This is our KPI calculator that I want you to use before you ever spend a dime on Facebook ads what this is gonna do is this is going to give you some clear numbers to look for when you're running your ad campaigns to determine if your product is succeeding or not. So what we want to do is fill in these two elements and the sheet will fill out everything else for us automatically. The first thing we want to fill out is the average order value. This is basically the price that we are selling our product for now. I just pick this product as a random example, and in this case our suggested price for the product is around 25 dollars personally. I think you sell it for $30. So we'll go ahead and we'll just plug this in for $30. Now one of the things that mention is on the link below you're not going to be able to edit it. Like I am so you just have to go here and click file and make a copy and then you can adjust this accordingly. I want you to do this for every single product that you test and I'll show Rewind a second. So then we want to plug in our cost of goods now. We try our best to put the accurate number in here, but it's best that you always double check with your exact supplier that you're using. So in this case as you can see, it costs a little bit more. It's going to be around $10 and 21 cents. They are constantly updating their prices. So that's why I want you guys to double check now as you can see these numbers here have updated and I'm gonna explain them to you right now. But the last thing that you can adjust is your target profit. So this is the number that you would like to accomplish in terms of your profit margins 20% is a healthy margin for a drop from business. But if you want to experiment and see what you would need to get for example 30% which is an incredible margin for a Drop Shipping Store. These would be the figures that you're looking for. So what does all this mean? This tab is your break even kpis essentially. That means if you're hitting these numbers in Facebook ads you are not making any profit nor are you making any loss? Okay, and what that means is that this is the most that you can spend on each of these categories without being profitable. If you spend more than this you are no longer profitable on your ad campaign. Essentially. These are the numbers that you are looking to be under you want to be under these so you want to have a cheaper cost per purchase than this and the same goes for all these other categories. If you see your ads getting past this number that means that your ads are not profitable and that they need to be improved and you need to analyze them and figure out where to improve which I'll explain to you later in the program. This is your profit Target number. So based on the number that you put right here. In this case. We put 30 you're going to be looking for these figures if you're getting 30% profit margin now. This might be a little confusing, but I promise you it's really not. For you to make 30% profit on this product. You need to get customers for around $9.59 which is pretty challenging. It's not the easiest thing in the world. What you really want to do is try to find products where we can have a target kpi of around $20 because then we can easily get customers at that rate at nine dollars profit. Target is going to be pretty difficult to do that at scale. If we plug in 20% profit. For example, you're gonna see that we need to get customers around 12 dollars per customer to get around 20% profit margin. So this is something that I just want you to plug in for now, even if it's all confusing to you. Don't worry just get familiar with this sheet and later on in the program. We'll explain a little bit more about what some of these terms mean but they're all pretty simple you have purchase which is the cost that you're spending to acquire a customer costly or spending to get somebody to purchase a product on your website. Have initiate checkout, which is the cost. You're paying for somebody to check out on your website add to cart. Same thing. Click add to cart view content basically means people that land on your website and look at your website page. And return on ad spend which is essentially how much money you get back for the money you put in so but this basically means you spend one dollar you make two dollars and 38 cents in return and this is one of the most important metrics that we really want to look at and this is where I focus the majority of my attention when I'm testing is what is this number looking like because if you are not hitting around this number it's going to be very difficult to scale the product. So, this is our kpi calculator. I want you guys to see this and use this before you start testing products and I'll put this later on in the program so you can get this right before you start testing.
