Bro!!! this is EXACTLY ... I MEAN EXACTLY where I'm stuck right now. I actually paniced and shut down my FB ads because i didnt fully understand these metrics. This is simple scalable math. haha. its GAMETIME!
+Landscaping Employee Trap & Window Cleaning Awesome to hear! I wasted a ton of money myself 'hoping' it was working... Never really knowing. This was liberating for me as well, to be able to use data to say 'mope, this ad sucks, yep this one stays on!' Keep up the great work!
Hi Miles your facebook course is the best i have seen.I used to be into Internet Marketing in a small way trying to,learn all i could,unfortunately in Dec 2016 i had a serious heart problem and spent time in hospital.This caused memory and concentration problems but i am getting fitter every day and i discovered you videos and it has enabled me to learn all over again.I am running through all your videos and lots of things are returning,i i cannot write at this moment so i have learn't to a notepad and sticky notes up and run them at the same time as your videos to enable me to take notes.Thanks again for a great video series .Dave
Yes! It really is... I didn't like math growing up, but now I love it, because when the numbers work, it is the most consistent cash flow mechanism I've ever experienced! Just to be sure... Did you see the other one I did on the topic, this week? It is here if you didn't : th-cam.com/video/YVOEcxIZ7u0/w-d-xo.html
Just a heads up if you were wondering... One campaign (the one doing like 43 cent subscribers) is a re-targeting audience. The campaign bringing in 87 cent subscribers is a look alike audience based on my customer list, combined with some hyper targeted interests... If that doesn't make sense, no worries... I'm going to explain all that in depth in the next video when we go deeper inside of the campaigns, but I figured you may be curious why there was such a big difference in pricing....
Then I've got work to do! :D Glad you are enjoying them... It is fun to make them and it keeps me looking at what I'm doing differently... Analyzing it, trying to explain it and it is therapeutic in some interesting way...
AMAZING video Miles!! For an e-commerce which would be the KPI? Cost per purchase? Cost per visit? My AOV is $20 and my conversion rate is 2%, so $20 / 2% = $0.40 per visit would be my KPI? Thanks for this GOLD content!! Best regards! Felipe
I would focus on cost per new customer. Set the custom conversion up to track new customers... Since you know your AOV, you simply monitor how much a customer costs from FB and if it is less than $20 your are money, over $20 and you have to decide if your lifetime value is enough to make it worth it!
That totally makes sense! You´re the best Miles!! Which custom conversions would you create for an ecommerce? View content, add to cart, checkout and purchase events are already been tracked by FB pixel so maybe specific product URLs or product collection URLS? Thanks!!
Awesome results bro keep scaling :d Cant wait for the fb nitty gritty, need to really understand those metrics inside out to get the best out of adverts. Thanks again cant wait!!
Hi Miles slightly of subject. (hope you dont mind) We currently have only 1 product, a "how to course" and a giveaway PDF supporting the "how to course" to get email addresses. our options are to create another course, like a master class or membership and add tones of value that way. Which way would you lean? more products or master class?
Do you have a low dollar course, too... Or just the free level? Low dollar courses are great to create customers, then the high tickets are easier to sell to customers. (value ladder concept I covered here: th-cam.com/video/5Dhynf2bKDU/w-d-xo.html) A good way to think about it, what can you teach them that would be an introductory course to you that leads them to wanting more? ...Aka your masterclass. Then, I'd build the intro course first, get that at the top of your funnel and get customers coming in (faster to build, test the market quick, minimum viable, etc)... And then work on the master class...
Just to add to what Miles said. What's your course price? It's nice to have a low cost product as well, known as a tripwire, whose only goal is to get the subscriber to become a client. Even a $1 product customer is much more valuable to you than a free subscriber. You can test the pricing for this tripwire, but $7 seems to be a good pricing point. I hope Miles won't mind if I link to an image from DigitalMarketer which displays nicely the basic funnel: s3.amazonaws.com/digitalmarketer-downloads/website/content/uploads/2014/01/cvo_infograph_600x1000.png This funnel's idea is simple and probably what you should try as well, at first: - after the user subscribers, you redirect him to a ThankYou page where you acknowledge their subscription and also show them your Tripwire offer, which is a low cost product, usually an offer which they can't miss. - then they'll get your follow-up email campaign and later you'll send them an email promoting your "how to course" which I'll assume is a medium price, probably under 200$ - then, to those customers that purchase your "how to course" you'll send a different series of emails (easily done through segmentation in most email marketing platforms) that promotes your "profit maximizer" or in your case a Master Class or a higher value product. Cross-selling other products works well too, but ideally you want to move some of your customers up on your value ladder that Miles mentioned. Basically, now you have only 2 steps in that ladder, the basic one (free PDF) and a middle one (main course). Would definitely help introducing a tripwire between these steps and a much more expensive offer at the end of the ladder. PS: since you anyway consider creating a Master Class or Membership, which involves a ton of work anyway, you can definitely invest a small amount of time to test the low-dollar product first and see the results. In theory, it can only improve your results, assuming you do everything right (sales page, email campaign, etc).
