💎These TWO THINGS Will Determine How Much Money You Make... 💎

All right, what's up everybody? How are you guys? How are you guys today? Hope you guys are super well. How are you guys doing? Happy Wednesday. Yeah, today's Wednesday, right? Today should be Wednesday. It is Wednesday. We're live on the Facebook. Well, we're actually live on the YouTubes, I believe. Then we should be going live on Facebook. Yeah, boom, now I'm live on Facebook. I need to manually click the thing. To actually go live on Facebook. And let me actually share this on the group. Um, yesterday I had some issues with the redirect link, so if you tried to join yesterday and you couldn't for whatever reason, try today again. Just go to hernanvasquez.com/facebook and that should take you automatically to the Facebook group, okay? Or you can just go to Facebook .com and type Digital Marketing Strategies for Entrepreneurs. That should take you to the Facebook group. Okay, so I hope that, that you guys are doing amazingly well. Welcome to all of you guys that are watching this live. Some people are actually watching this live, you know, this is pretty cool. So if you're watching this live, just say hi so that I know that you're watching this live. And if you have any questions, post them on the comments below. I'll try to be more active when monitoring these I haven't been active enough, so I apologize for that. And, but I'm just getting used to this, you know. I've been going live, I think, every day for the past 20 days or so, I think, since the beginning of the year, maybe a little bit later. Anyways, how are you guys? Hope you guys are having an amazing day. And we're good, we're live on YouTube, we're live on Facebook. This is awesome. Hope it doesn't break. And today I want to talk to you guys about the 2 most important things that you want to have in mind, always in the forefront of your mind whenever you're launching a campaign. In this case, a Facebook campaign, but it can, it can be any type of campaign. And the reason I'm saying this, it's because these 2 things will determine, will actually tell you how much money you can effectively make with that campaign that you're running. Okay, and a campaign, it's like a broad term that involves the ads that you're running, the targeting, the platforms that you're using— for instance, Facebook and Instagram— your sales funnels, the emails that you're sending, uh, you know, the offers that you're doing. That's like the overall, um, I would say, meaning of campaign. Okay, so when, when I'm talking about campaign, I'm talking about all of these different things, which is basically saying how much money you can basically make when you're running ads and when you're doing any type of digital marketing activity. Okay, so I hope this excites you as much as it excites me, because the, the reality is that we can focus on a million different things, but the main point of this livestream today is to, is to make your thing, to make your life easier. Okay, and make you, help you focusing and making your stuff simpler. And the reality is that that was one of the main goals when I wrote Perpetual Profits, which you can get a perpetual perpetualprofits.net. It's my brand new book. You can get it there. And that was one of the reasons why I wrote that book. I wanted to simplify the entire digital marketing thing, or marketplace, or, or thingy, right? The reality is that a lot of people were coming to me and saying, well, you know, I'm overwhelmed because there are a million different tools, there are a million different strategies and whatnot. So I wanted to literally tell you guys what I did to grow 7+ figure companies and how I'm helping my clients to go from 7 to 8 figures to 9 figures even and whatnot. And, uh, it's all laid down in perpetualprofits.net. So you can get a copy by going to this URL right here, perpetualprofits— or this way, perpetualprofits.net. Sorry, this is mirrored, so it's kind of hard. perpetualprofits.net, and you can get a copy. All right, so let's jump right into this. Um, the main thing that I— that you want to have in mind when you're running any type of Facebook advertising, or any type of advertising for that matter, are 2 main metrics. And the difference between these 2 main numbers, these 2 main metrics, will tell you how much money you can make and how much you can scale your advertising, how much your business can grow, pretty much. And they're really simple metrics, but a lot of people like actually, you know, forget about them. The reality is that, again, if you check on the Facebook dashboard— I'm gonna walk you guys through that in a minute— if you check on the Facebook dashboard there's a million different things, right? Like there's this relevance score, or there's this frequency, or impressions and reach and whatnot. And what should you listen to? And it's pretty hard, right? The same happens with AdWords. If you're running any type of