Want to know how to use Facebook ads to grow your brand?
Then you’ll love this step-by-step video.
We'll focus on what you REALLY NEED TO KNOW, and dive into why focusing ROAS is one of the worst priorities any brand can have.
Profitable Customer Journeys
Truly, growing a business has very little to do with the profit margin per transaction,
and everything to do with the acquisition of future cash flow and profit.
Generating profit on the first day of a customer's journey is great,
But buying profitable cash flows in the future even at a small loss today means far more for the growth of your business.
We talk a lot about LTV, and it is tremendously important.
The issue with LTV is you might not be able to afford to prioritize future cash flow from an investment today.
This does not mean that you cannot plan to access profitable cash flow in the very near future.
The two most important things for you to know here are what your second purchase rate is and what your cash flow is.
If you focus your advertising towards the offer where are you know how often people buy a second time and how long it takes them…
We can make a plan to no longer worry about being profitable on day one.
If it costs $54 to sell a $50 product
And in 45 days we sell an additional $50 product to that customer
And 10% of customers buy a second time
On day 46 you are now profitable on the Day 1 customer’s journey!
Maybe in the first 45 days you spend less so that your sales come in averaging $45
On day 46 you can spend 20% more per day
And even if you drive no more sales with that extra money
The profitable customer journeys that are maturing are now paying for your added ad budget!
If your added spend actually begins to drive additional sales,
Whether it’s on Facebook or not,
You have tapped into fractional banking and are no longer bootstrapped!
2nd Purchase Rate
This is a measurement of how often somebody is likely to buy a second time.
This does not have to be the same offer.
The vast majority of the time, there is one offer that more commonly inspires additional purchases from your business.
If you sort returning customers by what offer they bought first, you’ll be able to know your best second purchase rate offer.
Additional purchases translate into future cash flow,
Future cash flow means an LTV above the AOB of the first purchase.
Rather than prioritizing day one profits,
If you prioritize the promotion of these offers that generate a profitable customer journey by having a higher second purchase rate…
You can begin to scale the business rather than trying to keep your ads profitable.
Scaling your ad account is the byproduct of scaling your business, it is not the other way around.
Every penny you spend on offers that don’t generate a profitable customer journey through multiple transactions is ultimately a liability to the growth and success of your business!
Singularity & Testing
When we can focus our entire ad account,
towards the single best fit offer,
for our current business needs,
and the acquisition of future cash flow,
in a projectable way,
We can unlock the superpower of singularity in our testing.
Rather than trying to test a dozen landing pages for half a dozen offers with 50 different ads across five different campaigns and four different ad platforms…
We can focus on a handful of landing pages,
for one offer,
Testing maybe a dozen ads at a time.
The first option is impossible to do significantly without at least a seven-figure monthly added to spend,
The second option is completely possible even at $50 a day in spend.
The fun fact here is it the 2nd option is not only perfect for smaller businesses, what is also the blueprint for gross formatting of the most successfully scaling seven and eight-figure direct consumer brands in the world.
You’ve heard the saying “keep it simple“
There is a reason it works,
& avoiding it means you’re probably working way too hard,
for far less than your worth
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