Paid ads (the do’s and don’ts)

A few days ago, we talked about how to scale an offer predictably using economics.

So it only makes sense that today - we discuss how to leverage paid ads to create a consistent sales-generating machine that you can depend on.

This email will be especially important for a few reasons…

1. You’ll discover how to stop relying on organic traffic and consistently push sales to your business

2. You’ll discover the do’s and don’ts of running paid ads that can save you thousands of dollars

3. You’ll learn when to run paid ads, and how to scale your campaigns effectively and efficiently 

We’ll start by discussing why you shouldn’t rely on organic traffic and how you can leverage paid ads to scale your business consistently.

For starters - organic traffic always has a cap, and there’s only so much you can scale it.

Even when you look at guys like Iman Gadzhi, you’ll find that he spends over half a million dollars per month on paid traffic.

Why?

Organic is inconsistent, and in most cases, the leads cannot afford your higher ticket offers.

Now, don’t get me wrong…organic is great for launching an offer, collecting cash, and validating your concept.

However, once you’re out of the initial launch phase where you’re squeezing out the juices of your audience you’ll find that consistent growth month over month is nearly impossible.

Therefore, the only logical solution is to run paid ads.

But here’s the problem, most info-marketers have no idea how to run paid ads, or in better words run them profitably.

This brings me to the next point of this email, which is the do’s and don’ts of running paid ads.

Now when running paid ads there are a few things you want to do, which are:

• Consistently test new creatives

• Track your data properly

• Send the right data back to Facebook

And lastly,

• Keep your campaigns, and ad sets very simple (in most cases you’ll find that simply no targeting, performs better than targeting)

Next let’s discuss the dont’s which include:

• Do not launch a bunch of ad-sets with very specific targeting 

• Do not rely on ads alone to push sales into your business and neglect your sales process

• Do not start testing creatives with a lot of different variables, instead keep it simple by testing your angles

The next point I want to discuss in this email is when to run ads, and how to scale them efficiently.

As a rule of thumb, you want to run ads once you’ve validated your offer organically.

In other words, once you’ve launched your offer to an organic audience and hit KPI on metrics such as closing %, show rate %, AOV, CTR on the funnel, and a few more.

I typically advise launching ads three weeks into your first organic launch, with the reason being to build momentum going into the next month after launch - which is almost always slower.

Running paid ads on the third week of an organic launch allows you to pick up some data on your pixel, and get some testing so you can hit the ground running on the following month.

And once you have your ad campaigns live, the very next step is scaling them.

Now there are a few ways to go about scaling your ad campaigns, but for this email, I’ll give you a general overview.

For starters - scaling your ad campaigns ultimately will depend on your specific goals for your business.

Why?

This will determine how much money you should spend, how fast you should spend more money, and some KPIs you need to hit in order to scale.

You’re pretty much reverse-engineering your strategy based on the targets you’ve set for your business.

And once you have reverse-engineered that process, you should have a good idea of what your cost-per-lead, cost-per-call, and cost to acquire a customer should be.

Here’s an example of how this could look like:

Let’s say my current monthly revenue is $100,000 and my goal revenue is $200,000.

Well - based on this target I can make a specific KPI on what my cost-per-call should be with my paid ads.

For this example, we’ll say my goal cost-per-booked call is $250.

Additionally let’s say that currently we have a 70% show rate, a 35% closing rate, and we’re selling a $10,000 product with an AOV of $6,500.

From this information - we know that if we spent $1,000 per day on ads, we’d predictably close 1 deal per day which would get us to our goal of $200,000 in sales.

To drive this further, we also know what specific aspects we need to optimize in our ad campaigns to get us closer to our goal.

For instance, we know if we need to kill certain ad creatives and let others run based on the cost-per-lead, we know if we need to optimize the headline on the funnel to improve the CTR to booking ratio, and more.

The fundamental basis of scaling ads, all stems from this process of reverse engineering what your KPIs need to be based on your targets, and rapidly testing.

Now, that it for today’s email I tried my best to break down this very complex topic into a simple and straightforward email.

I go way deeper on this in the new program I’m releasing soon, in fact, my media-buyer who spends nearly 8 figures a week on paid traffic for info-products has cooked up really extensive breakdowns on everything involving paid ads.

You’ll get more details on this much later.

Talk later,

Malcolm.