AdWords campaign, there are impressions and clicks and whatnot, and conversions and value for conversion, whatnot. And the reality is that my idea is to make things super, super simple for you guys today. So the 2 main metrics that I always, always, always take into consideration are number one, the cost to acquire a new customer, which is also known as CPA or cost per acquisition. All right, in short. And that's number one. And number 2 is the average cart value or the average order value, or in short, how much money people are spending with us or with your company, with my company every time they make a transaction. So that's those 2 metrics, the average order value and the cost per acquisition. Well, and the difference between the 2 will tell you what's your profit margin, how much money you are making. And this applies if you're running a brick-and-mortar business, how much money it takes you to get someone through the door and, you know, buying your services. It applies and versus how much money that's worth to you. It also applies if you're running a digital marketing agency, for instance, how much money it costs you to attract a new customer versus how much money they're spending with you and for how long, right? And if you're selling info products, that's even easier because, you know, you can just say, all right, so I spent XYZ to acquire a new customer and we got, you know, XYZ in return. So for instance, I'm working with a client that has a really big webinar funnel. It's really big. We're spending— I think that we're spending anywhere between $3,000 to $4,000 per day on that, on ads profitably. And the reality is that when we started working, we started, you know, scaling right off the bat. And the thing when it comes to Facebook scaling is that the more you scale your advertising, your— usually your average order value tends to go down and and your CPA, your cost per acquisition, tends to go up. So you want this margin, you want this buffer to be, to be big enough so that you can actually take that impact. And we noticed something. We noticed that our margins were shrinking and shrinking and shrinking. That means that whenever we try to scale, you know, we, we couldn't get past this, uh, plateau of, okay, we want to acquire customers at, let's let's say $300 per customer, and we were just there. Like, if we wanted to scale a little bit more, the prices will go up, so we will end up paying $400, $500 per customer. All right, and on the other end, he wanted to have a healthy 2-to-1 ROI, meaning for every dollar that we spend on ads, he wants to have 2 back, and that's completely healthy and understandable. So in order for us to do that, we needed to acquire a customer at, let's say, $300, and we needed to make $600 on the back end. That would give us a 2:1 ROI, and that would give us a nice margin, 100% margin for us to keep on scaling. So we went into this, you know, detective mode and trying to figure out what was wrong. And we decided that, you know, at the level where the campaign was at that point, it was a good spend. He was getting a decent amount of volume every day. He was growing his brand, he was growing his list, he was growing his legacy. And we said to keep it like that. Okay, now we turn around because the metric, like, we couldn't move it. Like, if you think about it, when you're advertising on Facebook or AdWords, what you're doing is you're competing with millions of others of advertising. So decreasing your cost per acquisition, it's really hard because your cost per acquisition is determined by your CPM, meaning how much you're paying per 1,000 impressions, and And that is kind of an unmovable, you know, factor that you need to factor in. Okay, and the more people start advertising on Facebook, for instance, or Google, whatever, the, the CPM tends to go up, right? It's an offer and demand type of game. So that is something that you need to factor in. And, you know, we saw, all right, so if we push it far further, this point, we start seeing a creep up on the CPA and we start eating in our profits. So what we decided to do is really simple— turn around and start working on the other metric that I just told you guys about, right? The CPA was pretty much there, and now we started to work on the other metric, which is the average order value. What else could we offer to these people? The reality is that he didn't have an upsell in place, right? It was a webinar to an offer for an info product of $997, and that's it. So we started to brainstorm what else we could offer to these folks. To increase the average order value. So that would allow us to do 2 things. Number one is to increase this buffer so we could keep on scaling, right? Number one. But also number 2, making more money, right? So that was the whole idea. So we started brainstorming, we came up with a, with a, with another $997 offer on the back end, meaning, you know, they could join and they would