How I Made a $7,000 Per Day Facebook Ad Funnel

This content was created by valued-canopus. This content was uploaded by valued-canopus. This is a YouTube video titled "How I Made a $7,000 Per Day Facebook Ad Funnel" created on April 15, 2024. The content likely involves a tutorial or presentation on creating a successful Facebook ad funnel.
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This will be the story of how I sold 14,500 units of 100 landing page templates to E Commerce stores and then upsold roughly 2.1% of these into my main service, which was custom landing pages. So this is going to be a video in a story format. So it'll be kind of beginning to end of a period that lasted about five months, maybe a little bit more. But at the end of this video, I'll be showing you exactly how much profit there was and what I would do differently if I had the chance to do something similar. And if you want to grow your business to millions of dollars per year, then you're going to want to watch this video, maybe take some notes and see what steps you can apply to your own business. Because if you can get the ad funnel right, you can really, really scale. So let's get right into it. Like I say, in a lot of these videos, you know, everything sounds great in a story format, in a however long this video ends up being. But this is anything but a smooth trajectory and a smooth process. I tested over 250 headlines which I checked in my VWO account. I did 12 different styles or kind of templates of landing pages for this. I've, you know, the offer wasn't this from the very beginning. It was tried a few things that failed and then I found this and then I made it better over time. And I had a lot of struggles and basically got no clients at the start of this and made a ton of mistakes. So not only can you use this as a step by step to what to do if you want to do something like this, but hopefully if you, you can learn from my mistakes as opposed to making the mistakes yourself. So, like, let's think of it this way. I sold about 14,500 units, give or take, because some of those, you know, I gave away for free at the beginning, but I had a$97 ticket price on each and upsold two.1% of those into clients. So this funnel and throughout the entire process got me over 300 clients in a short time. And each of these clients was a minimum of $2,500. I sold one landing page for 2500 or three for 5000. But on average, because I checked this, the average ticket price was about $3,300. So it made me over 760k in client revenue. And, you know, this is exactly how I did it. So throughout the video, I'm going to be providing actionable lessons and steps to follow. I can't remember how many there are, but there's like 10, maybe 11 lessons, and it'll be clearly marked. So as you're watching this video, you know, you can do that. So lesson number one. You know, this happened in a very strong market for landing pages and for CRO. When I was doing this and I had this agency, you know, it was kind of not Too long after iOS14 came out where people's ad performances, you know, started to, let's say, fall off a cliff. And, you know, they weren't able to do anything about this. This is just how it was for Facebook ads for a while. So they had to think of other ways as opposed to just ad creative to help, you know, lower their customer acquisition cost, increase their conversion rate, that kind of stuff. So landing pages and CRO are a good part of that. Right, Right. So. And before I get into this video, this is long over, you know, or I would never be sharing it. You know, I'm not. That would be very stupid, in my opinion. If you have something like this working, and that should be a lesson here, don't even tell your mother about it. You would be amazed at how fast people copy you. So this ended about eight months per go. And you can try the same offer I was. I already believe I kind of exhausted the market and saturated the market through this. But give it a go. If you want to do the exact same thing, you have a landing page or zero agency and you want to do this, be my guest. So this is the timeline and this is kind of important background information because without this, you kind of get unrealistic expectations. So I've been running these type of low ticket funnels for almost 12 years at the time. Well, at this point, 11 years by the time I was starting this. So if you have this video and you like, say, wow, I could never think of this. It's not really fair to compare yourself to me if you don't have, you know, 11 plus years of experience as well. Takes its time to learn. And it's a. It's very thrilling when you're in the middle of it. When you get something that starts to work, it's kind of like a game or a lottery where if you really hit the jackpot, you get that winning ad creative, or maybe ad creatives, plural, you get that great offer, that landing page. You can really just 10x your income, 10x everything about your life in a very short time. So during this lasted about five months. I didn't start this until the fourth month of my company. The first month And a half of running this offer was not great. I never got a single client. I was just, you know, churning out ads and kind of burning money. But once I figured it out, like everything, I aggressively scaled the ad spend. So I kept increasing the ad spend, you know, all the way up to $7,000 per day total every single month until it was no longer profitable to do this. And then I basically quit and moved on to the next