Tyler and I have been known to be able to pretty easily take a campaign over $10,000 a day of revenue, if it’s a good campaign. A lot of this boils down to your offer: if you are trying to run a poor offer, or you have some strict caps, or the quality has been kind of wishy-washy on the offer; then it could definitely be difficult to actually scale it to $10,000 a day. We’re going to talk about some strategies and what to look for in campaigns that can actually scale that high, and we’ll dive into a lot of training here.
Obviously, the strategies are going to be different if you’re doing native ads or a different traffic source. All those traffic sources are good, Tyler and I have just focused really heavily on Facebook over the years, and it has been one of our places of expertise. I am going to explain what to look for and what to avoid in offers that you’re trying to take to this extreme – basically doing over $10,000 a day in revenue on the offer.
I want to make a pretty clear disclaimer: there are a lot of benefits in promoting lower volume things; if you’re spending $4,000/day on an offer that’s earning you $1,000/day of profit, there’s nothing wrong with that, those are great campaigns; but the benefit of the campaigns that can spend over $10,000/day is that if you’re operating at 30% profit margin and spending $10,000 a day, you’re going to earn $100,000/month of profits.
#1: You really have to be shooting for a minimum of 30% profit margin
Before attempting to scale much larger. You should be spending about $3,000 a day, at least at a 30% profit margin before taking the campaign over $10,000 a day.
That’s self-explanatory, but the logic behind it is that if you’re struggling to get a really solid margin when you’re spending 2-3-4,000 dollars a day, how do you expect that margin to sustain itself when you take it even higher? There’s a good possibility that you might lose some of your margin, you might start operating at about an 18-20% margin.
So you might make less of a profit margin, but just the sheer factor of doing the volume play is going to earn you more money. For instance, would you rather spend $4,000/day, earning $1,000/day with a 25% profit margin (which is fine); or earn more by spending $11,000/day at an 18% profit margin. Just due to the sheer volume play, you can start making over $2,000/day.
There’s a time and place for this volume play strategy, and the campaign has to really meet the criteria. You’re nuts to think that you can actually do this on every campaign and every offer – a lot of things have to align to be able to do this.
You can have a lot of great campaigns that spend 2-3,000 dollars/day that get 20-40% profit margins, and those do add up, but a lot of Tyler’s and my income have come from monster campaigns.
Every year we’ve had at least a couple of monster campaigns that have done $700,000 of revenue in a month – we’ve earned a quarter million dollars in a month from certain campaigns. Most of our income over the last 2-3 years have come from just a small handful of monster campaigns. We are on the hunt for more of these, because they’ve really been our bread and butter, this serious kind of seven-figure yearly income from these big campaigns. I’m going to give you some of my insight of what to look for on the offer side, what to look for on the scaling side, what to look for on the Facebook side, and some more tips.
To summarize, the first tip that we have explained here is that you have to be shooting for a minimum profit margin of 30% when you’re spending about 2-3,000 dollars/day, and the logic behind that is that you need some wiggle room in case your margin drops down to 15-20%, or as low as 10%, when actually jacking it up really, really high you’re going to need some kind of wiggle room to work with. So: a minimum 30% profit margin at the range of spending 2-3,000 dollars a day before you can really even consider possibly taking a campaign to over $10,000 a day.
#2: Have access to a lot of capital
There are a couple of ways to do that:
a) Credit cards. If your bank is kind of restricting you on credit limits, you can always get credit cards from different institutions and issuers of credit cards. For example, my credit is pretty tapped out with Bank of America at the moment, but AmEx will be happy to give me a credit limit, or Discover; and I’m sure I could raise my credit at Capital One… So, in my experience the credit has been really dependent on the bank – when we’ve tapped out one bank for the time being, we’ll just work with other banks. It’s just the rules of the banks, sometimes they only give so much credit.
Sometimes I have gone a little deeper with the credit. So, instead of just asking for a credit card limit raise, sometimes we’ve shown them our tax returns, pushing for these higher raises. We’ve really been persistent to get higher credit limits.
When I started to use Capital One, the card had a $20,000 credit limit on it, and I just really pushed them, I just needed higher credit limit, because I wanted to spend more on my Facebook campaigns. The Capital One was really automated, they’re like, “well, just fill out our automated system online, and it will tell you if you can get a credit raise.” I did it, and it told me I couldn’t; and I did it again. I finally called them, I said, “Listen. I want to speak to your manager” – I was just talking to a rep on the phone – “I want to talk to your manager, because I’m running a business here, we spend millions a year right now on advertising; I’m spending over $300,000 a month on these ads with other credit cards and institutions, there’s no reason why my credit limit should be $20,000!”