get presented with an offer immediately. And then if they didn't join at that point, then 30 days later they could join for, let's say, $2,000. So it was a real one-time offer for that price. It wasn't like some sort of first fake scarcity or whatever. It was an offer, it was right there and then, and if people didn't take it for whatever reason, which is normal, they could opt in to sign up at a later stage but at a higher price point. Okay, even, yeah, 2 times the price. So you want to be cool with that, right? If you're offering that for $997, don't offer it later for a lesser price because it's just like— or you could do it, but it wouldn't be cool. So what I'm saying here is that we started working on that, and we actually started getting good results with his upsell, right? And so people would spend more money with his company, and the reality is that he would offer more value, right? Because you already did all of the hard work, right? You get— we get them to the webinar, we grab them from Facebook, which is the time-sucking, the number one time-sucking Platform on earth, right? I would say Instagram and Facebook are like head to head or YouTube. But we grabbed them from Facebook. We put them on a webinar. We convinced them that they should give us money. They took out their credit card. They you know they gave us money. They kind of you know they they they knew that we wouldn't like take the money and run away. They got access to it. So it's a it's a big deal if you think about it, right? It's like hey give me money. It's like a big deal if you think about it. I would say it's one of the hardest things to do. But the main point of this strategy or this approach and having in mind, always in the forefront of your mind, these 2 metrics will allow you to one, make more money, right? And increase the value that you're giving to your customers because the backend offer was a coaching program for a year, for an entire year, right? Which is awesome. Like people will come and ask questions and we would hop on calls and whatnot. It was awesome. It was a lot of value to these folks, and it was like the perfect add-on for his course, right? So, um, that was, that was awesome. And that will allow you to give your customers a lot more value, right? Number one, after you've done all of the heavy lifting. Number two, will allow you to make more money, which is always good. And number three, will allow us to scale his advertising without necessarily eating into the 2:1 ROI. We had some more leeway at that point. Okay, so those are the 2 strategies that you always, always, always want to have in mind and on the forefront of your mind. For instance, if you have a brick-and-mortar business, it's the same thing, like how much you're spending on advertising, how much it's costing you to acquire a new customer versus how much an advertiser or that customer is giving to you. So for instance, one thing that I always tell my, you know, people that are doing local consulting or local marketing and whatnot is part of Semantic Mastery, for instance, is that how do you present an offer so that it makes sense for a doctor, right? For a dentist, for instance. And one of the things that I always tell them is, okay, how, how much is a client worth to a dentist? Let's say that it's worth $3,000. Okay, awesome. So if the dentist will pay you $100 per lead and he closes 1 out of 5, that means that he's making $2,500 per each customer, right? He's paying $500 acquiring a customer, he's making $3,000. That's a slam dunk. The question is, how many leads can you get, right? So that is something that you want to position if you're selling, for instance, local services and whatnot. And this is the same with brick-and-mortar businesses, it's the same with e-commerce stores. I'm helping a big e-commerce store increasing their average cart value right now. We're there on the scale of the campaign, the CPA is stable and they're making money, but now they want to scale. So if they want to scale, they need to add more stuff on the back end. So one thing that I did is I told him, hey, why don't we offer more of the stuff that you're selling? So you're selling a product, why don't we offer the opportunity to sell them more products on the backend? So that will increase the cart value and that will allow us to scale more. Okay, so I hope this helps you. There's a lot of stuff going on right now and you only need to pay attention to these 2 things. So these should really, you know, make you breathe easily because right now It's like super easy. Now you only need to focus on 2 things. Like number one, how to decrease the CPA, which is basically on your funnel, on your ads. And then how to increase the average order value, which is what else can you offer to these folks? Okay, what else makes sense for them to purchase from you? And if it made sense for you, this is one of the things that I explain in my book Perpetual