Laying Your Multi-Million Dollar Foundations

What’s up and welcome. I’m really, really excited you’re here right now because what we’re going to be sharing in this blog article about laying your Facebook advertising foundations will change your business.

I’m actually going to be walking you through how you can actually go ahead and lay your million-dollar Facebook advertising foundations.

I will to direct you to a couple of different places simply because we want to make sure that you’ve got a solid foundation so that you can go ahead and build your empire from it.

Because if you don’t understand and you don’t deploy some of the things which we are going to be walking you through right here your ad cost is going to be super high and things aren’t really going to work out as well for you.

Core Concepts, Core Ideas, And Core Strategies For Laying Your Facebook Advertising Foundation

We’re going to take a moment here just to walk you through a couple of core concepts, core ideas, and core strategies, which you need to go ahead apply or deploy throughout all of your Facebook ads.

There are four main things that we’re going to be walking you through it.

(1) The First 1000 – The Key To Facebook Advertising Success

The first one I’m going to be walking you through is a concept that we like to call “the first 1000”.

It is really important you understand this before we dive deeper so you actually have a framework to work from for your Facebook advertising.

That’s going to be really awesome and that’s going to help you out a ton. It totally changed our client’s ads when we started implementing them.

For some business owners, Facebook can be pretty confusing when starting out and this helps you start having decent profitability.

(2) Your Dream Customer Psychology

Number two, I’m going to walk you through your dream customer psychology. I’m going to be walking you through how you can actually find your dream customers.

And don’t worry, this isn’t going to be one of these boring trains like, hey, you just go do a whole bunch of research.

I’m going to be walking you through how you can map them out fast for your facebook advertising. And it’s really important that you can create your content around that.

(3) Creating Your Top of The Funnel (T.O.F) Offer

Then I’m going to be walking you through number one, what a T.O.F offer is, and number two, why it’s the most important part of your Facebook ad campaign.

I’m going to be walking you through how you can create yours.

This is really the key to getting low-cost for your ads and good results. It’s going to be the difference between getting ten-dollar leads or a dollar lead.

I will be walking you through how you can do that. Again, that is super, super important. Probably one of the most important ones.

(3) Identifying Key Metrics

Finally, I’m going to walk you through how you can identify your key metrics, which is really, really important when starting out any Facebook ad campaign because you need to know key metrics.

When I walk you through this formula, you can create yours.

There’s only one metric that you need to be looking for so that when you’re running your ads, you don’t have to be spending weeks and weeks diving through all the data.

I will be walking you through it so you can identify quickly what ads are winning and what ads aren’t.

This will help you make the adjustments and scale the ones that are working.

The First 1000 – Your Ultimate First Goal (For Facebook Advertising Foundation)

This is your ultimate goal, that is, the first 1000 conversions.

This is the formula. This is the game plan which you need to use to go from a brand-new campaign to making your first thousand conversions.

Whether it’s going to be 1000 sales or 1000 leads.

This is how I look at creating Facebook advertising for clients, and this is how you get started out.

It’s going to be interest-based targeting because when you’re starting out, you don’t have a look-alike audience, you don’t have traffic or an email list yet.

What you’re going to do is drive that traffic to your campaign, to your funnel.

If you don’t have a funnel, we provide a detailed funnel training blog post and we walk you through the process.

Then you run interest-based targeting to your funnel and you can get 1000 leads or 1000 sales. That’s the ultimate first goal.

When you do this, you’re going to have a whole set of different ad sets running.

You want the ones which are working within your key metrics, which I hope you identify a little bit later on.
You’re going to keep them running so they’re active.
The ones which are outside of it, you’re going to pause them.

For example, you may have 10 different Facebook ad sets right here for different audiences (ie. ad set per audience) and things are going to be a little bit more complex.

You need to name them so you can remember what each ad set is for. When you do image tests you’re going to have to break them down.

Just focus on this to get that first initial sale or lead.

