dropshipping has completely transformed my life it completely Set Me Free from Forever having to work a 9 to5 and I created this channel so that I can help all of you do the same thing today we're going to talk about Facebook ads and you might think you know a little bit about Facebook ads or a lot but if your results don't look like this then you might not know as much as you think you know so today I'm going to do my best to condense thousands of hours of experience and tens of millions of dollars
in ad spend into an easy to follow system that you can use to build your own money-making machine now before we dive into the nitty-gritty of campaign structure and kpis there are two basic principles that I think everybody should know before they launch their first ad rule number one do not underestimate the power of the algorithm all you really need to do is put good-look creatives at an attractive price point in front of the Right audience and the algorithm will do the rest anybody who tries to make Drop Shipping sound more complic ated than that
is just trying to sell you something or they just don't actually know what they're talking about rule number two is to always have a scientific approach to launching and managing your ads doing so will ensure that every dollar you spend goes towards either learning something or making money so all you have to do here and keep this in mind is combine a robot-like scientific approach to launching and managing your ads with great creatives at a good price point and you will be printing money before you know it this is the structure that you should be
using for every single product that you test before I dive into the details though uh if you've never R Facebook ads before I highly recommend watching this other video uh for a full walk through all right now let's take a look here at uh campaign structure that I have developed over the last 8 years uh and that I use for every single product that I personally test we're going to start with just one campaign that's really all you need inside that campaign you're going to have six adsets those six adsets are going to be divided
into three targeting the US and three targeting a uh specially curated worldwide list of countries this list of countries is based on tens of millions of dollars in ad spend data my business partner and I compiled all the years that we've been Drop Shipping all the data from all the years and figured out the top like 40 countries or so that gave us the best Roi over that period of time that's the list of countries that we'll be targeting in the worldwide adsets I'm going to give you guys access to that list of countries you're
going to it's definitely going to uh to help you guys out when testing products the link in the description will take you to that PDF with the list of those countries now those six ad sets we're going to Target three different interests across those six so the same three interests for both us and for worldwide remember this is a scientific experiment we want to have consistency across the different adset groups so that we can gauge the performance and actually interpret the data in a meaningful way so so for this uh example product this pair of
shoes uh I would just Target uh you know shoes Formal Wear and Polo shirt those are just the three interests that kind of came to mind here and so we would Target those three in both us and in worldwide separating not not stacking them together but but one interest in each ad group inside each ad set we're going to use three creatives you can go up to five creatives uh however three seems to be the best so we pick our three best Crea and we use the same three creatives in every single ad set now
that you have a simple and very effective campaign structure for testing products on Facebook there's one more piece to the puzzle that's extremely important if you want to make sure that you're actually printing money and not burning it that is kpis or key performance indicators there are three kpis that you need to know like the back of your hand first up we have roas Roos as we like to call it which stands for return on ad spend this is the ultimately the the only thing that truly matters at the end of the day after all
we are all here to make money and return on ad spend is the one metrics that tells you whether or not you're profitable or not so how do you tell if your Ross is profitable or negative you need to understand the break even Ross for every product that you run so before you launch the ads you need to do this simple formula Revenue divided by profit equals your break even rofs so as an example let's say you're selling a product for $70 and your profit margin is $50 so you have a $20 cost of goods
so your profit is 50 bucks so you divide 70 by 50 and you get 1.4 and that is your break even Ross so on ads manager or triple wh whatever you're using for tracking data if your Ros is a 1.4 or above you are profitable so after Ross there are only two other metrics that you need to pay attention to everything else is really just noise and if you understand these two metrics then you can always pinpoint what's wrong with your ads the first one is CPC or cost per click just whatever the customer your
audience whatever is seeing on Facebook this is how much you're paying for a click so their behavior on Facebook the content of your ad your Facebook page name or profile picture these all are contributors to your CPC after CPC we have one more that we need to pay attention to and this is CP ATC or cost per add to cart and this is what people see on your store so they've already decided to click on your ad now when they land on your store this is how much money you're paying for somebody to hit the
add toart button so if this metric is out of alignment with what you want to see then that means there's something on the page that's throwing them off could be the price could be your store branding or maybe the product just isn't that strong the next question is what numbers are good good numbers and what numbers are not and I'm going to tell you right now what we're seeing on Facebook with profitable ads if you're using image ads your CPC should be between 4 and7 C us and your add to cart should be between $6
to $10 USD if you're running video ads you can double those metrics video ads tend to get a little bit more expensive probably because they're a little bit more competitive there's a little bit less real estate for video ads but you can go ahead and double those metrics if you're running video ads in order to understand if your metrics are healthy or not so with just those three kpis you'll have excellent insight into the performance of your ads and you'll be able to figure out what's wrong when things aren't working so if those metrics are
too high on CPC then you know you need to look at what is happening on Facebook either it's your ad creative your ad copy your Facebook page that kind of stuff if it's your if your add to carts are too expensive that means either the price is not aligned with the perceived value of the product or your store branding needs some work or maybe there's a problem with the functionality of of the landing page itself if you want a more indepth look into this subject I made a whole video about it and you can watch
that right here if you found this video useful hit that like button and subscribe to my channel I'm going to be dropping a new video every single week with stuff that you're not going to want to miss if you're serious about dropshipping don't forget to grab that PDF in the description and I'll see you guys in the next video