A "request": You have produced a lot of good content. Since I just found you channel, it is almost too much. Some of the older videos are still relevant, some are not. Therefor, could I ask you to make a "start-here" playlist, or a beginner and advanced playlist!? :-)
I absolutely love it here! Second time, first time was a tour of both islands.... fell in love with The Bay Of Plenty, so this time, just came here! And I had a mastermind in the area... So that helps.
Amazing content as always!!! So that many individual ads (the huge ad list with relevancy of 8, 9 and 10) are all targeting related demographics or you're targeting the same demographics but split testing the ad copies? thanks in advance.
if I'm split testing ad copy, generally I mash up a bunch of interests in one big absent and test multiple ads from one ad set. When I've dialed in a winning ad, I changed to one interest per ad set and lots of ad sets each focus towards that one winning ad. So I either split test the ad or I split test the audiences through the ad set level
Had my graphics guy make them based on some hand drawn ones I did with a sharpie... Drew it out, took a pic on my phone and sent to my graphics guy in the Philippines... He nailed them!!!
Hey miles, brilliant stuff!!! I have a home decor drop shipping store and I don't think its possible me to apply the above metrics. Can you suggest a better way to integrate such a metric for a drop shipping store as well otherwise I will be losing money. Thank you so much
Hi Miles, I wondered If I don't have a funnel set up, can I still work out my kpi values? will I be able to use Shopify analytics, as it provides my Conversion rate and AOV since me opening.
Miles! Your videos are AMAZING! Thank you for doing this! I am working with a forklift company and running FB campaigns for them. As their equipment is $250k-$1.5M, the funnel is different. I am using Google Tag Manager to track conversions (click to call and contact form submissions) but unsure if I can actually track it to a dollar per conversion, as 1 sale would pay for the campaign easily. Thoughts?
+Naomi Masdon sometimes tracking you lead (phone call) as the conversion is good enough... Then rely on the sales team's averages from there. Can adapt this for your business model, bit knowing (how many) sales come from Facebook is important to compare ad spend with other media
Hi Miles thanks for these amazingly helpful videos.. One question. Does the opt in send them to another page with the product offer as soon as they've opted in? Thanks in advance.
Hello Miles - great video as ever - very deep and comprehensive (as always :-)). Though I feel that I missed something which, might have been explained in your other videos: You measure the success of your campaign set/s by comparing the average CPC to the average value of a sale. But... How do you actually know that the corresponding click is actually responsible for the sale; or even in general - how do you know it came from FB? For example, a "good" CPC might not bring you sales at all while a "bad" CPC is responsible for most sales... From my understanding - you need to link the FB Pixel data as feedback to the ad set campaign to actually KNOW. But how do you do that? In my case, the conversion is measured by session duration - how can I link the session duration from customers to their actual clicks? BTW I believe that the math should change - Cost Per Result should be divided by the actual conversion generated by the corresponding ad set. I would appreciate your advice on this issue ...
Hey Miles great content man just one question sorry if it sounds dumb but like how do I figure out the opt in rate of the opt in form and the percentage of people who bought something because you can't calculate that before hand can you?
hi miles, you got your 2% by dividing page visit and sales right? but how long should i run my ads in order to get the right amount of visit to set the rate?
Hi, nice video. Quick question how FB knows your leads are being converted ? I mean, FB ADS suppose to send the traffic to your Squeeze Page and you convert the leads there with your opt-in form and copy, right ? Unless your are using FB Lead ADS. Is that the case ? I'm trying to really understand those details.
Hey Miles, great video! I have a question and I really have a tough time understanding some things I have started a dropshipping business 2 weeks ago and I created a campaign with 4 different adsets to test different interests. The objective of my campagin was a ppe since my pixel is not mature enough to use conversion as an objective. The engagement has been huge on the 4 adsets and my ppe cost dropped to 0.04cent in the US which is amazing, however there are barely any link clicks and traffic coming to my website. The ad has been running for 5 days and no sales. Should I wait longer or should I disable this campaign even if the ppe is very high? Thank you i would appreciate your help!
If you want people on your site, don't use PPE.... Facebook shows your ad to people who engage since you pay for engagements. You want people who click and buy... So go with a campaign focused on clicks or straight to conversions. You can get your pixel matured with the traffic from a conversion campaign... It is totally ok to start a new funnel/new product/ new pixel on a 'per conversion' based campaign!!!!
Hey Miles. Thanks a lot for providing great value. How many different websites do you need to be able to run this model? Are you promoting own product or an affiliate? If you are promoting an affiliate, how do you make sure your ad is not flagged by facebook?
+Fombu Asaha you only need one site. I promote my product here, but do promote affiliate products on the back end... Always build your list.... Don't link from AD to affiliate site...
Great vid Miles. I'm pretty confused tho. How did the checkout work up to 40.50$? the product you were selling was only 27$ and if 1 person buys it the checkout would be 27$. And do you calculate stuff on the second OTO (OTO upsell) as well?
Hi Miles! I started running my ads on a very similar funnel (just without upsell part) and I'm getting clicks but no conversions yet. The relevance score is 9 -- the highest I've ever had. Is something wrong with my ad copy or landing page?
absolutely.... The one big difference is the cost of goods sold that you will have to monitor... On digital products we can get 95% margins+ on the goods sold. Affiliates for info products can get 50%. Dropshipping can be 20% - 30%... But all in all as long as you track your profitability and your numbers, it is possible.