Profits, and you can get it by going to perpetualprofits.net. It's $5.60. It's It's pretty inexpensive and it will help you understand how digital marketing works, how these big companies are scaling. You know, you see these names popping up out of nowhere and in 2 years they have like huge companies and that's basically what they're doing. They're leveraging the distance between an average order value and a CPA so that, you know, they're making money and if they're trying to grow as fast as possible, now they can scale as fast as possible. So if you want to do something similar, Even if you don't want to scale to hundreds of thousands of clients, you know this is also the thing that you want to have in mind. All right, so let me see if we have any questions. I don't think we do. Let's say. All right, so Latash, what's up, Latash? Thank you for your support, brother. Okay, so what margin? Great question, by the way. What margin is safe before scaling our business? That's a great question, and the answer, as usual, is one answer that it it's the. Depend. And it depends on— basically, it depends on, um, your funnel, right? I like to have at least a 2:1 ROI before scaling. Like, if you're putting $1 on ads, take $2 out, just because of the fact that it will eat up in your profit. The fact with scaling is that the more you scale, you're reaching to colder and colder audiences on Facebook. So that's completely normal. And that is like the ballpark that I want to go after. But I mean, it depends because maybe you don't need to have a 2:1 ROI to scale. For instance, I was talking to one of the clients and one of the people that reached out to me to do Facebook ads for them, which is something that I'm not doing that much right now, but you know, they wanted to have a conversation with me anyways. And they were selling leads to— I think it was like these type of companies that they will reach out to large warehouses and they would go ahead and, um, they would go ahead and tell them to switch to LED lights, and that would save them like 6 figures a year just in, you know, electricity. And they had big margins, like they didn't need a 2:1 ROI to scale. And plus the niche wasn't big enough. So the question is how big your marketplace is, right? Okay, um, let's see. So you once said that it takes $20 to $30 to get a book buyer, which is $50. So are you doing this to make people comfortable while buying with you, and you could talk on them later for other things? Great question, buddy. Good point. Let me actually show you the stats from yesterday. Okay, so this is ClickFunnels from yesterday. So yesterday on my ads, we spent $63, which wasn't that— I wouldn't say that this is typical because it isn't. I would be lying if I would say so. But we spent $70 And we made a whopping $500. This is crazy. And we had an average cart value, but mostly because we had a full funnel sale, which is awesome. But look at this, we spent $4.61 per book buyer. This is nuts. Like, this is an anomaly. I wouldn't say that this happens every day. In fact, I would expect it to be not true. But if I go back, let's say, I don't know, let's say Uh, the past week or so, right? So January 13th. So January 13th. So here we go. We have an average cart value of $31, and here we are, we have a $49, $48 per action. That means that my cost per acquisition at this point in time, my cost per acquisition is higher than my average order value. That means that, that I'm fronting that cost from pocket, which is fine, right? I don't mind because I'm still optimizing this. But as you can see, we had some really big Uh, we have some really big costs in this case, right? So $102, but the average cart value is going up. That means that the average cart value is going up because I'm tweaking the funnel, uh, and then my ads are getting better, smarter. That means that the pixel is getting more data, so my ads are getting better. I'm getting book buyers for cheaper and cheaper and cheaper, and at some point it will revert, right? I've done this several times, and that's the thing. So that's the— that is something that happened yesterday, okay? Yes, it was a record day of sales. I wouldn't expect it to happen again today, or anytime soon rather. Uh, like, I want to be honest with you guys, but that's where we at right now. We're tweaking. We're into the tweaking phase. Sorry about that. Okay, so, and that is one of the things that I showed on perpetualprofits.net. All right, cool. What's up, Brad? How are you doing, man? What was the upsell? It's another course, my man. It's another course. It's a $297 course. All right, awesome. Okay, so we don't have any more questions, I don't think. No, I think we're good. All right guys, so thank you once again for joining me today. I really appreciate you, and I really appreciate you guys joining me today, and I hope to see you guys tomorrow for the next livestream. All right, I'll see you guys later. Bye-bye.