Transcription
Yo, what's good, chat? Just finished eating some Thai food. That shit's banging. But I'm going to show you guys how I printed 90K in a singular day using Facebook ads. And this brand's been running for a while. It's the last brand I showed you in my last video that did 1.8 million in the past month.
And the reason I kind of want to talk about Facebook ads specifically is because a lot of you guys, whether you're a beginner, intermediate, even some advanced ecom people that have hit multi6figs, I've noticed that the way they interpret their product tests and like how to actually scale it is usually pretty wrong. And if you do not know how to read your metrics, you are [ __ ]. You're going to waste a lot of money, you know, letting product tests run when they shouldn't be running. You're going to be cutting products too early that could have eventually scaled up to seven figures.
So, this is probably one of the most important videos I've made on my channel, and it's what I've had to learn through so much trial and error. Again, if you think you know everything, please just watch this video. I'm going to save you so much money on product tests, and I'm going to show you guys exactly how you should be interpreting everything.
Okay, so these are going to be your basic testing metrics. And again, guys, don't think you're sick and you know all this. I'm not going to go here one by one telling you what each one is. I mean, I will, but the more important part is how to actually read it. Because all these metrics you see right here, um, a lot of you guys can get overwhelmed by them. But the thing is, it's really important to understand how these metrics work together.
These metrics kind of all work together in the sense that you can predict how your product test is going to go. It's never just, oh yeah, my CPC is [ __ ]. Let me just kill the product. Or, oh yeah, my CPM's ass, let me kill the product. They all work together to identify whether you cut or you scale your product. All these work together and it's really important how to read each individual thing and how to combine it together and it's really important to know you know like okay let's say I have a really high CPC what does that mean for the rest of the metrics all these metrics work together and they all influence each other in certain ways where you have to know how to read it cuz let's say again you know your CPC is really high and you're like oh yeah it's over let me cut my product you could potentially be missing out on huge loads of money just cuz you cut it a little too early same thing but the other way let's say your CPC is really high and you're like you know what let me write out, but all of your other metrics are [ __ ] and they're not working together, then you're just going to continue running a product that eventually is just going to fail and flop. So, you're going to be burning money.
I know what I said is probably really overwhelming. So, let's just go through each single one and I'll tell you guys what metrics you should be looking for.
Okay, so CPC's cost per click. Obviously, your cost per click is just how much you're spending to actually get a click on your website. So, whatever that number is is just saying, "Hey, you're spending x amount of dollars and every x amount of dollars someone's going to your website from your ad." So, your cost per click can vary. It could be very big. Um, ideally you're looking for under a $1.50 USD, not rupees or anything like that. Um, this is what your ideal cost per click is. But again, guys, it all works together. There's always so many outliers. Testing products, especially with the way drop shipping is evolving, is not going to just be ideal every single time. Most of the times it's not. So, this is where your ideal range is, but typically you'll find your range to be from $1 to $3. If you're in this range, that's fine. Sometimes it can even be like higher. It can be $4 to $6. And again, that's okay. Don't freak out. It all depends on the rest of these metrics right here.
So, the lower the cost per click, the more traffic you're going to get. And it's kind of a good metric to see the interest in your product because let's say you spawned in with the $1 CPC. That is a very, very good sign. like straight off the rip, that's a really really good sign. You don't really have to worry about the other stuff as much initially. Um, but if you're getting like this ideal range right here, um, that tells you that there's a lot of interest. There's a lot of people going into the product, seeing the ad, and like, "Oh [ __ ]. I want to actually explore more."
So, what a high CPC usually means is that one of two things. One, there's not that much interest in the product. You know, no matter how good the ads are, or whatever, the product itself just isn't in demand. Or two, the product is really niched. It's in demand, but it's in demand by such a small group of people. So that means even though you might have like a four or $5 CPC, the product could be so niche that even though the CPC is high, each click has so much buying power because the product speaks so well to such a small group of people. If that doesn't make sense yet, just wait, let me cook and you'll understand as I go through the rest of these things. And towards the end, I'm just going to tell you guys like what metrics are so [ __ ] that you just have to cut the product. So don't worry.