After the first 1000 conversions from Facebook Advertising

Once you’ve got the 1000 conversions, you go ahead and create a lookalike audience.

You then run this lookalike audience to the Facebook advertising campaign. That is, you’re going to be driving the traffic to the campaign.

This can only be done after you’ve got the first thousand conversions and then what happens is your life becomes so much easier :).

This is really the point where you want to get all of your campaigns to… as fast as possible.

When I have a look-alike audience with just one ad set. You just go ahead and crank up the budget and scale that out.

Rather than worrying and focusing on ten different assets, you’ve just got one that is converting really well!

That is when we hit a thousand conversions. We go ahead and create a “look alike audience” based on that pixel and run traffic to that look alike audience and scale it out.

NB: We use interest-based targeting to get to a thousand conversions. If you don’t know what lookalike audiences are or how to create one. Do not worry.

I just want to give you the framework and hopefully, it’s going to make you realize, it doesn’t have to be confusing and you don’t have to find these hidden interests.

All you need to do is use the interest which I’m going to walk you through to find or get your 1st 1000 sales or your 1st 1000 leads.

Timeline

Here’s how it works.

Here is your timeline:

You launch a campaign with interest-based targeting to get 1000 conversions.
Create a lookalike audience.
The purpose is to use the data from the first 1000 conversions in creating a “lookalike” audience to get you up to three to 5000 conversions.

But don’t forget this is your main goal.

Your Dream Customer To Target For Facebook Advertising

This comes down to actually finding out and working out who your dream customer is, which I’m going to talk about right now.

In doing this you are actually training Facebook’s pixel to see exactly who your dream customer is, to see exactly who responds best to your ad.

You are in the process of training it by machine learning. Once the pixel sees the conversion happen a thousand times, it really knows who your dream customer is.

Then what you’re going to do is allow Facebook to do most of the heavy lifting for you. You do your bit by showing them who specifically you want to target.

Then Facebook is going to find people who are very closely “related” to your first 1000 conversions and then they’ll go ahead and take over. If you’ve got interests that are still converting you can include that here.

I have a heavy emphasis on lookalikes because I don’t want to be finding hundreds and hundreds of interests in different fan pages. You don’t need to do that work!

It required for the first time conversions and to say to Facebook pixel, hey Facebook, I’ve shown you who I want. You go ahead and do the work for me. Hopefully, this is easy to understand.

What you really want to take out from this is that you want to make sure that your first 1000 conversions are your dream customers only.

NB: When you’re doing this again, you’re training Facebook’s pixel by showing it who your dream customer is.

Your first 1000 conversion needs to be your dream customers, the people who are most likely to buy, the people who are most likely going to spend money with you.

Your Dream Customer For Your Facebook Advertising Foundation

This comes down to actually finding out and working out who your dream customer is, which I’m going to talk about right now.

It’s really simple. We do the first thousand conversions and we rely on Facebook to kind of do the work for us.

I think as business owners, that’s really going to help you out because you now realize that, hey, I don’t need to find thousands of interests, I just need to find the first thousand conversions and then Facebook will take over from that.

When making your first thousand conversions, you really do need to make sure that you’re attracting your dream customers.

You’re not attracting just anyone because you want to hit that first thousand.

If it takes longer to get these first thousand conversions, do not worry because you want to make sure that you’re only converting your dream customers.

Train Facebook to know exactly who you want to do business with.

Customers you want to repel for Your Facebook Advertising

In any market, there are two types of people:

You’ve got the lazy people, the complainers, the whiners, right at the lower end of the market who aren’t making much money, who don’t have really big goals.
Then on the other hand you have a high-end client. You’ve got the person who wants to reach their goals, the person who’s got money to invest in your programs or products.

In any market, there are always two groups of people. The low-end or bargain or price-conscious people, and you’ve got the high-end people value is king group.

