WHAT TO DO AND NOT TO DO WHEN SCALING YOUR FACEBOOK ADS CAMPAIGNS?
Hernan Vazquez explains how to scale Facebook ads without killing your returns. As budgets grow, you hit colder audiences and costs rise. ROAS won't stay constant when you double spend. He recommends thinking like a day trader, accepting short-term losses to gather data, and building backend offers so you can spend more upfront to acquire customers profitably later.
Chapters
What is the most important thing that you need to have in mind when it comes to scaling your Facebook Ads campaign? Let's find out on this video. Hey guys, what's up? This is Hernan and welcome to another video, and I'm really, really happy that you're here. Thank you once again for watching this video. And if this is the first time in this channel, welcome. Don't forget to subscribe because, you know, I've been sharing a lot of the good stuff over the past 2 years, you know, my techniques, my tactics, and everything that has helped me taking my online ventures to the next level. And a question that I get a lot is how I scale a bit, you know, Facebook Ads campaign. Like, once I have it firing, once I have it really working out how can I scale it to actually spend more money and make more money. So that's a question that I want to answer on this video. Now with that said, if you really like Facebook ads, if you really like internet marketing or digital marketing, if you want to know how to make more money with your product, with your service, if you're a coach, a consultant, if you have an e-commerce store, I would strongly suggest that you join the free Facebook group. It's 100% free. I'm gonna share a lot of the good stuff over there too. So let's talk about Facebook's scaling, which is kind of a taboo subject if you think about it, right? So let me tell you guys a little bit of a story. Over the past, I would say, couple of months, I've been working with, consulting with a client, and we were spending anywhere between $500 to $1,000 a day, and now we are at closely $5,000, $6,000 per day, and we want to scale that. And many of you guys are watching this video and you're at those numbers, or maybe some of you guys think that those numbers are kind of impossible to reach. And the reality is that if you think about it with the amount of volume and the dynamic universe of Facebook, those numbers are not even making a dent. So let's talk about how you get from where you are right now, maybe you're spending, I don't know, $100 per day or maybe $500 per month or $1,000 per month, how do you get to scale so that you keep your profitability? Now this is the first thing that you need to have in mind. ROI is super, super, super important when you're scaling. It is said that when you— and it's a fact actually— that when you're scaling out, when you're growing a campaign, when you're spending more and more on Facebook, what you're doing is you're reaching to colder and colder and colder audiences, right? So for example, let's say that you're promoting a webinar and at first when you're spending, I don't know, maybe $50, $100, $200, $500 per day or maybe $1,000 per day, you will get some results, right? You will get maybe $5, $3, $8 cost per lead. Now, the moment you start scaling and spending more money, you're reaching to bigger and bigger and colder and colder audiences. That means that invariably your cost per lead, your cost per acquisition will go up. What basically means is that for each product or each service that you're selling, you will be making less and less money. Of course, you're compensating that with volume, meaning that if you had, I don't know, a 5 to 1 ROI at, you know, $5,000 a day, meaning that you spend $5K and you got $25,000 back. If you have a 2-to-1 ROI on $100,000 spent, that means that you're spending $100,000 and you're getting $2,000 back. That's still a lot of money and that's still a decent result for your campaign. So you wanna have that in mind. The more you spend on advertising, it doesn't really matter if it is YouTube, if it is AdWords, If it is Facebook, the more your ROI and the return on your ad spend, meaning your ROAS, your ROAS will shrink. So you need to factor that in whenever you're scaling. So the first step to scale is to actually have a really, really big ROI on lower budgets. If you're kind of making some money on budgets, on small budgets, let's say, you know, $50 a day per ad set or $5 a day per ad set, you're running 10 ad sets, so you get $50 per day. If you have those kind of results and you're kind of breaking even, some days you're making money, some days you're losing some money, then that's probably not a mature enough campaign for you to scale it. So you need to go back, work on your creatives, work on your products, work on your margins, and then once you have a winning product with a big ROI, at, you know, a small scale, then that would be a good idea to start scaling. Now the second thing that a lot of people, you know, mistake when it comes to scaling specifically on Facebook ads is that they think like this. They think, okay, so if I, if I'm spending, let's say, $100 a day on an ad set and I'm having, I don't know, a 3 to 1 ROI, if I spend $200 a day, the ROI will keep. So if I'm making, you know, $200 per day for each $100 that I'm spending. If I'm spending $2, I should be making $4. And that's not exactly the case when it comes to Facebook advertising. Again, you're reaching to colder and colder audiences as you expand, so the cost per lead, usually the cost per click, you know, the conversions will go down, and it's a normal process. So you need to factor that in whenever you're scaling. The second thing that you need to understand is the risk to reward ratio. This is kind of betting on day trading. It's funny because Facebook