funnel. These type of things that I'm going to go over don't last forever. And anybody who, you know, tells you like, or if you ever assume that you just make an ad funnel and then it's going to just work at whatever result you're getting for the next 10 years, like it doesn't really work like that. There's only so many people in the market, maybe Facebook ads, who will buy landing pages or whatever it is. And it almost always goes progressively worse over time until it's no longer makes sense mathematically. And then you just gotta think of something else. And that's part of the fun. It would be nice if it just lasted forever, but that's just not the way things work. So before we start, like, this is very important and I kind of mentioned it in a one off line earlier, but do not disregard the advice at all that I'm about to give you because this is sage wisdom that will save you from a lot of heartbreak and keep you finding out how mean the world is, you know, the hard way instead of just listening to me. Lesson number two, if you have something of value, someone will try to take it from you. So a paid ad funnel that's profitable is likely one of the most valuable things in existence. And that's not really an exaggeration. If you can acquire your customers profitably, like that's the holy grail of business, nothing could possibly be better. But this comes with drawbacks. If you have something of value, someone is going to try to take it from you, including your ad funnel. If they see your ad funnel scale on, you know, their feed, they see it has a lot of likes, views, comments, etc. There's people out there, you know, and it's not, you know, it's not illegal or anything, but they're going to try to basically copy it and rip it off. I know this from experience. It has not been smooth sailing for me the last 12 years. Even though these videos kind of make it sound like that people are going to try to rip you off and there's nothing you can do about it. So just beware of this to protect yourself. You know, you don't have to do this at the start, but never use your main Facebook page or Instagram account or anything like that. When you're running ads, make completely separate ones that have nothing to do with your name, your company, etc. Because if, let's say people know your company name, right? They know your Facebook page, they know your Instagram account, it's very easy for them to go into Ad library and just see what you're doing. And if they know you're scaling, they know your company's growing, you know, they can put two and two together and find your ads and rip them off pretty quick. Second one is never use your main URL when you're scaling for the same reason, but different people can use similar web and whatever tool to find out where all your traffic's coming from. And if they see 5 million clicks from Facebook ads, you know, or from Facebook as a referral source, they're going to put two and two together and you do some digging and that's not what you want. So this is very easy to spy on someone's ads. Like this is Russell Brunson, the creator of ClickFunnels. So people can just go to facebook.comadlibrary, search for your page and just look at them. So why would you make it easy for them? If you're trying to scale your competitors and especially your friends will be looking at your ads and they will be able to see exactly what you're doing. Same with the similar web. If they see this and you know, 5 million views from Facebook and Instagram, gonna do some digging, we don't want that to happen. So what you also want to do, and this, this might sound stupid and a dumb way to do the video, but this is very important. If you manage to get an ad campaign that starts to scale profitably, you should, you know, come back to this video and heed my sage advice. So when you have a separate URL and Pages and Instagram accounts, people won't know that these are connected to you. You know, if people see them on their own Facebook and Instagram feed, that's one thing, and that's bad luck. I guess if you want, they can get your name and still search for them. But to counteract this, we want to put, you know, this is on our fake profile here. We want to put a hundred, and that's just about round number fake or losing ad creatives in our campaign at $1 per day budget or as low as it will let you so that all of these ads are still active in the ad library. If they were to search our page up like this, let's say, you know, these are the two winning ads, but if there's a hundred others, they're not going to know which ones are winning and which aren't. And this is. I could not be more serious about this. And then what you want to do is you want to make decoy ads from your main page for completely different offers. So I was selling landing page templates. I was running ads from my main Facebook and Instagram account directly to book a call. So if my competitors tried to spy on me, they would see I'm running ads and probably not think anything more of it. We just say, oh, that's interesting. That's kind of what I'm doing. And then you just move on. So if they know you run ads and they don't see anything in your ad library, they might get suspicious. That's why you do this little decoy action. But if you must, of course, like 99, like, there's situations where maybe you have like 200k Instagram followers or even 50k and, you know, you post content on there and you kind of have to use your main page. Just clog up your ad library with unrelated offers, unrelated ads. You