The low end as you probably already know do the price shopping, they’re really worried about the price:

They say… Hey, how can I get a 10% discount?
I can get it a dollar cheaper over here etc.
They buy a product and then they complain.
They go for the product and they’re like, hey, this doesn’t work for me.
What happens is you have a high refund amount because they don’t have much money. They need to go ahead and refund it.
They need to blame you for not reaching their goals.

It’s obviously a general statement, but there’s always that kind of market. This is the kind of people who want to be repelling.

Customers you want to attract

On the flip side, in any market, there are the people you want to attract. These people are happy to invest in quality products, programs, or software because they understand the potential it gives them.

For example, if you sell programs, what happens is that because they’re in the right frame of mind, they’re going to apply what you’re teaching them, and they’re going to go ahead and get results.

These people are willing to spend $25,000 on a program because they want to be successful. They have money to invest and they understand the importance of investing in their business.

Craft out who your dream customer is

I recommend that you take the time to craft out who specifically your dream customer is, and also work out who you want to repel.

I’ll give you a couple of examples.

One of my clients has a coaching program like a $10K challenge, teaching people how to make $10K that first month.

What happened was the conversions were really high. he made a lot of sales. But was attracting the wrong kind of client. We were attracting people who would say, hey, I want to make a million dollars tomorrow. I want to make ten grand a month.

What happened was they were the worst kind of people for the program, just expecting it was going to make them rich without their input.

What happened was they actually bought on credit cards which is not bad but then instantly after purchasing (literally a few minutes later) they’re sending a request like, hey, your program is rubbish:)

They were mean, just complaining about the program and the refund rate was really high.

That is the key distinction:-

The people who you want to be repelling have a short-term focus. They want to make ten grand tomorrow without good input.
But the people who you do want to be attracting are people who have long goals. Who wants to increase their revenue in the next couple months?

That’s who you need to target.

How to create campaigns with a profitable ROI is a lot different from, “hey man, I’m going to show you how to make ten grand a month”.

When you’re creating your ads, your offer, and your targeting, you always want to be talking to long-term people.

Another example is in the weight loss market, some customers have a short-term vision of I want to lose 10 pounds by tomorrow. These people buy it, and then probably won’t even put in the work for your program.

The people you do want to attract are people who are a little bit more realistic, and they want to be healthy and put in the work to get there. They want to lose maybe 5 pounds by the end of the month.

They have longer-term goals.
This is a higher-quality customer.
They’re going to expect less from you and generally fewer headaches.
You will have a lower refund rate.

The dream customer has their life in order. They’ve got their finances in order, they can invest in your program, and they’re people you want to go ahead and help out.

Think of it like this. You want to be attracting people who you can actually serve.

That’s what you need to have in the forefront of your mind when I’m creating your ads when creating your messaging when creating your sales page.

When doing anything ask yourself, who am I appealing to right now? Am I being too hypey? Am I making too many claims?

There are two questions that you should ask yourself.

Number one, who do you really want to do business with?

If money wasn’t a thing, who would you really want to help out?

Would you want to help out the person who wants to lose 10 pounds tomorrow, not put in the work, complain about it, make excuses, and not even going to consume your program?

Or would you like to do business with a person who’s maybe got a health problem and has got a family and want to have more energy to run with their kids, live a healthier life, they have a great job?

Start with the end in mind

You need to start with the end in mind.

You think of your highest price program and you imagine the person who’s most likely to buy that product:-

If you’ve got a $3,000 program, ask yourself who’s most likely going to buy it and then reverse engineer it.
You may come out saying the person who most likely is going to buy this has probably got a business.
They’re probably making money and they want to increase their revenue.

Right there is your dream customer!

All your focus is on these people.

All your targeting,
All your ads, and
All your messaging.

What happens is they are going to be buying more of your products because they’re going to have the motivation and money, and you can serve them easily, help them out, and they’re going to invest and upgrade to your next higher product.

This cycle continues because you are able to provide value to people who you know you can easily serve.