ads lately have been looking a lot like day trading, that you have, you're on top of your ads, you're kind of seeing the metrics and whatnot, and you will start uncovering these opportunities and these patterns. Well, the reality is that there's this risk to reward ratio. Some people go crazy, some people wanna scale from $0 to $1,000 a day or $5,000 a day in a couple of of weeks, and if you have the budget, if you have the back, right, if you have the backup to actually make that happen, that's great, but think about that for a minute. If you're spending a lot of money, you're probably competing with people that have their offer dialed in, they have their follow-up sequence dialed in. You could be risking a lot of money. So it all comes down to how comfortable you are with risk and how much money you are willing to spend, because at the end of the day, what you're doing, What you're doing on Facebook ads and Google is that you're buying data. So you need to be ready to actually lose some money to make some money because when you're starting out, you don't have a seasoned pixel, you do not know what kind of creatives are the best and whatnot. There's this problem that you actually need to buy some data from Facebook and a lot of people don't wanna make money. They want to spend $1 in and immediately get $1 out and that comes in time. The money that you're spending will give you the data that you need to make decisions. And the third thing that you need to consider when it comes to scaling your Facebook campaign and taking it from, you know, $100 a day to $1,000, maybe $10,000 a day, is the fact that you need to think long-term. What I mean with long-term is that the big companies, the way they work is that they are ready to make a little bit less money on the front end so that they can make a lot of money on the back end. Now what do I mean with this? Well, there's a simple graphic on screen right now, all right? So let's say that you are paying $200 to get a new sale and you pay $200 and that's as much as you wanna pay per sale, all right? So you're selling, let's say that you're selling a $400 product, whatever that is, so the most that you're willing to spend is $200. Now the reality is that that will give you a 2 to 1 ROI, which is good on the front end. So most people think about that, they think about the front end alone. Now let's say that behind that $400, you know, a couple months down the road or a couple weeks down the road with email marketing and retargeting, you have another $400 product to spend. Now remember, you only need to pay for a client or for a lead once, right? Once they're on your database, you can sell them and, you know, you can sell to them and send them offers pretty much forever. Now the reality is that when you have another $400 offer on the backend or you have an upsell, a downsell, a cross-sell, What you're doing is to increase the lifetime value of a customer. Once you have that number, what you could do is to spend a little bit more to acquire a customer. So if you're spending, I don't know, $300 to acquire a customer that will potentially make you $500 or $600 on the backend, that's how big companies grow. In fact, there's some companies out there, some big, big companies, meaning companies that are on the 9-figure mark, that they're willing to lose money on the front end in order to acquire a new customer. It is said, and I don't have the data in front of me, but it is said that Agora, for example, Agora Publishing, which is one of the biggest newsletters in the world pretty much, and one of the biggest publishing companies in the world, they're actually losing money when, you know, they got you in their newsletter. It's a $47 a year newsletter and they're actually losing money, but they're so certain about their backend. They're so certain about their upsells, their downsells, Their affiliate promotions. That's where the money's at, not on the front end. The front end is basically to break even so that you can make more money on the back end. And this is something that you need to have in mind when it comes to scaling, right? Do you want to make money immediately? Of course you want to make money immediately. I want to make money immediately. But if you really want to grow a business, no matter what kind of advertising you're using, what you need to have in mind is that you're buying new customers, you're buying new leads from Facebook in order to market them pretty much forever. And once you have that in mind, nothing can stop you because the one that can spend the more to acquire a new customer is the one that wins on Facebook and any kind of paid advertising. So that's something that you wanna have in mind when you come to Facebook. You wanna think on the long term because that's where the money's at. You wanna, if you wanna be doing this for the long run, then I strongly suggest that you think like that and that's where you can scale and that's where you can even break even on the front end And it doesn't really matter because you're building a super powerful business for years to come. And again guys, if you have any questions whatsoever about this technique or any other techniques, the mechanics of Facebook, how to increase your lead value, how to get more leads, how to get more clients and whatnot, I suggest that you do 2 things. Number one, that you subscribe to my YouTube channel. There's gonna be a link somewhere around here. You can click the subscribe button. And then you come and join the free Facebook group. It's 100% free. All you need to do is to go to hernanvasquez.com/facebook. And answer some questions, and you will be more than welcome to join the free Facebook group. So thank you once again, guys, for watching, and I'll see you on the next video. Bye-bye.
