This facebook ads strategy made me over $12.4M

this Facebook ad strategy is one of the main reasons as to why I've been able to scale my brand from six figures to seven figures all the way to over eight figures per year in revenue and not only that it's made my clients over 100 million per year in sales across their stores and that's a crazy number and it's made up of only like 25 26 active clients I don't work with many people but that's just to show you it didn't just work for me it works for many many others as well so if you want to learn more about that check out the link in the description outside of that let me get into it so one of the main things I want to start with is I'm going to go over the structure first and how I actually run the ads and then I'm going to walk you through why none of that actually matters and why that was the key to scaling right so the structure I currently use and this changes all the time I'm always testing new things and if you're ever in doubt about something just test it right but pretty much the current structure is very brain dead if you will right so we have I'll do it this way we have one one CBO campaign I have attach to this the one adset this adset go like this is Broad um and original audience okay and original audience that's key because by default now Facebook likes to put the Advantage Plus audience um I found when I split test this that the original audience just scales and does better and lasts longer than the advantage plus one um but once again take with what you will test both now with that being said this is is completely broad 18 to 65 plus both genders because my product does not matter it could be men or women right if it's specific to women great just go women specific men just go men point is we're trying to make this as broad as possible um another thing I'll add in there because people do ask this as well is this is auto placements okay automatic placements I don't manually put on the feeds or anything like that now inside the adet one campaign one adset I launch what is now called in face Facebook Flex ads um this historically right was dcts was dcts um so every single week currently I'm launching about uh 12 to 20 New Concepts new briefs uh per hero product that I run I currently run two on the front end most cases you should just be running one unless you get to massive scale and you can Branch out to a second point is I'm launching all my ad sets sorry all my ads Flex ads in one single ad set now you can do this on the adset level instead and instead of this setup essentially what this would look like and it's really just preference to be honest I just like it simpler on the ad level but to me it it makes no difference I usually to do on adside level I switch to the ad level do what you want right so once again this is one CBO if you did at the adset level we would have ad set one ad set two add set three right and in each of these these um you have the same single Flex that so instead of launching them all in one adset you just launch them in their individual uh adsets Flex right Flex that's it very brain dead straightforward and simple now for the flex ads I need to address because everyone goes but Dante Facebook got rid of the breakdowns right you can't break down which creative is doing the best okay now this is kind of we're getting into the more higher level stuff okay Flex ads when I run my Flex ads I'm I'm doing 3 2 two that's three creatives two headline two primary text now each Flex ad is split by concept so the three ads the headlines of primary text are all focused on One Singular ad concept or New Angle that I'm testing okay that's it so it's by concept now the important part here is 90% plus of my ads that I test currently are what I call type one ads type one ads is a net new ad okay the only other type of ad that you could launch is a type two ad a type two ad is an iteration now it's important to Define this a type two ad which is just iteration ad is you change one thing you have the same ad you just change the hook or you have the same ad and you're just changing new be roll you have the same ad and you are just changing the Creator right you're changing one thing in the ad and that's an iteration I call that a type two ad now type one ad is anything that's not type two ad it's just a net new ad right it's new messaging it's a new script it can still even be all the Same b-roll by I'm testing new Hooks and a new script point is it's a completely new ad most times with completely new content as well just because content scales and you're probably not investing into as much content as you should be now with that being said because it's split by concept because 90% plus of my tests are type one ads because if I find a winner then I'll do a type two ad but if I find one to three versions of this ad that's winning finding a fourth or fifth winning version of the already winning ad isn't going to scale me massively what's going to scale me massively is testing another type one ad A New Concept that picks up spend right because now I'm getting a different segment of my audience of the market coming in from A New Concept with new messaging that's how you scale in other words what the whole focus of this strategy is creative diversity you may hear this across Twitter or different you know groups or discords or whatever creative diversity just means testing a wide variety of things right we're testing different concepts different angles different avatars we're testing different ad structure we're testing photos we're testing videos we're testing long form we're testing short form we're testing everything different creators Etc the goal here is to find as many good winning adsets that we can give the algorithm Facebook to do what it needs to do best which is find us new customers so my goal is to launch new type 1 ads figure out where does Facebook spend and that gives me directional information as to what the algorithm thinks will get me the most customers cuz when you set up your CBO and it's a conversion right it's a conversion campaign and then your adset has the purchase event the