know, 99% of your ad creatives at $1 per day to a, you know, different landing pages, different offers, different funnels, and then the 1% of your ad creatives that are good to your main one. You're ignoring this advice at your own peril. If you think this is dumb and paranoid. Probably tells me that you've never scaled an ad campaign before and you don't know what it's like out there. The competition doesn't start until you're in the top 1% of this. And if you manage to put it together one day, you'll be wishing you took this advice. What do you also want to do? And this is, I admit that this is a weird way to start the video, is you want to intentionally mislead your competitors because chances are you're in groups or communities or you just know people who provide the same service to you and you know that's fine, you interact with them, but there are no friends, there's no trusting anyone when it comes to this stuff. This stuff is so financially valuable. When you can get a profitable paid ads funnel that if people talk, you talk to know you run ads. I would typically. And what I did in the past is intentionally mislead them about what I'm doing and what's working, what's not. I give them snippets of truth, that kind of work. But don't, you know, tell the full story so they trust me and like, okay, this is what he must be doing because it's kind of working. But that's it. And if people don't know you run ads, you know, don't say anything at all. We'll keep our mouth shut. So let's get into something more cheerful. But that's very necessary in my opinion. And if you don't think it is, you've never scaled an ad campaign at the highest level before. So I'm just going to leave it at that. The lesson number three is the purpose of low ticket stuff. So to understand why I chose to do this, you must understand how advertising works for Legion and agencies. And it's not the same thing as e commerce. No one will just click on an ad, find the stripe checkout link, and buy conversion rate optimization for $8,000 a month. Like that does not work like that. So the purpose of a low ticket front end is to get them into the ecosystem. Whether the low ticket front end thing is free or paid, the concept is the same and both are valid, both free and paid. So you get people into your ecosystem, get people to learn about you with a low ticket, low commitment offer, you know, maybe that's good value for them. They get to know you, you nurture them with emails and eventually try to sell them the main service that you were trying to sell them all along. But this is a much more effective way to do it than just, you know, expecting someone to become your client from the ad for this, the tech stack I used. So for the landing page templates, which were the product I was selling, I used webflow and eventually Unbounce and Figma. Webflow has its own challenges, so I'll leave it at that. But a lot of people use Unbalanced and a lot of people use Figma, where they can turn the templates into basically whatever software they want to use after. In terms of landing page builder, the ads I used Facebook sales page, I used webflow and that would be my sales page selling the product. For checkout, I used Thrive Cart, if you've ever heard of that. It's like, it's like click funnels, but just to check out basically email marketing, I use ConvertKit and for my CRM I use Close.com. so here is some overview about my business. First, and this is kind of, you know, important for the whole Context of the offer. So I wanted to target Shopify store owners doing over a million dollars per year in revenue as that is like who would be buying my landing pages in CRO mostly anyone could buy a landing page whether they're, you know, in Woocommerce or Magento or whatever. But I did not do any zero for non Shopify platforms because I didn't really know how. And that's a whole new other can of worms. But so preferably I'd be targeting Shopify store owners because those are the ones who would eventually hopefully buy my main recurring service. So I preferred them all to be in the United States just for like the dollar reasons. And you know, that's where the big money is. But I also advertised in Canada, usa, or should say Canada uk, Australia, New Zealand. And then I also set my ads to English only language on Singapore, Dubai, Germany. I believe like some European countries that as long as their store was in English and they can afford it, they can kind of, you know, hopefully benefit from these templates. So if you take a look at the kind of sample size, right, check to check the overall market. Before I did this, I did an Apollo search which is a data tool, you know, it's what you'd find contacts for when you cold email. So I set my location to United States, Canada, UK, Australia, New Zealand. Three to 10 employees built with Shopify or Shopify Plus. And the job titles were CEOs, founders, marketing types. Like there's about 40,000 people or 45,000 people. And I did this like in preparation from this video. It might have changed since back then there's 45,000 people who could maybe benefit or feasibly buy my product. But that's not true either because someone who has over 10 employees might want it. Someone who has less than three employees might want it. Someone who doesn't even have a store might want it. Like I said, someone on Woocommerce and Magento might want it. But this is kind of like the pool I thought I was going after that might have had a chance to hire me for CRO or get a landing page job