Do $5 Facebook Ads Strategy Still Work In 2021?

the one question that i always get asked is fred does five dollar per day facebook ad campaign still work and in this video i'm going to share with you exactly what my thoughts are and what we do with our five dollar per day facebook ad campaign what is up everybody fred lam here and welcome to my next video training on my youtube channel where i share everything about running an online business and anything to do with buying traffic online and in today's topic i'm gonna talk about the five dollar facebook ad campaign does it work does it not and what we do with a five dollar facebook ad campaign but before i actually get into our topic today make sure that you smash that like button subscribe to my youtube channel and hit that notification bell so that each time i release a brand new video you're gonna get notified right away so that being said i know for a fact that a lot of people starting out they have a limited budget and when they need to advertise online obviously they want to use the most minimal budget required that's how the five dollars per day facebook ad campaign came to birth now here's the thing five dollar per day facebook campaign works but do not expect to have a sale on day number one and i'm going to share with you simply two parts of why facebook ad campaign running at five dollars work and what you should obviously do and also i'm also going to share with you a strategy that we use to rapid fire testing five dollar facebook ad campaign let's move on to part number one part number one is simply looking at the data when we run a five dollar per day facebook ad campaign we do not want to actually have the mindset of getting a sale immediately the mindset of five dollar facebook ad campaign is to see if the audience that you're targeting are interested in your products or services that you have to provide at five dollars per day there's one metric that you will absolutely get which is the click through rate link now don't be mistaken between the ctr link and ctr all because ctrl are all consisting of vanity metrics which we don't need now what do i mean by vanity metrics well any time that someone like your posts comment on your posts share your posts click the watch video on your posts or even go to your website these are considered a click which can be attributed back into your ctr all data which is what we do not want when you're running an online business the ultimate goal is to actually get the click to your website that's why we look at the c t r link and solely look at the ctr link because we wanted to know how many people are absolutely going to our website to check out the product and services that we have so now when it comes to the ctr link remember your goal is to get someone off of facebook to your website to sell your product and service so if your ad is not producing a high enough ctr then that means that the product you're selling or the targeting that you chose is not working for you and on first day running a five dollar per day will instantly tell us if it works or not now the benchmark data that we look at at a bare minimum when it comes to ctr link is 1.5 so on day one after spending five dollars we want to immediately look at the ctr link data if the ad comes back and the ctr link is at a 0.5 percent we can actually pause the campaign and create a new campaign to actually get the ctr back up because ultimately at 0.5 cpr link you're going to pay a pretty high cost per click which when you have high cost per click even if you got a sale or a lead it will be very expensive and it's not going to be affordable so your goal with the five dollar per day campaign on facebook is to get the right data to see if you should move on to part two now if your click-through rate is doing game busters three percent four percent five percent or even ten percent then that's when you want to move into part two part two is called the two x rule now what do i mean by the two x rule first of all you want your ads to spend 2x of your cost per acquisition to then make a determination if the product and service that you have is actually going to be profitable or not now what is cpa cpa stands for cost per acquisition that's how much money you make for every single action that you have set so let's say that you are selling a e-commerce product for fifty dollars you do not want to optimize your campaign up of fifty dollars because there are additional costs associated with that sale for example there is cost of goods cost of shipping and merchant processing fee so if we take the fifty dollar as an example let's say that your cost of goods is ten dollars your cost of shipping is five dollars and your processing fee let's say it's going to be two dollars and fifty cents so if we do the math fifty dollars minus ten forty forty minus five equals to thirty five and then minus two dollars and fifty cents merchant processing fee that means that your cpa is thirty two dollars and fifty cents so in order for you to break even you need to make sure that your cost per purchase is at thirty 32.50 if you want to be in profit it's going to be under 32.50 now knowing what your cpa is now we actually use the 2x rule so what that means is that we take 3250 which is our cpa multiplied by two that will turn out to be 65 so at 65 this is the maximum amount of spend that we can be paying per campaign so we applied this to the five dollar campaign if you are running your ads by 65 you would absolutely know if the product is going to sell or not but it doesn't mean you got to basically run that entire 65 to make that decision because we want to look at the customer journey to see exactly what are the things that