[BEHIND-THE-SCENES] How I Did Over $87,000 In A 1 Day Using Facebook Ads | Shopify Dropshipping 2019


Right in today’s video I’m going into over a million dollars in a month case study in facebook ads gonna be teaching you the pros and cons Step-by-step how I did it. So how you can do it as well. Let’s go Hi everyone and welcome to today’s video. My name is Rikki haze. And I’m sure you’re already looking at the dashboard So let’s jump straight into it. Anyway, so this for starters took quite a bit to load Secondly because then if you’ve ever scaled very aggressively Facebook Ads manager is actually very very buggy And what actually happens is? It just lags. Okay, so Very very laggy now I Want to also disclose few things as well That is not the return on adspend that I got If I did that would be what I would be saying This is there’s a number of bugs that are going to disclose here for starters. This is the bug somehow some sale somehow attributed to over 9 million dollars this I think it was something that I can’t remember the exact number but You can see here. It was actually one and a half million to about in in here. Anyway, about 2.6 now Yes before you start wondering that’s not even to grow ass. Okay, the breakeven was one point four Okay, so you can see a number of ones here or beneath that I should also disclose that when you scale What inevitably happens is a lot more bugs happen where sales are not attributed you get a lot more organic sales And so on and so forth. Okay. So this is not a hundred percent accurate representation I can’t control how this looks and this is not fake at all. Okay, this is in between this date range I’m not making this up okay, and this is all real data because people have asked me this a lot and Let’s go to some date Whatever. I can’t remember what Black Friday date is So you’ll have to excuse me So you can see here thirty nine forty thousand four sixty six so you can see one point six eight as a whole Okay. So for those who are doubters Okay, you can doubt me. However the hell you want. But this is actual real data. Okay, and this actually happened? All right, so Now I don’t mark it on this store now as you can see I had some days we had to scour down some days had to scale up still stupid amounts of sales But you get the idea now. Let me give you some facts on what happened here one, obviously, this is around Christmas So people are in the buying mood too. This was an item in the kids related niche being Christmas Grandmas, it was mainly grandparents and specifically grandmas mainly buying these products Who you know, we’re buying it for upcoming Christmas Okay, so if we have a closer look I can’t remember what we were Christmas Yeah, so scoured down because it was when it actually got closer to Christmas. It was just it was really really tough Okay So you can see some really bad days some really bad days and that I’m gonna explain some of these bad days because you need to be prepared for this and this is The lessons that I’ve learned that I’m passing on to you overall still made money But it was bloody hard. So first thing you may have noticed on most of the days the CPC is ridiculously high Now fortunately, we’re still profitable because I’m an expert when it comes to conversion rates So the conversion rate on the store was six and a half percent all right was six and a half percent and So it was really high and the average order value was 66 dollars so you can see here that the Where is that the average cost of purchase 42 dollars? So we’re able to be profitable. It was hard though. I can’t deny was hard And part of that come to post purchase upsells post purchase upsells by far saved the day By averaging an extra 10 to 15% I think it was actually 14% increased by using it at the time I was using cattle which is a great tool might I add and just use the simple approach of they You know, there was clear winning items here And the would upsell them the same item at a discount if they said no upsell them to at the same price of one So that it would really incentivize them and if they said yes would sell them a similar item No double that same item again. There was a number of split tests along the way The hardest part with this was by far the CPC okay, um and I say that because there as you can see $2 29 CPC and was still able Profitable in most instances as we know we’re all customed to be like it has to be around $1 No more than a dollar 50. This was during Christmas people in the buying frenzy CPMs were through the roof. I can’t remember where Mississippian was CPM field. I don’t think I have it on but anyway So you can see as well. I didn’t have the columns entirely set up. So I’m being perfectly honest about this I made a shit ton of screws screw-ups here you can see obviously these are the higher ones are generally retiming you can see that the CTR is actually quite good. So really high CPC but really good CTR Okay So I tell people this a lot a lot of people just get focused on one but at times you can have really high CPC and Really high CTR and that can come down to a number of factors If we fill to this campaign just have a closer look generally a lot of it can come down to placement Let’s have a closer look So if we have a look here Mobile mobile, sorry, I can’t show all of this for obvious reasons mobile Desktop here we go. So desktop actually did quite well, sorry did quite well with a dollar 57. So in this case, it was actually Desktop