What I Learned Generating 10 Mil With FB ADs
In my career, I’ve generated tens of millions of dollars strictly from Facebook ads alone. I don’t want to toot my horn … But most of the things people do on Facebook ads are counter-intuitive. They are counterproductive to actually going and making your ad scale.
There are things I see every single day looking at accounts in Hyros (which is the fastest-growing ad tracking company in the world), so I have a little bit of insight into what’s working and what’s not. And what I see is a lot of people are doing things that really limit their accounts.
Would You Like To See An Increase In Ad ROI?
If you do what I show you in this video, I can nearly guarantee you’re going to see a 20- to 50% increase in your ads because frankly, these things are not that simple. It’s not like you have to rework the entire system, grab Albert Einstein and Elon Musk, have them make a baby, and then have them come to optimize your system with AI. You really just have to go and understand what’s going to make Facebook move forward and what’s going to make it move backward.
(I’m also sorry about making you picture the baby of Elon Musk and Albert Einstein in your head. I apologize. That’s one picture you may never be able to erase from your mind.)
But first, you should subscribe to my YouTube channel because I, Alex Becker, have nearly a decade’s worth of experience and over $30 million in sales and advertising. I’m also the CEO of Hyros, the fastest-growing ad tracking company in the world, which gives me even more cool insights.
Just subscribe and I’m gonna tell you everything I know and everything I see. Because if your ads scale, you’re probably going to need to get better attribution, which you can get through Hyros. In turn, you’re guaranteed to increase the ROI on your ads by 15-20%, or you don’t pay. No, seriously, you should check it out after you finish reading.
Alright, let’s get into this …
Okay, guys, so we’re here at the whiteboard of truth and justice. If you want to know why it’s called that, it’s because there’s a lot of truth and justice going on here. So if you’re an evildoer who lies a lot, you should probably back away from this blog, it might make your skin burn.
Top 5 Things You Need To Be Doing On Facebook
So look. I’m just gonna start with the top five things you need to be doing on Facebook. If you just do these five things, you’re gonna have a good time. Let’s start from the top.
The number one thing I can tell you about Facebook ads, or any ads in general, but super duper when it comes to Facebook ads—go high-ticket. What does this mean? High-ticket essentially means you want to be highly priced for your industry.
So for example, if you’re in the fitness industry, $297 to $1,000 is high-ticket. If you’re in the B2B software industry, $10,000 would be a high ticket. If you’re in the info industry, or you’re selling information courses, $5,000 would be a high ticket. You’ve got to really look at your industry overall, and see what the higher-end products being sold are.
You don’t really have to wrack your brain on this. I can guarantee there are high-ticket products being sold in your face. And the closer you can get to the high-end spectrum, the better. Now what I mean by high-end is don’t just take your product and be like, “Now it’s $5,000. I was selling it for only $100 yesterday.”
What Is A High-End Product?
High-end means looking at the products selling for say $5,000 in your space, basically the most expensive thing selling. Take SAS, for example. I’m in SAS. You can look at something like Segment when it originally came out. They were selling for like $10,000 upfront, or they would sell large business packages.
Or if you were to look at HubSpot back in the day, the way they made their ads work really well is they started charging a year upfront. They found a way to make their product high-ticket. If you look at some info products out there and info coaching, instead of selling a $47 product, people sell a more exclusive mastermind for like $10,000. This is what we’re talking about.
And you might even be wondering, How can I do this in something like the supplement space? It’s quite easy. You just find a way to package all your products together into a larger, upfront sale. And you can actually just go out there and slap some info marketing or a course on top of it to increase the value.
For example, I believe Dr. Axe was selling supplements all together with a gut-healing course included at the same time for $199 to $297, which is pretty high-ticket in the supplement space. (I’ve seen people do this all the way up to $497.)
Why do you want to bend over backward to do this? It’s very simple. Your goal with ads—and the best way to make your ads hyper-profitable, like insanely profitable—is to acquire customers at a profit.
What Does It Mean To Acquire Customers At A Profit?
What does this mean? So most people’s goal with their ads is just to make a profit. This is bad because it actually slows your business down a whole lot. You want to acquire customers first as your main goal while making a profit or breaking even.
But …
When you go high-ticket, you can have the best of both worlds. Why is this so important? The hardest part of a business is not getting sales from ads, it is going and getting enough customers in your brand to consistently not need ads. If you can build a brand where you have a customer base that repeatedly buys, you are going to be comically wealthy. That is the number one, main thing.
