How to structure your Facebook ads for success and scale
Nicolas Korvessis explains how to train Facebook's algorithm with high-quality conversion data instead of focusing on creative. Start with a heavily discounted offer like $7 to generate volume fast, then raise prices once the pixel has enough data. He cut a hat's price from $37 to $17 and scaled profitably once the algorithm learned what converts.
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What's going on and welcome back to another video. In this one, I just want to be really candid and just give some really direct Facebook ads and marketing advice. And kind of the topic that I want to go over is, are you being too strict and too specific and not, you know, thinking a little bit more openly when it comes to your paid ads specifically? So the reason why I bring this up is we've had a conversation with a client recently, a few clients, and talked to a few friends about this stuff as well. And I noticed that a lot of people are just not willing to go through a testing period just to get data. And they don't realize how important data really is. People say it all the time nowadays, new currency is data and owning that data and making sure the data understand what you, what you actually want is really important. The algorithms of social media, the algorithms of email marketing, et cetera, et cetera, are way smarter than us. People at Meta, Google are a lot smarter than a lot of us are who built the actual algorithms and the systems. And we should leverage that. We shouldn't try to be reinventing the wheel. So there's really 2 things that I want to focus on. First off is data, which I'll kind of talk about in one silo. And then over here, we've got really just like the creative process, right? My handwriting is not going to be great, but there's 2, these are the 2 things I really want to talk about. And let's just start with like the data side of things. So when you start running Facebook ads or any kind of paid advertising, the most amount of like stuff you have is assets. So you really just got like creatives, right? You've got your overarching like offer, right? I'll just, I'll just put O for offer. My handwriting isn't great. So you've got your offer, you've got your creatives. You've maybe got like your audiences, right? You've maybe got like different platforms, et cetera, et cetera. You have all this like stuff, right? Is what you do have. The thing that you don't have is data when you're starting to run ads, or at least when you're trying to do it like maybe a different way or more successfully. And the purpose when you're starting to run ads is like, let's say this up here is your like Facebook pixel. The purpose is just to feed this pixel, which is with as much data as possible, ideally with the correct target that you're going for as well. So if you're getting sales, right, let's do sales as a dollar sign. If you're trying to get like leads, right, I'll do a little like stick figure. If you're trying to get like booked calls, right, this is a phone, just bear with me here, right? If you're trying to get booked calls, whatever it is you're trying to get, you need to be feeding the pixel as much of that data as you possibly can at the beginning. And if that, if that means reducing friction to get that end result to happen, that is the number one priority. It doesn't mean that you're gonna get lesser qualified leads or lesser qualified people. If you want this result, you need to optimize for this result and this result only. Do not optimize for traffic if you're trying to get sales. Stupidest thing you could ever do. Do not optimize for traffic if you're trying to get leads. Do not optimize for engagement if you're trying to get sales and vice versa. Whatever you're optimizing for, whatever you want at the end of the day, that is what you should be optimizing for, right? So let's say you're running like a low-ticket offer, right? And you've got your ad over here, ad pushes them to a landing page, and then they can decide to purchase something for like, I don't know, $90, $97, right? Then there's like the thank you page and all that stuff. When you have no data, because remember at the beginning you lack data when you're starting to run ads, this being at a $97 price point when you have no data, I guarantee everyone watching this does not have the authority level of like Tony Robbins or Grant Cardone or Russell Brunson, et cetera, right? Which is fine. Pricing this at $97 with no data, with no real authority is gonna get you absolutely nowhere. You're gonna spend a lot of time spending and figuring out. And if the offer is like amazing, yes, this will work. But then you're leaning almost too much on the offer. You're leaning on the offer and the marketing doing all the work instead of leaning into the data and letting the data do the work for you. And this is exactly what we've been doing like recently. So instead, what I'd recommend doing, like in this case for like a low ticket offer, and I'll use the same example for like booked calls and stuff. Is instead of leaning on the marketing at the beginning, because you remember you have all these assets up here, that's fine. You should, you need to have those assets. But what I would actually recommend doing first off is leaning on the data. So what can you do to reduce the friction here? Easiest way possible. Doesn't mean getting a lower quality person because the messaging needs to be really dialed in to get the right person. Drop the price for the first 14 to 30 days. Yes, 30 days because you need to give it time. drop the price down. And what we've been doing is we've been dropping the price of this thing down quite a bit, and we'll end up actually starting it off at like $7. Now, why $7? I just found that it works best. Will $8 work? Probably. Will $9 work? Probably as well. $11 has