that was actually doing really well but really low CTR. Okay, we can see here that Facebook Instant articles also quite problem Look at that Ct is incredibly low, but the cost per purchase was really really really good we can see that if I was to optimize this I would have been I was tying and desktop more and If we have a look here messenger inbox, okay, don’t neglect messenger inbox And we can see Facebook Instagram. All right, so we can also see Instagram However, when we get here, this should be Facebook newsfeed. Yeah, there we go and Facebook newsfeed Really really expensive and then the other face Newsfeed desktop has disarmed article times this weird. All right column. Sorry, that’s right column, but hit pad me So he is desktop three dollar 60cc Okay, so I should have on that day or in general. I should have been cutting this out. Really ridiculously high CPC that Was trying to cut out you can see across the board was quite high we can see All these placements work well, so this is why I say all placements but a desktop Alright, I’m not lying when I say desktop is ridiculous You’ll generally see that. Yeah, sorry I’m right two dollars fifty four and you can see that these other placements like look at that I this is these are mistakes that I made really good day that day we can see that you know Facebook mobile was working well, but we can see here again that marketplace does really really well and we’re also seeing In our video feeds so we can see a huge reduction in cost per purchase and I could have been a lot more profitable Lower CTR but really profitable so it’s importantly understand that the data really tells you that story Okay, and so, you know you can see twelve thousand four twenty four thousand and again that wasn’t the whole story because again, I was at the time I didn’t know Google ads as well as I do now, but running some Google ads Email campaigns SEO, you know and that every day was at least You know about ten to fifteen percent on top of what has on Facebook As I said when you scale you get a notice a lot of sales not attributed So if we had another ten percent, you know, that’s an easy two to four thousand dollars on top of that. Okay in revenue Alright, and that’s what I mean by this is this was a brand store Really important this but the problem with this store was very seasonal and I did not like how stressful this was To explain what happened there was massive stock issues okay, getting from China massive amounts of stock related problems and That caused massive amounts of issues with waiting for him to be received There was shipping issues when they were in the US because this is mainly to us to show everyone to say that I’m not lying Let’s have a look Okay. So this one had obviously to multiple but you can see the United States is the majority you can see that you know there Was countries like Ireland and that but the shipping was becoming really expensive and it just was not viable Shipping is becoming quite expensive so you can see they’re trying and we’re getting sales, but it was just not worth it So, you know United States cheapest shipping fastest shipping easiest to control. It’s just not worth it. Otherwise huh anyway So and to show you as well, let’s have a look at age that We can see again that it’s older demographics. So if I had to look here see we can see that still pretty profitable Louis see Similar see PCs and didn’t really target to younger audiences, you know, so it was mainly to older audiences. All right So, there you go so aside from the stock issues which cause major issues with Shipping expenses being blown out because again trying to get two to four days shipping, especially in Christmas time All right. It’s really important that you understand that coming up to Christmas everyone’s probably going to say, you know, if Sal’s gonna go through the roof you Need especially if you’re drop shipping. Okay, and if you’re just using our Express, which are no most people are You need to understand that a packet Takes two to four weeks on average. Okay, two to four weeks and you always want to use as your basis So don’t market your products on the 20th of December Because people will literally expect them by Christmas As a general tip, that’s why how I was able to mark it up to them because I had fast shipping Alright, but if you don’t please you’re going to get charged back. So you’re gonna get refunds. You’re gonna get returns There is an absolute like I didn’t even need to explain why that is important care for your customers Christmas is the biggest family time of the year nearly in the whole world. Okay? Think of it as a consumer yourself you’d be pissed Okay, because you know they want this for their their grandchildren in this case or children, whatever so keep that in mind So I had that as an issue this biggest issue was I can’t remember what day black Fridays? But the days leading up to Black Friday were hell Absolute hell And that’s where I’ve learned. I never want to go through that again. I Never ever want to go through that. Let me explain what happened So the Monday preceding up to the Black Friday things were doing well stripe blocked my account They blocked the account So they found some fraudulent activity from their automated Bot to try it and flag this and it flagged the account. Okay, there’s hundreds of thousands of dollars in there I’m not made of money We’re not all just made of money with a billion dollars behind