Alright guys, so we're gonna talk about Facebook ads and how to make profit with Facebook ads. I'm gonna try to make it as simple as possible for beginners. And the way I want to do that is breaking it down into a couple recipes that that you'll need and this will set the base sign for how you find products. How you Market everything. Okay, everything everything about building your business. This is almost business fundamentals 101 and making your business work for ads so with Facebook ads, The objective isn't to make ads work for your business. It's about making your business work for ads. So first I want to talk about why Facebook ads so Facebook ads is great because Facebook finds customers that are ready to buy for you. The algorithm does a lot of the heavy lifting and Again, as we dive to Facebook ads, you'll find that it's a machine that predicts Behavior. An hour objective and our job as the marketer is to feed the algorithm data. And this data is your creatives your offer like your marketing? So that the algorithm can take that and and we'll reach the people that you're looking to reach. On the right here. I have a photo of a very recent ad account that I'm running right now. You can see there's a lot of potential with Facebook ads $6,000 spent we made back $21,000 in profit 26,000 spent 12,000 in profit and then 100 dollars spent $2,000 in profit and we'll go there's many structures. I mean we'll go to the structure a bit later and this will make a bit more sense. But the point being Facebook ads is is extremely powerful. Facebook ads you can make it work on a low budget. So a lot of gurus out there are like hey, you have to spend a lot of money to make it work. You have to spend a lot of money to gather data and stuff. You do not need to spend that much money like they're making it seem You can spend $10 a day $20 a day. Worst case scenario. You might be down like $100 $200 not too bad. If you have like a system and framework that that you're following so that okay every amount of money you're spending. I'll at least you're able to. pinpoint the problems and then work on smoothing out those problems so that you can actually make like progress instead of just launching stuff randomly. Hoping that it works then going from zero to one again zero to one zero to one what I'm going to teach you in this crash course. Is how to do things systematically? And all the important things that matter when running your ads so that there's actually a clear framework for you to follow. Okay, and with Facebook, it's stable scalable very easy to pinpoint problems. Okay. So success on Facebook ads it isn't about all the technical stuff like interest targeting look like audiences and campaign setup like Well, at least most of the videos out there right now in in the market and on YouTube and stuff. They're just telling you to do these. These little you know interest tiring these little hacks and stuff. If you have to do little hacks and stuff to become profit won't get sales it just mean that you're marketing sucks and that it's not compelling to a wide range of people because if it was compelling to why range of people then people would buy it and traffic visiting your site and clicking your ad will buy yourself without you having to do a bunch of these weird things. okay, it's just like Man, like it's just like drink covid man. Like if you're selling masks and stuff. Everyone wants it right now. It's needed in the macro sense. Right, so it's not needed to do all these weird stuff. You just it was it's as easy as throwing it up on Facebook one campaign one ad set. No targeting at all. Let Facebook do its job. Maybe that was a poor example, but that first example that I gave about hey if you're not getting sales. And you require a very specific strategy to get sales. Then your offer just isn't brought. Peel enough and that's one the recipes you Facebook ads is crafting your offer your creative your ad your business in a sense where it's compelling to a wide range of of your target audience. Also, the success on Facebook ads is the ability to Leverage The algorithm to reach a highly targeted audience and convert them. Okay, so one reaching Facebook. Creating your assets like your ad so that Facebook knows exactly who to show your ad to and then having a compelling ad so that when you show these people your ad and they click on it that they buy in a Shores time frame possible. Okay, so profitable Facebook ads recipe as we dive into this now, it's the ability to acquire a customer at a high cost. Plus compelling and clear framing. So it's your marketing verse having proper business economics. So ability to Quark customers at a high cost and great marketing. And that means you can scale that means you can make a profit and get sales. Okay. So first thing I want to talk about is average order value. So the your the average price or the average amount that people are are spending Okay, so if you're selling like a product at twenty dollars. Then and there's only spending $20 then you know, it's your average values twenty dollars, but let's say you're probably on the front and is twenty dollars, but then not like a hundred percent the people pay like buy two units. So that's like four dollars average order value. Okay, so the importance of average order value? the big reason That we need to cover average order value. Is so that you have so the higher average or value the more you're able to spend to acquire customer. That's literally it business fundamentals. The person who can