worked well for us too. It depends on your product. Like, even if you're an e-commerce store, we just did this with an e-com brand that was selling like hats. And I hate to break it to you, but if you're selling hats or a t-shirt or a bag, They're commodities. They're all commodities. And it's even harder to break out and to seem like a brand that is very individualistic compared to some other brands, right? It's harder to show your unique value proposition. So where can you beat them? You can be ballsy and you can drop your price, right? And we did this with like a t-shirt or with a hat brand. We have the ads running. We were sending people to the page to purchase a hat. And instead of the hat being priced at like $37, which is what they wanted it to be at, I said, hey, drop it to like $17 and let's just start getting sales, right? Feed the pixel that data. Once the pixel is getting enough data, we can bump the price up and the sales will remain the same. And let me show you exactly what that ended up looking like. Okay, so you can see here on this account, we spent like $460. First off, before we started managing the ads, someone was doing link clicks, which is just the stupidest thing ever. Like I said at the beginning, if you're optimizing for a link click, you're literally gonna get nothing else besides link clicks. Stop optimizing for link clicks unless you just wanna burn money on fire, then go ahead, but it's stupid. Okay, so don't do it. Add to carts is a little bit better, but I still think it's not really the best solution. I honestly don't, don't think it's that much better than a link click. But you can see here, add to carts, $3 each. We spent $85 on them. We didn't get any purchases. And then all these purchase campaigns, we didn't get sales. That was before we changed the price. We literally changed the price, updated everything, and you can see in here, now we're getting purchases where it makes sense. We dropped them down to like $17 each, so we were losing a little bit of money at first, but then very quickly we bumped the price up to, I think, $37 and then $47, and we started to become profitable. At $37, or I'm sorry, the hat ended up being $47, even paying $26 each, their cost is like negligible. It's very, very small. And the customer paid shipping. They were just about doubling their money on every purchase. And at the worst case, they were getting customers for free. They were building an email list of buyers for free, which was feeding the data, feeding the pixel. And I mean, we bumped this up very quickly to $1,500 in spend. About 50 sales. I think this is undercounting a little bit. $32 a purchase at a $47 hat. First few purchases, sure, were a little bit cheaper. You can see with some of these ones at $11 a sale, and it worked really well, and we immediately bumped the budget up. Drop any kind of ego or anything around it. Oh, it's going to get bad quality buyers. I promise you it's not. If you dial in your messaging and your messaging is speaking to the person that you want, and you just lower that barrier to entry just a little bit more for people, They will be more willing to come in. It will feed the pixel a lot faster, a lot cleaner, a lot smoother. And then you can bump up the price, bump up the friction a little bit more. Once the pixel knows like what it is that you want, like what a purchase is for you and your account, then it's like, okay, I got this. Now I can go to work and I can find the people that actually matter, right? Super easy hack. It's so easy. Like anyone should do it. And if you have any kind of reservations like, oh, well, My competitors are selling it at $90. You have no idea how long they've been testing, how long they've been running ads, their offer, if they have a different brand, if they're doing warm targeting, cold targeting. There's so many other variables that are in play here that this is one of the easiest things you can do outside of just making such an irresistible offer is just offer it at a cheaper price point, lower the friction, get the volume in to feed the pixel, and then scale it up. And how I would think of it is the objective at first during like the first 30, or during the first like 14 to 50 days of running ads, um, is really just to gather data. You're paying for data is how I would think of it as, okay, I'm investing into my business by buying data that will support the future growth of my business. Then after that initial period, once you're getting results, then it's all about, okay, can we make this profitable? Can we actually now scale this thing and get it to a point where it's working? Not a lot of people are willing to do that. And which is why I wanted to make this video just to kind of show that suggestion. If you're doing like a book a call or a lead funnel, make it low barrier. Do you really need phone number? Are you gonna be texting them, calling them, dialing them immediately? If no, remove phone number, add it in at a later point or make phone number optional, right? These small changes can make a very, very big difference. And the more you can feed this pixel, the better. So that's everything that I have for this video. If you want someone to be running your ads, if you're running them and you're like, I don't know what I'm doing, And you want someone to run them, we can help you with that. Click the first link in the description, book a call with me or my business partner. We'll jump on with you. We'll analyze your business. We'll see if you're even a good fit. We only work with people that are dialed in on their offer. They know who their customer is and they have a process to actually make sales. They just need more opportunities put on their desk every single day to close the deal. So if that's you, click below, we'll chat one-on-one and we'll go from there. I hope you enjoyed this video. Give this a shot.