CTR, clickthrough rate, that basically is just the percentage of the people that actually click through. It's pretty correlated with the CPC. These two together are really important to read. Um, so with click-through rate, you it's going to be a huge variation. Um, ideally you're looking for anywhere from 3 to 5%. Um, that just means again similar with CPC, there's a lot of interest. The proportion of people that are viewing your ad, they're going to your site. So if you have 3 to 5%, that tells you like relatively the majority of the people looking at your ad are interested. So, that's like another really really good indicator of interest. But again, same thing with CPC. You're going to have a huge range. You might have 1% um all the way to 3%. Right? This is probably going to be like your most average cases. Um it could honestly like sometimes I've seen product tests go all the way up to 7 and 10%, which is like insane, right? That's like blowing past the ideal percentage. That's a little bit rare, but you'll see it. If you see some [ __ ] like this, that tells you like similar to having like a dollar CPC, that tells you, wow, like there is a lot of people interested. Like no matter like how many people the ad's being shown to, like the majority of them are interested. You're never going to get a CTR that's like 30%. Like realistically, ads are targeting so many people. So it's like never expect that high of a CTR. But these numbers like 3 to 5, 7 to 10, that's very very high for paid ads. And if you have a really low CTR on the other hand, right right here towards the lower end, like 1%, 2%, it tells you like, hey, you know what? The ad's being shown to so many people, but there's not that much interest.
So, I mentioned earlier that CPC and CTR are very, very closely related. So, what I meant by that is sometimes you'll have a product test that might be like, you know, $3, $4 CPC, but the CTR is really high. That tells you even though that the product cost per click is so high, the interest of those clicks are really high. Bro, there's like a fly buzzing around here. But anyways, um, next thing is CPM, cost per million. This basically is just how much you're paying for a thousand people to see your ad. So this a lot of people would be like, "Oh yeah, if you have high CPMs, you're cook." Like, no, that's not true at all. The ideal for this is going to be about 30. That's not even a dollar sign. Yo, what the hell? It's going to be about $30 to $50 for your CPM. So that means you're paying $30 to $50 to get a thousand people to watch your ad. Again, a lot of people in this space are like, "Oh yeah, like CPMs, like if they're high, you're done." Like, no, you're stupid. Some niches will have high CPMs like beauty, skincare, supplements. Like those you might see like [ __ ] 80 to like even like $150 CPMs. That's okay. Typically, you know, you'll see anywhere from $30 to like I would say like 60 60 70. Um pretty close to the ideal target. I would say CPM does not matter that much. Um as you spend it'll go down. You'll win the auction and Facebook will let you pay less to get 1,000 views. The reason your CPM might be high if you're testing your product, especially in those niches I told you earlier. It's usually just because there's a lot of competitors. That's another good sign um that there's a lot of competitors in the niche. If you have a high CPM, right, that basically is telling you one of two things. One, again, the product can just be trash. It's just not interesting. Or two, that there's a lot of competitors and Facebook doesn't want to give you a cheap cost per thousand views because it'd rather give that cheap cost to somebody else. Cuz let's say you're product testing, you're spending $150 a day. And let's say there's someone else selling that exact same product and they're scaling up spending $1,000 a day. Facebook is going to trust the dude spending $1,000 a day because obviously he's not going to spend $1,000 unprofitably. He's going to spend a thousand because he's scaling and Facebook knows that. What does that mean in Facebook's eyes? Who does it make more sense to give cheaper cost per thousand views to? The guy who's spending way more money and scaling or the guy who's spending $150, right? Facebook is going to want to make it favorable for the guy who's spending more money because that's what's going to make Facebook more money. So the way to kind of lower your CPMs is to spend more. And I hope you guys can kind of see the picture, right? There's so many like little cases where like if your CPM is this, this means this. Or if your CPM is this, this means that. All these things are kind of a piece of a puzzle. So for example, right? Like if you have a high CPM, right, 60, 70, $80, $90, but your CTR is really high, it tells you, you know, hey, there's a lot of interest, but there's probably some competition that scaled up higher than me. Um, that's just kind of a little glimpse at the puzzle. I'm going to explain more of it at the end cuz all these things go together, but try and piece it yourself as I talk about it.