spend the most to acquire a customer wins. It doesn't matter if you have the best ad or the best landing page or the best combination of those things or the best product and stuff if you cannot spend money to get a customer. Then you just won't grow as a business. It's impossible. Okay, and it'd be very difficult to. Okay. It takes the same amount of effort in marketing to sell a $20 product and a thousand dollar product. And this might come as a shock to people the difference is $20 requires more micro optimizations. Whereas the thousand dollar product does not and if you think about it. With your ads the people clicking on your ad it's all about the who it's clicking on your ad and we'll go into this a bit later. But let's say your advertising to investors $1,000 them spending $1,000 and them understand the value of that. It's very easy for them to make the decision. Same thing with $20 of your just, you know, very easy just it's just all about who's clicking on your ad. The third thing is the most important thing is Market product fit and Market message fit so I kind of wrote this in Market product offer, but that doesn't quite make sense. So I need to fix that there but in a sense if people are willing to pay for it that you just have to put it in front of them. Right, so a quick question. to ask yourself is if we understand that. And this all comes down to the principle of building your business for ads. So understanding that it's okay. How do we pick up product? That will allow us to create an offer. So that we can charge a premium price in the market for? Okay, so that we can spend as much money as possible to get a customer profitably. For example, the reason why apple is so dominant is because they have such low cost to the products the products such high perceived perceived value. And they just have so much cash that they can use like apple is sitting on s*** kind of cash. That's why they're so dominant. They have low costs. And they can charge very very high price rate like a thousand multiplier. It's quite crazy. Right. So for example, just to give you an example of why it's really hard to sell twenty dollar product first thousand dollar products at least in numbers behind it. Let's say we spend a thousand dollars on ads. One. Okay. Well our let's say we're selling a $30 product and it costs $5. To ship and and make and our ads are called so our ad cost is 1.5 dollars. Okay, so it costs every click that. it won't put five dollars and our conversion rate is 2% which is fair, right the economics of this we would still be extremely unprofit we would be extremely unprofible negative 250% okay and going from Two to four percent which is a hundred percent jump in conversion rate. You would still be on profitable. Maybe even 6% You're very slim profits. And going from 1.50 dollar click down to like one dollars. That's that's so f****** hard to do. It's much easier to double your conversion rate. But an even if we do double it's still gonna be hard when we increase our ad spend metrics and costs just increase and we have no margin to absorb that increase in costs. Whereas if we're selling a $200 product costs to make and ship. same cost per click and you cut your conversion rate in half. We still be profitable and we can just increase this conversion rate. Whatever. Cost per click can go up. We have so much margin to work with. right, so Next thing I want to go to is just a simple criteria for choosing a product since now we know that. The average order is extremely valuable. That's like one of the big leverage points in our business and for ads. So that comes down right to the product and this is where the product comes into play. We'll talk about product a bit more too here. But easy criteria list here, you can pause just copy it but Finding a product that is a problem solver because it's easier to create a compelling offer. find your product that has a perceived value so that you can charge a premium compelling offer so that you charge a premium very simple finding a product that you can bundle sell multiple units or and sell complementary item so that again you can charge a premium and get a higher average or value. Right, so I wanted to give an example here which will go into depth a bit later. But here's an example selling a product for roadside accents. Let's say this is our marketing angle. We're trying to sell something for. Roadside accidents. Okay. There's a couple products we can. Do that or we can use that angle with? a dash cam and roadside lights same angle that we can use which is roadside accidents preparation. Whatever. different products, however We take a look at the dash cam. It's a problem solvers all they're both problem solvers dash cam has high perceived value. It's easier charged premium. And you can still complementary item with a dash cam roadside lights and proceed values hard to create around this product right? It's easier and to to Market a dash camera than it is with roadside lights. Okay, a lot of the times beginner dropshippers start their business. they'll just jump into finding random products, but then they won't take in to account like factors like okay what angle and we'll go through this a bit later. But this example maybe could make sense. I'll give you another example. Selling a product for making money. Bitcoin versus how to create a lawn mowing business same angle different products. What's more compelling to sell? What had what has the least cost? Like just following our checklist, very simple, obviously Bitcoin