Hey Miles, Slightly off topic here - for ecommerce companies, does it even make sense to run facebook ad campaigns? I currently have 2 products with margins between $5 to $10 - that doesn't leave much room for advertising. If I run facebook ad over my ecommerce company, the economics doesn't work at all. Any advice?
+Eric Seto this is the big problem with ecomm and Facebook. Need big margins! Can you add a one click upsell or two? That would increase your average order value
That's what I thought as well. Even if I add 1 click upsell - the margin wouldn't be big unless it's an info product or customer would be overpaying a lot
I think using Facebook to be great for retargeting ads also... Retargeting people who reach or checkout page but don't ultimately purchase, there's a chance you could be getting those audiences turned into customers within your KPIs.
Excellent video, very helpful. I've never even thought about paying for marketing, surprised my clients have even been finding my online tea shop! Thank you for this. Yulia
How would this translate to newsletter sign ups? The goal of the ad is to get people to sign up for a newsletter. These videos are amazing. Thank you so much
Tracking your cost per lead (CPL) is easy... And important. But the goal of the newsletter is to sell something, right? How many subscribers does it take to make a sale? That leads to your cost per customer acquisition which is more important to track... Check out this video for more: th-cam.com/video/YVOEcxIZ7u0/w-d-xo.html
The target audience is pretty narrow since it is just in particular location(not over the whole country). Narrowed the audience to about 10k.. This is the majority of the area that im planning on covering.
Using your CPL as the main metric and conversion goal is best here... I would not put all my eggs in the FB 'basket' and I'd be sure to do content marketing either TH-cam, blogging or podcasting too.... Make sure your messaging is in front of people 'searching' for how to buy (or sell) a house, too.
Thank you so much. This helped tremendously. I am currently working on content that can provide value. Also whats the difference between Ads manager and Business manager and why would someone use Business manager?
Hey Miles great video again and quick questions about your funnel. How about making a popup page for the oto and sending them to a second oto using stripe portal or should I use an https ssl certificate on my site and use a cart? How do we pixel through the shopping cart? Why not just make separate pages in wordpress no need for the shopping cart. I think you use Thrive Cart.
First thing, stripe always requires some sort of a shopping cart system to host the check out side of things. On this funnel I'm using here, I'm using Samcart (I use Thrive card on my membership funnel). The way Samcart works, I'm required to use their page for the one click upsell after the OTO. Other shopping carts work differently, I just really like using these hosted systems like Samcart and Thrivecart. So effectively the opt in page is on my website, the OTO page is on my website, the checkout page is on Sam cart, then the one click upsell is also on Sam cart and the thank you page is back on my website. All in all I'm just working within the limitations of the systems that I'm using.
Hi Miles, I've been really enjoying your videos. Thanks man! Quick Question - the $0.81 final KPI figure you arrived at, would this essentially be your CPL? Or are your CPLs the actual Costs Per Conversion shown in your ad sets and ads? (I'm basically asking what the $0.81 KPI is called) Thanks man!
Miles, I saw in several websites that CPL is calculated by: Total Marketing Spend / Total New Leads = Cost Per Lead (CPL) Is this a different CPL or perhaps Total CPL vs. Average CPL?
I take the number of people who reach that page and divide it by the number of people who actually purchase.... That leaves me with my conversion rate on the product.
Hey Miles! First, I love your videos ! You are the best mate! But I was wondering and please correct me if I am wrong but I thought the OAV is = Revenue / n of orders isn’t it? As you said the OAV is OTO + ( OTO upsell x conversion rate ) I am a little confused! Could you clarify me? Maybe is the same thing and my logical reasoning is out of order! Thank you very much You are great
Hi Miles, Your video is so great it gave me confidence in believing in "God Number". However, I got a small confusion. You said that the purchase chance is 2% out of 50 "converted" Audience. How did you know your Purchase chance ? and more importantly, How can you be so sure that you would meet brake even?. Because the Conversions are up to luck whether the Audience want your product or not. Last thing you said that you have to have 0.81$ per conversion but what about the amount spend ?. Thank you.
I have a question that you may have already answered.....There are two different facebook landing pages. @t and then @t. Why does FB do this? the business one mainly shows my instagram ads (that I run from IG for brand awareness). Then facebook.adsmanager seems to be focused just on facebook ads, but the IG ads don't even show up in the list of campaigns. What is the purpose of this? Which one is better for setting up an ad? If I run an ad on the business.facebook it won't show up in my list of ads on the facebook.adsmanager. Why?
You said that the CPA should be the front-end customer value. If my product sells for $27, then that should be my CPA since the goal of the campaign is just to break even. This would make sense if my product is an information product since there is really no cost to manufacture and ship the product. However, what if it's a physical product that has a cost to manufacture and ship. Let's say that my product costs $20 to manufacture and ship, and my profit margin is $7. Should my CPA be $27? If my CPA is $27, then I would have to pay $27 as a cost of acquisition and another $20 for manufacturing and shipping. I'll be paying $47 from my pocket to get $27. It doesn't seem possible to break even! Did I get something wrong? What are your thoughts?