Next thing is CPA CAC. Pretty simple. Cost per acquisition. Cost to acquire a customer. Um it's basically just how much you're paying to get a customer. So if I'm selling a product and my CPA is 50 bucks, um that means I'm spending 50 to acquire a customer. Very basic metric. There is no ideal range because it's dependent on your AOV. But this is really close to your return on Aspen, which I'll talk about in a sec. But there is no ideal range. It's just dependent on your product. Um, if I'm selling like a $30 product, right, I would want my CPA to be about $15. If I'm selling a $100 product, I want my CPA to be about $50, $60. It's it's all depend on how much you're selling for and your costs. And I'll talk more about this with the next metric.
So rorowass is return on ad spend. So, if I'm spending $150 on ads and I got $300 in sales, my rorowass is two. If I'm spending $150 on ads and I got $0 in sales, my rorowass is zero. So, this one again, similar to CPA, it's all dependent on your metrics. So, these two are really important because it's dependent on your COGS and your AOV. So, let's let's say I'm selling a product for $100. Super easy arbitrary number to work with. If I source that product for $20 and again for the sake of the conversation, my AOB is $100, that means I have an $80 buffer to acquire a customer. If I spend $80 on ads, my CPA is $80. That means I'm breaking even because $80 to acquire a customer, $20 to fulfill, and each order I'm getting $100 back. So that's my break even. So in this case, you can just go to like any break even rorowass calculator site or you can just use your brain and do the math yourself. But um my colleges are 20, I'm selling for 100. My break even rorowass is 1.25. So in this case, your ideal rorowass, your bare minimum is going to be about 1.8 to 2. That's going to be your KPI, your key performance indicator. This is your one of your key metrics you're going to look at to either scale or cut your product. Um this is like the low end for this example I gave you. Ideally, you'd want more to scale up like 2.2 2.4. But I hope you guys see like your rorowass, your CPA, right, is all going to be dependent on what your cogs on your AOV is. So, if I'm at a two row s and my AOV is $100, that means my CPA is $50 because you just divide the two. If I'm spending $50 to acquire a customer, that means my return at a two rows is going to be $100 and that's going to be my KPI for this product. So, when you want to scale up, you want to meet your certain KPI where you're profitable, right? 20 30% margin. So, in this case, I would only scale it if I'm at like two twoish rorowass. Um, if I'm sitting at 1.8, eight. Um, I wouldn't scale it. I would just let the budget sit, launch more ads and stuff. But this is really up to you guys in your own IQ to figure out what your target KPIs are for your rorowass and your CPA. But those two are very, very closely linked. And when you're testing, usually, um, I'll say that these two aren't really what you're looking at. It's not as important. Um, just cuz when you're testing, you're gauging overall interest. You're not really gauging profitability. That might sound scary, but again, it's all about learning how to read all these other things together. So I'll talk more about that next.
So next thing is your conversion rate. This is the proportion of the people that go to your site that actually purchase. So if I'm getting for the sake of the conversation 100 visitors on my site and let's say my conversion rate is 3%. That means 3% out of those 100 are buying which means on average three people are buying with every 100 visits. So same thing with this. There's no ideal range surprisingly. You'll hear a lot of gurus saying you yeah like you know 3 to 5% industry average like if you're sitting at 1% converge rate like you're doing something wrong. No that's not the case at all. Probably noticing a lot of question marks here and that's because once you learn how to read these, all of these become clear. It's all depend on these right here. So, let me go into a little bit more detail. If your traffic is super cheap, right, your cost per millie is like 10, 20, $30, your cost per click is like a dollar or even less, that means you're going to have so many people coming to your site. With that, your conversion rate should be pretty low. It's never going to sit about like five or 6%. When you have that much traffic, a dollar per visit, you're not going to sit at that high of a conversion rate. So, if your CPC is like a dollar, you know, you're going to be looking at anywhere from sometimes 1% is even really good. But 1% to 3%. That's pretty normal. But if your CPC is a little bit higher, $3 CPC, you're going to want to look for like a 4 to 6% conversion rate. These are somewhat arbitrary, but for reference, I would say this is a good comparison. Um, if you're paying more visits, if you're paying more per visit, you're going to want the proportion of those visits to convert, right? Because if you're paying $3 for a click, $4 for a click, and only 1% converts, that tells you like, hey, you know, if I'm paying a lot per click, the audience should be really dialed in. Remember what I was telling you over here, click rate CPC. If you're paying a lot for a click, your audience should be, in a good case, it should be really passionate, really warm. Even though it's super niche, they should be really ready to buy. So what that means is if you want to really scale a product with this high of a CPC, you need a high conversion rate. Whereas with a dollar CPC, you're getting so many visits. It's not possible to maintain a 56% conversion rate at scale. You might see initially when you're testing, but when you start scaling to 10, 20, 30k days, you're not going to have four to 6% conversion rate with a dollar CPC. So because you're having so much traffic, anywhere in this range works. I've had brands where I've had $50 cost per clicks and I've had maybe a 1% conversion rate and I've been very profitable. I've had other brands where it was like a$120 CPC with a 2% conversion rate and I was really profitable. So, you guys have to really understand how these metrics come together. And I'm not done yet. Don't worry. I'm just giving you little clues of how these metrics work together so you guys can piece the puzzle yourself. It's really important that you guys use your own brain and understand and don't just view me as like the god of the [ __ ] metrics. cuz if you guys don't understand yourself and you aren't able to put the puzzles together yourself, then you're never going to understand when it actually comes down to your product.
