$32 to $3,200+ a Day Dropshipping (LIVE 1-ON-1 COACHING) — Transcript

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1. 0:00What's up, guys? Welcome back to another
2. 0:01video. I'm actually super excited to
3. 0:02share this one because today, for the
4. 0:04first time, I had the luxury of having
5. 0:05one of my inner circle one-on-one
6. 0:07students here with me live. So, we were
7. 0:09able to do live one-on-one coaching and
8. 0:11also document the entire process that
9. 0:13way we can share it with you. About a
10. 0:15month and a half ago, he launched a
11. 0:16brand new product. And fast forward to
12. 0:18today, he's doing over a thousand
13. 0:20dollars a day consistently. We're going
14. 0:22to show you every single problem that he
15. 0:24faced, every single mistake that he
16. 0:26made, and exactly how we solved every
17. 0:28single one of them leading up to these
18. 0:29consistent thousand-dollar days. And
19. 0:31also the next actionable plan that he
20. 0:32needs to follow in order to break his
21. 0:34current record, which is a little over
22. 0:36three thousand dollars a day. This one's
23. 0:37jam-packed with value and I'd highly
24. 0:39recommend that you stick around and
25. 0:40watch this entire thing. So, you started
26. 0:42testing this brand new product on June
27. 0:431st of 2026. So, day one, how much did
28. 0:46you spend on ads?
29. 0:47>> I spent fifty dollars on ads.
30. 0:48>> Fifty dollars on ads. How much revenue
31. 0:50did you generate off of that fifty
32. 0:51dollars?
33. 0:52>> Thirty-two dollars.
34. 0:53>> Thirty-two dollars. So, we spent fifty
35. 0:54dollars to generate thirty-two. Do you
36. 0:56have the conversion rate on your
37. 0:58Shopify?
38. 0:58>> Like one percent.
39. 0:59>> Exactly. One percent.
40. 1:00>> ROAS doesn't even matter because you're
41. 1:02unprofitable here. How many purchases
42. 1:03did you get on that first day? Was it
43. 1:05just one?
44. 1:05>> It was just one purchase.
45. 1:06>> So, summary on what day one would look
46. 1:08like, and this is extremely realistic,
47. 1:10guys. He spent fifty dollars testing
48. 1:12this brand new product. He generated
49. 1:13thirty-two dollars in revenue with one
50. 1:15purchase with a conversion rate of one.
51. 1:17This is where most people think, "Oh,
52. 1:18this product doesn't work. This
53. 1:19product's unprofitable. I don't want to
54. 1:21continue it." Eugene, do this for me.
55. 1:23From June 1st to June 7th, how much did
56. 1:25you spend on ads?
57. 1:26>> Testing the product at fifty dollars a
58. 1:28day.
59. 1:28>> So, you spent about three fifty. How
60. 1:30much revenue did you generate in those
61. 1:31seven days?
62. 1:32>> A thousand and six hundred.
63. 1:33>> A thousand six hundred. What was your
64. 1:35conversion rate from June 1st to June
65. 1:377th?
66. 1:38>> Sitting at a 2.63%.
67. 1:39>> 2.63%. So, your ROAS would be 4.57. And
68. 1:43how many purchases did you generate in
69. 1:45that week?
70. 1:45>> Twenty-five.
71. 1:46>> So, let's recap real quick. Again, day
72. 1:48one, he was extremely unprofitable. It
73. 1:50was looking grim. However, he left that
74. 1:52product running. Why did you leave it
75. 1:53running seven days?
76. 1:54>> Because I knew I couldn't make a hard
77. 1:55decision off of a fifty-dollar day.
78. 1:57>> Exactly. So, he let it go for 7 days and
79. 1:59after 7 days he had spent 300 and some
80. 2:01change, probably a little bit more, but
81. 2:03his revenue was about 1,600.
82. 2:05And his conversion rate went from 1 to
83. 2:072.63 and his ROAS was 4.57 and he had 25
84. 2:11purchases. So, by the end of the week
85. 2:13you were profitable.
86. 2:14>> Yeah, by the end of the week I was
87. 2:15profitable on that.
