Maybe you launched a 1k budget campaign in the past, maybe you didn’t.
In this article I want to give you few insights, how I launch and how I kill big budget campaigns. Also why to even launch 1k campaigns. 🙂
Topic can be useful for beginners and advanced marketers.
Why You Should Launch a Big Budget Campaign
While most marketers and entrepreneurs are probably scared of big budget campaigns, I must admit that I was too. Many times. And I still am, when I don’t give enough time to understand the account.
You can obviously test and see what will happen, but probably 90% of the time you won’t do it again. CPC will go up, CTR down, CPA up, ROAS down. FB will quickly spend 50% of budget and results will suck.
You will kill it at 30% of budget spend probably, as you will see CPA 3-5x than what you used to have. Or you will wait till the budget is spent, and next day or third day you will kill it as it will make no sense for you. And yes, I believe 70% big budget campaigns will not work. Probably 80%.
Depends on the campaign budget, ad account data, pixel, product, landing page. But 20% of campaigns can work, and those 20% will make more revenue than all the lost 80%!
So is it worth trying? Depends on your business model and your cash flow. By business model I mean that you need to decide which path you want to go. You can sell 1000 items per month with $10 profit or 10.000 items with $1 profit.
What is your goal and how you want to move?
Example above will give you the same profit, but here is the catch. Second option which was made with a big budget will also give you 9x more customers.
Now the question: Which list size is more profitable, the 1k list or the 10k list?
If the conversion on emails is 1%, you can get 10 or 100 more sales on top of the above example. If the profit is now $20 as you don’t have to pay for ads, then the second option is obviously more profitable. You will get 2k on top of your 10k profit. And I believe if you hire a good email marketer who can do a 4% offer instead of 1%, your profit will now be 8k on top of your FB revenue.
Now we are talking about 18k compared to 10k and few email sales with your 1k list. But the story doesn’t end here. Here is the advanced course. 🙂
What if you send 5 emails per week to your existing email list? Do you know what can happen after 30 days? You can figure out or you can test on your own if you want.
I guarantee that you will be close to 30 or even 50k of revenue. Compared to the 1k list I think your revenue will double with big budget campaigns. But, I know. We’re all afraid of spending a lot on FB if we get lower margins. And the cash flow is always the biggest struggle since banks just don’t trust us or can’t raise the limit quickly.
Now let’s go back to the main topic and how to launch and kill a big budget campaign.
Read More: The Magical Secret to Scaling Clients to 10MM Per Year
How to Launch a 1K/Day Facebook Ad Campaign
I assume that by now you realized that more customers equals more profit. So when you have spent some money and time in your account, then it’s time for testing with $500 – 1k.
I believe in this FB DNA, you have 3 levels of budgets.
- Below or equal $100
- Below or equal $500
- Below or equal $1000
We start testing campaigns most of the time at $100. After a while we know where we are and how much we can scale those $100 campaigns.
Many times we see the CPA go nuts when we come near $300 or $500. So we stop and go back. We repeat the testing, scaling, downscaling and turning off.
If we can work at 2nd level below the $500 budget on campaign, we can scale the account pretty big.
Read More: Striking Emotion to Bring In 2MM Revenue
Scaling to 10K/Day in Facebook Ad Spend
If we want to scale even more (10k or more per day), obviously we will have to start testing 1k campaigns.And launching a 1k campaign is pretty simple. You put the budget at 1k and launch it. Then you wait for 30-50% spend and you react.
If you’re below 2x of regular CPA, we leave it run and don’t touch. If we see a huge increase or no sales, we leave it at 50% and then turn off.
Next day’s results will probably be better but if still low, kill. If after 3 days you are near where your KPI is, then let it run. You found a 20% campaign! Congrats. Let it run and analyze what works.
If CPA is way below your KPI, scale it to 2k or even 5k. If CPA is just a little below, scale it by 20% daily. Now you already see what is working, so try to duplicate and try other interests and creatives.
Launch 10 more 1k campaigns! (I know, don’t tell me… but, you’re a big man / company by now)
Next day kill 80% and scale 20%. At the end of the week you can have 5-10 big budget campaigns easily. Then all you need to do daily is ride the wave of CPA to be near or under your desired KPI.
I scaled one account by this method from 5k to 15k in just 2 days. It was easy but I was scared as hell! And it was not my money. Imagine how scared I would be if I had to put all my savings in. But, this is the risk and you know this right – ‘Big risk takers will someday made it’. Or not. Depends on many factors.
I don’t want you to risk with ‘empty’ head as so many young entrepreneurs and marketers do, but please educate yourself first, analyze your account, and then start testing. Slowly. See how your account reacts.
When you will learn the pixel algo and account whispering, then you’ll be able to decide when is the right time to launch and scale big budget campaigns.
If you’re still scared, then sign up with us and we can do the nitty gritty launching and scaling for you!
Book a call with us here ==> https://dimniko.com/msp-apply
Hope to see you inside, so we can scale your biz to the next level.
Have a wonderful day,