Add to cart rate. This is really really important when you're testing. Super important when you're testing your product. Um add to cart rate is going to also be a very very key indicator of how much interest there is. So there is an ideal range for this regardless of how much visits you have and that's going to be about 5 to 10%. Seems like a pretty broad broad spectrum. But on the higher end of this should be good. 5% also is a decent amount of interest. But add to cart rate. You're probably wondering like okay like if the costs are like really cheap, the cost per clicks are really cheap. Why is this percentage like set? Why is this percentage fixed in stone? That's because when people add to cart, [ __ ] are straight window shoppers. The majority of ads to carts are all window shoppers. So even if your costs are super click, people are still going to window shop, right? Same thing like if you go to a mall, you're going to see a lot of people window shopping. Just because the mall is packed, doesn't mean you're going to have less window shoppers. You're going to have even more, actually. So, your ads to cart, regardless of what your clicks are, should be around this range. And this is just a key indicator of like how much actual interest do they have after seeing the price, after seeing the landing page, how much interest. And this is going to be kind of like your warmest sign of interest, right? Cuz with your CTR and stuff, even though those are great signs of interest, um, when they actually go to your product and they add to cart, that's going to be your strongest sign of interest. So, you're going to want to look for this range when you're testing.
Okay, Subie, you just yapped a [ __ ] ton about numbers and all this stuff. It's probably super overwhelming. I get it. Now, let me put all of this together. I hope you guys haven't clicked off because everything is confusing because now I'm going to tell you how this actually works. So, let's put all this together. I'm going to go down the list one by one.
Let's say you're at a product test with a $150 CPC or under, right? You're getting so much interest there. your costs are already so cheap that your clickthrough rate doesn't matter as much. On the first brand that you guys might have seen on my channel that I exited, I had about 80 cent CPC with like a 1 or 2% CTR there. It doesn't matter just cuz my traffic is already so cheap that this sign of interest is already enough for me to say, "Wow, my metrics are good." So, if your CPC is a dollar and your CTR isn't that great, that's fine. You already met one of the most important criterias, right? Low CPC.
Next thing, CPM. This also does not matter that much. If you have a dollar CPC with a $100 CPM, what the [ __ ] does that matter? You're still getting traffic for a dollar. Your CPM is probably really high just because you have a lot of competition. Cuz if your clicks are that cheap, Meta is going to realize like, wow, like, hey, there's a lot of interest. So even though there's a lot of competition, it tells you that if you keep on launching better ads and you scale, your CPM will go down as you spend more. So I would say like if your CPC is really low, your CTR and CPM does not matter as much. you already have the most important key metric there. So, if anything, it'll tell you that your CPM will go down as you continue to scale and as you continue to break out of that testing phase.
CPA and rorowass. Again, um these things don't really affect it that much. All these again are just dependent on your COGS and your AOV. Doesn't really matter too much about these metrics right here. So, these are all kind of independent, your CPA and rorowass. So, just keep that. Um but it doesn't really it's not really influenced by these metrics right here.
CVR. Going back to what I said, your traffic is so cheap. You're getting so many people on your website. Your CVR doesn't have to be anything crazy. I've seen so many times, so many gurus being like, "Yeah, like guys, like, you need to buy my course if your CVR is dug [ __ ]. Like, you're doing something wrong." No, bro. Use your brain. If you have so much traffic, how are you ever going to hold that high of CVR at scale? So, if you're paying a dollar per click or under, right, your CVR doesn't have to be that crazy.
