Scaling is Dumb or?

Looked at some of our numbers the other day and realized if you understand how to pull your inconsistent revenue together + add the proper scaling method into the mix (along with retargeting, proper creatives, copy, etc….), you’ll start to see some DUMB good numbers on your Shopify store’s analytics!
 
Now, I’m not at all saying that scaling is dumb haha – but it is dumb when done at the wrong time
 
What do I mean by that? Sometimes people think that they have a scaling problem when in reality…. Their daily results are way too inconsistent which then leads to the inability to scale correctly
 
At the end of the day, this clients store ended up with $75,830 at a 3.3x return which is profitable with their COGS
 
AOV = $16
 
$ spent on cold traffic = $22,478
 
$ on retargeting = $500 ish
 
As you can see, we rely HEAVILY on converting cold traffic when we scale
 
We’ve been using a technique for cold traffic that has really really helped us stabilize and ground daily revenue so we can work our way into scaling our butts off haha
 
So instead of going through a lot of info on all the elements that play into your ads, I’m just going to break down the cold traffic campaign set up we’ve been using that helped us achieve these numbers
 
It’ll be broken up into two parts:
 
1) Grounding your cold traffic
 
2) Scaling after consistency
 
—–
 
Grounding Your Cold Traffic:
 
The biggest key that determines our ability to scale is 100% consistency – without consistency, there is no scaling
 
The 3 biggest factors that I’ve found influence consistency the most is:
 
1) Simplicity in the campaign structure
 
2) # of profitable audiences available to you
 
3) Creatives / copy
 
 
1) Campaign Structure:
 
1 cold traffic (TOF) campaign → 10-12 ad sets → 2-3 creatives per ad set
 
SIMPLE….. No need to complicate it more than that ^
 
Another important note is to NOT duplicate 1 ad set 2-3 times within a campaign – this only works at budgets under $1,500 a day but as you try to scale up your spend, you do not want the same audience getting hit twice with a huge budget advocated towards it
 
All in all, the campaign should look something like this: (these are only examples of different audiences to test – we literally test like everything if we need to haha)
 
C → 1% Purchase LLA (ABO = x budget) → 2-3 creatives
 
C → 1-5% Purchase LLA (ABO = x budget)→ 2-3 creatives
 
C → 1-2% Purchase LLA (ABO = x budget) → 2-3 creatives
 
C → 1% Add to Cart LLA (ABO = x budget) → 2-3 creatives
 
C → 1-5% Add to Cart LLA (ABO = x budget) → 2-3 creatives
 
C → 1% All Website Visits LLA (ABO = x budget) → 2-3 creatives
 
C → 1-5% All Website Visits LLA (ABO = x budget)→ 2-3 creatives
 
C → Interest a (ABO = x budget) → 2-3 creatives
 
C → 1% Interest b (ABO = x budget)→ 2-3 creatives
 
C → 1% Interest c (ABO = x budget)→ 2-3 creatives
 
C → 1% Top 25% of Time Spent on Site LLA (ABO = x budget) → 2-3 creatives
 
OR if that doesn’t help with consistency, try “stacking” with this set up: (Same ABO Budget) (look at the first comment for key)
 
C → *1% PUR LLA + 1% ATC LLA + 1% VC LLA + 1% AWV LLA* → 2-3 creatives
 
C → *1-5% PUR LLA + 1-5% ATC LLA + 1-5% VC LLA + 1-5% AWV LLA* → 2-3 creatives
 
C → *Interest a + Interest b + Interest c + Interest d* → 2-3 creatives
 
C → *1% APE LLA + 1% APOA LLA + 1% VV (75%) LLA* → 2-3 creatives
 
C → *1-5% APE LLA + 1-5% APOA LLA + 1-5% VV (75%) LLA* → 2-3 creatives
 
C → *1% PUR LLA + Interest x* → 2-3 creatives
 
C → *Value-Based LLA* → 2-3 creatives
 
C → *Audience that has worked well in the past for you #1* → 2-3 creatives
 
C → *Audience that has worked well in the past for you #2* → 2-3 creatives
 
C → *Audience that has worked well in the past for you #2* → 2-3 creatives
 
That’s it, keep it simple and don’t add anything other structure into the mix
 
 
2) Increase Your Audience #:
 
You need 10-12 profitable audiences to survive on Facebook because of its volatility
 
Why? Idk… it’s a mystery of life that maybe only Zuck could explain –
I didn’t make that rule, I just understand it and play by it
 
Here’s a giant a** list of audiences you can test at any time: (look at the first comment for key)
 