algorithm is optimizing to find you the most volume of purchases and so whatever Flex ads are getting spent right that's the algorithm telling you something about that concept something about that Flex ad it thinks will drive more volume of purchases than the others okay that's what's important here so our goal is then well we figure out where Facebook's spending and then we're testing more new Concepts around around that that's getting spend because the algorithm is telling us to do so and we do that while building out creative diversity so I'll give you a tangible example here I always go to a dog bed example because everyone's seen that product and it's super simple let's say this concept is testing it's a durable bed right your dog can't rip it up and that's what's getting to spend now my point is with creative diversity is what new Concepts can I test under the same angle of the bed being durable that gives Facebook's more strong assets to work with well what i' probably do is I take the hook in that winning ad and I would turn that into a photo ad I turn that into a gif I'd probably do a type two ad at this point because it's working and I give it to a new Creator another thing I would do is I would take the same exact angle with messaging here and I would rewrite it I would take the winning hook and I would rewrite the rest of the ad to create a net new ad that's completely different sounds different but still under the same angle right we're creating a bunch of different assets videos photos gifs Etc to give the algorithm based off of the concept that's working and the goal of this is to give Facebook as many assets that convert as possible and then let the algorithm do its thing so that was kind of a long rant to explain that I don't really care to break down my 322 ad into what specific um elements are performing over the others right people want to get very very specific with okay but out of those three craves which is the winning hook or out of those two headlines which one's getting the most spent out of those two primary texts and that's great and all and when that was possible with flex ads I was looking at that too but it's not possible right now and yet we're still scaling and we're still testing completely fine how by just not looking as granular taking a step back and understanding that 80% of your outcomes comes from 20% of what you do and that 20% here is really really focusing on the concept which isn't just okay the words in the hook or the or the script itself it's the big overarching idea of why are we testing this concept what Avatar what stage of awareness what script framework right what messaging are we using that is what you focus on and so every single one of our type one ads or any even the type two ads that we launch right has a clear thesis as to why we're testing it right or else why are we testing in the first place we're not randomly span testing here so each concept that we test has a clear thesis as to why we're testing it that way if it works or if it doesn't work we can get an answer to that right that's what we're trying to do here and as long as every single concept that you launch you have a clear thesis for where you're tracking it on a Google doc or something like that a Google sheet then I don't really care to break down the three videos that are there and which H does the the best cuz it's directional information if I test this durable dog bed right and I test I'll give you a more a clear example here right if I go like this and we're testing a few different Flex ads this one is about durable and this is a simple example but you could get broad with this or it could be super specific of um this hook versus this hook or this messaging versus this messaging or it could be just broad angles it could be photo versus video point is it's the direction and the thesis behind the concept that you're launching that really matters and makes the difference so in this example let's say we launched three different Flex ads we're testing for the dog bed um an angle messaging that's around it being durable around one of it being it reduces anxiety for the dog and one being who knows let's go with um the quality of fabric now in my head what I'm trying to say with quality of fabric is some sort of material that you use helps with the dog's fur or helps with the dog's joints right it's supports the dog I'll make it even clearer and I'll put that here right we'll put joint health right probably terrible example but you get the point we're testing three different concepts here after testing them we find durable gets the most spent okay durable gets the most spend this one you know maybe it got a bit let's say we're testing $1,000 whatever this one picked up $ 800 this one maybe picked up uh I don't know 150 right and then this one picked up 5050 now what does this tell us well it tells us that the algorithm thinks the messaging of the dog bed being durable will drive the most volume of purchases now would it be nice to know the three exact videos that are in there and what Hooks performing the best you could reuse it sure but what's more important is that now we know for our next batch of tests to focus on the messaging around durable and really double down there okay and then that's what you do and so you don't have to get too too specific with which Hook is which would that be beneficial sure but once again 80% of your results come from focusing more zoomed out on the actual overall concept stage of awareness desire that we're testing okay so focus on that and you will scale you don't have to get granular with okay well what's the hook rate what's the hold rate what's the click-through rate I haven't looked at those metrics in over a year and we've scaled now people some people listen to some crave strategist will listen to this and say well this guy's crazy he doesn't know what he's talking about I may not right I may not all I know is when I focus on the real big levers that really move the needle which is the desire the stage of the awareness the Avatar we're targeting in in essence right the concept right the overall concept that we're