Add toarts, like I said, no matter what these metrics are, you're still going to look for that 5 to 10% range.
Okay, let's do an extreme example. Let's say your CPC is $4 to $6. I've seen so many people cut their product test just because their CPCs are really high. Honestly, a lot of the times they're not wrong, but I've seen so many times where CPCs are just high, but it's still a winning product. I'm literally running a store right now with $5 CPCs and it has a really high conversion rate and I'm profitable holding multiple K days. So, how do I get there? I'll show you.
CTR, right? If your CPC is really high, you pretty much need a high CTR. You need like anywhere from like this range right here. Honestly, 3% is a little bit low. Like I would say you need kind of this range right here. 5 to 10% CTR. That's kind of what you need. Um if your CPC is that high, you immediately lose this as a sign of interest, right? Because your CPC is high. If you only look at that, you're going to be like, "Wow, there's not that many clicks." Next, what you have to look at is your CTR. So, if your CPC is really high, but your CTR is also really high, it tells you that the people going to your site are really niched down and they're very passionate. So, you know, even though that each click is costing so much money, the CTR, the interest in the actual ad itself is very high and the people the ad is being shown to, even though it's a little bit niched down, they're very interested and they're very warm. So, when you have a high CTR, right, that's going to tell you that your conversion rate should also be really high. But I'll go to that in a bit. So, long story short, if you have a high CPC, you need a high CTR. If it's something like 1 to 3%, yeah, that's probably going to be a dog [ __ ] product. Like, you need a high CTR for that. So, again, high CPC, you're looking for high CTR.
What about CPM? With CPM, again, guys, it doesn't matter. But what a high CTR tells you is even though your cost per clicks are high, your interest is high. So, as you spend more, Facebook will realize that. And even if your CPMs are like $80 to $150 with your $4 to $6 CPC with a high CTR, it'll tell you that over time, Facebook will find that dialed in super niched audience. It'll find the people who will actually want to buy the product. Cuz again, this CTR right here tells you that it's a passionate group of people. So, even if your CPMs are really high, you know, $80, $90 and you have a high CPC, this high CTR right here will tell you there's a passionate audience that wants to buy this product. And as you spend more, this $80 to $150 will most likely go down to 30 or 50. But again, that does not matter. CPM does not matter. I've seen people scaling off 60, $70, $80 CPMs, but uh having the high CTR is an indicator that as you spend more, it'll go down more over time. But you don't need to wait for that to scale. It does not matter.
So, going back to what I was saying about CVR, right? $4 to $6 CPC, 7 to 10% CTR, a lot of interest, right? So, what does that mean for your CVR? That means your CVR should be pretty high. You know, 5 to 6%, 4%, whatever, give or take. It should be around this range right here because you have expensive audience. The audience is interested in your product with a high CTR. What that means is that interest needs to carry over to a sale. So, if it doesn't, right, if your conversion rate is like 1 to 2%, that's just not going to work out. You're paying too much for each click. you're paying way too much for someone to go on your site. If you're pay $4 to $6 a click, you're going to have not that many people coming to your site. So, if you have like, you know, a 1 to 2% conversion rate, that's going to be not that many people, right? Let's say you get a $100 worth of clicks, right? And that's maybe if your CPC is $4 and you have $100 worth of clicks, that's 25 people. Out of 25 people, you only have 1 to 2% to converting. That's dog [ __ ]. You need five to six% at least. So, I know this is all over the place, but long story short, if your CPC is high, you need to have somewhat have a high CTR. You need to have a high conversion rate. And I hope why that's the case makes sense. And again, it's the same thing with add toarts. Your add toarts are always going to be about 5 to 10%.
