All right guys, Peter Day here and I just want to get this tutorial out to you on when to start scaling up.
So a rule of thumb is you want to see at least a 30% ROI before scaling up, so if you have a campaign and its been doing less than 30% ROI, then it’s not time to scale up because generally what’s going to happen when you scale campaigns, is that things tend to get a little bit more sloppy.
I mean it’s not all the time that it gets sloppy but from my experience when you’re spending a lot of money on Facebook ads or any platform, a lot of times you have to just pay a little bit more of a premium to get that high of traffic. You can try to keep the margins and costs as consistent as you can but I would almost expect when you scale up for things to get a little bit more costly.
The rule of thumb is you have to see at least a 30% profit ROI before scaling up because if you’re not seeing that and your margins are too thin the only thing scaling up is most likely going to do for you is just ruin your margins. So if you are at a 10% margin of 15% margin and you go and scale up, most of the time you might go into the breakeven or negative on the campaign.
If you understand what I’m saying you see why you need this 30% return before even considering scaling up because when you scale to high-volume it’s likely that your ROI will reduce.
You need your ads going to at least 1 million people or more on Facebook if you really want to scale up. This is a rule of thumb and you have to get consistent profit at the low volumes so if you’re getting sometimes a 30% ROI and then other days it’s -10 ROI and then other days it’s 5% or 10% ROI, it’s not enough profitability so what you need to do is you need to be working on your campaigns at a lower volume to get them in that higher margin but that as soon as you are averaging at minimum the 30% ROI you can scale.
You need to really hit the pedal to the metal and scale up your campaigns as big as you can and think about scaling as kind of your premium gas for your campaigns.
For me I think of cash as gasoline in a sense for your business. Cash is gas for your business and if you pour a lot of cash into a campaign you can make a lot of money. It the campaign margins are profitable of course.
In order to do this (scaling up), you need this 30% ROI at minimum, very very minimum.
The higher you can get it, it’s going to make your life easier.
I just want to give an illustration. We have a campaign that we’ve been running on Facebook and it started out small but we started to scale it up and at first it was making a lot of money at a lower scale but then what happened was as we went to scale up really big, things just got a little sloppy and the margins lowered up. It’s still profitable but just at a lower margin, higher volume now.
It is honestly a little bit challenging to actually spend 20 to 25 thousand a day on on Facebook and not have things get a little bit higher in terms of price or a little bit sloppy because you’re just spending so much money on your Facebook account.
If you’re spending that much on Facebook you are probably utilizing multiple strategies. There’s a lot of high-level skills like that that we teach in our different courses and training and masterminds but if you’re spending that much money, it’s definitely a little bit challenging to keep the costs as tight as when you were just spending a little bit of money.
It’s kind of relative as well, so lets just use lower numbers to illustrate.
So let’s say that you have a campaign that you have been spending a hundred dollars a day on and it’s actually pretty profitable. If you want to go spend $1,000 a day on the campaign or even $500 a day on that same campaign, just jacking it up that much might make it harder.
We go into a lot of different training and different methods on how to actually do this.
Getting Financing For Your Campaigns
We are not financial advisors and by no means do we tell people what they should be doing but there’s a lot of different ways to get financing for your campaigns.
When Tyler and I started in our business we didn’t have much money. I actually got my first $2,500 loan from my mom to start my business seven years ago when I started and that $2,500 thankfully somehow worked out.
I was running some ads and it was profitable and I was playing around with my own money a little bit.
I was spending a hundred dollars or $80 per day on ads. Really small money, but I found a profitable campaign so I said to my mom “Can I get $2,500? I think if I get the $2500 I might be able to make $5000 and then I can pay your loan back” and she agreed.
That was my first way to finance a campaign.
I don’t want you guys to think that you’re restricted to how much money you actually have. Tyler and I spend a lot of our own cash on campaigns, but to this day we still finance some campaigns as well. We have credit cards that have limits that are really high.
There are a lot of ways to finance campaigns. So why would you want to finance a campaign?
The best reason is if it’s really successful and you just want to spend more money on it. Let’s say you have a campaign that has a 100% return on investment.
Let’s say that you’ve been running it on the low scale at roughly a $200 a day spend and earning $400 back. You know that if you could just spend $1,000 dollars a day on this campaign you could earn $2,000 a day. What if you don’t actually have $1,000 a day to spend on your campaigns?
What do you actually do? There are some different methods available to you.
You can get credit cards, loans from financial institutions, or family members. Again, were not financial advisors and we don’t tell people what to do or give advice in this category.
I’m just sharing our experiences and want you to know there are different methods out there.
The most important thing is getting a successful campaign. If your campaign is not profitable or not successful there is no need to spend more on it.
Another campaign funding option is Tyler and I.
We are open to doing deals if you guys have successful campaigns.
If your campaign is really successful then reach out to Tyler and I. We might want to run the campaign with you. We may be able to fund your campaign or give you some kind of loan.
Maybe we can work out other options as well.
We obviously don’t let everyone into that kind of program because we wouldn’t want people just taking off with our money. We need to make sure the people we work with are trustworthy. If you have a good campaign and you just need some extra funding that’s another option. Tyler and I could partner with you on the campaign. Maybe we can put some of our cash behind it. Of course, we would take some kind percentage of the cut, but as long it was profitable for us and you that’s an option.
I hope this video gives you some tips on scaling your campaigns. If you’re in a position to scale then scale right up, but if you’re wondering when’s the right time to scale, how do you increase your profitability?
You have to have the 30% net ROI doing Facebook ads at least to scale up. Your audience really needs to be 1 million people or more. If not, you’re running into some saturation. Another crucial thing is getting consistent profit at that low volume because like I said, If I was vetting a campaign to scale it really needs to see that profit for at least a couple of weeks.
A month or two of consistent profits would be even better. I hope this helps give you some tips on scaling up. If you are hungry for more content and training please visit some of the other blog posts.
We have a lot of posts on our blogs. You could also opt into our boot camp. There are a few banners on our blog; case study, bootcamp, and free training to name a few.
If you’re interested in more advanced strategies, if you really want to get some real meat and potatoes of training, we have some paid courses that are priced from $400-$1,000+ dollars.
There are a wide variety of courses available on our site for your training needs
Well, I just wanted to make this video to give you some general guidelines for scaling your campaigns.
I hope you enjoyed the video and please keep watching for more great strategies for succeeding in your campaigns. I’ll see you on the next blog post.