one day, right? So basically this is the sample size of my target audience for services. The target audience for the who could actually buy this info product would be much bigger. But I just did this as research before and I remember doing this. So like I said here, that was the for the services but for the actual product the market was much, much bigger. And it was about 415,000 contacts who could potentially buy my low ticket product. This is really for research purposes. It's not, you know, it's not something you'd just kind of just checking before you make a product that you know there's enough people that could reasonably buy it is kind of the thought process behind it. So here's how my funnel works, like the whole company. So first I want to sell them this low ticket offer if they, you know, didn't have a webflow account, you know, you need a webflow account to use these templates. So I got a referring commission through my affiliate link when they signed up. I would want to convert a percentage of people who buy the low ticket to a custom landing page build, which is a minimum of 2,500 but 3,300 on average. And then I would try to convert a percentage of people who buy a custom landing page to ongoing CRO, which was 8k a month or more. So basically get them in the door with the low ticket, prove myself with the one time landing page and then if I did a good job on that and they can afford it, upsell them to the real huge LTV moneymaker. And if they were not qualified for custom landing pages, you know, price, they'd want to do it themselves, whatever. I also had a course and I also referred them to like freelancers to other people who I knew would build landing pages for cheaper. And I got a referral fee from a lot of those people, not all of them, but a lot. I was also doing a lot of things besides ads. And this is very important to know in my opinion. So I was doing cold emailing, thousands of stores per day, posting content on Twitter, LinkedIn, Instagram and YouTube. I was cold emailing, you know, potential white label and referral partners like Facebook ad agencies who would, you know, refer their clients to me. I was running weekly live workshops and I had a very small but effective E commerce Slack community. So these things all matter. And this is important background information because these things will all have an impact on the performance, performance of the ads. Because it all is, it's not separate things. Your ads, your content, your cold emails, your other stuff are not separate things. They all work together in your ecosystem. So for example, they might buy my product, then they might find me on YouTube and watch a bunch of my videos and then know I know what I'm talking about and then buy my product, that kind of stuff versus if this didn't exist, it's not possible and I would get a lower conversion rate for my ads. So it's very, very important to understand that I also had a two step form for my low ticket offer. You'll see a lot of people, I wouldn't say that but basically I had two steps, like to go to this checkout page they had to put their name, email and phone number. And then on the checkout page they got their, you know, that's where they put their payment information. I did this. So even if they didn't check out and complete the purchase, which is going to be most people, right, I still had their contact information so I could still send email flows to them. And I had an email flow sending seven days per week, once per day for 180 days. And that's probably a lot. But in my view they're them forgetting or not knowing what I do is a hundred times worse than them unsubscribing. So I'm very aggressive with all of my emails in any business. The conversion mechanisms I had, which are the webinars, the live workshops, the newsletters, the communities, etc. Here's what I was doing. You know, this was long before I ever used the phrase conversion mechanism. But like this is what I was doing. So I had a webinar that was top five things your landing page needs to convert it over 4%. This webinar was 48 minutes long and was just pre recorded. You signed up, you could watch it basically anytime. I did live workshops once per week, every Tuesday at 2pm eastern time if I remember correctly, where I was either designing landing pages or doing copywriting or making offers in real time. It was really an interactive workshop, I guess you could say, but it was like made for a good recording. People would come and watch it. I usually had 40, 50 people on there which was, I don't know, you tell me if that's a lot but. And then I sent a three times weekly newsletter about E Comm and CRO and eventually that was five days per week. I also had that E comm slot community and I had an appointment setter contacting all of the people who but this pack of landing page templates to try to convert them. So it's very, it's very, you know, this is necessary to tell the whole story about how this was successful. If you gloss over this information, it might be boring, it might seem like, you know, get to the point, but you're not going to understand and you're not going to be able to design your own because this video is really about you. You're not going to be designing your own successful ad funnel without understanding all of this stuff. So it is important. So let's go into how I created the offer. When you're thinking about low ticket offers, whether they're paid or freed, the question I always start with is how do I save them time or how do I make them