PROVEN eCommerce Scaling Methods (2019)

Today's video will be breaking down two proven scaling methods that you need to be taking advantage of in 2019. These include the Hail Mary method and the CBO scaling strategy. These methods alone have brought in over 7 figures in sales, so with that being said, take notes and enjoy this amazing value. First off, we'll look at campaign budget optimization.

Real quick, campaign budget optimization is basically, as we know, the Facebook platform, you can, until very recently, you've only been able to control your budget at the ad set level. What CBO is basically, in the easiest way possible that I could explain it, is now you can control that budget at the campaign level. So instead of picking which ad sets to control on the daily budget, You know, let's say you're just gonna throw $100 at this campaign for the day and Facebook is going to decide where they can spend it or where they will spend it, which is gonna make your campaign much more stable and perform much better in theory as Facebook collects more data on your campaign. Let's see here.

So just to reiterate what Brad was saying, basically instead of setting budgets at the ad set level, You're setting it at the campaign level, and Facebook's AI, they decide how much to spend on each ad set based on performance. Now, there's a specific method we use for scaling, uh, with this type of method, and Brad's gonna show you here.

So I'm just gonna keep this as simple as possible, um, for this example. So you have one campaign, let's say it has 5 ad sets. Um, the number of ads is kind of irrelevant at this point. Um, you know, you wanna test creatives before you're putting everything into a CBO campaign. This is more of like an optimizing and scaling strategy all in one. But basically, since you can control your campaign budget now and you don't need to control your budget at the ad set level, let's say we start this with $100. As the day goes on, as these ad sets start to perform, let's say, you know, ad set 1, ad set 2, and ad set 3 get a few purchases in the beginning of the day, they're doing really well, but 4 and 5 are not performing so well, right? Say we wake up, it's 8 AM, and these ad sets here aren't performing very well, we're gonna kill these ad sets, which naturally will start to scale these ad sets because you're still, you're not changing this budget from $100. So these ad sets are gonna naturally start to spend more, and what you can do is if you wanna spend more money, if they're performing really well, they have a 2 or 3x ROAS, we could actually do what's called surfing, which would be to bump your daily budget up on your campaign throughout the day. and you'll, you'll see your return go down a little bit, but again, in the other example, just like that one, your net profit's gonna go up, but your margin will take a little bit of a hit, but overall you'll make more money. So, you never really wanna go more than 100% on a scaling, on a surfing method, but we can bump this up to, let's say, $200 at 8 AM. If they're still performing well around 12 PM, we can bump it up again to $400. If it's still performing well in the afternoon and you wanna constantly keep it, this is a very hands-on strategy, you wanna constantly keep an eye on these ad sets. Let's say 2 doesn't start performing so well at like 4 PM. Now, your best performing ad sets are performing really well still and they're getting fed a lot of ad spend and you can bump this up even to $800 around 4 PM if they're performing really well. Now your best ad sets are receiving all of the spend, um, and so you're as profitable as you possibly could be.

So just to reiterate, beginning of the day, you kill what's not working. You bump up the budget if the other ones are working well. Now all of this budget's going to the ones that are working. Around noon, or it's still in the early in the day, you look again, see what's working. Every few hours, maybe two of them are working, right? Now you want to bump that budget up to $400. Now that $400 is only being dispersed to two ad sets. Now you look again at, let's say, 4 PM, and one of the ad sets is working well. Now if you bump that up to $800, all that money is going to the ad set that is working well. So by the end of the day, you should be profitable sending all the money to the ad set that's been performing well. And that's a new method that we've been testing, and it's been working really well, guys.

Now let's check out the Hail Mary method.