Hopefully, you can see the benefit of this strategy. It works brilliantly. Use it!

It comes down to this, you know the core foundation. When you’re writing your ads this should be on your mind.

Do not go on Facebook and say, hey, I’m going to show you how to make $5,000 a day. You’re will be attracting lower-quality customers who are going to comment on your ads saying this guy’s a scam, this guy’s products are crap, etc.

It will not work well for you. They’re not going to buy, and if they do, they’re going to get lots of refund requests.

So switch from short-term thinking to long-term thinking.

What happens after the switch is you’re appealing to a more mature section of the market.

There are the “immature” people who want to make $10k a month, and there are the “mature” people who actually already know that, if they build a list and build an audience, they could probably make $10k, or $50k, or I could probably make $100k a month.

By “mature” or “immature” I don’t mean the customer’s age but the mindset.

That’s what you want to be focusing on when you’re crafting your ads, messages, and offers, who are you appealing to?

For this strategy we are not looking at age or gender except when your product is gender-specific etc. You need to focus on what their goals are.

Creating Your Top Of Funnel (T.O.F) Offer For Your Facebook Advertising Foundation

Now that you know who your dream customer is, you don’t really need to get into specifics of jobs, married or not, pets, etc.

What you need to focus on is how to craft an offer that your dream customer wants.
We do this by creating a top-of-funnel offer (TOF) offer.
It’s going to be something that you offer to your customers or prospects to get them to opt into your funnel. An example is a lead magnet.

A lead magnet is a free piece of content, training, etc, which you give away to people to attract them and get them into your funnel for the lowest cost possible.

Our goal is to get many people on our email list for the lowest cost possible.

How do we get people on our email list for the lowest cost?

By crafting a top-of-funnel offer lead magnet, which is highly desired but also easy to consume.

Low desire and hard to consume

If we created a top-of-funnel offer, which has a low desire and is hard to consume, it’s going to cost us a lot of money. Like $10-$12 per lead.

It becomes expensive because we’re just putting out stuff to the marketplace which they do not want.

It is of low design and is hard for them to consume.

For example, this could be like a sales strategy call. Where you have been saying, hey, I’m going to get you on a strategy call.

It’s hard to consume because they have to spend 45 mins out of their day to go any further. You’ll have very high lead costs because it is of low desire and people don’t want it.

High desire and hard to consume

If the lead magnet you have is of high desire, but hard to consume, you’re going to have middle-range lead costs.

For example, in some markets, a webinar is actually highly desired. They want to go through this training. It’s high desire, but it’s hard to consume.

They need to schedule maybe 2 hours of their day to go through it. It’s just hard for them to go ahead and consume it.

Low desire and easy to consume

If the lead magnet is of low desire and easy to consume, it’s still going to cost you a lot of ad costs, because people don’t really want it, but it is easy to consume.

This could be an ebook. People don’t really want to read an ebook anymore.

If you’re advertising, and saying, hey, I’ve got an ebook for you, people are going to ignore your message, they’re not going to click on your ads.

You’re going to have a super high cost per lead.

High desire and easy to consume

If your lead magnet is something of high desire and easy to consume, your lead will be inexpensive comparatively.

An example of this could be some sort of tangible item.

For example, blueprints. Blueprints are highly desired because people want some sort of blueprint to follow to reach x results.

It is also mostly easy to consume. Your lead magnet has to be consumed within four to seven minutes. If it’s easy to consume, they will go for it.

For example, A client wanted to scale their business in their market. We offered a case study that walked potential through the exact blueprint that has helped others solve a particular problem.

This was highly desired because people want to see case studies, they want to see real-life examples.

It is also easy to consume because it’s not going to take them 3 hours for them to go through it. They can easily find time to read it since it had a ten-minute read time with actionable things to do, to solve their problem.

Prospective customers were then convinced this business can help them solve their problems permanently.