more money? Or both bonus points if it's both. So these are like largely the two reasons that people buy anything in business to business sales. And there isn't much that you could do that can't be trace back to one of these two things. So if you're, if it isn't like very clear within like a fraction of a second, what, whether this, you know, your info product idea, your low ticket idea saves some time or makes some more money, it's probably not going to work. And it should go back to the drawing board. I chose landing page templates because that could do both. It can save them time coming up with concepts, design development and if it works, it'll make them more money. So I had both going in my favor. Lesson number four is you want to have your low ticket to appeal to every single level of the market. So what do I mean by this? This is really, really in my favor because 100 landing page templates for $97 is appealing to everybody in the market. It's appealing to those who don't even have a store yet. It's appealing to drop shippers, it's appealing to beginners, to intermediates, to advanced. And it's probably, if think about it, if someone was a CEO of a nine figure brand and they saw an ad for this, it's such a, it's such a great value for the price. Like just basically throw it away. Why wouldn't I? I'll send it to my team and it happened quite a bit. Spoiler alert. The lesson number five is you want to have insane value for the price. This should be obvious, but it usually isn't judging by the kind of front end products and offers people run. So I actually started small. Like when I say 100 templates for $97, that's crazy value because these are pretty good templates. They were sales pages, realisticles, advertorials, which if you don't know anything about E commerce landing pages, those are the three types that was the big offer then like the video centered around. But I actually started by offering five landing page templates for $17. And that's the first thing that actually kind of worked. I lost money on it, but my customer acquisition cost is like in the low 30s and I'm like probably would work like, how can I make it better? So I thought to myself, and I remember, like, thinking, this just. It is obvious, but I remember this thought popping into my head randomly when I was at lunch with my mother one day, what if I just change the ads to 100 landing pages for 97 instead of 5 for 17? Because that's kind of what the ad was. It was very, very cut and dry. You know, you pay me 17, I'll give you these templates. So I didn't have these hundred templates made yet, but I tried these ads, and the cost per click of the Facebook ads was cut instantly by 75%, which is one fourth of the original cost per click. So I remember that this was a great test to validate this before putting all the time and money I need into making 100 templates. More value for, you know, a similar price or whatever is the easiest way to improve an offer that's already working. If you have something that's kind of working already, just think, how do I just do more for, you know, kind of the same price? Maybe can increase the price a little bit, but how do I just add more value and give them the same thing? That's a safe bet. What I did here. And, you know, a lot of people, like, how would you make 100 landing page templates? You know, I doubt you could make 100 landing page templates in, know, a couple months, right? So this is like, one of the most questions I get asked when I talk about this. And usually in a negative way. It's like, there's no way you could create a hundred landing page templates in that time frame. Or how did you even make all those templates? What I did was I got some of my team and I did it myself, and I asked around, but I made a list of a hundred landing pages that other E commerce brands were already running. You know, brands you would know if you're in E Commerce, you know, famous brands, you know, brands I admire, brands that I know maybe aren't, like, publicly, you know, bragging or anything, but are doing great stuff. And I paid freelancers on Fiverr to basically clone or rebuild the pages for me. And this is a screenshot from back then, February 1, 2023. And, you know, this cost me $75 to get one page cloned, all the way up to 115. It kind of depended on the freelancer. Some people were pretty good. Some people were, you know, more expensive. But whatever. For the goals and ambitions I had, it really cost me $8,700 and I got these done pretty quick. I engaged quite a few different freelancers for this simultaneously. I was getting, you know, 20, 30 pages done a week and then eventually got to 100. So here are some examples. Let me open up my Webflow account because I have, you know, like 50 different Webflow accounts back then. But here's one of my accounts. So, you know, here are some of the, you know, different templates that you could get. Like, here's an example of a. An advertorial. Hopefully it's not bad. But here's an example of one of these. That's kind of what an advertorial looks like. I'm just going to scroll fast to kind of not dox the persons whose thing was this. Like, this would be a listicle. And again, I'm just going to scroll a bit first here. And then what would be an example of like a sales page, you know, maybe something like this. So these are like real pages, but like the basis of these are from the templates. Because I use the same templates that I got eventually, you know, to be the basis of my, you know, the ones that I