dash camera or winners in this case. So To sell stuff at a high average order value. We need to create perceived value and we'll go into this even more in depth later, but I just want to cover all these briefly right now to plant that seed in your guys's mind. So create receive value received value is different from actual value. In marketing perceived value is more important perceive value is more important. It's all about perception. Okay, in delivery and long-term, like just give you example of how perceived value is like so powerful. Just think about the placebo effect. perceived effect perceived value everything human is all about perception. Okay, so in delivery. And long-term business growth and sustainability. actual value is important. So if you want to build a business for the long term and sustain it and grow having actual value behind your product and your business and is important but it's not necessarily the thing that's gonna get you the sale sure. If you have a great product and stuff where to mouth blah blah. but if a person can take a s***** products and you know I mean you always want to aim for actual value and perceive value, but the perception is what's gonna drive the sale. And get you to scale. Okay, so news perception to get the sale used delivery to continue to get the sale. right, so perceived value simple checklists right in psychology desired or goal or result is faster achieve desire goal or result is simple to achieve. These are goal or result requires. No effort desired goal or result requires no pain. Alright, so the product in a sense is just a bridge or vehicle. And it makes the marketing more believable. Right and the marketing should be clear and simple to understand and there's some tech tactics to create perceived value as well. But this is at fundamentally. This is what you're trying to achieve with your marketing. And then you're slapping on a product on the back end. So we would market for roadside accidents and it will slap on the dash camera as the desired, you know the vehicle. So let's say what happens when you get to roadside accidents. Well Insurance you make sure that you know, yeah, like insurance and stuff. That's probably what most people are gonna be worried about and not dying. right So obviously roadside lights it's gonna be crappy for that dash camera. could save you money on insurance and help you in the case. Okay, so Let's say we're selling roadside accidents would be like, okay what what if there was a product that could save you money on insurance help you win the cases? Helps keep you safe, and it doesn't cost that much money to install. It's very quick to install. Yeah, it's roadside lights. but if we say roadside lights is not that believable we say dash camera is actually believable and actually real right Or we could say like a black box to install into your car. Right? So it's less about the product. It's more so about the benefits the the perceived the perception of benefits and I mean dash camera creates the How would I explain this? We always want to? Speak to the benefits, then the product comes into play it and we'll go into this concept a bit later. If I go into it now, it might get a bit confusing. so Let's just go so here. Pain desired goal and result the bridge right? So we have to understand the current state that people are in and what they want to get to. And then we create that bridge we give them that bridge and that's done through our marketing and the product. Right more so the marketing and then the product is the thing that baits them across the bridge. So I'll go over some examples of good and bad products now. so we have a cap for Rolling thing. So it's a bad product because it has low perceived values cheap and plastic. The problem isn't deep and isn't that painful? Therefore people aren't willing to pay a lot for this. Right and when you're in doubt, here's a tip. You can just look on Amazon listings and big competitive websites to see the price range that people are selling this at all. See they're not selling it for that much. It's very cheap product. Right, so we don't want to choose this. Because it's going to be very hard to create ads for it just wouldn't work for ads. Same thing with this humidifier looks cute by slope is cheap and plastic. The problem is in deep and it's not even painful. Therefore people aren't willing to pay a lot for this again. Even though it's cute people. Don't pay lots of money for cute. They pay a lot of money for status the result of being cute and just give this brings no status. It's just a s***** product. Even if you try to frame it around status. It's still s*****. So like comes back to the angle example right here. selling a product for status humidifier versus Louis Vuitton same angle different plugs Hopefully that makes a bit more sense now. here we have a At home laser hair removal device High proceed value can charge premium price for this and as a bonus afford to source. And because we can charge a high premium price for this we can actually invest more money to our business to even Source a better product that delivers quality results and that will bring customers back to our business which will in turn allow us to charge. Even more Upfront for customer because we know that in a certain period of time customers will come back and pay more. That's the whole game. Okay, I just solves a big Improvement problem in the market other people are charging premium for similar products. Use I utilizing the same marketing angle hair removal