see you on the other side!

    Mac.
     
    Last edited: May 14, 2018
  2. Tom.V
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    Tom.V Tom Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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  3. cwalto12
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    cwalto12 Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

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    My store looks a lot like the one you described. I have been told to build my Facebook pixel before running ads but I do not have enough sales for it to be effective.

    What’s your opinion on building FB pixel before launching FB ads?
     
  4. IGP
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    IGP Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    No, you don't need to "season" your pixel or any crap like that.

    I run purchase conversion ads on new pixel right from the get go.
     
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  5. DrunkFish
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    DrunkFish Bronze Contributor Read Millionaire Fastlane Speedway Pass

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    Can you expand on this? If there isnt any data on the pixel, how will it be useful rather than waiting until it got some data/sales for your product under its belt?
     
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  6. IGP
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    IGP Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Sure...

    1. You get data on the pixel by using it.
    2. And what data do you want on the pixel? Conversions!
    3. So, run conversion ads.
     
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  7. aminmo
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    aminmo Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

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    To add to this, Facebook shows your ad to the people who are most likely to take the action/objective you're optimizing for (hence why the higher level conversion objectives tend to have higher CPMs).

    So if you optimize for purchases, your ads will be shown to people who are most likely to purchase (or have a history of purchasing products online).

    Basically, even if you don't have a seasoned pixel, it's best to go for purchase conversions right away since you'll get the most qualified prospects from Facebook's pool of users.

    That said, you should still test to see which objectives work better for you. But from the hundreds of thousands I've spent in advertising (in the past year), purchase conversions have always been the most profitable.
     
  8. GravyBoat
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    GravyBoat Silver Contributor Read Millionaire Fastlane Speedway Pass

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    My current strategy is to run View Content conversion type, then once that has some data, duplicate, and switch the duplicate to ATC, then IC, then finally Purchase.

    Whenever I've run straight Purchase conversion ads, they do poorly.

    Can you shine some light on this? Does this mean my targeting is bad?
     
  9. DavidW
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    Great post.
    Do you follow the rule that the seed audience has to be greater than 1k to create a LLA?
     
  10. DavidW
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    Also , how do you launch a DPA to a cold audience? I thought DPA was based on people that had already visited your store
     
  11. Mac
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    Mac Bronze Contributor Speedway Pass

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    No, as soon as the custom audience hits 100 "Pixel Fires", I create the Lookalikes and I launch them.
     
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  12. Mac
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    Mac Bronze Contributor Speedway Pass

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    In the DPA editor on the "adset" level you can choose from 2 radio buttons. One is use existing data, the other is "Define a broad audience". You just choose define a broad audience and plug in the lookalike data. Make sense?
     
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  13. Mac
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    Mac Bronze Contributor Speedway Pass

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    Start each test with this:
    - Optimize for Purchase conversion (even if you have zero data).
    - Choose 4 brands in your niche and create 1 ad set for each brand (That means you will only have 1 interest per adset).
    - Launch 2 different ad copies to USA for the Facebook Feeds for these 4 interests at $5 a day budget. (Total $40 spend for the day for the Facebook Placement).
    - Do the same for Instagram. (Total $40 spend for the Instagram Placement).
    - Repeat the above for Europe (with brands that are most popular in your niche within Europe).

    Voila, you're spending $160 a day. You will know within 2 days if you have a winning ad creative / offer. This is a large enough sample size for me to start with on small budgets.

    It almost works around 60% of the time... before I adjust.

    If this doesn't work, then I move onto my second "hypothesis"... which is either testing a new offer or product.

    If after 3 hypothesis, the product isn't taking off or the results show zero signs of interest... I kill it and move on to the next product.

    Obviously you can make anything work with the right knowledge and skillset... but it's much easier to shift in a new direction than to throw dollars at zeros.
     
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  14. IGP
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    IGP Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    You "can" do this. I'd rather skip to the front of the line, because you know time is money. Don't be afraid to spend money.

    Without seeing your product, your site , your ads and your targeting there is no way to diagnose why a campaign is not working it could be any of these things or all of them.

    A good FB ad campaign is like @biophase "Easy or Hard" thread on Amazon product sourcing.

