module 8 the routine - amazon s3 · ig picture of the “routine” •you have a niche site •you...

Module 8 The Routine

Module Agenda

• The complete routine for your business:

Every Day

Every 4 Days

Once Per Week

Once Per Month

• Advanced Facebook targeting

• Making your business look “legit”

The Routine

The Routine - Summary

Every Day – Process orders, check on sites, accounting

Every 4 Days – Evaluate all ads, create new ones

Once Per Week – New audiences, new products

Once Per Month – Gross and Net profit

What is “Gross Profit Margin”?

• Gross Profit = Total Revenue – Cost of Goods Sold

• Total Revenue ALL money made, the total that customers pay you (shipping, multiple orders, etc)

• Cost of Goods Sold All the money YOU pay to suppliers to get the goods (reflected in the revenue number) to the customer

Example – Gross Profit Margin

• For a defined time period … let’s say July

• Steve’s site made 300 sales

• These 300 sales brought in $6,000 in product sales and $1,500 in shipping charges

• The TOTAL REVENUE for Steve’s site in July = $7,500


• For the 300 sales in July, Steve had to pay various suppliers $3,000 in total to buy the merchandise and have it delivered to customers

• So, the total COST of GOODS for July was $3,000


• Gross Profit = Total Revenue – Total Cost of Goods

• Gross Profit = $7,500 - $3000

• Gross Profit = $4,500

• This can also be described as a ratio with Total Revenue – the Gross Profit Margin

• Gross Profit / Total Revenue

• Gross Profit Margin = $4,500 / $7500 = .6 or 60%

What is “Net Profit”?

• Net Profit = Total Revenue – Cost of Goods Sold –ALL other expenses (mostly advertising)

• Total Revenue – ALL money made, the total that customers pay you (shipping, multiple orders, etc)

• Cost of Goods Sold – All the money you PAY to suppliers to get the goods (reflected in the revenue number) to the customer

• All other expenses – Advertising and any other Misc. expenses

Example – Net Profit

• Net Profit = Total Revenue – Total Cost of Goods – All other expenses

• Month of July, our advertising expenses were $2,000

• Net Profit = $7,500 - $3000 - $2,000

• Net Profit = $2,500

The Routine - Every Day, Or Just Weekdays

• Check on sites

• Process orders

• Move money from Paypal to bank etc. to cover bills

The Routine – Every 4 days

• Evaluate ALL running ads

• Scale up , scale back, or kill

• Create one new adset targeting one of the lookalike audiences from your portfolio of 12

Why the 4 Day Rule?

• All days are NOT created equally

• Need to have some statistical significance

• Example: For most of our sites, Tuesday AM through Thursday Afternoon are not good

• SO…running for 4 days guarantees we will always have some good days in there

• Same for you, although the days of the week may not be identical

Evaluate Each Running Ad

• For the defined period (4 day period) track:

1. Ad spend

2. Revenue brought in (total for traffic coming from THAT ad)

• Evaluate Revenue Vs. Ad Spend

• This will REPLACE the generic “multiply by 1.5” ad spend scaling rule from last Module


Make sure that your ads are still profitable while scaling, by using this measurement, not the 1.5x:

• Take Total Revenue and multiply by your most recent Gross Profit Margin (or 60% if you haven’t yet calculated this)

• Take this number and subtract the ad spend from it

• If the result is greater than zero, keep scaling -otherwise revert back to lower budget

Evaluate Each Running Ad - Example

For a given ad over a 4 day time period:• Total revenue generated by that ad = $3,000• Most recent Gross Profit Margin = 60%• Ad spend = $1,200• Take Total Revenue and multiply by your most recent Gross

Profit Margin– $3,000 * .6 = $1,800

• Take this number and subtract the ad spend from it– $1,800 - $1,200 = $600

• If the result is > 0 (it is), keep scaling otherwise revert back to lower budget

–Result: Keep Scaling

Evaluate Each Running Ad - Example

For a given ad over a 4 day time period:• Total revenue generated by that ad = $1,000• Most recent Gross Profit Margin = 65%• Ad spend = $700• Take Total Revenue and multiply by your most recent Gross

Profit Margin– $1,000 * .65 = $650

• Take this number and subtract the ad spend from it– $650- $700= - $50

• If the result is > 0 (it is not), keep scaling otherwise revert back to lower budget

–Result: Revert back to previous budget


• Still use the scaling rule to increase the budget 1.5x rounding up - $1 to $2, $3 to $5, $5 - $8, etc

• Run this budget for 4 full days

• Evaluate ads with the new evaluation formula

• If scaling results in profit – Repeat Process

• Otherwise – LOWER budget back to previous level

• If your budget goes down to ZERO without making a profit, kill the ad

The Routine – Once Per Week

• Try out one new audience for an existing product

• Try out one new product for your niche site

• Add one retargeting adset for any product that doesn’t have one yet (but still has ads running for it) – we will explain re-targeting

• Check for enough data to build the 4 lookalike audiences – until all 3 are built (will result in 12 total look a like audiences)

The Routine – Once a Month

• At the end of each calendar month calculate your Gross Profit Margin for that month

• On the 2nd day of the month (or whatever day works for you as soon as you can following the end of the month) calculate the Gross Profit Margin for the previous month

• When just starting out and you do not have a full month of sales – use 60%

• Calculate Net Profit

Big Picture of the “Routine”

• You have a Niche site

• You have 2-5 products

• Each product has an ad or ads running for an audience that works

• Each product will eventually run ads (same ones as above) to lookalike audiences

• All ads will constantly be under review

• You are constantly expanding audiences and products

Last Module we created custom audiences and lookalike audiences.