again baked up right here. When an adult just look at competitors with marketing. There's no new information. When in doubt look and coffee just copy what other people are doing. Here's a good product as well High perceived value. You can charge a premium price for this. And more poorly you can create a perception of solving a big problem with this right which creates perceived value. However, this product has no actual value behind it, but it's very easy to create the perception. which is What made me take this product to multi-million dollars per month actually? Another good product, which I scale to 700,000 per month almost about a million dollars per month High perceived value can charge being price for this. Sal's a big Improvement problem in the market other people are charging premium again. We're just looking to the market. Products like this slow pain relief and booty require in-depth research to pinpoint the product Market fit and the more importantly in this case the the message match to to the market. Okay. because with pain relief you have to understand like in this case, we're trying to sell pain relief products. People are super resistant. To make a change, especially when it comes to health and investing in their health. So it just requires more research so that you can figure out what those limiting factors are those limiting beliefs those resistance factors that you can Implement that into your marketing. Okay, because with pain the bridge and goal. I also have to add that. There's limiting beliefs. Which will go into there's a framework that I use to figure all these out. luckily for you guys Good product Bitcoin. Harvested value. It's so easy to Market Bitcoins the ultimate marketing scheme. It could be famous easy solver. Just make more money. Quit your nine to five growing. It's it has so much depth to it. It's so flexible. Okay perceived as fast easy simple to get the result low bear to entry again our checklist right here. Fast simple no effort no pain. And it's believable and it's clear and simple to understand. Can you do that with Bitcoin? Yes. Can you do that with this device in a way? Can you do that with the laser hair removal? Yeah, absolutely humidifier. And like no depth at all this hair roller. Whatever's ridiculous. And plus there's no margin. We can't even charge High average order value on these. So it does even matter if they fit these things we can't spend that much money to acquire customer. It's impossible. Because we also have ticket account like there's also competitors as well. Like it's impossible like it's impossible. We need to be able to charge a high price. And it will only be yeah. It'll only be ideal in this case if yeah, yeah, that's just it. So let's go to some examples of techniques I mentioned right here in use. I just kind of want to plant the seed in your guys's head and we'll go into examples afterwards. But oh, sorry these things more depth the next videos, but just want to plant see in your guys head so scarcity. What's the definition of scarcity the state of being? Scarce or in short supply shortage, right? So why do we use scarcity to create the impulse for customers to buy now, right. It shortens the customer Journey the length of time that people need and require to make a purchasing this decision. And the best tip I can give you guys is learn all the the tactics and then layer them together, right so that you can make it more believable and make it more compelling. So I have an example right here from Miracle brand finally an eco-friendly laundry detergent that's sensitive on your skin and free wasteful wasteful plastic. We see here. Stock is limited for a units remaining of this price. scarcity limited time offer just basic scarcity yourself same here update sale and early due to low stock giving a reason why. Making it more believable here more scarcity more scarcity. Right and you would implement this in your ad on your product page? It's very important to implement scarcity in your marketing. especially if you're just trying to build your cash and which is probably like 99% of you guys don't listen to these guys. I say don't use scarcity and stuff. It looks scammy. Bro, if they're clicking on your ad and you're mentioning scarcity in your ad if they clicked on your ad for a reason. You scarcity on the product page as well. They're expecting it. urgency importance requiring Swift action again to create the impulse from to buy now. Tip making the products seem like the perfect fit. Exactly what they've been looking for also creates a form of urgency gives them a reason to buy it now from you. sold out 4X times There's another one. Here's urgency scarcity layer together. social proof huge should be very self-explanatory always implementing social proof. to 200,000 happy customers and then making it believable look. These are like Facebook Snippets a very believable very native. It's just like when you see Amazon reveals and you're like yeah, that's a legit review. These guys actually bought I can trust these reveals whereas if you just said this might not as be but no. You need to layer this on with really legit reveals don't have the carousels like most people do you need to make everything look legit? You always have to think in terms of the customers really skeptical. here like reveals like this just unbelievable like Like these type of reviews don't hit as hard as these ones and and if we go down to these ones like this, these ones are believable. This one's not just showing you examples of good