88. 2:15>> So, in fact able to validate that this
89. 2:17is a winning product right there, all
90. 2:19right? Key note there guys, you can
91. 2:20never make a decision on 1 day. If you
92. 2:22launch a product, even if you don't see
93. 2:24a sale, you can't just say, "Oh, this is
94. 2:25not a winning product." You need to let
95. 2:27it spend a little bit more. So, pull
96. 2:28from June 1st to June 14th. How much did
97. 2:31you spend within 2 weeks?
98. 2:32>> Total amount spent 2 weeks, it was
99. 2:34$2,700.
100. 2:35>> $2,700.
101. 2:37How much revenue did you generate in
102. 2:38those 2 weeks?
103. 2:39>> In those 2 weeks, it was 3,800.
104. 2:43>> 3,800. And what was your conversion rate
105. 2:45from the 1st to the 14th?
106. 2:47>> From the 1st to the 14th, it was a
107. 2:483.03%.
108. 2:50>> 3.03%. How many purchases was that?
109. 2:52Total of 50 by then?
110. 2:53>> 53.
111. 2:54>> So, your ROAS would be like 1.41. So,
112. 2:57your ROAS deteriorated going into the
113. 2:59second week. Why is that?
114. 3:01>> I thought I had enough room to increase
115. 3:02spend, ad spend, so my ad spend went up
116. 3:04dramatically, but I saw that um I didn't
117. 3:06have enough margin to scale.
118. 3:07>> Exactly. And this right here guys is the
119. 3:10common problem that so many of you will
120. 3:13find yourself in. Again, finding a
121. 3:14winning product is not as difficult as
122. 3:16many people make it out to be. However,
123. 3:17scaling that product is where people run
124. 3:19into a major issues and it's really not
125. 3:21a major issue because right here it's so
126. 3:23clear when looking at it just like this
127. 3:24what his actual problem is. He spent
128. 3:26$2,700 over 2 weeks. He started to bump
129. 3:29his budget, I'm guessing from 50 to like
130. 3:31100 to 150-ish, around that?
131. 3:32>> Yeah.
132. 3:33>> His budget went up. However, he wasn't
133. 3:34generating enough revenue off of each
134. 3:36purchase to turn him profitable and that
135. 3:38is exactly why the ROAS went from a 4.57
136. 3:41down to a 1.41. That's not scalable. But
137. 3:45now let's actually pause here for a
138. 3:46minute and talk about what we actually
139. 3:47did to solve this problem. So, 2 weeks
140. 3:49in you noticed that you're unprofitable.
141. 3:50You went from very profitable to
142. 3:52unprofitable because you started to
143. 3:53increase your budget. What happened
144. 3:54within this two-week? How long did you
145. 3:56coexist with this problem of being
146. 3:58unprofitable?
147. 3:59>> Um, I think I let the problem run about
148. 4:00for about a week. I was trying to do the
149. 4:02wrong things.
150. 4:03>> Like what?
151. 4:03>> Like fix the site, tweak how it looked.
152. 4:06I thought maybe it could be a trust
153. 4:07issue.
154. 4:07>> That's actually a very common thing. And
155. 4:09I mean, you see that a lot in the
156. 4:09program with people that are brand new.
157. 4:11>> Yeah.
158. 4:11>> So, let's talk about why tweaking the
159. 4:13site is a bad thing, especially two
160. 4:16weeks in. Think about it like this. Day
161. 4:18one, you have a bad conversion rate.
162. 4:19Seven days go by. You do in fact find
163. 4:21out that you have a winning product.
164. 4:22Mind you, in these seven days, Eugene,
165. 4:23you didn't do anything, did you? You
166. 4:24just let it do its thing.
167. 4:25>> Yeah, exactly.
168. 4:26>> And it turned around. His CPMs dropped,
169. 4:28his CTRs went up, his cost per click
170. 4:30dropped. All these things, just because
171. 4:31now Meta's honing in on the audience.
172. 4:33It's actually starting to optimize. And
173. 4:35with that, he's starting to generate
174. 4:36more purchases, which turned him around
175. 4:37to a 4.57 ROAS. But the 4.57 ROAS here
176. 4:40is the indicator that you don't need to
177. 4:42optimize the site. There's nothing to
178. 4:43tweak here. However, I completely
179. 4:45understand why beginners, and why even
180. 4:46you, here 14 days in, wanted to mess
181. 4:49with the site, to make it look more
182. 4:50trustworthy, to try to make it look more
183. 4:51legit, I guess, right?