1% PUR
 
1-5% PUR
 
1-2% ATC
 
1-5% AWV
 
1% AWV
 
1% ATC
 
3-4% ATC
 
4-5% AWV
 
1% VC
 
1% IC
 
2-3% IC
 
1% APE
 
1-5% APOA
 
1% 75% VV
 
1% Repeat Customers
 
1-5% Repeat Customers
 
1% Customer List
 
1-5% Customer List
 
1% Value-Based LLA
 
1-5% Value-Based LLA
 
5-6% ATC
 
3-4% PUR
 
Random Interests* (like really random interests – something vague)
 
Open Targeting (Surprisingly effective)
 
1% Page Likes
 
All in all, there are SOOO many audiences that you can test – don’t rely on just a couple to bring you profit – the list above is just a massive suggestion list that’ll bring you guys some more money 
 
 
3) Creative + Copy:
 
Creative can really be broken to do this: do what other people are doing in your sub-niche
 
The best way for you to improve creatives to gain inspiration from the top-performing brands in eCommerce (in terms of revenue/profit)
 
Instead of me giving you random tips for your creatives, here’s a list of brands AND a link to the Facebook ad library page so you can see what they are running
 
Here we go:
 
Ridge wallet – wallets
 
Lumin Skin – men skincare
 
Nomatic .com – travel gear for the modern person
 
Brook linen – sheets
 
Misfit foods – foods that are shaped weird
 
Vital Proteins – supplement company
 
Chubbies – men’s swimsuits and shorts
 
Dr. Squatch – men’s soap
 
Ikonick – baller entrepreneur art
 
Mous Cases – best phone case on the planet
 
Rosa Light – star wars like face mask red light thingy
 
Bandolier – awful looking phone case that sells extremely well
 
Colour Pop – makeup that’s not from an influencer
 
Gymshark – gym wear for all the Chads
 
Allbirds – sick shoes
 
MVMT – cheaper watches that look great
 
Manscaped – LAWNMOWER 2.0
 
Snow teeth – what is yellow teeth?
 
Jawzrsize – Like a gym… but for your face
 
Fb ad library link: https://bit.ly/3grYPEA (just type in the page that you wanna see)
 
Do some research and you’ll find solid creatives – baller creative formula = presents a problem, enforces the weight of the problem, offers the product as a solution
 
Copy really depends on 3 things:
 
• The desire that propels your market
 
• Your markets sophistication
 
• # of similar products this market has seen
 
Headlines are your biggest money makers and scroll stoppers because the body text will be pretty plain compared to the creative and headline
 
That’s where e-commerce differs from lead gen or info products – body copy is way easier to write up BUT headlines matter a TON so here is a list of awesome headlines:
 
1) A Little Mistake That Cost Farmers $3,000 a Year
 
2) How to Win Friends and Influence People (great book btw)
 
3) How I Improved My Memory in One Evening?
 
4) Right and Wrong Farming Methods, And Little Pointers That Will Increase Your Profits
 
5) Announcing, The New Edition of the Encyclopedia That Makes It Fun to Learn Things!
 
6) For The Woman That is Older Than She Looks
 
7) Here is a Quick Way to Break Up a Cold
 
8) There is Another Woman Waiting For Every Man and She is Too Smart to Have Morning Breath
 
9) How I Made a Fortune With a Fool Idea
 
10) 101 New Ways to a Man’s Heart – Find Them in This New Cookbook
 
11) To People That Want to Write – But Can’t Get Started
 
12) Often a Bridesmaid, Never a Bride
 
13) Thousand Have This Priceless Gift But Never Use it!
 
14) What Everybody Ought To Know About This Stock and Bond Business
 
15) Who Ever Knew of a Woman Losing Weight and Enjoying 3 Delicious Meals at The Same Time?
 
^ no… I didn’t make those up and yes, you’ll have to adapt those to your specific product AND your markets sophistication – the more sophisticated the market, the more your headline needs to be desired and problem-driven instead of solution or product-driven
 
What do I mean by that?
 
Unsophisticated market:
 
“How I made 7 figures a year flipping houses”
 
Sophisticated market:
 
“How I quit my 9-5 with a crazy idea”
 
^ that’s assuming that you’re selling some kind of real estate course or something
 
The first headline says ‘I make money {Solution} with real estate {Product}’
 
The second headline says ‘I quit my 9-5 {desire/problem} with a crazy idea {mysterious vehicle}
 
That’s all I got for copy and creative – let’s get into the stuff you guys really wanna see
 
—–
 
Scaling After Consistency:
 
Once we’ve stop fluctuating so much, we can start scaling to 75k+ a day
 
I’m gonna break down two ways to scale:
 
1) ABO 2x budget method
 
2) CBO with cost caps and high budget
 
 
ABO 2x Method – my favorite method to use.
 