used for my actual custom service. So we had the templates and then we basically, you know, Once you have five, 10 of these templates, you pretty much have every section that you would ever want to use on a page and you kind of just copy and paste it between them and make your own ones that were good. So that's basically like how that went down in terms of that. So I have, I had a lot of employees back then, and everybody had their own webflow account. So we had 2 to 3,000 probably total pages back then. My first big mistake. And this is probably an important lesson, this is what not to do. So at the start, I was getting a lot of sales in terms of the actual product, but I wasn't really getting any clients from it. And because that is the whole purpose of this, you could in some ways consider that a failure. Right? The reason that I wasn't getting any clients is because I wasn't delivering the proper lead magnets sales assets content to them to prove they should trust me. When you're running funnels through lead magnets like this, trust building occurs. But when you're running it directly to a paid product like this, this doesn't happen. So this is a big mistake that you should write down and avoid if you do this. And I'll show you how to do it later in the video. But there's like differences with paid products and lead Magnet funnels. So if you have a lead magnet funnel, you know, you have a bunch of free guides, checklists, masterclass that they can download for, you know, maybe one to two dollars cost per lead, and then you just nurture them and eventually convert them. You don't go through a paid product. And basically in this situation, the difference is you're fronting the ad spend and hopefully it works after. So Lead Magnet should be thought of as masterclasses for how to solve the main problem. So the main problems in CRO and landing pages are, you know, the site speed, the offer, the above, the fold design, the headlines, the hero image, copywriting, social proof, A, B, testing, analytics, etc. So I had a lead magnet that was basically like a free masterclass, better than anybody would give you and charge you for for free. So in normal lead magnet funnels, people would download all of these, see how good they are, have confidence that I know what I'm doing, and then hire me. But as you see, like, we're kind of going like this in this particular funnel where, you know, they're not going through these lead magnets. So the problem that I was facing is this process just wasn't happening and I wasn't getting any clients because it wasn't happening. The lesson here, and to counteract this, if you will, is to take all of the lead magnets you have and repackage them as bonuses for your info product. And I knew this and I just wasn't thinking of this. My first mentor taught me all about doing this when, you know, the person who got me started in this kind of stuff. And the two things will happen when you do this. You'll actually get clients because now you're overcoming, you know, the problems and building that trust properly. And two, you'll actually get a higher conversion rate and a lower customer acquisition cost. A cpa, because your offer is better, now you're giving them more stuff. It's just beautiful. So this is not the page I was using, but this is for a thousand X leads now and you can see the bonuses down there. So let's go through the whole process of actually like. And the whole process in this case refers to how would you do this or how would I do this from scratch? So lesson number seven is when you first launch, you are basically glorified, guessing as what's going to work or not. And you know, there's no like anybody telling you otherwise that they have a magic system. Not really. Right. Probably bullshit. You can't avoid this phase. And there's no such thing as a guarantee or a sure thing. You are gambling or making a bet that it'll be worth the time it takes to create your offer and that you can make good enough ads to sell them. Right? That's what you're betting when you're making a low ticket funnel. And the thing about gambling is that sometimes you lose and it doesn't work. And it's just one of those things. You can't get over this fact. You're not going to make it in the ad funnel game. I've had many ideas in my life for low ticket offers that I thought were sick, amazing, and they just didn't sell. I've been doing this for 10, 11 years prior to even starting this. So I have a lot of experience with this. It's kind of like, I don't know when you make anything in life and you think it's really good, but no one wants it, it's no, no different than this. So you want to do something completely different. So let's say you have version A. You wouldn't want to make version B similar or like slightly different at this point. You want to make version A, B, C, D and E wildly different from each other because you don't have a baseline at this point. So I tried dozens of different things, including the headlines on the landing pages, the hook and the ads, the style of the ads, images versus, you know, VSL style versus UGC versus whatever. It's very important that you do it at this phase. And it's kind of the opposite of traditional AB testing where you just change slightly one thing at a time. When you're first starting out, you gotta just throw shit at the wall and find out what's gonna stick. If you're aiming for a $50 cost per acquisition, for example, and you're getting $200, there's simply no amount of a B testing and optimization that's