social proof. exclusivity right restriction to a particular person group of area or area gives a reason for the person to buy from here High perceived value, you know layer it with urgency and scarcity right only available at Miracle brand. save the customer time creates perceived value Okay, so ways to increase average or value, you know, cross-selling bundling like this. A lot of things have already been done again. There's no new information when it comes to marketing. You just have to look at what other brands are doing. Just Google research your favorite Brands find a list of Brands, see how they're increasing their average or value keeping in mind. How are these guys increasing average or value? so important here more examples. We have one in the Attic card something simple as an extra 98 cents more here 24 dollar away from free shipping again. These are all incentivizing people to spend more and just makes sense. Especially for product like lashes this type of offer makes sense hundred dollars away from free shipping. Might as well order some new more lashes, right just lash body what it makes sense if it's like a well like a big if it was like the little top thing that I'll show you guys earlier. Like if I go back all the way here like it wouldn't make sense for this. or or this product it would make sense for Bitcoin your $24 away from getting an extra $10. right It's very compelling because we know people are gonna put more than what we're you know, $10 extra. We're giving them bro. They're gonna spend way more than what we give them. Okay, so let's go for more examples. You know carts. No just look for Shopify apps that will allow you to increase the average or value. It's not about the app you use. It's just all about the the result that the app can drive you. Right A lot of times people will get caught up in like the different type of apps, but it's the fundamental thing. That's most important is aiming to get that high average order value. here upselling here's a very clear example of how powerful upsells are so I'm selling a $17 product on the front end. And once they buy that 17 dollar product, there's a bunch of upsells. and then Without those upsells. My average order will only be $17 and I wouldn't be able to run ads for it. Even though people are buying it and it's very interesting in the market loves it. Okay. But with the upsells I'm able to raise the average or value to $60 from $17. And I may actually able to profit now. So let's say we were just selling the product for $17 and it costs $30 to acquire customer. Right, so we'll be unprofitable. But just by slapping on the upsells now we're able to make like 20 20 something almost $30 profit now we have that margin that room now. To absorb that cost that it cost that acquires to acquire that sort so it can absorb the costs it requires to get a customer. And then the other recipe to highly profitable ads. Is your creative? Right, so the importance of your creative. On Facebook ads next to the average or value and your ability to acquire customer at a high costs. Next support thing is your creative, right? The creative is the entire embodiment of your research and marketing. And that's the thing that the algorithm is working with actually, right? So the creative does the targeting the hook of the creative does targeting. Another way you can think about your ad is like it. It pushes away people that aren't interested in what you have to offer right? So it acts as a barrier like a filter like again like the principle that I was talking about start of this video is if there's people that are willing to buy you just have to put the product in the offer in front of them and get over all the limited beliefs that they have. Right and make it as compelling as possible to them. Right. So part of that is creating like a filter so that you can hyper target the people that are actually interested in your ad so that the algorithm can actually like learn who the people you're actually trying to Target are so that you can maximize the amount you're spending. he creative is also the first thing that people see it sets the expectations that it sets the bar for the the impulse of buying it creates the framing okay, if you mentioned scarcity in your ad And people are seeing that in your ad and they're still clicking do they expect scarcity on the product page? Whatever you say in your ad? Ask to be clear ask me simple to understand. Otherwise when they click on your ad they will be super confused. right That's why. It's important to first have a very simple and clear message in your ad and then it's also important to have a congruent product page. To your a product page that is congruent to what is being said in the ad. so your ad guides a lot of what you mentioned or ADD and how you oh, so your ad guides a lot of your ad guides How you build your product page and the framing you do on your product page? It does a lot of the heavy lifting there. You can just take a look at your ad and be like, okay, I mentioned these points. I'm just gonna mention the same points on my product page to remind them that they're that they're in the right place. So now the next steps. You Now understand in a nutshell what is important to running Facebook ads probably Which is to which is the ability to acquire a customer at a very high cost having a great creative. Now we'll dive into human psychology how to create a compelling ad. And diving into the actual strategy to execute on all these things and then how to scale your ads.