Now, how can we best acquire customers? How can we scale up so we can acquire customers as easily as possible? Easy. The ads have to be profitable. If you have an ad for every thousand hours you spend and you make $2,000 back while acquiring, let’s say, one hundred customers at $10 each, in theory, you could scale that ad all the way to $20,000 a day and be capturing (excuse me, if I mess up my math) 2000 new customers a day.
Then, those customers can come and spend an additional $20 with you over the rest of the year. Well, you’re pumping out $40,000 a day in additional revenue on top of $40,000 a day of actual revenue, coming in at a $20,000 hard cost.
This is juicy. Even if we remove this right here, this is juicy.
And where most people get caught up is it’s really hard to convert people from cold traffic. You’re going to have some people who are going to buy, but most people are not going to buy.
The KEY To Converting Traffic
So the key here is this simple metric.
Let’s say we have a thousand people come through a funnel, and we have a $99 product, okay? And we only have 10% of people buy this product. (That is the most insane conversion rate ever. You’re not going to have 10% of people come from a cold funnel and buy ever, especially at $99.) But imagine this is an insane, super-crazy world, and it’s the best funnel ever. You’re going to make $10,000 for that 1,000 people that came in.
Now, let’s imagine you’re paying $10 per person, which is very reasonable. So when you run this, it costs you $10 per lead, and you get 1,000 people in. Ten percent of those people buy at $99. Okay, cool. So we get 100 sales at $100. Now we’ve got $10,000. Awesome.
That sounds pretty good, right? Except we just literally broke even, and that’s with the world’s greatest converting funnel.
So let’s imagine we switch this up a little bit. We keep the same exact numbers, but we get a thousand people in, and we get 1% of them to buy a $2,000 product. Just 1%, not great conversion rates. Well, we just made $20,000 in sales.
There you go. You know, with 1% of people in the funnel, that’s ten $2,000 sales. We doubled our money while getting the same 1,000 people into the business. That’s just why it works.
And I’m going to tell you, it’s way easier to do this ↓
then it is to do this ↓
because there are going to be a certain amount of people that come into your funnel as targeted customers and they’re ready to buy.
So let’s say we’re selling information on “How to Improve Your Business’s Facebook Ads.” We could sell a $99 course, or we could just go a little bit higher ticket and make a more exclusive master course for $2,000.
It’s gonna be impossible to do this:
It’s gonna be extremely easy to do this:
Going High-ticket With Your Ads Is The Better Choice
The same concept applies to almost every niche. In any niche I’ve ever seen, going high-ticket with your ads is a better way. Then you can sell anything else you want because you have these 1,000 people in your business that are now targeted customers. They know your brand, they know what you’re all about, and they can buy your other products.
But more importantly, we got these one thousand people in for free while making a $10,000 profit. That’s the big coconut right here. And then we can retarget these people, we can market to them more, we can put them on an email list, we can do all sorts of things to them.
And it’s going to do this.
Ads Should Be Simple And Basic
So the next lesson I have for you is to keep your ads simple and basic. When I see people running Facebook ads, I see all the ones with dramatic videos. They have like these cameras flying around, and they have all these things going on.
The first thing you need to understand when it comes to ads is that the most important thing you can ever do with your ads is being able to get fast feedback loops. And that’s because a lot of times, even if you go and make the world’s best-shot ad, it’s probably not going to work.
Most ads fail. Investing tons of time in an ad or investing tons of effort into an ad instead of getting ads out quickly is going to ruin your chances of having effective ads.
It’s way better to make almost sloppy or simple-to-make ads that you can quickly put out there to get an answer back very quickly so you can find the answer and message that works.
What gets people to buy on Facebook and what gets people to go through your ads on Facebook is the message, and that’s really it. People are going to react to certain wording of your products, certain benefits, and certain angles. And your main goal as a person running ads is to find out that message.
So let me explain it like this. When I started Hyros, a lot of people thought, Why doesn’t he make better-shot ads or more in-depth ads or talk more in ads?
No, no, no, no, no.
It’s All About The Messaging!
In Hyros, I started off with three different messages. Let’s just say I’m running a B2B ad for roofers. The first ad focuses on saving money for roofers. The second one focuses on making more money. The third one focuses on using a special optimization to get more customers (a cheat list or something like that), okay?
