The #1 Reason Why Your Advertising ROI Sucks...

What's going on, everybody? Today we're going to be talking about why your ROI sucks and how to fix it. That's going to be the topic for today's live stream or video or however you want to call it. Thank you for joining me. I hope that you're having an amazing day. Today's Thursday, 6th of January. I cannot believe we're almost a week in in January 2022. And 2022, uh, started with a bang, let me tell you. And one of the reasons why your ROI sucks is because we're— we are exactly on 2022. I'm not gonna go into astrology or philosophy or anything like that. There's an actual reason why you're not seeing the results that you want to see, that probably you've been seeing before, uh, but you haven't seen in a while now. And there's a reason for this. Okay, now before I dive into this, I would like to invite you to visit scaledriven.com. Scaledriven.com is my business, and what we do at scaledriven.com is we help other businesses scale through outsourcing their entire marketing department. So if you need copywriter, I got you. If you need to design a funnel, I got you. If you need to develop an email sequence and an automation, I got you. If you want to increase the revenue from your from your Facebook ads, we got you. If you need to implement an overall strategy, we also got you. So go to scaledriven.com, type that in, you will see a little bit of a message there. And if that resonates with you, there's a couple of case studies as well. If that resonates with you, we'll be more than happy to hop on a call with you. On that call, we'll ask you a couple questions, we'll see if we're a good fit. And if we're not a good fit, we'll tell you. If we are a good fit, we'll tell you how we work. Super cool, no pressure. And it's going to be a really valuable asset for you. So scaledriven.com to learn more. Now let's talk about why your ROI sucks in 2022. If you've been running ads throughout, let's say, the past 2 years, uh, you know, we've been in a pandemic, uh, things have been going up and down, and the reality is that the math— the math, the actual numbers for you to make your ads work have changed. Dramatically. They have changed dramatically. There's a couple reasons behind it. A lot of businesses were built during the pandemic, let's say 2020, okay, 2019, 2020. They were built during the pandemic, and to be completely honest with you, that was a golden age for us to advertise because there were a lot of businesses pulling off their advertising budget. And what we saw on Facebook was, for the first time ever since the Facebook advertising platform appeared, we saw a drop in costs to advertise. All right, now since then, advertisers have been going back into the game. They've been pivoting, they've been, you know, reshuffling their cards and all of that. They've been rearranging their business to be more online present and whatnot. And things have been going back, quote unquote, to normal. And not only to normal, but actually what we're experiencing now It's an increase in prices. So unless there's another pandemic hitting or there's another catastrophic thing or a black swan that nobody could actually foresee, what we will keep on seeing is an increase in cost to advertise. I was seeing Dan Kennedy last year on stage on Funnel Hacking Live 2021. Where we got another 2 Comma Club Award, so that was a lot of fun. And he was mentioning that advertising costs to acquire a customer on social media are now becoming quote unquote real-world costs to acquire a customer. So that means that right now we advertisers are paying real-world prices, you know, as he was paying couple years ago when it comes to the direct mail, when it comes to, you know, when it comes to live shows and all that stuff. So that is something to consider. Advertising costs are going up. Another thing that happened yesterday, I was talking to a potential client and she was telling me, well, you know, we want to sell these, these products, we want to sell these products on a webinar and we want to test it. We want to sell this product on a webinar, but we don't want to put together a sales team. So what price point would you recommend? And I was like, okay, Anything above $3,000 on a webinar, whether it is live or recorded, a prerecorded webinar, never a green webinar, will require— anything above $3,000 will require a sales team. So if you don't want to put together a sales team, I understand. We need to keep it below that. Now, the days of selling $997 products on a webinar, acquiring customers profitably on Facebook, are long gone. Okay, those those those numbers they don't they don't work anymore. So we want to get closer to $1,497, potentially $1,997. Okay, $1,997 for us to you know be profitable, especially if we're going to be running advertising because on this case she was targeting info she she was targeting