Having a road map, a Formula/workflow / Process - is ESSENTIAL.
NOTHING should be random and as long as you stick to your system, success will come because it's a virtuous circle.
You can only improve. Well, unless you get caught by your emotions (fear, over-excitement, temporary faith and so on).
Analyze the various page flow’s and follow the formula/funnel:
Ad to product page - start here. If you’re not getting clicks, then your ad sucks
If you're getting clicks, but no add to carts, then your product page sucks
- To your Cart
To your checkout
If you're getting click’s and add to carts but no purchases, then your checkout page might suck
- To your purchase
So with the above flow analyzed, unless you get started, you're not going to know how to perfect the process.
In the above example, the more you analyze and perfect the formula, the more your conversion rates increase from 5% to 1% to 2% to 3.5%. All by analyzing and adjusting.
The Strategy is broken into 4 parts:
Part 1 - Working on your foundation
- The Foundation includes everything within those courses (facebook page, etc)
- Within the foundation stage, you’re building a “theme” or a “story” to your business.
- Even if it’s a “deal site”, there’s still a story there. I.e. “we source products from all around the world to find you the best deals”
- A cool “story” for X site could be: ‘Everyone’s got their own unique identity, their own story.
We facilitate people to customize their own Story as it relates to X.”... something along those lines.
Setup the minimum conversion points on your site - not too gimmicky
Part 2 - The Plan
Structure your site. 3 main components/sales avenues. From there you can focus in on the components/niche’s within the site that are making you the most money.
1. Example for a general store concept: Family, Travel, Military
-Break down those 3 main niches into 3 subcategories
1. Example: Military: veterans, gun rights, military women
2. Example: Family: parents, children, grandparents
3. Example: Travel: digital nomads, beach-goers, outdoors
-within the sub-niches/categories, look for 3 - 5 winning/hot products and start testing
1. You can start testing across the board - or - focus on one particular niche. Whatever you choose, the goal is to test enough products to sift through the 80/20 rule to find winners.
-When you're researching a certain niche for products, go to Amazon, Pinterest, Google Trends to find what is potentially hot.
You shouldn’t have to cycle through the above more than twice before you find a winning product you can scale effectively and profitably.
How are you Testing? -Test Quickly and save money using Nick’s Micro Theory
You need to have a judgment framework for how you ascertain winners to scale
Part 3 Execution - How Are You Testing?
-Leave emotion out of it when testing products. Stick to the data only.
-Kill ads quickly if they’re not working
Part 4 Constant Evaluation
Review: daily, weekly and monthly basis
Example: Some of the big guys will start off with one ad set per day.
Example: you spend $30 a day on a product...
-$30 a day several products at a time.
- decide within that $30 what could be a winner.
-you’re looking for purchases within that first $30 and specifically more than 1 purchase
Say that $30 will get you a $10 average CPM (3000 impressions)
-out of that, 3000 impressions, and several of them are going to visit
-Now if 3000 people have seen your store and several of them have come in and walked around, looked at your product and you haven’t sold a single one, it’s probably not a good product. Even if you had a couple of sales after $30 and it wasn’t profitable, move on.
- If you were profitable, then you probably have something you can scale.
-Nick mentioned that if you don’t have a sale in first $20, then probably kill it.
-This is specifically in reference to WC ads. If it was a PPE ad, Nick would have killed it sooner.
80/20 rule. 8 products you test out of 10 will fail.
The Feedback loop - How quickly you’re receiving the information from when you start to test
Example: you test 10 products a day at $30 ad spend on each product.
-Now let’s say 8 of them are failures. So that’s $240 you spend in one day on products that didn’t do anything (8 products x $30 per ad)
-Now let’s say 1 products hits and makes you around $1000 over the next week or so.
-The other products hit as well and makes $3000 over the next few weeks.
-These are very reasonable numbers
-if you’re operating on a 30% profit margin; 30% of 4k is $1200
** Nick has moved onto a $10 per day - per product system.
-It’s a quicker feedback loop than $5 per day.
Testing at $10 a day per product for 3 days.
However, if he doesn’t have a sale by $20 he will kill the ad.
You need to figure out beforehand what your CPP needs to be.
-If you’re sourcing an item for $10 and selling it for $20, then you have a $10 margin.
-So you’re cost per Purchase needs to be around $5 to make it work, otherwise, it’s probably not worth it.
-Unless you think you can push really high volume.
If 1000 people saw your product and nobody is clicking,
then either your product sucks or you’re targeting the wrong audience.
That being said, Nick doesn’t even look /judge based off of his CPM
-If you spend $5-$10 on an ad and don’t have a single click, then kill the ad.
-link clicks should be happening right out of the gate, within the first dollar or two spent
As a side note, the guy in the mastermind group who was running $30 per day said that within that $30 spend, he wants to see 3-5 purchases.
-They said if he’s not getting a link click within the first $20 spent, something is wrong.
-Maybe try finding a new ad image or changing ad copy or audience
- or of course killing it
Saying that optimizing for purchases right out of the gate is pretty good
way to go now, due to fb optimizing/updating Pixel