Update Number 5 - $2,441.35 in Revenue and 46/100 campaigns launched!
Almost half way there and I've found 2 profitable campaigns and 1 breakeven.
What's My Win Ratio?
Most people know that business is difficult and that failures are going to come their way but not many know exactly how 'difficult' this really is.
Not physically. Physically speaking, you just need to sit on your butt on a computer and type/click away. The difficulty I'm speaking of is mental.
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People expect small losses, but every loss hits them so hard it eats away at their motivation.
I've seen people post around that their win ratio is something like 1:10 or 1:5. I don't know if they have some special skills that I don't but my win ratio is more like 1:25 or 1:40.
In fact if I hit these ratios I'm stoked!
That's the reality of it all and that's the hurdle most people can't cross. 1 out of 50 campaigns!!!? Most people quit right there.
But think about it.
50 x $10 test = $1,000
1 Profitable campaign can bring you anywhere between $500 - $10,000 profit or even more if you hit a monster! So in the long run is it worth it? Hell yes. It's what I've been doing over 3 years and have done almost a Million in revenue. I've launched almost 3,000 campaigns to get there and spent over $200k on FaceBook.
Yes, they're big numbers but simply put, you gotta have the balls to lose money.
Just a reality check for those that have been sold 'This business is easy' type eBooks.
Drop Shipping Campaigns Fund Themselves
One of the best things about drop shipping is that they fund themselves.
Cash flow on scaling is not an issue when money is going straight to your paypal with every sale!
My average day looks like this,
Just a bunch of transactions straight into my paypal ready to be used for the next day.
This is another reason why I love drop shipping, It's kind of like getting paid daily.
I know many people have major cash flow issues when scaling and sometimes that can cost you a tonne of money.
If you hit a profitable campaign with Teespring and a smart dodgy marketer catches on to it, he can simply copy the same thing on a different platform, scale it up to $500/day budget and beat you out on your audience.
That's why, when I find something, I'm usually bumping it up to $50-$100/day unless I'm still testing.
Lookalike Audience Tip
One cool tip with Lookalike Audiences to get you a tonne more sales on small audience sizes.
I found a profitable campaign the other day that only had an audience size of about 200,000. Once that maxed out, I ran a lookalike off the visitor data and guess what? The lookalike was 2MIll and it's profitable!
That just turned a $1-$2,000 campaign to a $10,000+ campaign!
So what's the tip?
If you have a profitable campaign but the audience is too small to make a decent profit out of, (under $1k), then make a lookalike off it and run an add to it.
It's kind of a no brainer if you commonly use lookalikes but it sometimes gets missed.
Drop Shipping Pricing, high or low?
A lot of people have problems marking up their products when drop shipping.
What's the general rule here?
I've always had the opinion - if people love it enough, they'll jump over hurdles to buy it.
But of course, there's a price point that will tip your product into the 'too expensive' zone and we want to avoid that.
Some products on aliexpress can be bought dirt cheap. Like $1-$2 and so I can't give a general rule of 5x cost price because that would make some other products more expensive.
What do I use? I go buy what the products probably selling at retail. And a good way to check that is to go to ebay and see what it's selling for. Of course, don't include international sellers because you'll have countries like China, selling it for peanuts but if you check your local ebay sellers then you'll know a good price range.
I always make it slightly cheaper than retail but add a shipping cost.
This shipping cost is pure profit and it's something most customers expect to pay anyway. I keep it between $5 - $10 shipping +about $10 profit on the product which gives me a healthy total profit to work with.
If you're getting a tonne of clicks but no sales, maybe drop the price a little.
Better to be profiting $5/sale then to be profiting $0 because no one is buying.
Alright, now for the juicy stats on the challenge,
PRODUCT COST: $770
FB COST: $590.75
TOTAL REVENUE: $1,345.05
TOTAL PROFIT/LOSS: -$15.7
PRODUCT COST: $1,456
FB COST: $872.49
TOTAL REVENUE: $2,441.35
TOTAL PROFIT/LOSS: +$112.86
We're finally in profit! Wooo! $100 is not really much profit but considering that good $500 of that 'FB cost' was testing, that's about $600+ in profit I'm making on my successful campaigns!
If you're new, this is the best position to be in because you can spend and learn freely. You don't have to worry about losing money and testing because you're making it back.
A good newbie, will see this as an opportunity to test hard and use these profits wisely. Put it back in the business try find more winners!
Again, more testing but this time many of my campaigns will be lookalikes and retargeting campaigns.
This is why win ratios are hard to calculate because they vary depending on which stage your in.
At the start, when you got no clue, it's like 1:35, then you find something and it becomes 1:5 - 1:10 because you've found your niche and are launching campaigns closer to that niche.
I'm hoping to do $10k rev in this challenge. Not bad for a months work.
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