Hernan Vazquez argues that Facebook ad success depends on profitability, not cheap clicks or views. Set up conversion tracking to measure revenue versus spend, then scale once a campaign consistently returns more than it costs, like $15 from a $10 spend. Optimize for lower costs only after proving the campaign is profitable.
Hey everybody, what's up? On this video, let's talk about what should be your main focus when doing paid advertising. Hey guys, what's up? Hernan Vasquez here. Welcome to another video and thank you once again for the support that you guys have been giving to the channel. It's been crazy and, you know, I'm really, really grateful. for that, and I hope these videos are actually helping you, all right? So if they are, you can send the royalties that you're making with your Facebook ads to the address below. I'm just kidding, I'm just doing this because I have a ton of fun doing them, and I really hope that you guys do it too. Now on this video, I just wanted to address real quick a couple of, I would say a couple of shifts of mindsets, or basically what you should be focusing when doing Facebook advertising, because I see a lot of videos and people saying, I'm getting less than $1 per click or less than 10 cents per click or I'm getting less than 1 cent per view, which is doable. If you have a really good video, you can actually get 0.003, which is like 3, you know, 30% of a penny. I don't know if you can split a penny in half. That's how much you're paying for a video view, 3-second video view, by the way. Which is pretty cool, you know, if you talk about that, that's pretty cool, that looks good, you know, and they can— you can get an award or something like that, or you can even break a Guinness record or whatever. But the point is that those are the least important metrics when it comes to your sales funnels, because it doesn't really matter, or at least initially when you're starting out, when you're developing your sales funnels and when you're trying to become profitable on Facebook, it doesn't really matter how much you're paying per click. It doesn't really matter how much you're paying per view. What matters is that are you making money? Are you being profitable or not? You know, many marketers will ask that, okay, you're paying less than $1 per click or less than 10 cents per click, etc., but the question is, are you making money? And they do not know how to answer that. And you know, there's a bunch of tools that would allow you to actually track that, Facebook itself being one. You know, I talk about how to use the Facebook pixel and how to set up the purchase pixel at the, you know, the thank you page. I'm gonna leave a link somewhere around here so that you can check that video out as well. And there are other tools like Improve.ly, for example, you know, which is pretty cool. And I talked about Improve.ly as well someplace and somewhere in the channel. I'm gonna leave some links around here. So the main point is that you need to track those things. And recently I wrote an article for Founder Magazine. Thank you guys for allowing me to write my stuff. Who knew, right, that they will accept that stuff? But the reality is that I wrote that article for them and I talk about the 2 most important metrics. And I mentioned this before on this channel, but the point is that you shouldn't be thinking about cheap clicks, you shouldn't be thinking about cheap leads, you shouldn't be thinking about, you know, cheap video views. What you should be thinking about is conversions and money. If you're spending $10 and you're making $15 back, that's amazing. You're being profitable, and that should be your first starting point, okay? It doesn't matter if you paid $10 for that lead and that lead brought, brought you $15 back, because, you know, in the realm of possibilities, maybe $10 a lead is a bunch of money, but that lead in particular brought you, you know, $15 back, which is great, okay? Then once you are being profitable and then once you're being ready, you're becoming ready to scale your campaigns, then you can start wondering yourself, okay, so how do I lower my cost per click so that my cost per leads go down so that my profit goes up? All right? How do I make a more enticing campaign or a more enticing creative so that people click on it so that Facebook will increase my relevance score and then I will get cheaper clicks? Or how do I make the landing page for a webinar or for an opt-in or whatever, or a sales page convert better so that I make more money with the same budget? Okay, so instead of making $15 for every $10 that you invest in, maybe you end up making $18. Maybe you end up making $20, maybe you end up making $30, okay? And that's how you start tweaking and you start implementing. That's why it's really super important that you do some split testing. But initially, if you're starting out a campaign, just think about what really matters, which is being profitable. The minute that you're profitable, the minute that you're, you know, that you know that you're profitable, then you can start tweaking those little things about cost per click, cost per view, you know, cost per lead, etc., etc., etc. Because if a lead costs you $20 right now, but on 6 months you can make $200 from that lead, that makes a ton of sense. All right guys, so my point here is try to focus on what matters the most and leave the rest for later, okay? Leave those little vanity metrics for later because they consume your mental RAM and your mental energy because you're scrambling out to lower your CPC, to lower whatever, and that's not the main point. The main point is you're profitable first, keep the focus on the profit, and then start optimizing those little vanity metrics or optimization metrics, if you would. All right guys, so I hope that makes more sense for you. This is mostly for the guys that are starting out on Facebook advertising. If you have been around for a while, or paid advertising in general, because this applies also for AdWords, email marketing, whatever kind of paid advertising you're doing, this applies to. And you know, if you have any questions whatsoever, just drop them in the comment below and I'll make sure to answer to you guys. Thank you once again for watching, and I'll see you on the next video. Bye-bye!
