70 Campaigns Down,
Update number 7.
PRODUCT COST: $2,455
FB COST: $1,372.87
TOTAL REVENUE: $4,236.25
TOTAL PROFIT/LOSS: + $408.25
Since the last update, things have been quite slow. I don't know if it's because my products are reaching the end of their life cycle or it's just been slow days. In saying that, a day after I wrote the above stats, (today), I've had $400+ revenue! So must have just been a slow couple of days.
I've just spent a few dollars on the new campaign but in the video I go through the cutting process. Some have gotten me sales here and there to cover their costs but I'm not getting cheap enough clicks to continue on most.
Life Cycle of FB Campaign
In this article/video I wanted to go through the general life cycle of a campaign and how FB marketing works.
You see, different traffic sources have different ways they operate and provide results.
Google for example will have people intentionally and actively searching for a certain keyword/product.
Every day you'll get a new set of people looking for that product and so the lifecycle of a successful campaign will be way longer. Often, years! This can be seen as unlimited traffic*
So you'll get x number of people visiting your site per day and as long as you make a profit, you will continue spending the next day and the next, etc.
FaceBook works much differently.
You're interrupting peoples browsing or socialising time which is why you're product has to be damn good to get them off socialising mode and into buyer mode!
Also, you have a limited audience to work with. FB will tell you that your audience size is 50,000 which means once your ad has rotated around to the whole 50,000, it's effectiveness will drop drastically.
The first time an ad will come around, if it's good enough, it will provoke buying and a lot of social engagement. The second time around people are seeing it, the people that have bought it or already interacted will scroll right through. Others might, (very rarely), engage but most will become blind to your ad.
This is how FaceBook works which is why it has a 'life cycle'. Let's go through it,
Phase 1 - Testing/Finding the Sweet Spot
This is the start of the campaign where it's showing sales but you need to test different countries, audiences and product variations to get a feel of how big this campaign really is.
you'll find some winners, some losers and thus will have very variant revenue days like the above.
Phase 2 - Stabilization, consistent sales
Once you start to find the high ROI/profitable sweet spots, You'll cut out the losers and keep the winners switched on and so you'll reach the point where you'll continue to get sales/profit as long as you spend. Most of the below was the result of just $30 daily spend. The peaks are over $300 in revenue! This is what happens when you do the right testing in phase one.
Phase 3 - Campaign Ending
This is the part where your clear profit days are now giving you variable results.
Sometimes you're profiting, sometimes your on negative, sometimes you're breaking even. In the last 3-4 days, you're hardly getting any sales and any more spending is just a waste of money. Your campaign has officially ended.
This life cycle illustrates the importance of needing to continue to test. In my lifetime, I've launched close to 3,000 campaigns.
About 2,500 of them have been tests, the rest made me a tonne of money.
The good thing is that you'll learn so much about audience behaviour, niches that convert, FaceBook Marketing and at this point you'll be on a level not many people are.
Internet Marketing is great way to make a living AND learn core business skills, (Selling).
I have big plans for this store. After this challenge I might do a challenge where I try different traffic sources. It's time to get my space suit on and start exploring other areas.
The more I keep separating myself from everyone else, the more money I seem to make.
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