184. 4:53>> Yeah, exactly.
185. 4:54>> So, all these things. And ultimately,
186. 4:56that's pulling the wrong lever. But you
187. 4:57can definitely see how beginners will go
188. 4:58down that rabbit hole. But the fact that
189. 5:00after seven days on week one, you had a
190. 5:024.57, that's more than enough proof, and
191. 5:04you know that nothing on the site needed
192. 5:05to be optimized, cuz you were able to do
193. 5:06that, and you understood what actually
194. 5:08broke the chain of events. Just more ad
195. 5:09spend. But not capturing enough revenue
196. 5:11per order to actually turn you
197. 5:12profitable. That was the real
198. 5:14bottleneck. Nothing with the site.
199. 5:15>> I could notice that firsthand.
200. 5:17>> So, what did we decide was the actual
201. 5:18solution to this problem, though?
202. 5:20>> The one thing that I wasn't doing that
203. 5:22was the actual solution was offer
204. 5:24testing and increasing the price.
205. 5:25>> I mean, it seems like common sense, but
206. 5:26like, what does that do to solve the
207. 5:28problem?
208. 5:28>> The one biggest thing that it did is
209. 5:29increase my average order value.
210. 5:31Increasing my average order value would
211. 5:32have allowed me more margin to actually
212. 5:34scale my ads, which I did prematurely at
213. 5:36the time.
214. 5:37>> Exactly. So, guys, let's think about
215. 5:38this here. Again, remember, he was
216. 5:39trying to optimize the site, like most
217. 5:41beginners do. Most beginners think all
218. 5:42the problems exist on the site, and
219. 5:43that's not the case here. Remember, the
220. 5:44ROAS proves that on the first week.
221. 5:46However, after he increased his price,
222. 5:48he just wasn't capturing enough revenue
223. 5:50to be profitable. So, the solution there
224. 5:52is actually an offer test where you bump
225. 5:54the price up. Maybe you add
226. 5:56post-purchase upsells. Because what that
227. 5:57does is it increases your average order
228. 5:59value, allowing you to capture more
229. 6:01revenue per order, which maximizes the
230. 6:04efficiency of your ad dollars. So, let's
231. 6:06go 30 days in and let me know the
232. 6:08solution and that you found it out. So,
233. 6:09from June 1st to June 30th, how much did
234. 6:11you spend in ads?
235. 6:12>> From June 1st to June 30th, I spent
236. 6:156,300.
237. 6:16>> 6,300. How much revenue did you generate
238. 6:19off of that 6,300?
239. 6:20>> My total revenue was sitting at 9.3.
240. 6:22>> What was the conversion rate?
241. 6:24>> Conversion rate was holding at 3.31.
242. 6:26>> 3.31. And how many purchases was that?
243. 6:28>> Total purchases of 115.
244. 6:30>> 115, nice. So, your ROAS would have been
245. 6:33about 1.48. After the first month of
246. 6:35running this product, you spent 6,300
247. 6:36bucks and you generated 9,300 bucks in
248. 6:38revenue from 115 purchases with a
249. 6:41conversion rate of 3.31 and a ROAS of
250. 6:441.48. So, let's compare that to day 14.
251. 6:46Your ROAS slightly increased. Purchases
252. 6:49went up. Your spend definitely shot up.
253. 6:51But let's actually go back to day 14 so
254. 6:53we can answer this question. Why isn't
255. 6:54our ROAS higher? When you first did a
256. 6:56price bump, how much did you bump your
257. 6:57price up?
258. 6:58>> My first price bump ever, I only did it
259. 7:00by $5.
260. 7:01>> So, a $5 price bump. And if I recall
261. 7:03correctly, your product price was about
262. 7:0450 bucks.
263. 7:05>> Yeah.
264. 7:05>> So, you went from 50 to 55. And by day
265. 7:0730, was your price still 55 or was it
266. 7:09higher?
267. 7:10>> By day 30, it was still at 55 and I
268. 7:12realized that um I actually needed to
269. 7:14bump it much higher.
270. 7:15>> The reason his ROAS only increased
271. 7:16marginally is because he only bumped up
272. 7:18by $5. That's very conservative and it's
273. 7:20very safe, but we still have a problem
274. 7:23here. Were you profitable by day 30 on
275. 7:25this store?