this where that money is just like yeah, whatever This is just pocket change that was incredibly stressful credit cards were getting maxed out It’s like the money is sitting it and you can’t draw on it Contacting stripe they were completely useless, right? This is why I say that you should always have extra capital and you should always be smart with your money they Wouldn’t give proper support over the phone Contact them live chat They said to contact their specific Department on this and they said it would be two days at least and you know this Black Friday once a year Scaling meaning the scale get rid of stock Huh? You know, this is this is hell and you know wanting to get rid of stock because otherwise, you know The stocks not going to just sell itself and after Christmas. It’s going to be a huge drop All right. That’s something you should also be prepared for after Christmas things go through the roof in January nearly every store it were not every store but huuu we’ll see obviously a huge reduction in sales regardless and So, you know you wanted to capitalize on this and it was Monday and then You know trying to spend to try and keep things scaling up so that Black Friday could hit a rock Thousand a day as you as many of you know hit 87,000 would have easily hit a hundred to probably hundred and twenty thousand that day But this is what paralyzed that and it wasn’t until Thursday but they actually I was able to get strike back connected and then get the funds to start Bumping up the budget and this is what the biggest problem was One of the capitalize on Black Friday out to the utmost degree And what happened was in the only choice I had was to increase the budget Huge and as a result, we’ve got plenty of sales But it wasn’t as good of a profitable day as it really could have been because Facebook didn’t have time to optimize the budgets went from this to this so the cost of purchase just you know was not properly mandated and that’s you know, that that is something out of my control somewhat in my control, but still very frustrating and It taught me that’s why I speak so negatively about Facebook that it’s not the greatest thing I know that the stripe issue is irrelevant, but it’s very very frustrating experience anyway That you should all be quite well aware of yourself this stuff cripples your business. All right It really just does cripple your business And this is why consistency is the most important. So anyway, after Black Friday did all those sales and Was doing quite well that day after it and then you know, it starts getting closer to Christmas that’s when the questions start coming in Where’s my order? How long until my orders going to be here? So on so forth, etc, etc, etc That’s where the customer service what I always say about you need to have OnPoint customer service All right Christmas time. As I said is the most important time for most families, especially in the United States and So you don’t want to piss them off they will initiate chargebacks Banks are relentless with that because scheming goes through the roof because people are in a buying frenzy mood so you need to be well aware of that and So what we’re doing to try and circumvent this is it every day sending out emails to the email list Okay, trying Google Ads, but the problem with Google Ads and it’s obviously still a thing now But is it takes time? All right now again, I didn’t know what I know about Google Ads now I would have just done I didn’t do enough remarketing on google could have brought in some huge row s if I knew what I did now Can’t can’t you know change what’s happened? but it’s a learning lesson and Easy Avenue for sales by just making had great graphic designers to make quality Chrome creatives could have even outsourced Google Ads and just purely focused on retargeting to bring in really cheap costs per purchase Could have done YouTube ants is really cheap cost per purchase on Channels relating the kids stuff. Okay didn’t do that properly and that’s what made it so much harder So so much harder, and I absolutely show you this coming Christmas This Christmas quarter It’s going to be just as tough. Obviously the people are going to buy a lot, but it’s going to be tough People don’t say the real truth about this now. You can see here this product as well This was a new winner that was coming into it And if we had more time could scoured this the profitability was great It was a new item to the market that people are absolutely loving and they’ll buy and multiple of them so you can see much cheaper cpc’s much better rious much higher CTR so if you again if you have a winning product wherever you are in your journey, if you Have your CPC or reduce your CPC then in theory, you can automatically increase your row s One of the other mistakes that I made back then was I wasn’t using automated rules again I was Google Ads and automated rules were two things that I wasn’t using enough I knew their importance But I didn’t have enough time and I didn’t focus enough on really actually making the time for these if I were to use one of my rules now like my econ sheet, I Would have made simple rules that you know, if over you know, whatever in the last in that three-day period let’s say hypothetically made some simple rules That would have been like alright well If I’ve the three days if my ad set exceeds Twenty seven dollars and ten cents and its cost per purchase then kill the answer I was having to