gonna fix something like that. That's just too big a difference to ever overcome. And my first attempt ever at this when I was doing these, got 0 sales in 1100 dollars in ad spend. Yeah, that sounds as shitty as it probably was. It probably felt at the time, and it wasn't until my third and fourth attempts, like kind of depending on what you consider to be a real attempt, that I finally got some ads that sold the. I'm talking about the 5 for 17 originally here in the $60 CPA range, which is not super profitable, but not great. I think I said $30 before, but on this one and I checked. So it was $60. Once I hit the about $60 range, you know, that becomes reasonable enough to where I can optimize. And this whole process is simultaneous with the, you know, changing the five for $17 to the $100 for $97. So it's kind of like the same thing or like the same process. So if it sounds convoluted, it is. So if I was able to sell the 100 templates for 97 and the CPA was 60, that is profitable in and of itself, right? I'm selling, getting 97 in revenue, and the cost per acquisition and ad spend is $60. So to optimize this and get that CPA lower, the only two things you can really do if you don't completely change the offer are improve the ads or the sales page. Right? So if your conversion rate is, you know, 0.5%, you probably need to work on the landing page. If it's 3 to 4%, you probably, you know, get a better return on your time working on the ads instead. So for me, in this process, when I really figured it out, what you're seeing on screen is kind of when I figured it out, my conversion rate was never below 3%. So this kind of makes sense as my main service is landing pages. So it. I would hopefully know how to make a good one. And I do. But that means basically, I never had less than one in every 33 people buying. So if you multiply that by the cost per click, that would give you the cpa. It was my ads that were holding me back at this stage, and a lot of them had 2 to $5 cost per click at even a very low ad spend, which is not good if you're trying to scale, because when you scale your ads, basically what happens is, you know, if you're spending $100 a day versus $1,000 a day, Facebook has to start pushing the ads to a broader and broader audience. Right? And, you know, broader and broader audiences tend to be less and less qualified the more you spend. And that makes, you know, the cost per click higher and higher. So if you. In this situation where it was already what most people and what I would consider kind of a bad cost per click for this purpose, you know, it wasn't feasible to scale until I got that better. So I eventually really figured it out and got, I think it was like 56 cent costs per click on my ads, and I eventually got the cost per acquisition down to $15. So doing that math, if one in every 33 people buy and I had, you know, 50ish cents cost per click, that checks out. But this is only at a hundred dollars per day. And the lower your ad spend, like I said, the better it will perform. But because you only have enough budget for it to show to people who the algorithm determines are most likely to buy, when you increase that ad spend, it has to go far and beyond and broader. Nothing like past the people who are most likely to buy. And that's kind of what I'm trying to get at. Hopefully that makes sense. So I kind of checked, you know, did some wouldn't say scientific checking, but you know, general checking. And this is what my cost per acquisition was at different spends per day. So I got that down to 50, 15 CPA. But when I tried to go to 500, it raised all the way to 40 CPA. And that's fine here. Like for this purpose, you know, I'm getting 97, minus software, minus straight fees, that kind of stuff. So profitable. And then when I went to a , it was 55 CPA. When I went to 2500, it went all the way up to 80 CPA. I remember having a great breakthrough and I can't remember what it was. I think it was just the ad creatives. Like I think it was a UGC ad that really started doing well for me. And then I had like 10 different other UGC creators make the same ad, but just different people. So that's where in this case, you know, the $7,000 per day probably would be like $150 CPA. But I just made the ad so much better that it dropped it. But that's not the point. It's not the point. The thing is there's only so many people who are going to buy the product as well, which is definitely the case with my templates. You know, like I said before, where there was 45,000 people in that Apollo search and not all of those are ever going to see my ads, let alone buy it. There's only so many people and the more units you sell, you know, the faster you burn through the audience and there's fewer and fewer people to buy. So although it was $70 per day at $7,000 for a little bit at least, this rose higher and higher every day every week until I eventually turned it off at $130cpa because I did the math and figured it was no longer worth it. At that level, I'm losing 35, $40 per for sale, basically. And if only 2.1% of those actually, you know, become clients. That's over a thousand dollar CPA for my client service, which is fine, but I had, you know, better CPA with lead magnet ads. So I kind of just turned it off at that point. So let's go to the profit, the loss and the statistics. So did I make any profit from low ticket? This is lesson number nine and the answer is not really. So I sold over 14,500 and I actually lost money on this. If you take, you know, total