No volume makes you more profit overall. So here's how the method works. We have here 4 different campaigns. Our campaign structures, we always have one for PPE and then a different campaign for each product that we're testing. So let's go ahead and just say product number 2 is this right here. We're selling for $20, our cost of goods are $5, breakeven CPA is $15, target CPA is $7. Now imagine we've already tested, we've already optimized, and we're ready to scale. This is how we do it. So here's different ad sets. So we have 5 ad sets. Remember, here our target CPA for killing or scaling is $7. So if the CPA is $15, if it's between $15— let's go over here— if it's between $7 and $15, the rule is gonna be you leave it alone. Don't touch. If it's greater than $15, kill, and if it's under 7, dupe. So these are the simple rules. I'm going to show you how you can scale really quickly like this. So for the first row, getting a little more depth, let's say that ad set number 1 is a CPA of $20. Ad set number 2, let's say, is $12. Ad set number 3, we got a $4 CPA. Ad set number 4, we have a $6 CPA. And ad set number 5, we have a $7 CPA. So out of here, based on our rules, The top one is more than $15, so we kill it. The second one is between $7 and $15, so we don't touch it. And the bottom 3 are actually either $7 or lower, so we're gonna scale those ones. So ad set number 2 comes over here. We don't touch it. This is the next day. So this is day 1, this is gonna be day 2. So day 2, we leave this one going. And then for ad set number 3, we're gonna duplicate it 5 times. Same thing for ad set number 4. And for ad set number 5. Alright, so this is day 1. We killed ad set number 1, we kept ad set number 2, and we duplicated 3, 4, and 5. Now, since we duplicated each of these 3 times, that means that we have a total of 15 ad sets now the next day, right? Actually 16 because we have ad set number 2 as well. So this is day 1, this is day 2. So what's gonna happen in day 3? So let's use the example here that each of these ad sets are spending $10, $10 per ad set. That means day 1 we spent $10, $20, $30, $40, $50. So D1 $50 in spend. Now, day 2, we have 16 ad sets at $10 each. Now, day 2, we're spending $160 while maintaining a similar ROAS. And it gets really exciting going on day 3, 4, 5, 6, and so on. And this whiteboard's not gonna be able to contain it. I would need a whiteboard the size of my entire living room to be able to show you, you know, at scale, but I'm gonna just draw the best I can. So day 3, let's assume that 3 out of 5 ad sets all perform under $7 and 2 out of 5 don't. So we'll kill 2, scale 3, kill 2, scale 3, kill 2, scale 3. So that means that we got 5 here, 5 ad sets, 5 here, 5 here, 5, 5, and 5, and then 5, 5, and 5. So now we got 5, 10, 15, 20, 25, 30, 35, 40, 45 ad sets all spending $10 each. That means by D3, day 3, equals $450 in spend, right? And these are all under $7 in cost per acquisition. Now let's go ahead and see day 4. Hypothetically, if all of these ad sets performed well, how many ad sets would we have to duplicate? Well, this would turn into 25. They would all turn into $25. Then 3 times $25, 3 times $25. So we have 75, 150, 225 ad sets now on day number 4. 220— 225 ad sets at $10 each is is $2,250 on day number 4. Now we went from day number 1 spending $50 to day number 4 spending $2,250 with a similar ROAS because they're all performing at under $7 per purchase. Day 5, it gets even crazier. And again, if I was to get in real detail and use these actual examples and draw this all out, we would need a gigantic whiteboard, much bigger than this one. But day 5, let's assume all the ad sets performed again and we want to scale, which has happened at some points, you know, sometimes like almost all them perform. We just keep duplicating like crazy. We would have here $125 plus $125 plus $125, and again here and here we'd have 3 times $125, 3 times $125, and And so that's 375 ad sets per year. So that's 375 times 3, which is over 1,000 ad sets. Let's just say we have 1,000 that are performing well. Now, day 5, we're spending $10,000 profitably. And if you're in dropshipping and you want to make money, You have to be in the mindset of how can I spend the most money that I can possibly send— spend profitably. In this situation, it took us 5 days to get to spending $10,000 while maintaining a good ROAS. And that is the Hail Mary method in a nutshell. Again, I wanted to break these all down, I'd be here for hours drawing a bunch of lines and I would need a giant whiteboard. But this is the method, guys. This is how you get to 5 days, $10,000 in spend. The next day gets even crazier. Typically we don't spend more than about $20,000 a day. It's hard to do that profitably.

There you have it, 2 strategies that are proven to get results over and over again. For more free value like this, smash that subscribe button and make sure to turn on post notifications to be the first to hear about new videos just like these. Every shade of gray.

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