AVOID LOSING MONEY WITH FACEBOOK ADS – Shopify Drop Shipping Tutorial
Facebook ads can be brutal….You can make a lot of money but you can also LOSE a lot of money! In this post I’m going to share with you my take on how not to LOSE money with Facebook ads.
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Avoid losing money with Facebook ads
Want to learn how not to lose a lot of money with Facebook Ads? I bet you do…Then all you have to do is to follow carefully what I’m going to explain in this post.
The last thing that you want is to spend money on Facebook just to realize a while after that you actually LOST a lot of money.
Start with low budgets
You should start small. I recommend you to start with $5 per day per adset and wait around 5 days before you make a decision. At $5 per day for 5 days, it means you can literally test your adset with about $25, which is super low.
Remember this : You don’t need to spend hundreds of dollars to test an Adset, you just don’t. I see people all the time telling me they spent hundreds of dollars on an Adset without any sales and they wonder if they should stop spending money on it….It is terrible that they think they need to spend that much in order to test a product and an Ad.
Once you know what you are doing, you can in most cases make a decision on less than $25.
Have a strategy
You need a good strategy when it comes to this…
For example, I met a guy one day who told me he spent tens of thousands of dollars on Facebook ads and he made almost zero sales….When I asked him what objective did he choose for his Ad, he told me Click To Website…At that point I already knew that this guy started with the wrong strategy.
The guy was doing E-commerce, and with E-commerce the ultimate goal is to optimize for purchase as quick as possible…Ultimately, you want people to go on your website and BUY the product.
By optimizing for Traffic To Website, the guy was basically telling Facebook ¨ Hey just send me traffic…I don’t care who it is, just send me traffic ¨. It is a REALLY BAD strategy. As far as I know, when someone optimize for Traffic To Website, Facebook is not even using their Pixel AT ALL to find good quality leads…
What I’m telling you here is you need a proven good strategy if you want to avoid losing money. Learn as much as possible, join masterminds, invest in courses, etc. You want to learn how to do it CORRECTLY before you start spending a lot of money into this…
If you are really low on cash and you are just starting out, you could start by doing PPE ads to test your product first. I made an in depth post about this (click HERE to see it), but the main strategy is that you spend about $5 on your adset (you have to select ENGAGEMENT for the objective) and then you analyze the data…
If the CPC (cost per click) is below $1 and the CPPE (cost per page post engagement) is lower than like 7 cents, it means that enough people are engaging with the ad (commenting on the ad, click on it, sharing with their friends etc) and it probably means that people like the product…IT DOESN’T MEAN it will sell, but it means there is a chance it will sell.
What you want to do after is to switch to ATC (add to cart) if you are on a new pixel or directly to purchase if you already have a mature pixel to see if it will sell.
This strategy will make you save a lot of money because it will make you will your losers quickly. If after you spend $5 you don’t have a lot of cheap clicks and cheap engagement, you can kill the ad and you won’t spend money on it anymore…You can save a lot of money by doing this.
Again, you need a good proven strategy. Going on Facebook and spending money on a bad strategy is the fastest way to LOSE money.
Know how to read the data
You need to become SUPER good at this in order to avoid losing a lot of money (to make a lot of money also)…
How is the CPM looking? What about the CTR? The CPC? I’m to the point were after I spend about $25 on an Adset, I know exactly if I should raise the budget, lower the budget or kill the ad. I know what to do because I know HOW TO READ THE DATA.
Knowing what numbers to look for in your Facebook reporting is the fastest way to NOT LOSE tons of money. I see this often…I look at the Ad account of someone and when I look at their numbers, I see that they spend hundreds of dollars on Ads that I would have killed WAY SOONER.
Again, become super good at reading the data Facebook is providing you and you won’t lose a lot of money.
Check your data consistently
You absolutely need to do this. Ideally you need to check your Facebook reporting every day and you need to adjust your ads budgets every day.
This is another mistake I see a lot of people doing…They have a winning product, and they spend hundreds of dollars per adsets…Everything is going great and they assume it will stay like this forever…
The problem is it will not. At some point your sales are going to decrease, and if you don’t adjust your budgets accordingly you will LOSE A LOT OF MONEY.
Checking your ads and raising the budget, lowering the budget, killing ads etc is something you should do EVERYDAY. Once in a while you can skip a few days, but ideally you should do it everyday.
It happened to me once…I was spending thousands of dollars per day on a product and suddenly the product started not to sell. I didn’t check my Facebook ads for literally a few weeks and when I came back I realized that I lost A LOT OF MONEY. Since that I I make it a habit to check what is going on with my Facebook ads EVERY DAY.
If you follow all of these steps, you will probably avoid spending a lot of money with Facebook without getting any results. These 4 steps are the key when it comes to being efficient with your Facebook ads. You need to start with low budgets, you need a proven strategy, you need to know how to read the data, and you need to check your Facebook reporting on a consistent basis.
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E-commerce University is a step-by-step video training course that walks you through everything. The students in it are making a lot of money and the reviews are amazing.
In the program, you get to see me create an E-commerce business from scratch. The program consists of over 45+ “over the shoulder” videos where you get to watch me do everything.
You will learn EVERYTHING you need to know to be successful with e-commerce/dropshipping in this program. I leave nothing out and I am 100% transparent! I share with you exactly what I do with my stores, and even how to scale this business by automating and outsourcing the whole process by hiring virtual assistants! You will learn how to pick a good niche, good products,how to do Facebook ads, Instagram ads, advanced promotions strategies and much much more. This is the exact system I used on all of my stores.
To find out more about E-commerce University, CLICK HERE.
Please leave a comment below or let me know any questions you have. I’d love to hear what you think!