targeting and why we're doing it I scale and as long as every single week of test that you launch is based off of the thesises and the things you've learned from the previous batches you've launched you're moving in the right direction right and you don't find a big winner every single time you launch one of these tests but if you continue to do that you will scale sooner or later you'll hit the winner and you will scale okay so I had to break that down because I got a lot of questions about that now I want to even take a step back now and touch a little bit on why do I set it up this way right why is this so simple why does this make a big difference well when we test with this um campaign setup right one campaign one ad set we should launch Flex ads in there and we make sure the flex ads are once again pre-planned out with Concepts and thesises what we're doing is is we're simplifying our work on the front end with media buying there's not much you have to do outside of uploading ads right all the work comes to the creative strategy so when you get all this time back from having to manage AO testing from running your cost caps and bit caps and having a 100 different adsets and campaigns and whatever and you know spending hours a day in the media buying you get hours a day back to go actually do what matters which once again is doing the customer research and in fact alongside with that is actually working on the rest of the business improving aov conversion R expanding to New Markets new product lines improving your margin operational efficiencies there's so many things that scale you so much further than just Spam testing ads so you buy back a ton of time now put that towards the things that actually grow the business you should always take a step back look at the business and and say well what are those two to three things that if we solve them would really scale us massively then go put the focus there don't spend the time on media buying okay now with that being said there there's a couple reasons why I test CBO specifically and I'm going to get into that now the first is Facebook controls where the spend goes okay now this is important now people will often say well listen I launched 10 Concepts this week and none of them got spent the answer is good okay the answer is good now once again if you don't believe me go test it like I encourage you go test what you want for yourself I test this about three times a year CU I even dealt my own strategy all the time I've tested this year testing controlling the budgets right $50 $100 a day $250 a day on each individual concept versus just launching them in the CBO and what I found um time and TI G every single time I've tested it is a few things right the first is that um the ones uh don't spend don't scale so what this means is I don't want to sit and write a whole paragraph is when I test these side by side and in an let's say this New Concept saying $100 a day and then I throw it in the CBO and let Facebook decide where it spends and it doesn't get any spend okay even if this ao1 is doing well at 250 a day or 100 a day whatever it may be and the Ros is good I'm like great okay maybe testing is better than the CBO because in the CBO it wasn't getting any spend and the was performing well great well then I'm say okay well now let's scale it right so I start scaling the budget in the and it just doesn't work right I just can't get the ad to scale and what that means was is Facebook wasn't spending to it at all in the CBO because it knew it wasn't going to be able to scale right so it saved you from wasting time diving further into an ad that was never going to scale to begin with okay I've seen that happen time and time again every single time I've tested it or one of our clients has tested it they go test they're like Dante look I put in and it's working and it wasn't getting spent in the CBO I'm like okay great we'll scale it like see see if it scales and then it never does it just never does and that's the first one the second one which is to me just as important if I'm more important is I lose less money so because Facebook deciding where to spend it's not spending on ads once again that the algorithm doesn't think will drive you the most purch and so what happens is if I run the AO and say I'm launching 10 Concepts maybe two or three of those do decent that didn't do decent in the cblo but they can't scale they're at 25500 bucks a day okay maybe they're making a bit of a difference but they're not really scaling the business right we have a couple more ads 250 a day but it's not an ad that takes over most of the spend and really scales us the other eight you lost money on for 3 to 7even days straight as you're testing it versus in the CBO it never got spent in the first place so now we're saving thousands of dollars on losing tests right so every single time I've tested this the CBO overall had a better Ros than testing the AO and therefore I'm losing less money on my testing a lot less money because they don't get spent if they don't work right and that's another important part because even if they were getting spent they get 250 or 500 they're not scaling the business and once again this is what it goes back to the first thing I talked about of focusing on the directional um broad Concepts and really dialing on on the 20% of things that you 80% of the results is if it's not going to really make a big difference to scaling your business like I want to put the focus there I'm not worried about getting four five 10 20 new ads that are able to you know handle $100 budgets a day I'm looking for the next big winning ad that can pick up majority of spend in the ad account and really scale the business and make a difference that's the goal with this strategy I don't care about giving each ad a fair test I just don't I'd rather just lose less money right and then find ads that really scale okay so that's one very important point now the next major point I want to talk about here is because it's higher confidence testing and what I mean by that is by testing the same adet or the same campaign when you find a winner it's