Meg and Alfred Tuohey are living proof that it is possible to make a lot of money with Facebook Ads. After enlisting the help of our team, they were able to take their monthly net profit from $92,770 to an incredible $336,000 in just a few months! How did we do it?
They came to us because they needed help scaling their offer. Every time they would try their profits would go down greatly and they just couldn’t seem to get past spending $1k/day with Facebook Ads.
So we took them on and well…
We implemented four key strategies: setting up tracking properly; leveraging our End-To-End tracking system; creating specific but scaleable audiences; and focusing on ROAS and net revenue as opposed to vanity metrics. This blog post will explain how we achieved this amazing success story for Meg and Alfred – read on for details!
When we dove into their Facebook ad account, we noticed various issues.
The primary problem was that their tracking setup wasn’t properly configured, resulting in unreliable data being sent back to their pixel. This made it difficult for them to accurately measure which campaigns were actually driving revenue.
Another issue arose from the targeting audiences being used – they were too narrow to be able to scale effectively and make money, yet not broad enough to ensure the pixel was trained up correctly.
The third problem was related to their creative content – we found out that there hooks contained too broad of messaging and this was causing low quality leads to flood in.
Lastly, if the team hadn’t shifted their focus away from vanity metrics such as cost per booked call, they wouldn’t have been able to scale or make more money, period.
Overall, handling ad campaigns on Facebook can be a tricky business due to numerous potential issues arising from misconfigured tracking systems, poorly targeted audiences, ineffective creatives and incorrect metrics being focused upon.
For Meg and Alfred Tuohey’s campaign specifically, they experienced all of these problems at once so it was important for them to discover solutions in order to maximize profitability while also scaling up their business.
Strategy #1: Our Lossless End To End Tracking System
With iOS privacy updates and the surge in demand for information protection across all platforms, running with traditional ad platform tracking can be like throwing spaghetti at the wall hoping it will stick. It just doesn't get the job done!
We have just the solution for you and it's Hyros! It's essential to set up your tracking properly to ensure clean data will feed back into the pixel and leverage an end-to-end tracking system to determine which campaigns are making a profit.
When you can easily identify this information and have clean baselines to build off of, you'll be positioning yourself in a much better place to make significant progress.
Hyros is one of the first things we setup with every client because it's such a necessary component to anyone's ad strategy.
Numbers point you to objective truth and have the potential to get rid of human biases. And the most important numbers when you're running a business are your Key Performance Indicators which we'll talk more about.
Learn more about Hyros here
Strategy #2: Profit-Maximizing Success Indicators
Everybody's key performance indicators are going to look slightly different based upon their own goals. In this case, we shifted the focus from vanity metrics such as cost per booked call to Return on Ad Spend (ROAS) and Net Profit.
At the end of the day, it's all about your cashflow. So you need to dive deep into your business to figure out which KPI's are the most important for you to track. Once you find them, you can begin measuring them and this will have an incredible impact on the growth of your business.
You'll find starting with ROAS and Cash Flow metrics will take you down a rabbit hole of the other metrics that drive the biggest impact on them. Most people get so caught up in measuring vanity metrics like Cost Per Booked Call or Cost Per Lead.
While these are important, it's crucial that you zoom out and remember why you started in business in the first place...
To make money!
Strategy #3: The Sweet Spot For Audience Targeting
Make sure audiences are specific enough for the pixel to be trained, but broad enough for scaling. When you're looking for audiences you not only want to be concerned with the potential profits that could come but also how long those profits will last.
You could choose an audience that has a size of around 500k - 1m people and make really good money. However, the downside is that these audiences will not last very long.
Additionally, you could go for a broad audience that has a size of 10m or more! But you risk muddying up your conversions with very low quality leads which causes even more problems down the funnel all the way to fulfillment.
We've found that the sweet spot for hand picking audiences is looking for relevant key terms with an audience size of 2m - 5m people. And that's exactly what we did for Making Relationships Work. Like clockwork, the audiences worked and they worked for months!
Strategy #4: Our Scaling Methodology That Quadrupled Their Profits
We tested various creatives, ensuring hooks are strong enough to grab attention and get the message across quickly within 10 seconds. This will repel low quality leads from your business and enchant your perfect avatar.
The messaging in your ad is crucial for bringing the right people into your business. When you dial in that perfect hook, you'll know because things in your business will change. Your sales people will be talking to enthusiastic leads begging to work with you.
Their close percentages will increase and so will your profits. Not only that your fulfillment and operations will be delightful instead of a hassle.
Once you found your winning creatives, you'll already have a couple of proven audiences. But now we have a better chance at finding more! Take your winning creatives and test them with new audiences to find more that work for your offer.
Finally, once you have a good amount of winning creatives and winning audiences, you can toss all of these assets into a CBO. This will allow you ramp things up and run at a higher budget without sacrificing your profits. (see image below for our entire process)
Making Relationships Work’s Results
For our client, we implemented these four strategies and were able to reduce cost-per-lead from $47.19 cents down to $31.57 cents and bring more leads in at a lower cost on the frontend even after scaling their ad spend.
Their gross revenue went from $120,800 up to $624,455, while profit nearly quadrupled from nearly $92,770 to over $336,000.
As a result of this success, not only did the client become more wealthy – frequently going on vacations with their family and sending their children to amazing schools – but their team saw six-figure salaries as well, creating a great environment all around that was enabled by our efforts in helping them reach their next level of success with Facebook ads.
How Client Accelerators Measures Performance For Optimal Growth
The secret of Client Accelerators is in wise reporting cadences. We consistently provide our clients with updates on their metrics and what we are doing to improve them!
From experience, the Client Accelerators team recommends that you do a deep-dive into your business to figure out what your unique Key Performance Indicators are. Once you determine those, you will need to create systems and processes to report those metrics on a weekly basis.
Client Accelerator’s also uses HYROS (a robust ad tracking software for digital businesses) and to track the success of advertising campaigns for Making Relationships Work and other clients.
By tracking their conversion data in Hyros, Client Accelerators can view attribution models which record user history from the ad all the way to the sale, which provides useful information regarding which advertising campaigns provide the most fruit for their clients.
This approach of in-depth analysis has helped grow Making Relationships Work despite the everchanging landscape of digital media and our current recession.
Harness the Power of YouTube With Client Accelerators
Are you ready to take your business to the next level with efficient YouTube advertising? Join Making Relationships Work and other successful businesses who work with Client Accelerators. Book a call today.