Okay. Well, what about these middle cases? You're going to probably encounter a lot of product tests where you're going to have a lot of cases where the CPC is going to be in this range right here in about $2 or something. Your CTR might be in the middle of this. It's going to be about like three to four percent. and you're like, "Okay, the metrics aren't bad, but the metrics aren't good either." What do you do in that case? Boom. You start reading these other ones a lot more. Um, again, CPM, the same thing what I said holds. Um, it'll go down as you spend. If your metrics aren't absolute dog [ __ ] right? 1% CTR, $5 CPC. Your CPM probably isn't going to go down. There's not that much interest. But in this middle case where you have a $2 CPC, some decent interest, it's a good sign your CPM will go down. So, don't worry too much about this. Um, but now is where conversion rate and add to carts matter the most. In these middle cases right here where you have a $2 CPC, three to 4% um, CTR. That's where these matter the most. What I've noticed with a lot of my students and stuff as well is they'll get a lot of these tests where it's a $2 3 to 4% CTR and they're like, "Okay, it's not good. It's not bad. What do I do now? You start looking at add to cart rate." Um, before I was like, you know what, 5 to 10% is decent, but when your metrics are so mid, but it's not been enough to cut. You want your ad to car rate to be on the higher end of this, right? 7 to 10% if not more because let's say you have a $2 CPC and a 3 to 4% CTR. You're kind of at the point where you're taking a little bit of a gamble. You need to take an educated gamble. So, what that means is you need to really look, okay, my cost for the traffic isn't really that cheap, but it's not that expensive either. So, what does that mean? you need to make sure that that cost is converting at a decent level, right? So that means your CVR is hopefully, you know, four to 5% on the higher end, right? You're looking for the higher end of these metrics right here. If your metrics are mid, so let's say you're day one testing $2 CPC, 3 to 4% CTR. You're like, what do I do now? I don't want to waste my money. Look at your ad to car rate and look at your CVR rate. Sometimes you might not have sales as well, and that's okay. That's where you have to learn how to really read this ad to cart rate right here. So, if you're testing that product with $2 CPCs and 3 to 4% CTR and your ad to car rates are 7 to 10%, that tells you, hey, even though my costs aren't that great, you know, the people that are going on my site are really interested, so I'm going to keep running it. But let's say instead of 7 to 10%, right? Let's say your ad to carts are dog [ __ ] and they're on the lower end and they're maybe like, I don't know, 3 to 5%. that tells you that this might not be a good gamble to take because your metrics, they're not good, they're not bad, but your add to cart also isn't that great. So, overall, your metrics are just mid. So, now it comes down to whether you want to risk and let it run some more cuz when you test, right, you're spending $100 $150 for 3 days. Um, I'll talk more about this in the next section, but you need to ask yourself, do you have the budget to take this gamble? Cuz if you're spending $2 per click, 3 to 4% CTR, and your ad to carts are [ __ ] and your conversion rate is like pretty bad or you're not even getting any sales, um there's still some potential, right? You might need to let the pixel cook, but you need to ask yourself like, hey, is it really worth it to take that gamble? Because at that point, you're basically gambling. It's no one can tell you if it's going to work 100% or not. So, you need to ask yourself like, hey, do I have the money in my bank account to support this gamble? If you want to cut it, this is a valid point to cut a product after a day or two. proof is running like this, that's a valid point to cut a product. And if it's honestly less than this, right, let's say instead of 3 to 5%, it's even worse. Let's say it's like [ __ ] 2 to 3%. At that point, it's pretty much like a really safe cut, I would say. At that point, you're like, "Hey, you know what? Every metric is just mid. The ad to cards are [ __ ] dog [ __ ]. I'm just going to cut it."
So, I hope this all kind of makes sense on how these metrics play together to kind of give you a picture of what to expect. So to kind of summarize, right, your ideal CPC is going to be a $150 or under. Um if your CPC is a $150 or under, your CTR won't matter as much just because, hey, you literally meet the most important metric, which is cost per click. It's already a lot of interest. So you don't have to worry too much about CTR. With that dollar CPC, you can sit at any CTR. If it's high, like I've had product tests with a dollar CPC with a really high CTR, that makes me even more strongly convicted in the product, right? But if it's a dollar CPC with a 2% CTR, I'm still pretty strongly convicted on it. CPM doesn't matter that much, right? If you're $30 to $50 in that range, good. If not, if it's a little higher, that's okay. It can go down. Don't trip about it. CPA, rows, all dependent on your COGS and AOV, don't worry about that. Again, with that dollar CPC, CVR, it won't be that high. That's okay. Add to cards, you're always looking at 5 to 10%.