do this all manually. I was doing it all manually. I was spending like two three hours a day At least is trying to optimize and manages. It was not fun. It was very stressful Okay, it was very very very stressful I could have made rules to increase and decrease the budgets throughout the day, you know had some that were like ad sets that doing $2,000 so on and so forth and Could have rode the waves Okay throughout the day instead of just trying to Hope to dear God that it just is going to have a crappy patch and then pick up Right. That’s why I say so much about automated rules when you scale Every little problem becomes a big problem Okay Everyone most people if you’re doing $50 hundred dollars a day a little problem is a little problem and that’s where most people get really really confused is we Escalate the little problems in our mind in the large problems when they’re just little problems When you have a winning product it’ll sell itself and then it’s just an amplification and that’s why I say Everyone’s so focused on this must have been the day actually is it one of the days? I can’t remember be anyway. I know it’s only three days. But anyway, basically You can see my point here. All right that It’s it’s not that easy This was a very competitive niche did extremely well creatives were extremely good You can see that CTR extremely high Alright, this is a retargeting one, you know, really good CTR This is a look-alike one so you can see how that I still had really high CTR okay, and Overall that that time period good CPC but still hard to be profitable. Okay, and These are all lessons that that I’ve learned And that I’m trying to teach you that are really important. I would have done CBO to help with budget allocation I would have done automated rules so that regardless of where it allocates the budget I keep strong goal posts that by over $10,000 budget on a CBO Well, then I can rest assured that if it decides to spend it on to add sets I don’t really care if it spends those two ad sets if they’re doing well, but if they’re doing crap well Then they’re gonna be either be reduced or they’re gonna be killed okay, this is where most people get stuck scaling is very scary and That’s why I run a very conservative approach to scaling and diversification no one likes to learn Google Ads it seems or not many anyway, but anyone that is scaling on facebook will say that something like Google Ads as a another traffic source is Amazing. That’s why I also recommend SMS bump. Push our email marketing. Okay, you know those are Channels that can bring you in a lot more money in it and they’re able to help sustain the business Easily able to help sustain the business so those are the lessons that I’ve learnt that I want you to keep in mind this applies for as well if you’re doing $500 a day Christmas a thousand dollars that it really actually does not matter but what I’m saying is when you if you really want to scale high this is Stuff that you have to keep in your mind. So the things that you should be focusing on is rules diversification and Placements and the ads, okay One of the other mistakes I made was I didn’t make enough ads And I didn’t make enough ads for different placements as you can see there there was a lot of opportunity, but I didn’t capitalize on that enough and That’s what that’s on me that’s on me that’s the reality now What I should also add is I was getting incredibly frustrated on a daily basis Was the ads manager itself is not a very good platform when you’re scaling high. It becomes incredibly laggy I would try and make an ad set and I would duplicate it. Let’s say because back then I used to use the duplication method And it would take like three seconds just to click duplicate three seconds for it to show up You can see how doing multiple campaigns trying to do multiple creatives and all that It just is going to consume you frustrate you so The next big tip is if you gowing I would definitely suggest trying to outsource a lot some of your work I didn’t outsource enough if I will do it now. I would outsource my hands and I would just be Discussing with the person about what’s been going on because I would really want to know of course You know if I’m spending twenty thirty thousand dollars a day. I want to know what’s going on, right? So I Would definitely still be very in tune But I’d be outsourcing it so that I could have focused more attention on Google Apps I could have focus more attention on making really high quality automated rules Which you can just do in Facebook Ads, I would have focused on Customer service automation. I was using a lot of automation but could have used more save time save money get more sales These are all things that I learn that actually happened okay, and I don’t see this spoken about enough because the reality is most Pro dropshippers seeing this wasn’t drop shipping as well. This was proper proper shipping time So I don’t define this as drop shipping. This was actually branded Branded ecommerce, and this is the way you should do it as opposed to just purely just drop shipping giving customers crap. So What I’m saying is all these Pro drop shippers that hit I don’t know ten thousand twenty thousand in that short space of time You can rest assured Right that most of them are barely profitable. They’ve they’re making money But again barely profitable after you know, I had to go through tax of course as well, then there’s International