How & When to Scale An Ad Campaign
All right guys, Peter Day here and I just wanted to get this tutorial out to you on how to scale Facebook ads.
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 it’s 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 level 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 to be visible to at least 1 million people or more on Facebook if you truly want to scale up.
This is a rule of thumb; you have to get consistent profit at the low volumes, so if you’re getting a 30% ROI somedays and 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 so that as soon as you are averaging at minimum 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.
If the campaign margins are profitable, of course.
In order to do this (scaling-up), you need to hit a 30% ROI at minimum, very very minimum.
The higher you can get it, the more it’s going to make your life easier.
For example – we have a campaign that we’ve been running through Facebook ads and it started out small, but we started to scale it up. At first, it was making a lot of money at a lower scale, then, when it came time to scale up really big, things just got a little sloppy and the margins lowered.
It remained profitable only now it operates at a lower margin, with higher volume now.
It is honestly a little bit challenging to actually spend 20 to 25 thousand a day 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 this, that we teach in our different courses, training, and mastermind sessions, 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 let’s 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 various training exercises and different methods that cover how to actually do this.
Getting Financing For Your Facebook Ad Campaigns
We are not financial advisors, and by no means do we tell people what they should be doing, but there is 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 the first way I managed 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 that it is 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 several methods available to you.
You can get credit cards, loans from financial institutions, or family members. Again, to reiterate, we are 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 me.
We are open to doing deals if you guys have successful campaigns.
If your campaign is really successful then reach out to Tyler and myself, we might be interested in running 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 just need some extra funding, that is another option available to you.
Tyler and I might be willing to partner with you on the campaign, potentially putting 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 how to scale Facebook ads. If you’re in a position to scale then scale right up, but if you’re wondering when the right time to scale is, how do you increase your profitability?
You need to have a 30% net ROI when doing Facebook ads, at least, before you scale-up. Your audience really needs to be 1 million people or more. If it isn’t, you’re going to run into saturation.
Another crucial thing is getting consistent profit at low volumes because as I mentioned earlier, 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 has provided you with some useful tips to utilize when scaling up your ad campaigns. 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 blog, you can also opt into our boot camp.
There are a few banners on our blog; case study, boot camp, and free training to name a few.
If you’re interested in more advanced strategies, to dive into the nitty-gritty of affiliate and internet marketing, 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
I just wanted to make this video to provide some general guidelines to follow when scaling your campaigns.
I hope you enjoyed the video, please keep watching for more great strategies to use to succeed in your campaigns.
I’ll see you in the next blog post.