entrepreneurs. She was targeting you know business owners and all of that. That's kind of an expensive. audience right now. So you need to be willing to pay anywhere between $8 to $15 to $20 per lead at scale, right? So what happens is that, uh, you know, I told her that and we had to rework the entire math because she was coming to me with a $997 product. I was like, this is cool if we want to acquire a customer at breakeven or a little bit better. Now if you want to go above that at scale, you want to increase your prices. Okay, so the reason why your ROI sucks on your Facebook ads is because the math that worked during 2020 and the math that worked during 2021 is not the math that's going to work in 2022. That basically means that there's a couple of things that you can do. Number one is to increase your prices, raise your prices to cope with the increased price to advertise, which is completely viable option. Okay, that's number 1. Number 2 is to increase your conversions across the board. Optimize your funnel. You could get away with a semi-decent conversion, uh, you know, in 2020 because nobody was advertising. I was, and there's a handful of other people that were, and then we reaped the benefits. But now it's getting back to where it was a couple years before that. So number 2, increase your conversions across your funnel. Number 3, follow up more heavily. By following up, I mean calling everyone that comes through your funnel. That's a viable, viable option, believe it or not. Emailing more and sending more messages, SMS messages. There's a couple of other options as well, like pop-up notifications and all that stuff. But basically, with those 3 things, especially number one, reworking the math throughout your funnel, then that's how you get back on track when it comes to your ROI. I'm talking to more and more entrepreneurs and they're struggling with their funnels. Their ROAS is really bad, the return on ad spend and the return on investment on their ads is really bad. And it has nothing to do with the product, it has nothing to do with the platform, it's nothing— there's nothing wrong with that. It's just the nature of the beast. The nature of the beast is the fact that prices are going up and they'll continue to go up again unless we see another black swan Coming up. All right, so that is something I want to share with you guys. Rework your math. If you were crushing it in 2020, that's great. Uh, in 2022, maybe you had a little bit less of a ROAS, which is expected because advertising costs went up. And 2022 is not going to be the exception. So you want to rework the math on your funnel. You want to raise your prices. You want to cope. Because the reality is that here's the thing: a cost per lead is a cost per lead. You can go and you can optimize your funnel, but it's not up to you to decide the cost per lead on your funnel. It's up to the marketplace, right? Cost per acquisitions are cost per acquisitions. Uh, it's not up to you to decide your cost per acquisition. Of course you can optimize your funnel as much as possible, but they will reach a low point at some point. At some point they will reach the bottom of the barrel. Like, you cannot go lower than this. It's much easier to turn around and to work on your funnel to actually increase your lifetime value of a customer instead of trying to rework your entire— instead of trying to fight against or swim against the current, I should say, when it comes to cost to acquire a customer. Cost to acquire a customer, cost per click, cost per mille, meaning, you know, CPMs, the cost, the inherent costs of advertising is not up to you to decide. Not up to me, it's not up to anyone, right? There's a marketplace, uh, you know, offer and demand basically. There's a marketplace, especially, and, and, and you need to be paying those prices. Now it's much easier, again, a million times easier to turn around and to fix your funnel so that you are selling more stuff and raising your prices and increasing the frequency of transaction, which are Jay Abraham's 3 golden rules to growing a business. All right, so I hope this helps. If you need any help when it comes to setting up a strategy to get more money out of the people that are coming through your funnel, if you need help setting up a more effective follow-up sequence or follow-up method or follow-up strategy or follow-up machine, if you want us to run your advertising entirely top to bottom including tracking, which is a big thing, go to scaledriven.com, scaledriven.com. See the message that's there. If it resonates with you, I'll be more than happy to hop on a call with you and, and we'll see if we're a good fit. So I hope this helps. If you have any questions, comments, whatever, just drop them below. I'll be more than happy to help you guys out. Have an amazing rest of your day. Talk to you guys soon. Bye-bye. Bye.