In this blog post crafting your top-of-funnel offer we go into more detail on this topic with a lot of examples of creating capture page(s) because that’s a key part of generating low-cost results.

Is your top-of-funnel offer sexy?

Is it something that people actually want to get?

If your ad is to get a sales call and you are saying, hey, go ahead and get my sales call and you’re complaining that your ad costs $15 to get someone onto a sales call?

What is happening is because you do not have an offer which is sexy, people do not want it.

So when crafting your top-of-funnel offer, you want to ask yourself this question:-

Will it stop your dream customer in their tracks?
Force them to pay attention and do whatever it takes to take you up on your offer.

If it is that’s great, you’re going to get a low cost ad result.

Always remember if we’ve got a case study or something tangible that you can give them, it’s easy to consume, and it’s going to get them one step closer to their goal, that’s going to be great., that’s going to be a winning campaign.

The ad cost will be much lower.

If not, you’re going to have very high ad costs.

This is really the secret to generating low cost ad results.

Find a lead magnet people actually want.
Is it a highly desired? and it’s very easy to consume?

That is how you create a top offer.

I can promise you this can totally change the game for you when you understand and apply that to your business. Just finding stuff that people actually want.

If you got awesome offers, you’re going to be attracting your dream customers. After doing all of the above, you know need to identify your key metrics.

Identifying Your Key Metrics For Your Facebook Advertising Foundation

Your key metrics are going to be two things.

It’s either going to be:

How much can you pay to acquire a customer? or
How much can you pay to acquire a lead?

That’s what you want to be looking at.

How much can you pay to acquire a sale or lead?

That’s what you need to be looking at and scrutinizing. Either how much can you pay to acquire a sale or lead.

If you know that you can pay $10 to acquire a lead, it’s going to be easy for you to analyze your campaigns.

If one campaign gave you $5 per lead, you know you making a 2:1 ad spend return. You spending $5, but making $10 back in revenue.

Whereas maybe a different ad is generating leads for $12 and you know, you can only pay $10 to acquire a lead.

You can confidently say hey, this one’s losing us money, I’m going to shut it off.

Another adset may be costing you $7 and getting $10 back. You can scale it one out. That’s what you need to be looking for.

You should always be on the lookout for how much can you pay to acquire a sale or lead.

Knowing that makes it easy for you to run your campaigns because you can quickly and easily see profitable ad sets and turn unprofitable ads off.
It equips you with knowledge so you’re not spending all day going through data. You will not need to be looking at the different placements and using different times of day to run your ads.
You only have to ask yourself one question – Is this ad set profitable? If yes let’s scale it. If not let’s kill it. That’s all there is to it.

Your key metrics

When you mapping out, there are a couple of different formulas, use this worksheet to identify your key metrics.

There are two ways to find your key metrics.

(1) Already running adverts

Are you already running traffic?

Do you have a campaign already running and making you leads or new sales?

That’s great. I’m going to walk you through that.

If you’re running traffic already and you’re making leads or sales is pretty simple.

All you do is take the total revenue, which you’ve generated and divide it by the total leads or total sales.

For example, I’ve run a campaign and revenue was $10,000 and generated 1243 leads/sales.

That is $10000/1234 leads or sales = $8.10

We now know that our campaigns on average are generating $8.10
This means we can pay up to $8.10 to acquire a lead. This is also known as Max CPA.

Sine you now know the Max CPA, we then need to work out how much of your max CPA you’re willing to spend to acquire a customer.

This is important because knowing that it cost us $8.10 to acquire a lead does not mean that we want to spend up to that much going forward. We want to make a profit 🙂

If we spend $8.10, it means that we’re only going to be breaking even.

You may for your product want to begin with at least 50% ROA, i.e. a 2:1 ad spend, where you’re spending $1, you get back $2. That is 50%.

In this example, let’s say we want to spend up to 50% of our max CPA to get 2:1 ad spend.