ad spend and total revenue, I lost money. So at $97 each, I did about 1.4 million in gross revenue from this product and it was a bit less probably because I just multiplied 14,500 by 97 but it wasn't always at 97. I gave some for free and etc But I spent 1,522,000 in ads across the same time. So you could say that I lost about 120,000. I don't have access to this Facebook account anymore but I have that from my tax record. Not taxes but accounting. But I pulled this up from my accounting and my amex card so I still have access to that stripe. So not all of this was like not all of this spend either was on this funnel but 95 of it or more was. So I lost about 100k, 120k depending on, you know, what the specifics were. There were a lot of ups and downs so at times it was very profitable and I was making money on the original sale. Like in this situation here you're making money on this but you know when you're spending 7,000 per day and you're going up to 130cpa, the loss is kind of add up quickly let's just say at that. So the purpose of this whole thing was I converted 2.1% of these into main clients and this was 2.1% was going to be pretty accurate but it's mostly would you say like an estimation basically comparing who bought the product versus who eventually became a client. So I think some people might have bought bought the product after they became a client, but this is going to be pretty accurate. So the purpose of running low ticket in the fashion that I was doing is not to make profit or make money as long as you can break even or get close to a break even as possible. Like that's the purpose. This took me a long time to understand in my earlier days and hopefully you can understand this concept fully from just this video. So I sold 14,500 ish units and converted over 2.1% of them into paying clients. And that's the goal. So in a full landing page build, I charged a minimum of $2,500 and I had a minimum profit margin or average profit margin of 70%. So if I wasn't breaking even on the low ticket front end, the cost of acquiring customer would come out of that $2,500 and the profit margin would be more like 25%. But since the customer acquisition cost was for the low ticket product, you know, it's not included in that 2500 and everything, all of your services will become a lot more profitable. So I sold one landing page for 2500 and three for 5000. When I first started the company, I only, you know, ever even tried 2500 for one until randomly I found out that people would buy three just because people kept asking for it. So after I found this out, it was like 50, 50 ish between, you know, who chose one and who chose three. But this was months after I started. So let's just say that it was 66%, got one landing page, 33% three throughout the whole time. So the average, that's where I set, got that 3300 average value from earlier. So if I converted 2.1% of 14.5 K units, and that would be basically mean I got 304 clients from this ad funnel. And if each of them was $3,300 on average and a 70% profit margin, I made $702,240 from this ad funnel in just five months, in addition to everything else I was doing. So if you do the math, what would that be? It's like $140,000 ish a month profit. This is Canadian dollars, by the way, not US dollars, but still good. About 8% of the people who bought up this custom landing page for me would eventually sign up for the CRO2, which had an average lifetime profit of 31,000. That was also, you know, upwards of 70% margin. And they last, you know, six months at 8K, you know, 48K times, you know, 70% margins about 30K. So let's do the math on this. So 304 clients times an 8% conversion rate is 24 clients times 31,000. Average lifetime profit is another 755,000 that I got in upsells. But you know, you could attribute this to this funnel. Just basic math. So the final result, and this is very important to understand, is I lost money on the front end. I didn't never made a profit, you know, over the long run. But I made 702,000 from landing pages and 755,000 from CRO, plus profit from all of the affiliate links. Like I said, if they didn't have a webflow account, they needed a webflow account to use my templates. So we got a lot of affiliate revenue built up that way. So basically this Funnel made me $1,457,400 in profit. That's an estimation total when I lost money on the front end. So that's why this type of thinking is so important and it's one of the keys to scaling an agency. Don't do the book of call ads. Do something like this, in my opinion. And the final verdict is it's time to switch your perspective around how you do paid ads. Once you have a full funnel built and all your lead magnets, conversion mechanisms, paid products and more paid ads becomes more how do you get someone to know who you are? Join your email list and ecosystem for as cheap as possible rather than how do you make a great VSL and landing page that books calls and you can get them into your ecosystem for cheap, whether it's a paid product or free product. If you are, you know, spending a hundred dollars and getting someone a sale for 97, that's kind of like getting someone in for $3 because that' the cost of that, the net loss. Or if you're running lead magnet ads that have a $2 cost per lead, that's the cost. So once you get them into your ecosystem and your full funnel, they will find their way to you as clients. I guarantee it. So thank you for watching and I'll see you in the next.
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