If your metrics are really, really high, right, you're going to look for high CTR. CPM doesn't matter. This doesn't matter. This doesn't matter. CVR, you're going to look for a high CVR and you're going to look for a high add to cart rate because that tells you, hey, even though the traffic is really expensive and there's not that much traffic compared to paying a dollar per click, right? Because if you're spending $4 a click and someone spending a dollar a click, you're going to be paying four times more. So, it's going to be four times less people. So, because of that, there's less people. You want a high conversion rate and you want a high toart rate because you want those people going on your site to be really, really warm buyers. And again, if you have a mid CPC, you're going to still ideally look for a high CTR, right? And if you don't and you have mid-CTCTR, that's fine. But again, you want both of these to be high because again, you want the proportion of those people to be very, very warm. And if it's not, right, if all your metrics are just [ __ ], that's pretty much a cut.
Okay, so I talked a lot about cutting, scaling, all this stuff, you're probably wondering, how do I actually do this in theory? So, as you should know from my other videos, if you don't know, shut up and go watch them. Um, my time table for testing is usually 3 days, and it's either going to be $100 each day. If you don't have that much budget, if you're not worrying too much about money, it's $150 a day. And you're going to do one CBO, USA only. Pretty simple. And what you're looking for in these three days is metrics and a few sales. You're not looking for profit. You do not want to be looking for profit in these days, guys. This is not how drop shipping works. With the way ecom is, it's really competitive. You know, you're running ads on Instagram and Facebook, so there's a lot of people launching ads. So expecting profitability within the first three days is not going to be that common. There's going to be some brands that are profitable in the first day, two, day three, whatever. If that's the case, you're chilling. Like you have an easy scale. You have pretty much a pretty good winning product. But most winning products, they take time to optimize. And that's usually because the meta pixel, right, the pixel that tracks all the customers, the way they engage with your ads and all that stuff, that basically tracks your clicks, your sales, everything. It needs time to find who your audience is. Let's say you're launching a beauty product, right? Your pixel, which is like the again the tracker of your customers, it's not going to know who your exact customer avatar is. It'll have an idea, but the only way for it to learn is to spend money. Millions of people are using Facebook and Instagram every [ __ ] day. If you expect the pixel to know on like day one or day two what your audience is, you're tripping. Or you have a sick winning product. Again, like there's some products where it just knows and it's just such a sick product that you're profitable. But most products, they won't be profitable. That's cuz the pixel is learning who your avatar is, who your exact customer demographic is. And you need to spend money to do that. So because of that, we're not really going to look for profit on the first couple days. What we're looking for instead is metrics and a few sales. A few sales, guys. Not like a [ __ ] ton or anything.
So with metrics, right, what does that mean? Day one, you're immediately going to start analyzing your CPC, your CTR, your CPM, and most importantly, your ad to cart rate. You can't really analyze your conversion rate this early within these first three days just because again Facebook is experimenting with so many audiences. Um, you're not going to look at CVR. It's going to be like one day might test audience A, next day might test audience B. And because of that, one day might have like a 6% CVR, the other day might have 1%. Those fluctuations are normal. It's just what comes with the pixel learning and getting trained to the algorithm. So again, you're going to look at more general metrics like CPC, CTR, CPM, not so much, but I'll just put it there. And add to carts.
So, going back to what I said, day one, if you have sick metrics, you're chilling. Let it run all three days, right? But let's say your metrics are just horrible, right? On day one, let's say you have, you know, $4 CPC, 1% CTR, and like 3% add to carts. You can kill that product day one or day two depending on how much budget you have. Again, this is all a spectrum. You need to use your IQ and how much money you have in the bank to decide how long you're going to keep the product running. But if you have horrible dog [ __ ] metrics, you know, it's pretty reasonable to cut it day one or day two, preferably day two, right? Because you want to give it a little bit of chance. But if you don't have that much money, you're starting with 1K or something, you might as well just cut it day one. Um, so if they're horrible, right, you don't need to see it all three days.
If your metrics are sick, right, going back to what I was saying, dollar CPC, [ __ ] 5% CTR, 10% add to carts, you pretty much want to let that run all three days, I would say. Like you want to you want to let it run all three days cuz your metrics are so solid. Um, again, in these three days, you don't need to look for crazy profitability, but with those metrics, you usually should see a couple sales trickling in. And there you can kind of analyze your ad to carts and your conversion rate. So again, don't look for too much sales, but it's all metrics.