When I was running Hyros, I had four or five direct messages I tested. I used the same filming setup, the same simple videos.
The first message didn’t work.
The second message didn’t work.
The third message went insane.
Okay, out of the five messages I used, one of them went absolutely nuts. My ad costs plummeted, and my ad results skyrocketed. Their ad results did not come from me filming a better video. In fact, if I’d spent tons of time making in-depth videos and I had just committed to those, I wouldn’t have been able to get that feedback loop fast enough to find out the message in my business that was actually converting people.
Simple Ads Can Produce Rapid Results
The way I made ads that worked really well was simply by making simple ads that could produce rapidly. That’s the most important thing. Look at this ad example. It performs super well.
“Let’s skip the fluff. Hyros lowers ad costs by as much as 52% while increasing ROI, period. Here’s how …”
(I’m not gonna read the rest of it because it’s just a picture of me telling you “our tracking AI scales your ads or you don’t pay.”)
This ad crushes it.
It is a picture of me taken last year with some simple text and a picture of Elon Musk with his AI stamped on his head and then a headline, “New AI Gets Customers Cheaper, Learn More.” That took me literally 15 seconds to make.
Okay, this ad is actually very complicated because it took many iterations and micro changes to do this. But to produce the overall ad and then get feedback on those micro changes and the optimization took seconds. Feedback loops are how you improve ads quickly, not by going and making complicated ads.
I guarantee if we just go through my Facebook newsfeed right now, extremely well-shot well-filmed ads are going to show up. Look, we can talk all day, discussing if there’s some benefit to this. And I’m sure having slightly more professional ads works really well.
You’ll find some that look like a TV commercial, and they don’t even have subtitles for the viewer to read. But I guarantee you it took them so long to make a video like that … There had to be multiple people involved. They would have to get a crazy camera setup.
And the thing is, we don’t even know if this is the ad message that works the best. We don’t even know if this is what converts people. We don’t even know if what’s being sent in the video is something that hooks people. We’ve got to find that hook.
Get Your Message First!
If you’re going to make these complicated videos, if you’re going to make more complicated more professional ads, get your message first. Split tests. Run ugly, simple ads ‘til kingdom comes. Find the one that gets you the absolute lowest conversion rates or lowest cost of acquisition rates, and then make a professional video.
I can almost guarantee you that the professional video will do worse. I’ve had PowerPoint presentation ads destroy well-shot, well-optimized, beautiful ads they’ve made. Okay, so take that to heart.
Next thing, with your ads, this is where everybody dies on Facebook … This is where literally every single person dies on Facebook. There are only two markets that will work and get you to scale.
Let’s say we’re in real estate teaching people to get more clients. You can either focus on people who are absolute beginners (in other words, they’ve never even thought of making real estate their business), or you sell to people that are already making $50,000 a year from real estate.
What most people do on Facebook is try to market to both these audiences at once. This is the biggest single mistake in Facebook ads. Everyone does this, and then they can’t get on YouTube ads because YouTube ads punish this ten times more than Facebook does.
So they’re gonna make a course that can help beginners start their first real estate business but is also designed for existing real estate agents who are already making money. This works on Facebook to a certain extent because at low scale, you can really target both these people right here in the market and the targeting on Facebook is forgiving enough to let you get away with it.
But the second you start to scale, what happens is you go into a broader market and you start advertising to more people. And Facebook’s optimization is just not nearly as good at this level. And it doesn’t matter … There aren’t enough people in this targeting bubble for it to work even if it had the best optimization. There just aren’t enough people when you go this far out and continue scaling for it to bring you enough customers to scale with.
Is It Important to Maximize Who You’re Advertising to?
Yes! You have to make sure you advertise to only one end of the spectrum so you can maximize who you’re advertising to. You can’t advertise to these two people at once who are in completely different positions. It doesn’t work. People do this and then keep trying to scale out, and then their ads continue to die. This is why 90% of people’s ads die and they can’t scale on Facebook.
And this is why e-commerce businesses have a much easier time scaling on Facebook—they never try to market outside their niche. If they’re selling something, if they’re selling a supplement that helps people lower their cholesterol, they’re only selling to those people. That’s it. They pick their demographic, and they just go in on it.
The thing with almost every other niche, people don’t pick a demographic and go in on it. If you pick a demographic and go in on it, you’re going to dominate it, and you’re actually going to see better ROI’s at low scale. And you might not even need to scale.
