# The REAL Reason You Can't Scale Facebook Ads Channel: Ben Heath Video: https://www.youtube.com/watch?v=y-uj6d3ying Duration: 10 min Language: English Words: 2431 Transcript page: https://viewrankai.com/tools/youtube-transcript/y-uj6d3ying --- [0:00] I'm about to share with you the exact strategy that I use to scale this client's Facebook ad campaigns from $97,000 in Revenue at a 1.4 XRS all the way up to $357,000 in Revenue at a 3.7 XRS which completely changed the trajectory of this business and this wasn't just a onetime thing I've personally spent more than $50 million on Facebook ads for clients and generated more than $200 million in revenue and you don't get to those sorts of numbers without knowing how to scale Facebook ad campaigns the right way but the thing is most Facebook advertisers are still falling into two super common mistakes which I'm going to [0:33] show you in this video and one of them is really easy to avoid you just have to know what to look for okay so one of the reasons why Facebook advertisers really struggle to scale I should quickly Define that when I'm talking about struggling to scale I'm talking about struggling to scale profitably obviously anyone can just whack the budget up but what we want to do is be able to scale in a way where it still makes sense for our business we're not acquiring customers at too high a cost for it to be profitable um for our business right so that's what I mean when I say [0:58] struggling to scale and and the first reason I want to talk about here is volume or what I should more specifically say lack of volume and here's what I mean by that right so I speak to Facebook Instagram advertisers all the time and one of the questions I will very often ask people is how many new ads are you creating and often they'll say something like I create two new ads three new ads a month four new ads a month something like that or perhaps they don't have a specific schedule they just wait until the results drop off and then they go oh okay I need to make some more ads then [1:26] that's their approach to new ad creation now here's the thing thing the best Facebook advertisers in the world create 50 20 30 or more new ads per week and that might sound extreme and obviously depending on your budget if you're operating with a much smaller budget then that doesn't make sense that would be Overkill but the principle Remains the Same they absolutely are going after volume of new ad creation and here's why you probably can't scale because your ad isn't good enough to convince people to convert whether that's purchase become a lead whatever unless they are hyper responsive so really into whatever it is you have to offer when your ad works and [2:03] is profitable to a small segment of your audience so you're not spending very much meta is really good at finding out the best possible prospects and it's going to put your ads in front of those people first as you spend more and spend more you go from the people that are absolutely super Keen love everything to do with that industry buy every ad that pops up to people that are still pretty good prospects but slightly less keen and then you scale further and you go from then to people that are slightly less Keen again and slightly less Keen again and and it goes on and on and on [2:30] so if your ad is a mediocre ad perhaps it's good enough to get those hyper responsives right at the center of that Circle to convert but as you go out into those other tiers it probably isn't good enough now the only way to create exceptional ads and get really really good at creating ads for your specific business and your specific audience is to get the Reps in is to create tons of them put them live see the data learn analyze rinse and repeat so let me give you an example to hopefully make this a little bit easier to understand and sort of and sort of clarify um the thought process [3:03] around this so let's say you've got a new campaign and you've launched 10 new ads now obviously one of those 10 ads is going to perform best that's probably going to get the majority of the budget whether you manually force that or whether meta does that um for you and with that ad you found that you can scale up to about $100 a day but you can't really go any higher if you do your profitability starts to drop and you end up paying too much to a Car customer basically you are using a one in 10 ad to get you to $100 a day now if [3:28] you want to scale significant past that let's say you want to go up to $1,000 a day you might need a one in 100 AD the quality of the ad needs to go from a one in 10 ad to a onein 100 AD now the only way to discover to to stumble across a onein 100 AD and that's usually the way it works by the ways you're testing a bunch of stuff and you don't necessarily expect it to work amazingly well and you sort of stumble across something that that works really well for your specific business and your specific audience well anyway the only way to get that one in1 [3:55] 100 ad is to create 100 ads and create All Those ads that don't work and you learn lessons and you refine your approach and you get to the point where you have a one one one in 100 AD and then maybe that allows you to scale up to that ,000 a day mark But if you then want to go to the next level and you go right $ th000 a day is great but our business would be completely transformed we go to a whole another level if we could spend $10,000 a day maybe to do that you need a one in 1,000 ad because I can absolutely assure you if you go [4:24] ahead and create a thousand ads and put proper time and effort into creating those one of those is going to deliver incredible results just the law of numbers you're going to do it accidentally even if even if nothing else I mean of course you want to try and help the process along and and take a look at what you've done and and allow that to inform the direction you take going forward but just accidentally you're going to stumble across a concept something new that works really well and it's just going to to perform much much better and that one in 1,000 ad might literally have a four or five times [4:52] better row ass than that one in 100 AD which can completely obviously change your campaign completely change Facebook advertising and completely change your business if you can get that ad that is that good one in 1,000 ads are really good but again the only way to get a one in 1,000 ad is to actually go through