276. 7:26>> I was barely breaking even.
277. 7:27>> Barely break even. So, what we're going
278. 7:28to do, guys, is look at it like this.
279. 7:30After 1 month, he is barely break even.
280. 7:33However, at this point, you understood
281. 7:34the objective of what you had to do
282. 7:36here. The problem on day 14 is still the
283. 7:37same as you're just not collecting
284. 7:39enough revenue per order in order to
285. 7:41actually be profitable. So, the solution
286. 7:42is simple. You increase the price even
287. 7:44more and you continue offer testing.
288. 7:46>> Yeah.
289. 7:46>> So, let's fast forward into this month
290. 7:48of July. So, on day one, so July, how
291. 7:50much did you spend?
292. 7:51>> So, July 1st, I spent a total of $200.
293. 7:54>> $200. And how much revenue did you do on
294. 7:56July 1st?
295. 7:57>> $600.
296. 7:57>> $600. What was the conversion rate that
297. 7:59day?
298. 7:59>> The conversion rate was holding at a
299. 8:004.9%.
300. 8:02>> 4.9%. How many purchases?
301. 8:04>> A total of six purchases.
302. 8:05>> Six purchases. And your ROAS would be
303. 8:07like about 3%. So, putting the numbers
304. 8:09like this, just on day one in July, he
305. 8:11spent 200 bucks. He generated 600 bucks
306. 8:13in revenue from six purchases.
307. 8:14Conversion rate 4.9% ROAS three. From
308. 8:17the 30th day of June, when you realized
309. 8:19that a $5 price bump wasn't that much,
310. 8:20how much did you increase the price by?
311. 8:22>> By then, it was $79.99.
312. 8:23>> $79.99. So, 80 bucks. So, you increased
313. 8:25the price by about $25.
314. 8:27>> Yeah.
315. 8:28>> And that is exactly what gave you the
316. 8:29three ROAS.
317. 8:30>> Yeah.
318. 8:30>> So, we're profitable. So, let's fast
319. 8:32forward to day seven, the first week of
320. 8:34July. So, from July 1st to July 7th, how
321. 8:36much did you spend?
322. 8:37>> So, from July 1st to July 7th, I spent a
323. 8:39total of $1,600.
324. 8:41>> $1,600
325. 8:43spent. How much revenue?
326. 8:44>> A total revenue of $3,000.
327. 8:46>> $3,000. What was your conversion rate?
328. 8:48>> Conversion rate was sitting at 3.8%.
329. 8:51>> 3.8%. And how many purchases was that?
330. 8:53>> 30 purchases.
331. 8:54>> 30. And that would have given you a ROAS
332. 8:56of 0.188. So, your ROAS dropped from
333. 8:58three down to 1.88. What is your thesis
334. 9:01on why that happened?
335. 9:02>> I increased my ad spend again cuz I saw
336. 9:04that I had a good ROAS.
337. 9:05>> Mhm.
338. 9:06>> And then, as I did see that it
339. 9:07deteriorated a little bit after.
340. 9:09>> Exactly. And when you think about it,
341. 9:11it's the same exact problem that we
342. 9:12initially faced, where it's like we
343. 9:14don't have enough margin on this
344. 9:15product.
345. 9:16>> Yeah.
346. 9:16>> So, what was the final decision that you
347. 9:17made here on day seven?
348. 9:19>> Because the conversion rate was holding
349. 9:20really well, I decided to bump it all
350. 9:22the way to $100.
351. 9:23>> So, guys, let me just take you back here
352. 9:24for a minute. When he launched his
353. 9:25product, he launched it at 50 bucks. But
354. 9:27by day seven of July, or 37 days into
355. 9:29this, he doubled the price of his
356. 9:30product from 50 all the way up to 100.
357. 9:32Because again, we're seeing the same
358. 9:34overlapping problem, where he's just not
359. 9:36capturing enough revenue to justify
360. 9:38these budget bumps or scale. I want to
361. 9:40pause here for a minute and really talk
362. 9:41about this because I think the reason
363. 9:43why a lot of beginners struggle is
364. 9:44because they pull the wrong levers all
365. 9:46the time. Eugene, was there a moment
366. 9:47within the first 7 days, even in July,
367. 9:49where you started to maybe overthink
368. 9:51like, "Oh maybe I need to do some
369. 9:52type of pre-lander or maybe I need to do
370. 9:53this, that, or the other?"