What we do is divide $8.10 by two, which is $4.05.
If your spend is now under $4.05, or around $3.85, we know that we’re getting a 2:1 roughly.
Now when we’re running our campaigns, we can look at the data and easily make decisions on them.
We can hypothetically say “A particular ad-set is generating leads for $3 so let’s scale it!!!”
Another is generating leads for $4, let’s scale them!
Another ad-set is generating leads for $10 and we know we’re making only $8, so let’s kill that one.

You can clearly see how easily it helps with the management of Facebook ads.

Let’s look at another example.

Let’s say, you generated $64,672 in ad revenue for the campaign you running at the moment with generated leads of 2724.

What we’re going to do is divide it by the generated leads of 2724. That is $64,672/2724
It gives a Max CPA of $23.74.
If we want to get a 2:1 ad-spend ratio. We divide the CPA of 23.7 by two, which is $11.87 per lead or per sale.
That’s how you do it when you’re running traffic.

I love this as it easily helps you determine which ads to scale or kill. Keep it simple because that is all there is to it.

(2) Brand New Campaign/adverts

Sometimes when you’re just getting started, it’s hard to work out what your key metrics are since you have no sales or leads data to use.

We are going to look at a simple formula to help you overcome and counteract that.

The way to do this is actually pretty simple. There are four main steps:

(1) Conservative numbers

You need to work out some conservative numbers based on industry-standard numbers or campaigns you run in the past or seen before.

This gives a rough idea.

(2) We then trickle the first 100 conversions through it.

As an example from these 100 conversions, two of them bought your $1,000 product.

That is a revenue of $2000.

(3) Create real-world CPA’s

To create real-world cost per acquisition (CPAs) follow these steps.

You know you generated $2,000 for 100 leads.
Take the $2,000 and divide that by 100 leads.
You now have a real-world CPA of $20
That means you can spend $20 per lead.

You don’t want to be guessing and running thousands of leads, only to find out that your numbers are way off.

For example, let’s say you are running a webinar campaign and can get 3% of leads purchasing at $997.

The industry standard is 2% to 5%.
I am using a conservative figure of 3%.
You can see that if you generate 100 leads, you going to be generating $2,991.
CPA = $2,991/100 = $29.91 per lead.

(4) Scale good performing ad sets.

Take the real-world CPAs and scale accordingly.

Any ads under $20 cost per lead, you can scale those up.
Ads over that you stop them.

Power of higher priced offers

NB: You can see the power of having offers that are higher priced because you can generate more revenue per lead.

This means you can spend more to acquire a lead or customer, enabling you to scale higher and outspend the competition which will be great for you.

Continuing from the example from creating real-world CPA above, for every ad which is under $29.91 per lead, you can scale them and for any ads which are over $29.91 you stop them.

If you are getting a 2:1 ad spend. We are spending 50%, and we know that if we can generate leads for under 14.95 per lead, we WILL instantly double our ad revenue.

If a campaign is generating leads for $10 we know it is getting a 3:1 return on ad spend, which is pretty good.

If you’re a bit new you can spend $10, that’s only $1,000 to test it out. What will happen is if you get a 3% after you’ve got 30 leads, you’re going to make $1,000.

You should take that thousand dollars and reinvest it since you know it’s working.

Make sure to keep this in the forefront of your mind. You should keep the first 1000 conversions strategy in the forefront of your mind.

You don’t have to be spending thousands of dollars upfront only to find that your ads don’t actually convert.

If your ads are not converting as expected, read this blog post on what to do if your funnel flops and your campaign doesn’t make you money. You need to read this gem.

Do always remember that you are going to allow Facebook to do most of the work for you and you don’t need to have to always be finding new audiences.

You find new audiences by getting those thousand conversions and create a lookalike audience from that and Facebook goes ahead and does all of the work for you.

We train the pixel for the first 1000 conversions to know exactly who our dream customers are, exactly how much money they make, and what their interests are, then Facebook goes out and finds people like that for our campaign.