In an email yday Ramit Sethi shared how he “wasted” $2Million in FB ads.
Quoting directly from him
“We dropped our cost per lead from $10 to $2.50.
We upped our click through rates from 1% to 5%.
We increased our opt-in rates from 3% to 20%.
According to the experts, we were a success. We had great metrics and 210,000+ new subscribers.
There’s just one problem.
We hardly made any money!
At the end of the day, we spent just under $2,000,000 to make a total of $793,084.”
Why am I sharing this?
I’ve seen too many new entrepreneurs jump into FB ads.
“Donate” thousands of $$ to FB with not much to show for it.
Yes, some walk away with more subscribers. Or optin rates. Or other fancy metrics.
But
there is ONLY one number that really matters – YOUR PROFIT.
What’s your actual profit from that ad spend?
After you’ve paid the copywriter and the FB ads manager and the graphic designer and the funnel.
When setting up your ads
1. Make sure you’re backing them with a solid funnel.
And make sure your funnel leads to a solid offer.
Sounds simple, right? But I can’t tell you how many people get this wrong.
Because they’re too close to the problem.
Because they don’t understand their target market well enough.
Because they can’t quite express their USP in “copy”
2. Make sure you’re tracking the right metrics (aka profit) and not getting swept away by the vanity metrics.
No amount of subscribers,
No amount of optins
No % of conversions
compares to the warmth of hard cash!
And yeah, I’m sure that’s just half the story. Knowing Ramit, he would’ve sat down with his team, analyzed why they didn’t catch this earlier, why it was so messed up and fixed their funnel accordingly. Because, yeah, he still runs ads! 😉
What can YOU learn from his $2M mistake?
What are you going to do to make sure that doesn’t happen to you?
Step 1 : Do a thorough audit of your funnel from end to end.
Step 2 : Fix any leaky buckets in your funnel
Step 3 : Optimize the shiz out of your funnel
And yeah, I can help. Click here to book an exploratory call with me.