371. 9:55>> Oh, yeah. Trying to test out a whole
372. 9:56bunch of different listicles.
373. 9:57>> And I'm sure that right there, test out
374. 9:59a whole bunch of different listicles.
375. 10:00What did you do those in a different
376. 10:01campaign?
377. 10:01>> It was in a different campaign.
378. 10:02>> So, with a different campaign, you also
379. 10:04probably assigned a daily budget of what
380. 10:06to those?
381. 10:06>> I started those at like $100 a day.
382. 10:08>> $100 a day. So, that also, guys,
383. 10:10remember that spend also hits what this
384. 10:11total spend is day seven. So, that also
385. 10:14deflated his ROAS as well, these
386. 10:16different tests. But, you can see he was
387. 10:17pulling the wrong lever there cuz that
388. 10:19wasn't actually his problem. It makes
389. 10:20sense when you think about it, oh a
390. 10:21pre-lander to add more trust to cement
391. 10:23pain more, but there's a lot of friction
392. 10:25there. You have to build that. You have
393. 10:27to really understand your customer,
394. 10:28which I'm sure at this point, 30 days
395. 10:29in, you had a way better idea of who
396. 10:31your actual buyer is and their desired
397. 10:32outcomes and all that stuff.
398. 10:33>> Oh, yeah. Especially from my
399. 10:35post-purchase survey data.
400. 10:36>> Oh, yeah. The simplest thing you can do,
401. 10:37the lazy method is still continue
402. 10:39bumping your price cuz look, the 3.8%
403. 10:41conversion rate proves like, hey, people
404. 10:43are still pulling up to my website with
405. 10:45their credit card out. So, that's why
406. 10:46you finally decided to just shoot up to
407. 10:48100 bucks. But, real quick, before we
408. 10:49move on, hopefully you guys are starting
409. 10:51to see the overlapping problem here. And
410. 10:53also, the decision-making framework
411. 10:55here. We have to pull the right lever.
412. 10:56It's very easy to overthink and drift
413. 10:58and think that we need to do all these
414. 10:59different more advanced things like
415. 11:00pre-landers or further optimizing the
416. 11:02site and all this other stuff. When
417. 11:04majority of the time, the solution is
418. 11:05very simple. Increase your average order
419. 11:07value. Again, whether that's through
420. 11:08post-purchase upsell and bumping the
421. 11:10price of your product itself. And I
422. 11:12understand why people don't always do
423. 11:13that. It's simply just because you start
424. 11:14to overthink. You might not hit the
425. 11:16exact target that you're thinking
426. 11:18immediately after doing that, which is
427. 11:19totally normal. That's also why I've
428. 11:21jumped from day one to day seven
429. 11:22throughout these two months because if
430. 11:23we were to go day one, day two, day
431. 11:25three, day four, you're going to see
432. 11:26fluctuation. And we never make decisions
433. 11:28on a singular day. We always need to let
434. 11:30things spend a bit longer to actually
435. 11:32get accurate tests and readings. So,
436. 11:33let's move to day nine. Eugene, this is
437. 11:35your very first $1,000 day. How much did
438. 11:37you spend from July 1st to July 9th,
439. 11:39which was your very first $1,000 day?
440. 11:40>> I spent $2,600.
441. 11:42>> $2,600. What was the revenue from the
442. 11:451st to the 9th?
443. 11:45>> $5,800.
444. 11:47>> $5,800. So, you're starting to create a
445. 11:49little bit of a gap here, huh? So, what
446. 11:50was the conversion rate?
447. 11:51>> Conversion rate was 2.76%.
448. 11:54>> 2.76%. How many purchases was that?
449. 11:56>> Total of 54 by then.
450. 11:57>> 54. And your overall ROAS would have
451. 12:00been about 2.23%.
452. 12:01>> Yeah.
453. 12:02>> So, remember guys, this is at a $100
454. 12:04price point. But, let's get really
455. 12:05specific just on day nine. How much did
456. 12:07you spend on day nine?
457. 12:08>> Day nine alone, I spent 500.