Hey Miles, another great video! I have a question: How do I setup ads for conversion? Are conversions displayed in the power editor based on how well your ad is converting or how well your opt-in page is converting? Because if you pay 43 cents for an ad conversion (click) and your free offer is converting at 25%, you are basically paying 4x43 cents which is $1,72 per opt in. Do you have any resources on how to optimize ads for opt-in conversions with clickfunnels or wordpress?
When you set up an ad that is optimized for conversions it is based on the event tracking snippet you add to your Facebook pixel on the appropriate pages. So if you have only set up event tracking for purchases that is the only data set that Facebook can use for your campaign. If you have set up event tracking for your opt-in ( the pixel would go on your thank you for opting in page) and for purchases then to be perfectly honest, I don't exactly know how Facebook's ad system chooses which event it is optimizing for… I'm guessing it's some blend of both. In both of these situations, I'm not tracking a click to site as a conversion... And in my reporting, I can see the cost per opt in conversion and the cost per purchase conversion plus I manually track my opt-ins and purchases from my email system and my shopping cart because I honestly don't trust Facebook data enough to rely 100% on it. With all that said I do believe the answer to your question is that you can control the reporting in the power editor and have Facebook display your cost per opt in or your cost per purchase or your cost per click allowing you to monitor whichever KPI is most important to you and base your decisions on that. Regarding your question about optimizing ads for conversions, the way I see it is I'm always optimizing my ad for click through. Then I'm always optimizing my landing page for opt-ins. Then I'm always optimizing my sales page for conversions. The goal of each step is simply to get the user to the next step… My ads aren'd designed to sell products my ads are designed to get users to click to go look at the next step.
+Anastasia Mac Boudoir Photography free item is the opt in, then I make a 'new time offer's after they opt in... Then deliver the free thing via Autoresponder
If I could send you a photo I would send you one of that very picture hanging on your wall behind you, it is the exact same one I have on my wall in front of my desk. How uncanny haha.
Ok so I just watched the vid and it's not your wall lol. My daughters chose that pic for my wife a few mothers days ago. PS, thanks for the video too, I have been learning the importance of numbers and testing rather than hit and hope!
Measuring results and testing different hypotheses are the two steps to getting better and better at paid advertising! Fantastic to hear that you have that same poster at home! Obviously, our AirBnB hosts there have great taste!
Just Facebook ads… I've never found anyone in my niche that has a solid list in a solid relationship with their list who I'd be interested in buying an email from. Finding a great solo ad provider who actually has a relationship built with their list and they're not simply beating up their list for profit (to sell solo ads) is incredibly rare, like one in 1 million!
Bro!!! this is EXACTLY ...
I MEAN EXACTLY where I'm stuck right now. I actually paniced and shut down my FB ads because i didnt fully understand these metrics. This is simple scalable math. haha.
its GAMETIME!
Thank you.
+Landscaping Employee Trap & Window Cleaning Awesome to hear! I wasted a ton of money myself 'hoping' it was working... Never really knowing. This was liberating for me as well, to be able to use data to say 'mope, this ad sucks, yep this one stays on!'
Keep up the great work!
Hi Miles your facebook course is the best i have seen.I used to be into Internet Marketing in a small way trying to,learn all i could,unfortunately in Dec 2016 i had a serious heart problem and spent time in hospital.This caused memory and concentration problems but i am getting fitter every day and i discovered you videos and it has enabled me to learn all over again.I am running through all your videos and lots of things are returning,i i cannot write at this moment so i have learn't to a notepad and sticky notes up and run them at the same time as your videos to enable me to take notes.Thanks again for a great video series .Dave
Glad the videos are helpful... Get well soon, David!
I am into CPA and affiliate marketing,this now has to be my sole means of income so it has to work lol
Keep up the great work.
Dave
I've just paid $2,500 for a course that shows this stuff. OMG This is so good. Keep it up Miles!
I will definitely keep the content coming! :D
I'm telling you Miles, this is so valueble. Thank you
Yes! It really is... I didn't like math growing up, but now I love it, because when the numbers work, it is the most consistent cash flow mechanism I've ever experienced!
Just to be sure... Did you see the other one I did on the topic, this week? It is here if you didn't : th-cam.com/video/YVOEcxIZ7u0/w-d-xo.html
Very insightful Miles! Been looking around for so long for something like this!
great to hear Jack
Just a heads up if you were wondering... One campaign (the one doing like 43 cent subscribers) is a re-targeting audience. The campaign bringing in 87 cent subscribers is a look alike audience based on my customer list, combined with some hyper targeted interests...
If that doesn't make sense, no worries... I'm going to explain all that in depth in the next video when we go deeper inside of the campaigns, but I figured you may be curious why there was such a big difference in pricing....
Very good content, thank you so much for all the free knowledge!
Cheers Wyatt
Miles Beckler You have honestly helped me out so much with all of your videos. Knowing that I have a resource to drawl upon is awesome.
Great content. Thanks for this Miles
Great to hear
Thanks Miles, I've gotten to where I look forward to your upcoming videos
Then I've got work to do! :D Glad you are enjoying them... It is fun to make them and it keeps me looking at what I'm doing differently... Analyzing it, trying to explain it and it is therapeutic in some interesting way...
Love the advice bro! Makes better sense to me now!