For example, at Hyros, I only need to spend $2000 or $3000 a day to generate tens and tens and tens of thousands of dollars a day. I’m not going to get into the exact metrics, but it’s a lot.
Alright, so there are two choices. Offer a product for existing real estate agents already earning money, and in your ads do not focus on beginners. You can even tell the audience, “This is not for beginners. It’s for real estate agents making only $50,000+ a year.” OR you tell them, “This is for absolute beginners … This is the easiest way to make money ever … This is a great way to make money.” And don’t even mention real estate in the ad.
Know Your Audience
Why do you do this? Because beginners are going to be repulsed by a course that is too in-depth and too focused on real estate up front. They’re going to be looking for a way to make money quickly. They’re looking for a way to get started without effort. And they will gravitate towards something that’s super beginner-oriented and geared toward someone who’s just looking to start their first business ever.
Beginners don’t want to buy a course that’s even sort of made for real estate. They’re saying things like, “I’m not in real estate … I have all these pre-existing expectations … I’ve never done it before, blah, blah, blah … I’m gonna go for this course over here that tells me I can make money starting this new, fresh, crazy business …” That’s what beginners are gonna go for.
On the other hand, established real estate agents are going to be repulsed by any course that is even sort of for beginners. Why? Because they are not beginners. Why would they buy a course if it’s sort of for a beginner?
If I’m buying a set of golf clubs and I’m an expert golfer, I’m gonna buy expert-level golf clubs. I’m not gonna buy an expert-level golf club that sort of works for beginners and is also sort of awesome for experts. I’m going to buy something that’s tailored to me. If I’m a beginner, I’m not going to buy expert golf clubs, I’m not going to buy middle-tier golf clubs, I’m going to buy beginner golf clubs.
That being said, don’t be in the middle tier because you can’t scale the middle tier. You can stay very low-scale. If you stick with very expensive, you can practice super-targeted ads, and people do very well. You can go mega-high scale and sell to the masses.
So for example, if you want to take over the golf market, guess what? I’m gonna guess that 80-90% of the golf market is mostly people who play once a year or are beginners in golf.
And if you’re going to get the largest chunk of that market, you gotta make it for the beginner golfer. The end.
And the 5% of the market that consists of expert-level golfers? They will spend $10,000 on a pair of clubs. They’re not going to buy anything else except those $10,000 clubs. So just make the $10,000 clubs and sell to them.
That’s how you’re gonna make the money on Facebook.
What About the Overall Stats?
The next thing I’m gonna tell you that is so incredibly important is to look at the overall stats. When you go and look at the last 30 days of stats, a lot of people are going to go in and look at something like this one right here.
People go to delivery and look at all the stats and video engagement. They’re gonna dig through all of these, and these are all useless. There’s only one stat that matters and a few major stats after that which are important.
The best way you can make progress in ads is to understand the simple concept: ROI is all that matters. Okay?
Because in the context of everything, this is it. CPC, CPM. All of this is irrelevant. Why? Because you can have a great CPC and a bad ROI. You can have a great CPM and a bad ROI.
Look at the Ads!
What I look at are the ads. Let’s say I’m running a webinar funnel, or let’s say I’m running a call funnel, what I’m going to look at is key metrics, (this would be cost per lead) everybody who opts-in, cost per call, and an overall in the context of ROI. If ROI is bad, none of these matters.
But you have to understand that—let’s say the cost per call and CPL or cost per opt-in—these indicate and are a reflection of the other stats. Okay? So look, we can have a great CPM, but if our cost per call is high, then it doesn’t matter. If we have a great CPM and our cost per lead is high, it doesn’t matter.
What is going to control CPL and cost per click and inflation of our ROI is going to be the message of the ad. For example, we could have an ad that has a terrible cost per click, but a good CPL and an amazing ROI. You can also have an ad that has a great cost per click, a great CPL, and a terrible ROI. Why is this?
Let’s imagine I was running an ad in the info marketing space, and I was selling a $10,000 mastermind. Well, I could have an ad that talks about beginning your first business online and is very, very broad and appeals to everybody. Then I can have an opt-in and appeal to everybody. So I got a great cost per click, it attracts tons of people into the funnel, a great CPL, tons of people who are really cheap leads, and Facebook eyes are opting in, and none of them buy the product.