458. 12:10>> And how much revenue did you generate
459. 12:11off that 500?
460. 12:12>> Off that 500, I generated $1,770.
461. 12:15>> $1,770.
462. 12:17And what was your conversion rate?
463. 12:19>> Conversion rate was holding at a 2.26%.
464. 12:21>> 2.26. So, the day ROAS was 3.54. But,
465. 12:24guys, look, we're looking at everything
466. 12:25on a blended level, meaning the average
467. 12:27of everything, of all of the spending,
468. 12:29all this other stuff. But, when we look
469. 12:30at the individual change itself after we
470. 12:32made the price bump, this is how we want
471. 12:34to start gauging whether or not it's
472. 12:36working. We don't just want to look at
473. 12:37the whole big picture. We also want to
474. 12:38take note of when we made this change,
475. 12:40and that's why I labeled this day nine.
476. 12:42Because on day nine, a few days into
477. 12:43this price bump, he spent 500, generated
478. 12:461770, conversion rate of 2.26, and but a
479. 12:48ROAS of 3.54. You were really profitable
480. 12:51that day.
481. 12:51>> Yeah, very profitable.
482. 12:52>> We're going to move to today, which is
483. 12:53July 11th. So, from July 1st to July
484. 12:5611th, total spend for the month.
485. 12:58>> Total spend for the month was 4,600.
486. 13:01>> 4,600. What's your total revenue on the
487. 13:04month?
488. 13:04>> 11.3.
489. 13:05>> And what's your conversion rate so far
490. 13:07this month?
491. 13:08>> 2.43%.
492. 13:09>> 2.43. And how many purchases was that?
493. 13:11>> 103 purchases.
494. 13:11>> Which would give you a ROAS of about
495. 13:132.46%.
496. 13:15We need to make a decision here on what
497. 13:16to do moving forward. Break this down
498. 13:17even further and get more advanced here
499. 13:19and really make an accurate decision.
500. 13:20And I hope you guys are able to pick up
501. 13:22on what we're doing here. So, instead of
502. 13:23looking at the full big picture, what
503. 13:25we're going to do is we're going to
504. 13:26segment it down just the days where he
505. 13:28actually did increase that price up to
506. 13:29100 and try to analyze what is actually
507. 13:32happening here so we can actually make
508. 13:33an accurate decision moving forward so
509. 13:35he can scale up to consistent $5,000
510. 13:37days, $10,000 days and beyond that.
511. 13:39Starting with day nine, we already have
512. 13:40your stats. Let's go into day 10. What
513. 13:42does day 10 look like?
514. 13:43>> Ben for day 10 was 600
515. 13:44>> 690. What was rev?
516. 13:46>> Rev was sitting at 2.28.
517. 13:47>> And conversion rate?
518. 13:48>> Conversion rate was holding at a 2.37.
519. 13:51>> So how many purchases did you do on 10?
520. 13:53>> Day 10 I did 20
521. 13:54>> So on day two of this test itself with
522. 13:55the price bump your ROAS would be like
523. 13:573.3%.
524. 14:00Two days in a row you're extremely
525. 14:01profitable.
526. 14:02>> Yeah.
527. 14:02>> So let's go into day 11 itself today.
528. 14:05How much have you spent today?
529. 14:06>> 1,300.
530. 14:07>> 1,300.
531. 14:09And how much revenue?
532. 14:09>> 3,200.
533. 14:11>> 3,200. And what is your conversion rate
534. 14:13on a day?
535. 14:14>> 2.01.
536. 14:15>> How many purchases have you generated
537. 14:17today?
538. 14:17>> 20
539. 14:18>> 27. So your would be like .46.
540. 14:21Guys, we have to focus on these three
541. 14:23days right here. We have to identify the
542. 14:25new bottleneck here. Instead of looking
543. 14:26at this like day nine, day 10, day 11,
544. 14:28which is true, we're instead we're going
545. 14:29to look at this as like day one, day
546. 14:31two, and day three after the split test
547. 14:33itself. ROAS of 3.54, then the following
548. 14:36day ROAS of 3.3, and then a ROAS of
549. 14:382.46. So we are seeing that ROAS is in
550. 14:41fact going down. His conversion rate is
551. 14:43kind of all over the place 2.26 to 2.37
552. 14:46to 2.01. This symbolizes shaky, guys. So
553. 14:49these are the two problems. ROAS is
554. 14:51decreasing and the conversion rate is a
555. 14:52little bit shaky, but we're not even
556. 14:53going to focus on conversion rate too
557. 14:54much here. Instead we're going to look
558. 14:56at ROAS. Why is the ROAS going down?
