This is the blueprint on how I've been able to scale 6-figure brands to 8-figure, and 7-figure brands to 9-figure, over and over again, with a damn near 100% hit rate.
Let's reject every bit of useless ego-based marketing bad advice and start making real money with ease!
The Secret Algebra of Facebook is simple:
Bid = Estimated Action Rate x Budget x Advertiser Score.
When you spend more, your Bid in the auction will go up unless you focus on improving the ads or the audience selection (i.e., never using LALs, MOF/BOF, or Interest Groups).
Reaching more people means you will get a higher volume of people who aren't as good for you. Efficiency rates cannot hold when we do higher volume; this is a known fact. So instead, we have to work on improving our unit economics & quality of work.
Scaling results are not predicated on more budget, doing better work, getting a higher volume of customers, or getting more margin on your customers is how we scale.
Adding budget to our CBO should be a ramification of doing this properly:
PSM = LTV / (CPA + COGs)
What is the actual revenue generated by a customer journey? And how does that compare to our cost to start & maintain that journey?
This is the single MOST IMPORTANT EQUATION IN GROWTH MARKETING, not ROAS or MER (those metrics mean NOTHING).
Profit is as simple as Revenue - Cost.
If you can generate more revenue from an investment than that investment costs, then you've made a profit. Improve that margin of profit or the volume of profitable investments... & you'll scale growth.
It really is just that simple.
No Audience will ever improve your EAR or LTV. No Bidding Model will ever improve your EAR or LTV. In fact, once you embrace Broad, the only way to move these numbers is by making better ads and improving your business model, giving you unprecedented freedom to grow.
If you're still worrying about Audiences & Bidding Models, you've already lost the long game, plenty of people see success when focusing on these lower-value efforts, but success is subjective.
Going from a D- to a C+ & working 3x harder is less good than an A- on 20% of the effort.
If you're still touching budgets manually, you're doing things wrong, and it's not just because you can reduce the workload but also because you're using subjective thinking and emotion to make arbitrary decisions that should be binary & programmatic.
That's just not good 4 biz, if you do not have stable and projectable results, you cannot plan for the future with confidence. You cannot scale your business without this.
We can easily automate our investments when we simplify down to our 1 campaign and manufacture a weekly trend analysis!
Simple wins are easy to repeat. Focus on making wins simple, and success will follow.
If we can get the growth of our business down to effectively just a single logic statement, our future will be very bright. If CPA is greater than X over the last 7 days, then push your spend by Y, the bottom line here is simple, use the tools in the most effective way to do the simple work that has the most significant impact.
The reason success is easily repeatable is a prioritization of effort & investment. You'll never move mountains if you're still worried about the pebbles.
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