• Structure
 
• Budgets
 
• Strategy
 
• Rules
 
Structure:
 
1 Campaign – 10-12 of your most consistent ad sets – 2-3 creatives per ad set
 
Volatility still exists but this campaign won’t fluctuate as much because these are your most profitable ad sets
 
We’ll also set up rules to help us keep maintenance times and costs down but I’ll get into that in a second
 
Budget:
 
Start each ad set HIGH – like 2k a day minimum high (this really depends on your budget so if you wanna start even higher, then start higher)
 
Once we have 12 ad sets set to 2k a day, what we’ll do is scale the best ad sets throughout the day while the unprofitable ad sets get turned off which leads me to the strategy 
 
Strategy:
 
The whole point in this strategy is to eliminate bad ad sets early one with a stop loss rule and then DOUBLE the budgets every 2-3 hours on your most profitable ad sets (1.5 – 2.0+ above Breakeven ROAS)
 
At the end of the day, you’ll have a reset rule that turns all of the ad sets back on and resets the budgets to 2k
 
Automatic Rules:
 
You only need 3 when you use this ABO strategy
 
• Stop Loss
 
• Reset
 
• Budget Reset
 
Rule #1 | Stop Loss:
 
• turn off if spent > breakeven cpa + roas < 2.0 + Purchases on pixel is < 1
 
• Schedule to run every 30 minutes
 
• Time range = today
 
This turns of bad ad set automatically so you don’t spend too much on unprofitable ad sets
 
Rule #2 | Reset:
 
• Turn on ad sets if spend > $5
 
• Time range = yesterday
 
• Schedule to check daily at 12 am
 
This rule is simple – it resets everything at 12 am – you never know which ad set is going to perform the best so make sure you give everything a chance at the beginning of the day
 
Rule #3 | Budget Reset:
 
• Decrease daily budget by $10,000 if spend was > $5.00
 
• Time range = yesterday
 
• Minimum daily budget cap = (*the number you start your budgets at per day. For this example, it’s $2,000)
 
This rule is clutch haha – it makes sure that all of your ad sets start at the same budget, therefore, running at the same speed – all your ad sets need to spend on the same space because you don’t want a bad set starting off with a daily budget of 8k haha – that would be very bad
 
That’s all for the ABO technique – I prefer it because it gives us a whole lot more control than the CBO method but you never know which one will work best for you so it’s best to have both ready to go
 
 
CBO Method (Cost Caps and high daily spends)
 
• Cost Cap formula
 
• Campaign Structure
 
• Budget
 
• Rules
 
I like to use cost caps with CBO because I’ve found that CBO’s tend to spend a little bit faster
 
So in order to make sure nothing spends too fast, use this cost cap formula to make sure you don’t burn any cash on accident:
 
Cost Cap = BE CPA
 
BE CPA = AOV – COGS
 
This number gives facebook a little more room to work with than if you used a higher than BE CPA Cost Cap but it makes sure that it will try to at LEAST breakeven
 
This method requires less effort than the ABO so the rules are gonna be a tad different than the other ones but the structure is very very similar
 
Structure:
 
CBO campaign – 10-12 ad sets – 2-3 creatives
 
Same structure, just different budget placement and we added the Cost Caps
 
Still need those 10-12 ad sets tho… thanks facebook
 
Budget:
 
This is SO scientific so bare with me…
 
And I’m gonna be honest with you, some of you might not be able to understand it because it has the complexity of the universe mixed with human behavior + the ratio of the sun when you look at it from inside a cave….
 
You literally set the budget to what you wanna spend… 10k, 14k, 25k, 30k….
 
You name it, you set that budget to it!
 
I’m fr fr, it’s that easy haha
 
So, set the budget to what you want to spend for the day
 
Rules:
 
• Stop Loss
 
• Reset
 
Rule #1 | Stop Loss:
 
• turn off if spent > ½ BE ROAS + roas < BE ROAS + Purchases on pixel is < 1
 
• Schedule to run every 30 minutes
 
• Time range = today
 
Instead of cutting them if they’ve spent at the breakeven, cut them off at 1/2 the BE spend – some of the ad sets are going to spend really slow so you want to turn those off as well so you can focus on the ad sets that are 1) spending at a high rate and 2) profitable
 
Rule #2 | Reset:
 
• Turn on ad sets if spend > $5
 
• Time range = yesterday
 
• Schedule to check daily at 12 am
 
Literally just turns everything back on again so you don’t have to haha
 
—–
 
All in all, I hope you guys find some use in this post
 
Feel free to ask a question
 
If you want to discuss how to set up budgets for the CBO campaign, I’m sorry but I just can’t – it is way too complex to discuss in a comment section but if you want, feel free to leave an estimate as to what you think the actual formula is to this phenomenon

Have a great day
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