559. 14:58What changed in this entire equation
560. 14:59here? I'm going to highlight it and just
561. 15:01tell you what it is, then explain why.
562. 15:02The spend each day is going up by a
563. 15:05whole lot from 500 to 690 to 1,300.
564. 15:08There's a big old bump from day two to
565. 15:10day three or day 10 to day 11 from 690
566. 15:13to 1,300. That is exactly why the ROAS
567. 15:16is going down, but you're probably
568. 15:17wondering why exactly does that happen?
569. 15:19Well, think about it. The more budget
570. 15:20you give to your ads it simply just
571. 15:22guarantees one thing. You're going to
572. 15:23generate more impressions. That does not
573. 15:25mean that you're going to guarantee more
574. 15:27sales or profitability. It just means
575. 15:30Meta has to go and find more people that
576. 15:32resonate with your ad. Over these two
577. 15:33days, he increased his spend by $610,
578. 15:36which is like 80-something percent. It's
579. 15:38a big old jump. So, all he did was
580. 15:39create a bigger net that he's casting
581. 15:41out there where Meta's trying to find
582. 15:43more people that will respond well to
583. 15:45his ads. It's totally okay to see your
584. 15:47ROAS drop. Because again, we're only
585. 15:49looking at a 3-day timeline here. We
586. 15:51can't really make a decision. So, moving
587. 15:52forward for the next 2 days, Eugene, I
588. 15:54would recommend not doing anything. Just
589. 15:56let Meta continuously just dip your
590. 15:57creatives around. And I can almost bet
591. 15:59you you're going to see this ROAS start
592. 16:01to pick up a little bit. Because that
593. 16:02typically is always what will happen. A
594. 16:04lot of people would look at this right
595. 16:05here and be like, "Oh, my ROAS is
596. 16:06starting to drop." And answer this.
597. 16:08Today, you're profitable still, right?
598. 16:09>> I'm still profitable today, yeah.
599. 16:11>> By a lot?
600. 16:11>> I would say by a good margin.
601. 16:12>> Cuz what is your break-even ROAS?
602. 16:14>> My break-even ROAS, it's a 1.47.
603. 16:17>> So, he would need a ROAS of 1.47 to
604. 16:20break even. And if he goes under that,
605. 16:21he's unprofitable. But he's still
606. 16:23sitting at a 2.46. He's still pretty
607. 16:25profitable. So, this isn't a problem.
608. 16:26However, people will get emotional about
609. 16:28this number right here because it's
610. 16:29dropping. And then what they'll try to
611. 16:30do is correct something. We saw his
612. 16:32conversion rate drop a little bit, but
613. 16:34also, hey, the price has doubled. But
614. 16:36that is completely fine. By doubling his
615. 16:37price, he became way more profitable at
616. 16:39the expense of a spectacular conversion
617. 16:41rate. So, that's not a huge issue.
618. 16:43That's something that can be optimized
619. 16:44way later down the road. However, the
620. 16:45point is today and tomorrow and the
621. 16:48following day. The next 2 to 3 days, let
622. 16:50it do its thing. Let Meta optimize
623. 16:51around this new budget that you have
624. 16:53right now. This ROAS will pick up.
625. 16:55Again, there's nothing horrible about
626. 16:56your conversion rate. So, the best
627. 16:57decision and the best actionable plan
628. 16:59for today is to not do anything on the
629. 17:01store or the ad account itself. But what
630. 17:03you can do now start generating more
631. 17:05creatives. You can identify which ads
632. 17:07are converting, which ads have great
633. 17:08purchase intent, which ads have high
634. 17:10click-through rate. Look at all of these
635. 17:12ads here and run them through my custom
636. 17:14gem. Deconstruct them. Try to understand
637. 17:16the messaging, the angle, the outcomes,
638. 17:18and try to twist it a little bit. How
639. 17:19can you create iterations of these?