really a winner because you're testing the new ads against the already existing proven working ads for you right I'm not putting it by itself in an AO forcing budget to it and then scaling it I'm putting it up against the best of the best ads I have and so when an ad wins it really wins right if you've ever tried this method and you know when you find a winning ad that takes over spend you scale like you scale like crazy I have some clients who've come in they're doing 3 4K a day one winning ad 20K a day right and would that happen in AO if they tested it there maybe but maybe they probably lose a lot more money trying to get to that point versus when you testing the one campaign setup uh or once again even one ad set setup that I have going on you're testing against the best of your best ads you're putting it up against the best so that means for it to perform it needs to be really good which is why it's harder to find Winners you don't find Winners as often with the setup but when you find the winners they really make a difference to your business and scale massively okay that's a very very important point that I have to mention there now okay so the last thing I want to talk about to wrap this video up here is budget how do you scale when do you scale Etc so I keep it very very simple if you're hitting your kpi I increase my budget 20% daily until I'm at my target that's it okay that's it to reduce budget I'm looking over the last 7day period and being under Target that's it magic right very simple if I'm hitting my Target and I'm beating my target where I'm at I'll increase the budget by 20% every single day until I'm at the Target and then I'll wait right then if I look I'm hitting my target again I'll increase it again if I'm over my target I only look and reduce budget based off the last s days of data if over the last s days I'm over my target it's time to reduce if not I'm fine if there's a couple bad days here and there it happens it's business I leave it at the current budget that's it very simple now what's more important is that you have a clear kpi that you're determining your scale off of and making your decisions off of right I guess I can't spell clear here let me get rid of that clear kpi so what you need to do is look at your overall business me Target and amme these are fancy words to say roas and new customer roas now me is overall business roas for your entire business and ammer or am is your new customer Ro across your entire business the important part here is across your entire business I'm not determining my scale looking at the Facebook ad account reason being if you run a proper business here you have revenue and new customers coming in from other sources of traffic right you have people who are searching for your brand and coming through Google you have organic search you may have some organic right but you have Google brand or Google whatever whatever you're running on Google which you should be you have email and SMS you have referrals slw of mouth right and now Word of Mouth could be organic search you can consider that the same thing but point is you have new customers coming in from other places your welcome series flow abandoned cart flow Etc and so if you look at your overall me and what me you need to hit to hit your profit Target and that's just total revenue divided by total spend across all channels right Amazon would be included in this let's say you need a 2. 5 well what you'll realize is on Facebook when you have a 2. 5 M on Facebook you actually only have a 1.

8 right and you are running your Facebook thinking you need a 2. 5 to hit your target when in reality your Facebook can be at a 1. 8 and still hit your overall profit Target right the biggest brands I know who spend the most on Facebook ads are not running their Facebook ads as a two two three four x Ros right my break even is around a 1.

6 Ross I run my Facebook at a 1. 2 a 1. 2 so technically I'm losing a ton of money every single day on Facebook and yet overall in my entire business I'm still hitting my am Target I'm still profiting on every single new customer that comes into the business and because of that I'm still hitting my overall row as Target and hitting the profit goal that I want to hit right even though I'm losing money on Facebook considerably reason being is Facebook's job is not to make profit for you Facebook's job algorithm is to give you as many new customers as possible that's how you want to utilize it so the goal is how can we set up our business model to where the goal of Facebook simply becomes pushing as many new customers as we can and then profiting on our other more profitable channels email SMS Google organic search Word of Mouth Etc and so now when you look at Facebook this way right you're able to push Facebook a lot further than you think and because you're spending more on Facebook one your crave testing gets better and optimizes faster two your email Google Etc all does better because you're driving more traffic and you make even more profit from the back end than you thought you ever needed do on the front end and so all of a sudden now Facebook isn't making you profit it's driving completely new customers into business you're scaling massively because you're requiring way more new customers and yet still hitting your profit Target so that's a very very important point and do not forget that so you need a clear kpi you need to know what your overall me should be for the business to hit the profit you want to hit then based off that Target what does your new customer M am need to be to hit that then you go figure out what on channel row ass you need to hit your am right so you start there and you work your way down you say okay I need a 2.

5 M to hit 20% profit now to get a 2. 5 M I need a 2. 2 new customer new customer M and to get a 2.

2 on Facebook I need a 1. 6 great now when you're determining your scale on Facebook how much to scale budgets you're scaling to a 1. 6 previously you thought a 2.

2 turns out it's a 1. 6 and you can imagine pushing budget to a 1. 6 real is a whole lot more fun and a whole lot more spend than a 2.