In this video, I show you the exact strategy that I used to scale one product to $10K/day in sales using only Facebook Ads. I go over the foundation required to scale a product and break down the strategy step-by-step.
Foundation
- Currently profitable on FB ads with the product at a smaller scale. Net margins should be at least 30-40% on a small ad spend because they will drop significantly as you scale
- Do not attempt to scale a product that is barely profitable at a low spend
- Have already thoroughly tested different creatives and found at 3+ “winning” creatives
- Collected enough data to test all LAAs (preferably 500+ sales)
- Have enough credit or cash to scale while still paying to fulfill orders
- Have a business manager set up with multiple ad accounts (by default, ad accounts have a $5K/day USD hidden spend limit
- Ads will stop delivering once you reach this amount, the easiest way to bypass this is to scale on multiple ad accounts (also good if one account gets disabled)
- Have a good, reliable fulfillment system in place. You don’t want to scale, only to have to refund your orders because you can’t fulfill them in time
- Have a good customer service team in place to handle the volume of support requests as you scale
- Have a good conversion rate on your store (5%+). The conversion rate is taken into account by FB during the auction, and FB will favor ads that are driving a lot of conversions. Difficult to scale otherwise.
Strategy
- Structure your ad campaign by COLD, WARM, HOT
- COLD: Interest targeting, LAAs
- WARM: 95% video viewers, 75% video viewers, FB ad engagement
- HOT: Website visitors, add to cart, initiate checkout…
- Horizontal scaling first. Test all lookalike audiences, for all countries you have enough data for. 95% video viewers, view content, top 25% visitors by time spent, ATC, IC, PUR, PUR LTV…
- Create a COLD campaign for each country to test LAAs. Test 1%, 1-2%, 2-5%
- So if you are testing 4 LAAs initially for each country, each campaign should have 12 adsets
- Each adset should contain max. 3 ads. I usually put the 3 best creatives that I’ve identified during prior testing in each adset
- Having multiple ads per adset when scaling horizontally is key because you don’t know how each audience will react to different creatives
- Starting budget anywhere from $5 to $50, based on how fast you are trying to collect data
- Only make adset changes every 2 days to collect enough data to make reliable decisions. After 2 days, you can kill unprofitable adsets, and increase the budget 40% for profitable adsets (without duplicating). Make sure to increase the budget at the midnight time for your account, or early in the morning
- Once an adset reaches $150+ in budget and is still profitable, you can pause the adset, duplicate to a higher budget (i.e. $500) and start manual bidding
- Keep in mind your audiences sizes and the frequency, if you have a smaller audience you can’t scale it as much
- Take advantage of your WARM and HOT audiences. These usually deliver the higher ROAS. Show different ads based on where they are in the funnel, don’t always show the same ad/offer
- Keep testing new interests regularly to find more profitable cold audiences to target, and avoid audience exhaustion
- Keep testing new creatives regularly to find new winning creatives, and avoid ad fatigue
Key Takeaways
- Scale horizontally FIRST to find profitable audiences
- Utilize all your data effectively (LAAs)
- Testing many creatives is CRUCIAL if you want to scale with FB ads and win more auctions profitably
Hi Gabriel!
I like your videos very much and think that I learned more from those than the courses I bought in the past.
I’ve been involved in Amazon and Shopify sale for 8 months now learning on my own and from the courses that provide a very limited info. Most of these BIG guys are just in business of taking people’s money by selling courses but when it comes to support and live coaching they refer you back to videos since they are too busy. I’m stuck now since I don’t think my 2 websites are optimized and I paid wrong people to run the FB campaigns. Have decent products but no traffic and of course no conversation. I spent too much money on these courses and people that don’t want to personally help. Can you help?
Thanks!
Hi Gabriel, thanks for all your awesome content I watched every video of you and made alot of process…
I am a last year E-commerce marketing & sales student in the Netherlands and did a lot of self study in the e-commerce World…
Now there are some questions that really bother me and I hope you will take the time to answer these questions
1. You started using WordPress but switched to Shopify my question is why? I used both and I learned that WordPress gives you a lot more options when it comes to site design for example the flatsome theme is awesome to use I know it takes a lot more time but isn’t this worth it when you build your own brand??
2. All your information is based on the same country’s for example USA, UK, Canada but do you realise the e-com market in other countries is under developed and they don’t speak good English for example you can target people in Italy with your English Ads but they will not understand anything of the ad ( except for some people ) I wonder did you ever do studys on the countries: The Netherlands, France, Italy, Ireland, Asia.
if yes could you share your findings on this I know the USA market has so many competitors while in holland for example there are not a lot of dropshippers this is the same for other EU countries I really wonder what you think about these countries when it comes to E-commerce
3. You said in one of your videos that its better to build a brand 1 product store instead of a general store and I agree with this because yes there is a lot of e-com stores and yes people recognize dropshipment stores and yes its better to spend money on 1 product Ads using Facebook… but what if you focus these countries where drop shipment is something new and they are not used to drop shipment shops yet? is it worth it to open general stores and use 1 – 3 ads each product to find the winning product? or do you think this rule is for every country
Again I love your content I got tired of all the people ‘selling’ something that doesn’t exist having and building a e-com store is actually a real job and not something you do 1 day and become rich next day like a lot of youtubers try to sell
I hope you will get back to my questions !! keep on posting
Hi Gabriel !
I follow your videos on YouTube,
And I really asked to myself,
Why this guy give so much value on how to be better ecommerce business ?
What is his deep motivation about sharing this knowledge ?
I never saw you selling something, so is that coming or it’s just for building a audience ?
Or even for another purpose than them ?
I live in Canada at Québec City, and I’m sale manager for Nespresso, on the side, I learn everyday on ecommerce with videos like yours and reading business books.
As far as I remember you come from Canada too.
Do you do consulting for « young » entreprener ?
As giving private lessons for a day or two?
From my point of view, I guess you « play at a high level » (spending 5k/day on fb ads is impressive). You looks like you have good experience in the ecommerce domain. So now I suppose you live a good monetary life. Having the chance to learning by your side, could be very beneficial for me.
I don’t even know if it’s something you do but maybe this message let you know the fact that you could have one or one more student ready to exchange your services against moneys. I really see that like an investment. Today, you have the knowlegde to create his own ecommerce business with sucess and it’s what I’m looking for, meeting someone ready to explain what avoid and what to focus on in order to know better chance of success.
English is not my first langage so apologiz me if my message is not 100% fluid or clear.
thanks a lot for the attention you have gived it to it.
peace !
Clement
HI, i would like to ask if i am spending 10k/day on one product at one ad account, if I would like to scale another product at different ad account (but same store), will it affect the performance of each other? Thank you