the process of making a th000 ads which might take a lot of effort and a lot of time and everyone wants shortcuts right no one wants to put in that time and effort to create a thousand ads over the next year or 18 months to to find that one that's going to you know perform [5:21] exceptionally well you will find others that perform better than what you've currently got along the way as well it's not like you put in all that work and then get all the reward at the end you will have incremental gain as as you go but to be perfectly honest often it just takes exceptional volume to get exceptionally good at creating ads I cannot tell you how many ads I've personally been involved in created our agency we've worked with thousands of clients all over the world all different budgets created on average probably dozens of ads for every single client you just get so many reps in you can't [5:50] help but get good at it if you do an off of it come wa a sec take a look at this so this is in my menure program right and the results on WIS Channel and Tara said this in 2 weeks of joining my Ros went from 0.7 to 8.03 and I've only implemented maybe 30% of the feedback that's going to me so far which is that's just incredible that's awesome so Zoe up here she joined the mener program with 35,000 raffle tickets was thinking she wasn't going to sell them um and she end up selling out completely with 2 days to spare and we've got loads of others in [6:21] here we've got tons of people just sharing information around how they've done well great results they've got if you're interested you can click on the button beneath this video that'll go through to a page on our website you could book in a free no obligation call with one of my team members to find out more information hopefully we get to work together hopefully you join and you'll be sharing fantastic results like Tara and Zoe have done just here now the other reason why Facebook advertisers really struggle to scale Facebook ads profitably and you may have both by the way sometimes you have one or the other [6:48] sometimes you have both of these reasons um is because they simply don't make enough money from their customers their lifetime value isn't high enough and what that means is that you can't afford to pay pay enough to acquire a new customer now when I'm having a serious conversation with someone who is serious about scaling their their Facebook and Instagram ads and wants to take it from where they are now to 10x or more where they want to go one of the first things I'll ask them is how much more can you afford to pay to acquire a customer than what you're currently paying okay so let [7:18] me give you an example right let's let's take an e-commerce business and let's say that that e-commerce business is currently generating purchases for $20 each that's what they're costing if I talking to that business owner and they say you know we could we currently paying $20 to acquire a new customer $20 cost per purchase but we we could pay $25 okay we can scale a bit you're certainly not going to turn next that budget you might be able to double it may maybe if we've got that sort of wiggle room but if that same business owner tells me oh no we can pay $40 or even better $50 to a Kiron Customer [7:47] because we've got great customer reactivation our products are amazing so people buy again and they refer their friends so we can afford to pay a lot more that is a complete Game Changer that is sort of business where I'm going absolutely weaken scale we might be able to spend 10 X 20x the difference in a $25 cost per purchase limit versus a $40 cost per purchase limit is massive the $40 cost per purchase limit you might cap out at 10 times the budget um the the $25 Max cost per purchase business is at um simply because remember the concentric circles you're going out to larger and larger audiences and as you [8:22] go as you advertise to more people you put in your ad are slightly less clean and slightly less clean and slightly L clean you can tap into that many more people because you can put ads in front of people that aren't hyperresponsive because if a lower percentage of them convert you can pay a higher cost per purchase that's effectively what that is it still works for your business now most Facebook advertisers don't even really know what they can afford to pay to acquire a customer right they haven't been through that exercise and worked it out and and that's a problem you really should know that information I totally [8:50] get it like I've been there most business owners are there uh most Facebook advertisers don't know this sort of stuff but you absolutely should take the time to to do it and then Within that the advertisers that do know that number or even the advertisers don't know that number hardly any of them actually spend any time trying to improve their lifetime customer value they're not trying to increase how much a customer is worth their business they're instead much more focused on how do I just get the the cost per result down how do I how do I shave a couple of dollars off my cost per purchase how do [9:17] I shave $5 off off my cost per lead that's not the right way to go about it the pros the experts the people that get the best POS results they focus on the back end they go how do we massively increase how much customers work to allow us to pay much more to acquire our customer and make our Facebook advertising much easier and allow us to scale remember how I talked about that business that's currently at $20 cost per purchase if it can only go to 25 it can scale a bit if it can go to $40 cost per purchase it can scale massively the only way you can afford to go to $40 [9:47] cost per purchase is if you get much more out of your customers you get them to be worth a lot more there's a number of uh techniques to do that but that is so important and that's why the the pros focus on the back end fortunately I've recorded a video that shows you EX L how to calculate your lifetime value per customer and what you can afford to acquire a customer and I share it all in this video here it's one of the most important things for you to know as a Facebook Advertiser so I show you how to calculate it I also show you how to [10:12] improve your lifetime customer value which we've already talked about is super super important so make sure you stick around to the end of the video for that 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