laws, there’s complaints then in January. What do you think happened in January aside from sales dial? Some customers were just complaining about where’s my order? Or I want to refund a number of people just wouldn’t message you until after Christmas Because their focus was Christmas and they like what I’m just gonna ask for a refund or get a return After Christmas after the holiday period right that wasn’t their focus so that happened then following up on other customer service it just a compounds and so You need to be well aware that leading into Christmas everyone looks forward to Christmas But if you’re if you’re not providing quality products with quality shipping and quality customer service, I can nearly assure you that Payment processes are going to be a pain in your ass. They’re gonna hold funds That’s probably gonna allow you not scale Facebook can suspend accounts, especially during Christmas because the scams increase majorly Suspend add accounts and that can completely derail you if your ad account is suspended And then it’s brought back. I just had this in the last few months. Then the optimization can be completely different All right, and this is only gonna get harder cpc’s are gonna get harder. Look forward to higher CPM Everyone’s gonna get super scared by CPM and this is exactly what you should be expecting I wanted to make this now because we’re just around the corner from the Christmas rush So you should be well aware of this that this is actually what happens That it’s not easy just to hit ten thousand dollars a day and think I am on 20 percent profit No You’re at 20 percent profit then But then you’re gonna have all these other issues that are going to come back to whether it’s in a week two weeks three weeks a month Again around just specifically around things like tax refunds returns exchanges chargebacks Outsourcing fees and Choose into your margins. All right, so you should be well aware of that as well So I should also add because people are probably wondering how found the product found a flier Facebook newsfeed. Okay Facebook newsfeed in this instance wasn’t hard just like a and it just kicked off It was just a simple image slideshow video. They still work quite well, as long as you make them somewhat presentable Then they can work quite well. You don’t have to have the best image Sorry best video in the world for it to work very well We see a number of image ads do extremely well on their own and image video ads still work very well. The copy was Just basically explaining the product. It was a need type of product especially marketed that way And that’s how that was found and it just kicked off from there Okay, so I hope I really hope this has been helpful for you. I mean perfectly and transparent with this I don’t know how else to be really honest and transparent with this know. This product isn’t being sold now Obviously, it’s after Christmas and no I’m not going to be selling it again because it was just too much chaos And I’m not willing to go back to that I much prefer a more slow slower lower consistent approach to making income as opposed to these massive spikes that It’s just going to die out that actually stresses me more than just having consistent income where your goal is the day-to-day Amplification and honestly, I think that that is the real future We’re seeing it a lot more and more If you’ve been watching my previous videos, you’re starting to see a lot of stores at you know, real income earners are Making actual businesses these drop shipping businesses that people say Brenna drop shipping They’re not they’re still there. They’re not really at all because they’re There slowly and slowly gonna get harder and harder and harder So you really need to focus because they’re just gonna have spikes and then it’s gonna die you should be focusing on a gradual increase and then it should flat boring and I absolutely assure you you would probably sleep a lot better if you had a flat line income as opposed to just these spikes Okay, because that’s gonna stress you out You want to go on a holiday and you want to know you’ve come back and actually made money well, that’s where you actually build a real business and We’re so freakin lucky. They even have the ability to make an e-commerce business this quick and easy in my opinion So anyway, that’s it from today’s video. Today’s winner is going to be in the description and in the pinned comments down below Don’t forget to check check the links in the description as well as tons of tons of tons of value there I really hope this has been helpful to like again. I can’t make this stuff up. This is all stuff that Happened. Was it xx? That’s black from it Actually remember yeah 39,000. Yeah, so you can see really bad day that day Anyway, so we’ll leave it at that for today. I hope you’ve enjoyed it. Make sure you subscribe for more daily Weekly updates make sure you hit that like button if you found this valuable tell me down below what other videos you would like Comment crash it as well to getting the chance to win a 30-minute call I’ve been getting a number of students just saying how helpful it’s been to them to actually understand in scale I am a very honest person. I don’t see any need reason to lie, I back up my skills with my Honesty with my skills because I have a lot of skills. Thank you so much for watching today have a lovely day Take care and good. Bye

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