And the guy, again, was like “just fill out the online application and see if you can get a credit raise,” and I said, “listen I’ve done that a bunch of times, can you please just transfer me to either your manager or someone directly in the credit card approval department?”
And the guy did, I got transferred to a lady that actually works in Capital One for the credit card approval department, and I just had a conversation with her, I said, “Listen, I know I’m new to Capital One that I have this low credit limit, but I want to spend ~$5,000 a day on my Facebook advertising for my business, and that’s not going to really work if your credit card only has $20,000 of limit, because I’m just going to be tapped out in four days!”
The lady was able to work with me in a custom credit application, manually through the phone, and she was able to raise my credit limit right up to $95,000 on this Capital One card.
These are the type of things we’ve done in the business to be a little bit more persistent – think outside of the box!
b) Lines of credit are a little bit different than credit cards. They’re basically just access to cash, and of course you would pay fees and interest rates, but the interest rate hasn’t been astronomical – about 5% or 8% a year. If your campaign is making a 20% per day of profit, it would serve you well to pay a 5% annual interest if the campaign can make 20% daily profit.
To actually scale this big, you have to be creative with your financing: so, have cash, have credit cards, lines of credit, perhaps loans from friends or family. These are just all ideas – and, disclaimer: I’m not telling you to do any of this stuff, I’m just sharing what we’ve done in our experience. But having a lot of capital is important to be able to do this.
You want to get your networks to pay you as fast as possible. For example, if you’re scaling that large, you should try to ask your networks to pay you week weekly pay at minimum. But, honestly, we’ve started to ask our networks to start paying us twice a week if we’re scaling this hard.
A lot of networks are floating you money regardless with weekly pays, and a lot of times they’re just floating you the money before they’ve collected it from the advertiser. So, asking the networks to start paying you twice a week at this type of volume is not that much more risk for them, because they’re usually just floating the money anyway to you on weekly pay.
Tyler and I have started to ask some networks to start paying us twice a week if the volume can be kind of astronomical.
#3: Ask Facebook to raise the daily spending limit
Facebook accounts right now are limited to $5,000 a day of spend.
If you want to spend $10,000 a day, that won’t fly (obviously) on the one Facebook account. So, we’ve contacted Facebook support over Live Chat, and we’ve gotten Facebook accounts approved to spend like $10-20,000 in a day, and that’s obviously one way to scale to over $10,000 a day is take your existing Facebook accounts that are really successful, submit that support ticket through Facebook Live Chat, and if it’s already spending like $4,000 a day, they’ll probably approve you to the next limit, which is around $10-15,000 a day of spend, and then raising it up you can obviously take that account and campaign to the next level.
#4: Having uncapped offers
If you’re pushing some offers that are known to only have a cap of 50 leads a day, obviously that’s not really going to fly for the $10,000+ a day of scaling, depending on the payout – but your offers have to be relatively uncapped.
#5: Avoid strict caps
If the network is like, “we just don’t have too much budget for this offer” or “your cap is small”, then forget scaling $10,000+ a day on that offer – just accept that it’s going to be a lower volume & higher margin campaign, and look for some other campaigns that are going to do this kind of astronomical stuff again. If you can make money on lower volume campaigns, that’s fine, you never want to give up campaigns that work. Even if you have a handful of small campaigns, adding up it’s really helpful for your income.
#6: Get a quality check on your offers before scaling
Before getting on an offer and scaling to the moon, make sure you’re really hands-on with a network or advertiser. “Does my quality look pretty good? Would you guys be OK if I scale this to $12,000 a day?” – be really transparent with them, so you don’t just jack up the volume and potentially run into some issues if, for some reason, the quality comes back bad on your offer. So be really hands-on and communicative about the quality checks as you scale, and ask the advertiser’s or network’s permission to scale to $10-15,000 a day, so you don’t just blow their offers out of the water. You might not know if there’s is some kind of cap behind the scenes that they just didn’t tell you.
#7: Avoid cash flow issues
If you’re using credit cards, make sure you start paying off those cards, maybe even quicker than necessary, just to avoid the cards maxing out.
Part of avoiding the cash flow issues is making sure you have your hands on a lot of different diverse capital options (see point #2), like credit cards and lines of credits, and cash and things like that. Also avoid bad advertisers or networks – any networks or advertisers that are notorious for not paying people or paying late. Just avoid them completely, don’t even work with those people, avoid any sketchy advertiser or network, so you have no risk of not getting paid. If you’re going to start spending and scaling to over $10,000 a day, you have to be really confident that you’re going to get paid on time, or paid at all.
If the network has any bad reputation at all, I would just avoid it completely, if you’re trying to scale to that extent.
I hope these tips helped!