Right on! Gotta know the numbers... The truth is in the data!
AMAZING video Miles!! For an e-commerce which would be the KPI? Cost per purchase? Cost per visit?
My AOV is $20 and my conversion rate is 2%, so $20 / 2% = $0.40 per visit would be my KPI?
Thanks for this GOLD content!!
Best regards!
Felipe
I would focus on cost per new customer. Set the custom conversion up to track new customers... Since you know your AOV, you simply monitor how much a customer costs from FB and if it is less than $20 your are money, over $20 and you have to decide if your lifetime value is enough to make it worth it!
That totally makes sense! You´re the best Miles!! Which custom conversions would you create for an ecommerce? View content, add to cart, checkout and purchase events are already been tracked by FB pixel so maybe specific product URLs or product collection URLS? Thanks!!
add to cart
Thanks Mike for your insights
very nice course thanks miles
Awesome results bro keep scaling :d Cant wait for the fb nitty gritty, need to really understand those metrics inside out to get the best out of adverts. Thanks again cant wait!!
Knowing the numbers is definitely the trick to scaling!!!!
Hi Miles slightly of subject. (hope you dont mind)
We currently have only 1 product, a "how to course" and a giveaway PDF supporting the "how to course" to get email addresses.
our options are to create another course, like a master class or membership and add tones of value that way.
Which way would you lean? more products or master class?
Do you have a low dollar course, too... Or just the free level? Low dollar courses are great to create customers, then the high tickets are easier to sell to customers. (value ladder concept I covered here: th-cam.com/video/5Dhynf2bKDU/w-d-xo.html)
A good way to think about it, what can you teach them that would be an introductory course to you that leads them to wanting more? ...Aka your masterclass.
Then, I'd build the intro course first, get that at the top of your funnel and get customers coming in (faster to build, test the market quick, minimum viable, etc)... And then work on the master class...
Just to add to what Miles said. What's your course price? It's nice to have a low cost product as well, known as a tripwire, whose only goal is to get the subscriber to become a client. Even a $1 product customer is much more valuable to you than a free subscriber. You can test the pricing for this tripwire, but $7 seems to be a good pricing point.
I hope Miles won't mind if I link to an image from DigitalMarketer which displays nicely the basic funnel:
s3.amazonaws.com/digitalmarketer-downloads/website/content/uploads/2014/01/cvo_infograph_600x1000.png
This funnel's idea is simple and probably what you should try as well, at first:
- after the user subscribers, you redirect him to a ThankYou page where you acknowledge their subscription and also show them your Tripwire offer, which is a low cost product, usually an offer which they can't miss.
- then they'll get your follow-up email campaign and later you'll send them an email promoting your "how to course" which I'll assume is a medium price, probably under 200$
- then, to those customers that purchase your "how to course" you'll send a different series of emails (easily done through segmentation in most email marketing platforms) that promotes your "profit maximizer" or in your case a Master Class or a higher value product. Cross-selling other products works well too, but ideally you want to move some of your customers up on your value ladder that Miles mentioned.
Basically, now you have only 2 steps in that ladder, the basic one (free PDF) and a middle one (main course). Would definitely help introducing a tripwire between these steps and a much more expensive offer at the end of the ladder.
PS: since you anyway consider creating a Master Class or Membership, which involves a ton of work anyway, you can definitely invest a small amount of time to test the low-dollar product first and see the results. In theory, it can only improve your results, assuming you do everything right (sales page, email campaign, etc).
Hello Miles,Thank you for you video.Why you don't do split test?
I do
I keep commenting then finding an answer in a video you provided... Pretty good job youre doing haha!
Great. Just great. Period.
Cheers!
A "request": You have produced a lot of good content. Since I just found you channel, it is almost too much. Some of the older videos are still relevant, some are not. Therefor, could I ask you to make a "start-here" playlist, or a beginner and advanced playlist!? :-)
Welcome to NZ Miles, I hope your enjoying it here
I absolutely love it here! Second time, first time was a tour of both islands.... fell in love with The Bay Of Plenty, so this time, just came here! And I had a mastermind in the area... So that helps.
Awesome. Love the videos!! thank you
Amazing content as always!!!
So that many individual ads (the huge ad list with relevancy of 8, 9 and 10) are all targeting related demographics or you're targeting the same demographics but split testing the ad copies?
thanks in advance.
if I'm split testing ad copy, generally I mash up a bunch of interests in one big absent and test multiple ads from one ad set. When I've dialed in a winning ad, I changed to one interest per ad set and lots of ad sets each focus towards that one winning ad. So I either split test the ad or I split test the audiences through the ad set level
great video miles, do you use a cart plugin for upsells? and if so which do you use?
+Zackery Guerrero I use several on different sites... This post explains: www.milesbeckler.com/three-marketing-stacks-tools-trade/
hey miles- question: How did you get the conversion percentage? How do you know it''s 2% king of lost you there
Divide the number of visits to the landing page by the number of people who made it to the next page...
I love your videos man, very clear and simple. One question: where did you get all the funnel images? the black doodles...Thanks!
Had my graphics guy make them based on some hand drawn ones I did with a sharpie... Drew it out, took a pic on my phone and sent to my graphics guy in the Philippines... He nailed them!!!
