• In this video, we're talking about turning off underperformers and increasing budgets on winners quickly. Now, this is for those of you who are running ads right now and are finally starting to see some success from those ads. You're generating leads and sales at a level you've never seen before, and you're ready to scale. This is where you need to pay attention the most because a lot of people oftentimes leave their ads on too long. So that return on ad spends that you're seeing could be far better before scale.

• The same thing can be said from a lead cost standpoint. Let's say, for example, you're letting ads run at a hundred dollars a day, but you're not making adjustments to those ads in less than three days. So you're spending three or $400 before determining if something should be left on. You can determine the lead cost in most cases within the first one or two days at a hundred dollars a day, if it's $50 a day, you might give it one or two days max because you could still make that determination of whether or not something's working. 

• But the same thing happens with purchases. The price of the product is $50 and you have the cost of goods sold and all those other things, but let's say you're willing to break even on the front end just to gather some data. So if the product's $50, you might want to let it run until it's at a hundred or $150 before deciding on turning off the ad. But if you let it run beyond that and you still haven't turned off your ad, you're wasting the budget that you could have used towards something that's working. 

• So oftentimes what we do is we keep ads on in periods of three days, regardless of budget. But in those three day periods, we were deciding what is the most we're willing to spend on a lead or a purchase. 

• Make sure that you understand what it is you need to do to optimize your spending so that you could scale from there. So if you're doing a campaign budget, optimized campaign, you can make that decision within the same day, especially if you're spending $500 in a day. So with that being said, remember to figure out what works for you in terms of the timeframe to turn off those under-performers most of the time, it's three days. If you're going to go a little higher budget, you can look at one or two days. And then from there, you can utilize your extra budget towards the winners. And if you're looking for more ways to scale those winners, module nine is where you need to be.

David (00:01):

Hey everyone. Welcome back. And in this video, we're talking about turning off underperformers and increasing budgets on winners quickly. Now this is obviously for those of you who are running ads right now, and are finally starting to see some success from those ads, whether it's generating a two or higher return on ad spend, maybe your lead cost is below $5. You're generating leads and sales at a level you've never seen before, and you're ready to scale. This is where you need to pay attention the most because a lot of people oftentimes leave their ads on too long. So that return on ad spend that you're seeing could actually be far better before scale, if you are putting the right rules in place, or even making sure that you have your own rules, so to speak, not necessarily automated rules, but your own rules, the rules to follow that can determine what needs to be turned off sooner so that our return can be much higher.

David (00:54):

Same thing can be said from a lead cost standpoint. So here's what I mean by that. Let's say, for example, you're letting ads run at a hundred dollars a day, but you're not making adjustments to those ads in less than let's say three days. You're actually letting them run for three to four days before touching them. So you're spending three or $400 before determining if something should be left on keep in mind. Oftentimes what's something like a lead. You can determine the lead cost. In most cases within the first one or two days at a hundred dollars a day, if it's $50 a day, you might give it one or two days max, because you could still make that determination of whether or not something's working. Now, if we're looking at five or 10 or $20 a day, you definitely have to leave it for at least two days, because it's not enough budget to supply whether or not the audience you're targeting is going to generate the leads you're looking for.

David (01:45):

But same thing happens with purchases. Let's say you have an e-commerce store. The price of the product is 50 bucks, and obviously you have cost of goods sold and all those other things, but let's say you're willing to break even on the front end just to gather some data. So if the product's $50, you might want to let it run until it's at a hundred or $150 before making a decision on turning off the ad. And that's okay. But if you let it run beyond that and you still haven't turned off your ad, you're bleeding, the budget that you could have used towards something that's working. So oftentimes what we do is we keep ads on in a three-day period, regardless of budget. But in that three-day period, we were making the decision of what is the most we're willing to spend on a lead or a purchase.

David (02:27):

In most cases before we turned something off. So even though we want to leave it on for three days, if the most we're willing to spend on a lead is $10. We'll spend up to $25 before turning off an ad. And so we'll run all these ads. And if each one spends $25 and two of them are generating leads for 10 or $12, we'll leave those alone a little longer because they're slightly outside of the range we're looking for, but they are generating some leads and we need more data to gather if it spends $25 and no leads, come in, turn it off, right? Same thing with an e-commerce product. If it's $50, we'll let it run to about 150. If no purchases are coming in, shut it off. If it's generated at least two purchases, we'll keep it on. So even though that cost per purchase is at $75, well, all it takes is one more brings it below that number and we can gather more data from there.

David (03:20):

So make sure that you understand what it is you need to do in order to optimize your spend so that you could scale from there. And once you have those rules in place, you can apply it to every new campaign you launch for us. It's a 48 to 72 hour period is optimal. The only time we ever go to 48 hours is when it's a higher budget, let's say 300 a day or 500 a day. And then the only time we go to a one day scale, meaning we are making decisions on that same day is when we're beyond $500 a day per campaign. That's the key thing to keep in mind. So if you're doing a campaign budget, optimized campaign, you can make that decision within the same day, especially if you're spending $500 in a day. So with that being said, remember to figure out what works for you in terms of the timeframe to turn off those under-performers most of the time, it's three days. If you're going to go a little higher budget, you can look at one or two days. And then from there you can utilize your extra budget towards the winners. And if you're looking for more ways to scale those winners, module nine is where you need to be. So with that being said, take care of those under-performers and get back to scaling.