640. 17:21Stockpile these up because your ROAS
641. 17:23will increase and you will continue to
642. 17:24scale. And with more spend, you're going
643. 17:26to need way more creatives to support
644. 17:28that spend. So, do you have any
645. 17:29questions for me about what you need to
646. 17:31do moving forward on this?
647. 17:32>> Genuinely no. I think it's been played
648. 17:34out pretty simply. I understand the
649. 17:36bottlenecks that I run into each time.
650. 17:37So, I realize with more volume, I just
651. 17:40do need to be producing more creatives.
652. 17:41>> But, did this breakdown right here
653. 17:43really show you the recurring pattern
654. 17:44that you keep running into?
655. 17:46>> Most definitely.
656. 17:46>> And then, look at this. 40-something
657. 17:48days in, we started to notice we may
658. 17:50have found our ceiling on the price
659. 17:51point of a hundred bucks. Because look,
660. 17:53conversion rate is going down. But
661. 17:54again, doesn't mean something's broken,
662. 17:55but that might be the ceiling. However,
663. 17:57a good marketer would tell you, go and
664. 17:59split test against it. Buy another price
665. 18:00point. But do I think it's worth doing
666. 18:02that right now? Not necessarily because
667. 18:03that doesn't look like that's the
668. 18:04problem that you're having because we've
669. 18:06seen the recurring issues here where
670. 18:07you're just not capturing enough margin
671. 18:09because you went unprofitable several of
672. 18:11these days here. And we're able to
673. 18:12correct that, but that's not the problem
674. 18:13we're having here.
675. 18:14>> Yeah.
676. 18:14>> The problem is right here is the fact
677. 18:16that we increased the budget by 83% in a
678. 18:1824-hour window, which isn't always a bad
679. 18:21thing. You had the ROAS support that
680. 18:22type of bump. But now, we just need to
681. 18:24let it simmer and catch up. We need to
682. 18:25let Meta optimize and further do its
683. 18:27thing. And in 3 days from now, our
684. 18:28thesis is this. It's forever test, guys.
685. 18:30You need to have a thesis. You can't
686. 18:31just test things randomly. Oh, I think
687. 18:33this is going to work. No, we have to
688. 18:34have a solid thesis. Our thesis over the
689. 18:36next 2 to 3 days of just letting
690. 18:38everything do its thing and letting Meta
691. 18:39optimize is that we will see this ROAS
692. 18:41increase because Meta's optimizing
693. 18:44around your new budget and it's going to
694. 18:45find the audience pockets that you need
695. 18:46to be in with your current ads. And what
696. 18:48we want to see is this ROAS jump back up
697. 18:50into the threes.
698. 18:51>> Yeah.
699. 18:51>> So, that is the entire bottleneck
700. 18:53analysis and framework from day one of
701. 18:56Eugene launching this product all the
702. 18:57way up until about a month and 2 weeks
703. 18:59into this. Hopefully you guys are able
704. 19:00to take away exactly how we did this and
705. 19:02our exact thought process. And the big
706. 19:04one here, focusing on pulling the right
707. 19:05levers, not making any emotional
708. 19:07decisions, and instead relying solely on
709. 19:09your data. If you made it all the way
710. 19:10through this video, you probably took
711. 19:12away a lot of information. A lot of
712. 19:13actionable, applicable information as
713. 19:15well. This is exactly how we go about
714. 19:17coaching inside of Juggernaut Labs. This
715. 19:18is how I help all of my students. If
716. 19:20this is something that you think would
717. 19:21benefit you and you want to become a
718. 19:22student of mine, if there is a link down
719. 19:24in the description for my inner circle,
720. 19:26I'd highly recommend applying. We don't
721. 19:27do false scarcity when we say that there
722. 19:29are limited spots. My coaches and I can
723. 19:31only work with a handful of people at
724. 19:32one time to get them this quality of
725. 19:34one-on-one support. So, if you see a
726. 19:36link down in the description of this
727. 19:37video, I would highly recommend clicking
728. 19:38on it, applying, and booking a call with
729. 19:40me and my team to see how we can help
730. 19:41you start or scale and expedite that
731. 19:43entire process to help you get to where
732. 19:45you're trying to go. But, with that
733. 19:46being said, I hope you guys were able to
734. 19:47take away a lot from this video, and
735. 19:48I'll catch you guys inside of the next
736. 19:49one. Cheers.