Hey miles, brilliant stuff!!! I have a home decor drop shipping store and I don't think its possible me to apply the above metrics. Can you suggest a better way to integrate such a metric for a drop shipping store as well otherwise I will be losing money.
Thank you so much
add to cart instead of lead
@@MilesB thanks Miles. Much appreciated :)
Hi Miles,
I wondered If I don't have a funnel set up, can I still work out my kpi values?
will I be able to use Shopify analytics, as it provides my Conversion rate and AOV since me opening.
Absolutely!
Getting some weird numbers hopefully I can figure it out!
Miles! Your videos are AMAZING! Thank you for doing this! I am working with a forklift company and running FB campaigns for them. As their equipment is $250k-$1.5M, the funnel is different. I am using Google Tag Manager to track conversions (click to call and contact form submissions) but unsure if I can actually track it to a dollar per conversion, as 1 sale would pay for the campaign easily. Thoughts?
+Naomi Masdon sometimes tracking you lead (phone call) as the conversion is good enough... Then rely on the sales team's averages from there.
Can adapt this for your business model, bit knowing (how many) sales come from Facebook is important to compare ad spend with other media
Hi Miles thanks for these amazingly helpful videos.. One question. Does the opt in send them to another page with the product offer as soon as they've opted in? Thanks in advance.
Yes! It's a special offer that they only see once and we shoot to give over a 50% discount to make it very compelling
Hello Miles - great video as ever - very deep and comprehensive (as always :-)).
Though I feel that I missed something which, might have been explained in your other videos:
You measure the success of your campaign set/s by comparing the average CPC to the average value of a sale.
But...
How do you actually know that the corresponding click is actually responsible for the sale; or even in general - how do you know it came from FB?
For example, a "good" CPC might not bring you sales at all while a "bad" CPC is responsible for most sales...
From my understanding - you need to link the FB Pixel data as feedback to the ad set campaign to actually KNOW.
But how do you do that? In my case, the conversion is measured by session duration - how can I link the session duration from customers to their actual clicks?
BTW I believe that the math should change - Cost Per Result should be divided by the actual conversion generated by the corresponding ad set.
I would appreciate your advice on this issue ...
Hey Miles great content man just one question sorry if it sounds dumb but like how do I figure out the opt in rate of the opt in form and the percentage of people who bought something because you can't calculate that before hand can you?
Have you got to run an ad first to gather the metrics?
Correct, you run traffic and monitor the results... So start by testing with small $$$ budgets
hi miles, you got your 2% by dividing page visit and sales right? but how long should i run my ads in order to get the right amount of visit to set the rate?
this video series explains th-cam.com/video/mcAE1CX-09Q/w-d-xo.html
Hi, nice video. Quick question how FB knows your leads are being converted ? I mean, FB ADS suppose to send the traffic to your Squeeze Page and you convert the leads there with your opt-in form and copy, right ? Unless your are using FB Lead ADS. Is that the case ? I'm trying to really understand those details.
This is done with Facebook's tracking pixel... Explanation here: th-cam.com/video/RMiHF93zv6A/w-d-xo.html
how do you track the conversion rates?
Pull the number of sales from my shopping cart, pull the number of visits to that sales page from Google Analytics... Plug both into a spreadsheet.
how do you get to the last page where facebook shows how relevant your ads are?
you can add the relevance score column to your ad manager layout
can I use this technique to promote cpa offer?
+Madrot Smith sure.
AMAZING AGAIN!
"He shoots he scores!"
Thanks Miles
Hi Miles, I really like the videos so far.
I have a quick question. From the math you just conducted how do I determine what my CPC should be?
More important to focus on your cost per lead and your cost per acquisition.... Check out this video: th-cam.com/video/YVOEcxIZ7u0/w-d-xo.html
Hey Miles, great video! I have a question and I really have a tough time understanding some things
I have started a dropshipping business 2 weeks ago and I created a campaign with 4 different adsets to test different interests. The objective of my campagin was a ppe since my pixel is not mature enough to use conversion as an objective. The engagement has been huge on the 4 adsets and my ppe cost dropped to 0.04cent in the US which is amazing, however there are barely any link clicks and traffic coming to my website. The ad has been running for 5 days and no sales. Should I wait longer or should I disable this campaign even if the ppe is very high?
Thank you i would appreciate your help!
If you want people on your site, don't use PPE.... Facebook shows your ad to people who engage since you pay for engagements.
You want people who click and buy... So go with a campaign focused on clicks or straight to conversions.
You can get your pixel matured with the traffic from a conversion campaign... It is totally ok to start a new funnel/new product/ new pixel on a 'per conversion' based campaign!!!!
Hey Miles. Thanks a lot for providing great value. How many different websites do you need to be able to run this model? Are you promoting own product or an affiliate? If you are promoting an affiliate, how do you make sure your ad is not flagged by facebook?
+Fombu Asaha you only need one site. I promote my product here, but do promote affiliate products on the back end... Always build your list.... Don't link from AD to affiliate site...
CLICK funnels is that a good place to go to build one or is there a better way to go.
funnel math is fun!
:D
Great vid Miles. I'm pretty confused tho. How did the checkout work up to 40.50$? the product you were selling was only 27$ and if 1 person buys it the checkout would be 27$.