you can do to optimize it to bring the cost per purchase down so let me give you an example first of all at 65 divided by five dollars per day you can actually run your ad for 12 days so you have a 12 days window timeline no wait it's actually 13. really bad with math if you guys know my story i actually almost failed high school so my apology 65 you can actually run for 13 days so your ad have a life cycle of 13 days for your entire optimization so here's what we do so let's say on day number one running five dollar pam came we know we're not gonna get a sale if you do then listen you are well on track to become a millionaire now most of the time you won't so at five dollars per day we got the click-through rate it's hovering at four percent which is great then we want to look at the next step of the customer journey and i'm using e-commerce as an example next journey is the person goes to your product page they add the product to cart now if you have been spending money and you're getting amazing click-through rate but you're not getting any act to cart after a few days let's say after three days you spent 15 you still haven't gotten an actual add to cart that means you've priced the product too high so you want to start reducing the price and start optimizing your product page so that you can actually get these people to simply add the product to cart now after add to cart is initially checkout right are you offering shipping or free shipping what are the strategies that you are going to actually have a higher conversion rate so what you're really doing with the five dollars per day campaign is that you're looking at the click-through rate you're looking at the add to cart and you have only a limited time to make all the decisions and all the adjustments you need to actually make a final determination if the product or service that you have are actually going to sell or not so again that's the key when it comes to a five dollar per day campaign now obviously with that 13 days you can be super profitable you might actually spend all 65 but you don't always need to spend the entire 65 dollars to make that decision if your click-through rate is great but you've been running it for like 40 dollars already and you're still not getting any add to cart then that probably means that it's time to drop the product and move on or to actually find something better or create something better for your customers now with that we actually designed a strategy called the 3x3 app formula to actually help us rapid fire test our products and services to get a market to see if we are able to make it profitable and if we are able to scale so with the five dollars campaign we combine our strategy with our rapid fire testing which is our 3x3 app formula how it works is very simple we have one campaign three assets which is three different targeting and under each of these assets we have three identical ads so what we're essentially doing is that we're immediately going in market going after different audiences going after different messaging to see which ad is going to get us the highest click-through rate the lowest at the cart and the lowest cost per purchase and by doing so while you are having that timeline to optimize your campaign we are actually also finding that one ad that is going to be performing the best because if we actually have one ad that is performing the best and we start to get a sale then at that point we start to scale up our campaign immediately because we know that we already found the ad that the audience are actually interested in we don't just find the actual ad we even find the audience that they're interested in and we can expand on that audience and from there we actually rapid fire five dollar test to actually quickly find the product find a message and find the audience so that we can actually scale while we look at all those data during this 2x rule timeline so in reality the five dollars per day at campaign still works but you gotta look at it from a data standpoint and not just the profit standpoint at the same time so in a nutshell on day one running five dollar campaign if you're getting horrendous click-through rate pause it move on if you're getting great click-through rate then use our qx rule using that timeline to make all the optimization that you need to make it profitable or break even and with that we implement our 3x3 at strategy so that we can actually find the right market the right message and once we're able to actually optimize during that time find the audience and have the right ad we can actually start scaling right away so essentially a five dollar per day facebook ad campaign still works you just have to look it from a different lens from a different angle and use it to your advantage now let me know if you are running five dollar per day facebook ad campaigns if you are comment right down below let me know and also leave me some feedback to share with me if this really helped you out and at the same time make sure that you smash that like button subscribe to my youtube channel and click that notification bell so that each time i release a brand new video you're gonna get notified right away now if you want more walkthroughs tutorials and also live coaching calls definitely check out iper academy in the video description right below we make entrepreneurship accessible and my goal is to continuously to share my knowledge with every single one of you to help you in every step of the way to building growing and scaling your online business till next time

Channel: Fred Lam

Views: 26,888

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Id: qWk1D1WFX2I

Length: 13min 53sec (833 seconds)

Published: Thu Feb 04 2021