    Most people slap an Aliexpress products on a stock website, with no copy-writing and run ads to it with the same main interest everyone else is using because it's easy. And then they wonder why it doesnt work.

    The hard way is:
    Setup a custom site
    Do thorough product research(before testing)
    Setup upsells/downsells in your funnel
    Setup email abandonement
    Setup post purchase email flows
    Do intensive niche research
    Develop a customer avatar
    Write solid copy with 3/4 different angles for your avatar
    Find/create custom images that speak to your avatar
    Do intensive audience research (brands,magazines,competitors,websites,TV shows, demographics, etc.)
    Create adsets with these different targeting
    Create ads with your different copy
    Spend money
    Find winners
    Cull losers

    Facebook is an algorithm - the more diverse data sets you feed it, the better it will perform.
     
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  15. sthubbar
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    sthubbar Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

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    The easy way?
     
  16. Yoann
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    Yoann Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

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    Thank you Mac, that's very valuable information !
     
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  17. IGP
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    IGP Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Sigh... You just don't get it!

    Judging by your posts and your attitude towards respondents, you are here just to complain and action fake.

    Let me be blunt. Don't waste anymore time asking for advice which you won't take.

    Change your attitude and mindset or kiss your retirement savings goodbye!
     
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  18. sthubbar
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    sthubbar Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

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    We may have a misunderstanding. What I meant was that MJ might same something like:

    "If you want to be financially independent here is what you can do:

    The slow way
    - Work 40 years and save"

    If he ends his post here, then the question that pops into my mind is: "The fast way?"

    Is your point that there is only the hard way as mentioned in your post?
     
  19. sthubbar
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    @IGP, I reread your post and I get it that you are advocating the hard way. Ok, it's just a semantics issue. If I replace easy with unsuccessful and hard with successful it makes sense.

    Ok, so there 15 items you mention in your success formula. They may seem obvious and easy to you. How did you start and learn these skills?
     
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  20. Raitis
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    Raitis New Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

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    Thanks for sharing your smarts in this thread, gave me an idea or two of where I was wrong!

    Having previously had reasonable success with lead generation ads and alike, the FB ads for ecommerce still bug me. I fail and fail hard at them, but likely due to the fact, that I expected conversion at the first touch.

    Any of you can elaborate on how many impressions does a person usually need to go to a sale? Or to turn it around - when is the point you stop showing ads to a certain person and exclude the audience?

    I understand that this depends on a load of factors like price, page feel, audience and many others, but there should be some pointers or at least cases you could describe.
     
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  21. Mac
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    I don't really look at impressions to determine whether someone's going to purchase.

    The metrics you should look at is your CPM, Cost per click and cost per add to cart when starting on a fresh campaign / ad set.

    If you spend $10, get 0 add to carts shut it off.

    If you spend $15, get 0 purchases shut it off.

    On a fresh product offering / fresh website I would try to make sure my CPM is below $15 to determine if I'm hitting the right audience.

    On a website that has proven sales and information (data) in the FB ads dashboard, then I would only consider cost per purchase (when scaling).

    But each time I run a new test / new campaign that's not scaling an existing offer / ad / product that's converting... then I look at the above 3 metrics to determine whether to cut or not.

    As for "first touch", I highly disagree. If you're not getting sales on the first touch campaigns (cold campaigns), the campaign is likely not scale-able.

    You need sales on the front-end as well as re-targeting to achieve scale. Re-targeting sales are normally a by-product of a successful front-end campaign.

    They're like a cherry on top, pulling in the extra people who didn't purchase.

    Re-targeting can't save a product / offer that is unattractive. But, I would always test it regardless as apart of an initial test.

    (Keep in mind... I'm gearing most of my information towards people who are just starting out fresh, with zero data or product offering and are trying to get something off the ground. If you do have data and sales for your business - there's a lot more to play around with.)
     
    Last edited: May 22, 2018
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  22. HackVenture
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    HackVenture Digital Marketer, Crypto Guy Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    I've stopped running eComm campaigns on FB for awhile now but can see your post is very valuable and on-point.

    Will reference this for sure if I ever get back into setting up stores again, thanks for the share!
     
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    Thanks
     

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