And do you calculate stuff on the second OTO (OTO upsell) as well?
+Arash Ghanbari 50% of people spent $54, 50% spent $27... So the average comes out in between
You're the man!
Thanks!
Miles, I just like your demeanor and content. These other fools are weak..
+Jonathan Ruzicka 👍💪
Hi Miles! I started running my ads on a very similar funnel (just without upsell part) and I'm getting clicks but no conversions yet. The relevance score is 9 -- the highest I've ever had. Is something wrong with my ad copy or landing page?
Sounds like landing page copy is the next issue to work on.
Hello Miles, can this concept also work for a online drop shipping business?
absolutely.... The one big difference is the cost of goods sold that you will have to monitor... On digital products we can get 95% margins+ on the goods sold. Affiliates for info products can get 50%. Dropshipping can be 20% - 30%... But all in all as long as you track your profitability and your numbers, it is possible.
Hey Miles,
Slightly off topic here - for ecommerce companies, does it even make sense to run facebook ad campaigns?
I currently have 2 products with margins between $5 to $10 - that doesn't leave much room for advertising. If I run facebook ad over my ecommerce company, the economics doesn't work at all.
Any advice?
+Eric Seto this is the big problem with ecomm and Facebook. Need big margins!
Can you add a one click upsell or two? That would increase your average order value
That's what I thought as well. Even if I add 1 click upsell - the margin wouldn't be big unless it's an info product or customer would be overpaying a lot
I think using Facebook to be great for retargeting ads also... Retargeting people who reach or checkout page but don't ultimately purchase, there's a chance you could be getting those audiences turned into customers within your KPIs.
Excellent video, very helpful. I've never even thought about paying for marketing, surprised my clients have even been finding my online tea shop! Thank you for this. Yulia
You are welcome! Great to hear people are finding your tea shop and I checked out your videos… You are doing an awesome job!
How would this translate to newsletter sign ups?
The goal of the ad is to get people to sign up for a newsletter.
These videos are amazing. Thank you so much
Tracking your cost per lead (CPL) is easy... And important. But the goal of the newsletter is to sell something, right? How many subscribers does it take to make a sale? That leads to your cost per customer acquisition which is more important to track...
Check out this video for more: th-cam.com/video/YVOEcxIZ7u0/w-d-xo.html
Im a real estate agent. So it would be more for lead capture.
The target audience is pretty narrow since it is just in particular location(not over the whole country). Narrowed the audience to about 10k.. This is the majority of the area that im planning on covering.
Using your CPL as the main metric and conversion goal is best here... I would not put all my eggs in the FB 'basket' and I'd be sure to do content marketing either TH-cam, blogging or podcasting too.... Make sure your messaging is in front of people 'searching' for how to buy (or sell) a house, too.
Thank you so much. This helped tremendously. I am currently working on content that can provide value.
Also whats the difference between Ads manager and Business manager and why would someone use Business manager?
Hey Miles great video again and quick questions about your funnel. How about making a popup page for the oto and sending them to a second oto using stripe portal or should I use an https ssl certificate on my site and use a cart? How do we pixel through the shopping cart? Why not just make separate pages in wordpress no need for the shopping cart. I think you use Thrive Cart.
First thing, stripe always requires some sort of a shopping cart system to host the check out side of things. On this funnel I'm using here, I'm using Samcart (I use Thrive card on my membership funnel).
The way Samcart works, I'm required to use their page for the one click upsell after the OTO. Other shopping carts work differently, I just really like using these hosted systems like Samcart and Thrivecart.
So effectively the opt in page is on my website, the OTO page is on my website, the checkout page is on Sam cart, then the one click upsell is also on Sam cart and the thank you page is back on my website.
All in all I'm just working within the limitations of the systems that I'm using.
Hi Miles, I've been really enjoying your videos. Thanks man!
Quick Question - the $0.81 final KPI figure you arrived at, would this essentially be your CPL?
Or are your CPLs the actual Costs Per Conversion shown in your ad sets and ads?
(I'm basically asking what the $0.81 KPI is called)
Thanks man!
Yep, that is my CPL! The key indicator I track. 2nd is my Cost per new customer... Often called CPA for Cost Per Acquisition
Miles, I saw in several websites that CPL is calculated by:
Total Marketing Spend / Total New Leads = Cost Per Lead (CPL)
Is this a different CPL or perhaps Total CPL vs. Average CPL?
Hey Miles, I'm a newbie and I have a question. How do you know that your One Time Offer (OTO) is converting at 2%?
I take the number of people who reach that page and divide it by the number of people who actually purchase.... That leaves me with my conversion rate on the product.
Ok, thank you for the response.
Hey Miles! First, I love your videos ! You are the best mate!
But I was wondering and please correct me if I am wrong but I thought the OAV is = Revenue / n of orders isn’t it?
As you said the OAV is OTO + ( OTO upsell x conversion rate ) I am a little confused! Could you clarify me? Maybe is the same thing and my logical reasoning is out of order!
Thank you very much
You are great
You are calculating the lifetime value. I only want the front end value
Got it ! Thank you very much @@MilesB ! much appreciated!
Thank you very much @@MilesB !
How do you test it with an affiliate offer?