You don’t want to be looking at CPC or CPM. You want to make sure your ad is bringing in the right people, which is going to be reflected by your ROI. And then you want to see when that ROI is where it needs to be, focus on the key metrics.
In Hyros, I exclusively focused on the cost per call since I know I’m bringing the right people at this point. So look, my cost per call is going to then be a reflection of my CPM and my CPC. If my ad is doing its job and getting the right people in based on the ROI and cost per call, then it’s naturally going to go down.
And so then what I try and do while focusing on the message of the ad is lower the cost per call by making the ad and the opt-in or the funnel better. That’s what I’m going to try and lower. I’m never going to try and lower the other stats that I can’t control.
You can’t control your CPM. And frankly, your CPM doesn’t matter. This is what matters right here,
focus on the key metrics.
Finally, that being said, my last tip for you is again, to get metrics that actually matter. One of the biggest problems with Facebook ads, which I’m going to show you straight up right here, is that the attribution is usually not correct because Facebook is wildly inaccurate with its view-through conversions.
If I skim past this ad right here, I look at this for two seconds and skim past, Facebook is gonna give itself credit if you don’t have the last click-only attribution on. On top of that, you have to understand what happens if you have a business as any other traffic source.
Look, if you have a business that’s just exclusively a small e-commerce business, for example, and you don’t have any backend sales or any other interaction with your business besides the ad and the sale, it’s not going to be entirely hard for Facebook to track.
But if you have a business where you have Google searches, you have ads, you have YouTube ads running, you have an email list, you have people just organically interacting with the business on a daily basis, coming back and buying more, then Facebook is going to start giving it credit for literally everything because of this problem right here.
If there was ever a click at any time, it’s just gonna give itself credit because it doesn’t talk to the rest of your business. This results in you doing all sorts of goof-troopery. The biggest thing would be investing in ads that aren’t paying off. For example, Facebook might tell you that an ad generated two calls when it didn’t.
In the Hyros Chrome extension, I can go look at all the very, very deep traffic tracking. In the house dashboard, I can see exactly who came in, where they clicked, and where they came from. I can see everything this person did. I can see all the ads this person clicked on the way there. You can see they actually clicked multiple Facebook ads and where they came through, and then where they came through on our email list and clicked “welcome” on one of our emails.
I can see exactly where each person came from. For example, I can see that someone’s first click wasn’t even on the date that Facebook was giving us. Facebook gave credit in one instance that is correct, but this person actually clicked for the first time in 2020— almost six months ago.
Correct Attribution Is Important
So you need to have correct attribution or you’re gonna be investing in ads that aren’t actually paying off and you’re going to be killing ads that are paying off. For example, there is one that reports two calls, but I actually got four calls from it. At this point, the cost per call is acceptable for me even at $71. But I’m actually getting $35 calls. I need to be quadrupling down on this ad.
On top of that, feeding this data back to Facebook is incredibly important. I don’t do it on my smaller accounts. On my bigger accounts that I use for more serious business stuff, I feed the data back to Facebook, and it allows the AI to optimize much better because again, it’s missing half the data that it should be optimizing for.
So what I suggest you do is get some type of attribution software. If you’re interested in not wasting money on bad ads, saving a lot more money on ads that aren’t actually performing well, increasing ads that are performing well, and then combining that with AI optimization to make your ads perform much better overall, check out Hyros.
There’s no reason to be running any ads at scale without something like Hyros. Again, we guarantee that you’re gonna see a 15 to 20% minimum increase in your ads or you don’t pay for it. So check it out.
And really guys, that’s the blog for today. If you do those five things that most people don’t do, it’s so simple. Most people just don’t do those things. And it’s why they are wasting so much money and time on Facebook ads. They’re spending so much time in their dashboard and playing with all these irrelevant stats. Some go into agencies and all these things when it’s really quite simple if you just nail the things that actually matter.
That being said, guys, subscribe to my YouTube channel. I release three videos each week going forward. If you run ads for your business and you want to make more money from ads, I’m just going to tell you how to do it because I already know how to do it.
If you want something a little bit more in-depth, check out my Iron mastermind. When it comes to ads, I have more results than any other ad mastermind being offered online right now. I’m not even joking, you can see all the results. If you don’t see results or you’re not happy with it, all my products have a ridiculously long refund guarantee. You don’t pay if you don’t see results. It’s that simple.
This is Alex Becker. Until next time, thanks for being cool and checking this out. You must be really sick of me by now …
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