You will continue this practice for most of your ad campaigns with more granular tweaking.

This Module we will put together retargeting ad campaigns for specific products.

What is retargeting? It is the practice of reminding previous site visitors that they were interested in a product or perhaps left it in the cart and did not purchase (accounts for 95% of site visitors)

How do we do this?

Optional Audiences - Retargeting

Optional Audiences - RetargetingWe can create an audience from a specific web page (product page) but did not purchase. Just copy and paste the url in here. Add the exclusion url to the thank you page. We can send this audience a specific ad with the product and perhaps a coupon.

You could do so many things here, the possibilities are endless.

1. Create a lookalike audience

2. Create audience from this product and add carts keyword and/or exclude order-received page (didn't buy)

3. And so on...

Optional Audiences - RetargetingJust like last module, we are just creating a new Custom Audience:

Optional Audiences - RetargetingNow you will use this audience when you create your Retargeting Campaign.

Optional Audiences - RetargetingCreate your ad with this audience. In your ad, use the ad that drove traffic and include a discount.

NOTE: Since this audience is smaller, we will measure success against 1000 impressions, regardless of how many days it runs.

Optional Audiences - Retargeting

Facebook Ad Data

• Supremely powerful

• Who’s clicking and buying?– Age

– Gender

• What ad types does my target audience(s) respond to ? – Colors

– Arrows, etc.

• What devices do my clickers and buyers use ?– Desktop

– Mobile

Finding the Data• Examine best performing adsHighest CTRAND/OR Highest converters

• Examine the demographic dataAge segmentGender

• Examine the device type data• Look for commonality among ads – colors, arrows etc• Build a ”perfect candidate”Woman, aged 35-55, using a mobile device, liking

red arrows

How To Use That Data Again?

1.What Products Are These Audience and Demographics Into?2.What Products Are These Audience and Demographics Buying?3.What Products Are These Audience and Demographics

Needing?4.What Products Are These Audience and Demographics

Wanting?

GOOGLE IT!

Using Facebook Ad Data

EXAMPLE - LIGHT WEDGE

We Felt This Product Was Unique & Cleared The “PAN” Filter!

Priced it well below the $19.99 it sells elsewhere!


Created These 2 Ads

Yes We Know… Not Fancy!

EXAMPLE - LIGHT WEDGEWe Chose Some Interests That We Felt Targeted An Avid Reader!

EXAMPLE - LIGHT WEDGEWhat Does This Campaign Data Tell Us?

Women 25-34 and 35-44 were the Clickers For the campaign (18-24 are not big spenders)

EXAMPLE - LIGHT WEDGEWhat Does This Best Ad Data Tell Us?

Confirms What We Already Know - Women and the same 2 age segments


NOW WHAT?1.We can rerun this ad and only target ‘Women’2.We could also run 2 ad sets at the different age segments ‘25-

34’ and ‘35-44’ 3.We could test ‘Just Women’ and evaluate the age data further

later4.We Could test the same product at the same interest/audience5.We Could find another product that ‘readers’ would love and

test the new product with these demographics and a similar ad to the winning ad

LOTS OF OPTIONS BUT IT’S ALL BECAUSE WE HAVE GREAT DATA TO WORK WITH

USING FACEBOOK AD DATA - ADVANCED

What Is This Data Telling Us?

What Does The Data Say?• Both Men And Women Are Clicking and Buying • There are two winning age segments ‘35-44’ and ‘45-54’• Mobile Traffic Converts The Best

WE RAN JUST THE WINNING DEMOGRAPHICS TO A SIMILAR AUDIENCE

Incorporating FB Ad Data Into The Routine

• Audience selection / expansion

Same audience – only target winning demographics

New audience using only targeted demographics

• Product expansion

Winning demographic? What other products would they need?

Adding “Street Cred”

Customer Support: Email Management

Help Desk Benefits1. Receive, process and respond to customer service

queries with ease

2. Automate your customer support and provide answers even when offline

3. Listen everywhere where it's possible - Email, Voice, Social or Chat

4. Equip your help desk agents with pre-made answers and canned messages

5. Improve relationships with your customers

6. Customise Rules and Filters

7. Virtual Assistant access for collaborative communication

Customer Support: Email Forwarding to Help Desk

Forward your support email To the support desk.

They will have specificinstructions.

Easy to implement!

FB Page Management Benefits● Control Spam

● Remove negative comments

● Engagement with customers and fans

● Review Ad comments

● Brand Building

Customer Support: FB Page Comments

Customer Support: 800 #Use this number on PayPal, website, and all material. Set it to just receive calls to voicemail and have it emailed straight to you.

Customer Support: PayPal Disputes - It Happens

Have all your email from PayPal set to your support@ email and forwarded to your Help Desk. Handle all correspondence post haste. Most people just want to know you are there.

Action Items

• Implement “The Routine” as your basic day-to-day operational model

• Learn advanced Facebook targeting techniques –retargeting, behavioral targeting, broad vs. focused targeting (last two are covered in Module 6 supplementary videos)

• Study how to use the Facebook ad data at your disposal and incorporate it into The Routine

• Give your business “street cred”

module 8 the routine - amazon s3 · ig picture of the “routine” •you have a niche site •you...

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