Track your leads from your data and manually pull sales data from your affiliate dashboard
How do you measure boosted ads on Facebook to profit ?
I don't boost ads.... I set them up as separate campaigns in the ad manager and track that way
Hi Miles,
Your video is so great it gave me confidence in believing in "God Number". However, I got a small confusion. You said that the purchase chance is 2% out of 50 "converted" Audience. How did you know your Purchase chance ? and more importantly, How can you be so sure that you would meet brake even?. Because the Conversions are up to luck whether the Audience want your product or not. Last thing you said that you have to have 0.81$ per conversion but what about the amount spend ?.
Thank you.
+Mohammed Shalan simply divide the number of sales by the number of visits to the sales page.
I have a question that you may have already answered.....There are two different facebook landing pages. @t and then @t. Why does FB do this? the business one mainly shows my instagram ads (that I run from IG for brand awareness). Then facebook.adsmanager seems to be focused just on facebook ads, but the IG ads don't even show up in the list of campaigns. What is the purpose of this? Which one is better for setting up an ad? If I run an ad on the business.facebook it won't show up in my list of ads on the facebook.adsmanager. Why?
thanks . you can make video topic make monney with shopify?
I don't do anything with shopify so I'm not going to be making any shopify videos. Ezra Firestone is the shopify guy
Love it!
You said that the CPA should be the front-end customer value. If my product sells for $27, then that should be my CPA since the goal of the campaign is just to break even.
This would make sense if my product is an information product since there is really no cost to manufacture and ship the product.
However, what if it's a physical product that has a cost to manufacture and ship. Let's say that my product costs $20 to manufacture and ship, and my profit margin is $7. Should my CPA be $27?
If my CPA is $27, then I would have to pay $27 as a cost of acquisition and another $20 for manufacturing and shipping. I'll be paying $47 from my pocket to get $27.
It doesn't seem possible to break even!
Did I get something wrong? What are your thoughts?
Hey Miles, another great video! I have a question: How do I setup ads for conversion? Are conversions displayed in the power editor based on how well your ad is converting or how well your opt-in page is converting? Because if you pay 43 cents for an ad conversion (click) and your free offer is converting at 25%, you are basically paying 4x43 cents which is $1,72 per opt in. Do you have any resources on how to optimize ads for opt-in conversions with clickfunnels or wordpress?
When you set up an ad that is optimized for conversions it is based on the event tracking snippet you add to your Facebook pixel on the appropriate pages. So if you have only set up event tracking for purchases that is the only data set that Facebook can use for your campaign.
If you have set up event tracking for your opt-in ( the pixel would go on your thank you for opting in page) and for purchases then to be perfectly honest, I don't exactly know how Facebook's ad system chooses which event it is optimizing for… I'm guessing it's some blend of both.
In both of these situations, I'm not tracking a click to site as a conversion... And in my reporting, I can see the cost per opt in conversion and the cost per purchase conversion plus I manually track my opt-ins and purchases from my email system and my shopping cart because I honestly don't trust Facebook data enough to rely 100% on it.
With all that said I do believe the answer to your question is that you can control the reporting in the power editor and have Facebook display your cost per opt in or your cost per purchase or your cost per click allowing you to monitor whichever KPI is most important to you and base your decisions on that.
Regarding your question about optimizing ads for conversions, the way I see it is I'm always optimizing my ad for click through. Then I'm always optimizing my landing page for opt-ins. Then I'm always optimizing my sales page for conversions. The goal of each step is simply to get the user to the next step… My ads aren'd designed to sell products my ads are designed to get users to click to go look at the next step.
a little confused, option says free, but your funnel leads to the offer
+Anastasia Mac Boudoir Photography free item is the opt in, then I make a 'new time offer's after they opt in... Then deliver the free thing via Autoresponder
Any taxes on these $40,5 ?
Depends on your business model... Work your numbers based on what you sell and what your profits are!
AOV is actually
($27+$27) = $54 (50% of orders equal this)
($27+$13.5) = $40.50 (50% of orders equal this)
($54+$40.50)/2 = $47.25 average order value
No one actually pays me $27 + $13.5.... It is either $54 or it is $27 so your second line where 50% of orders = $40.50 is incorrect.
Right you are Miles! I stand corrected. Your videos are amazing btw, the pace and quality is fantastic.
If I could send you a photo I would send you one of that very picture hanging on your wall behind you, it is the exact same one I have on my wall in front of my desk. How uncanny haha.
Ok so I just watched the vid and it's not your wall lol. My daughters chose that pic for my wife a few mothers days ago. PS, thanks for the video too, I have been learning the importance of numbers and testing rather than hit and hope!
Measuring results and testing different hypotheses are the two steps to getting better and better at paid advertising!
Fantastic to hear that you have that same poster at home! Obviously, our AirBnB hosts there have great taste!
Thanks again man! Do you run solo ads at all or just FB ads?
Just Facebook ads… I've never found anyone in my niche that has a solid list in a solid relationship with their list who I'd be interested in buying an email from. Finding a great solo ad provider who actually has a relationship built with their list and they're not simply beating up their list for profit (to sell solo ads) is incredibly rare, like one in 1 million!
ahh ok makes perfect sense. I read somewhere you maybe coming out with an in depth FB training product?