Let's say your metrics are mid, right?$2 to $3 CPC, 2 to 3% CTR, and you know, your ad to cart rate is horrible. Let's say it's like a 1 to 2% ad to cart rate there. Um, I would preferably want to cut that at like day two, right? just because, you know, maybe it can get a couple sales, maybe you can optimize a bit within that first day. Um, so I would ideally want to cut that day, two. You want to give it another shot. If you're broke and you have a couple hundred trying to test products, yeah, I'd probably cut that day one. But what you also notice is sometimes it'll be mid and it'll get sales. It'll get one or two sales there. You want to 100% let it go until, you know, day two or even day three cuz you're getting those sales. But let's say you're not getting any sales and the metrics are mid, then you can cut it day two. Or if you're broke, you can cut it day one. And if you get no sales at all and your metrics are really sick, I'll talk a little bit more about this in the next section, but that's where you might want to tweak your offer and stuff. But again, you don't really need to look for crazy sales, guys. If your metrics are sick, you should be getting a couple sales trickling in. If your metrics are mid, you should be looking for a couple sales to continue the product. If your metrics are just utterly horrible, like I said, like even if you do get sales, it might just be low hanging fruit, lucky sales. You can let that run to day two if you want, but it's all depend on how much money you have in the bank. But the only time I really or for me, I pretty much run every test until day three, no matter what, just cuz I have a lot of capital. But for you guys, the only time you should be running a test until day three is if your metrics are like at the bare minimum mid with a couple sales, like one or two sales a day. If your metrics are great, of course, you want to let it run until day three. But that's kind of when I would run a product test until day three. But it's all dependent on your budget and how much money you have. It's it's really important to read how everything is playing together. your add to cards, your CPCs, your CTRs, and depending on how much money you have, you can let it run.
Okay, so here's like a real life example. Um, this is just this is one product. This is my main brand that I'm doing millions a month with. These are all the separate campaigns, but this is all for one product. I'll just put that here. One product. Um, so as you can see, my CPM is a little expensive. It's $60. Some campaigns is $80. I don't give a [ __ ]. And the reason I don't give a [ __ ] is cuz boom, look at these CPCs. Everything's under $150. Look at these CTRs. Cheap ass traffic, really high CTR. This is what it was like day one or day two. And I knew then and there, yeah, I'm scaling this product. And on top of that, this product was getting sales along with these sick ass metrics. Those type of products you don't want to kill, bro. Even if you're not profitable, the metrics are so [ __ ] sick. Like, there's so much interest. I'm paying such cheap clicks for each campaign for my product. And my CTRs on every single campaign is so high. And that tells me there's so much interest in this product. And these are all separate campaigns. Like these are all like pre-lander campaigns, global campaigns. When you're testing, you're only going to have one campaign. But I'm just showing you guys that like no matter how many campaigns I'm launching, like the the interest in the product is so [ __ ] high. That's what allowed me to scale it to millions a month cuz it's there's so much interest. Like this is like probably one of the best metrics you'll see. Cheap ass clicks, high ass CTRs, and at that point your CPM doesn't [ __ ] matter. Like you'll have gurus like crying like, "Oh yeah, you need $30 CPM." Like, no, bro. Like, why the [ __ ] does it matter when your costs are so cheap and there's so much interest? So, this is example of really good metrics. Like, if you're if you see these metrics, you're chilling, bro.
Okay, so here example of four different product tests. So, we have product one, product two, product three, product four. Um, ignore this. So, these are four separate product tests and we'll go down and analyze every single one. So, first test, super high CPM, CPC is mid, so mid, but my CTR is good. This is a pretty recent product test I launched. So, this is something I would keep running until day two or day three. I was getting like one or two sales a day. So, I was like, you know what? Let me see if I
can optimize. So, this even though these metrics, the CPC is mid, the CTR is decent. And on this brand, I believe my ador was about like a 8%. So, that was mid but also good at the same time. So, I'm like, you know what? Let me run this for the full 3 days.
Next one. CPM is pretty good. Mid CPC, mid CTR. This one I also got a couple sales. So I'm like, you know what? With my capital, I'm going to let this run until day two, day three.
Um, if you have these metrics and again, you're not getting any sales and your add to car rates are [ __ ] Like, you know, 5% 4%. This could be a cut. This could be a day one or day two cut depending on how much money you have. But again, this is still good enough if your add to carts are good. Cuz on this brand as well, like pretty much on all the products I test, my eye is decent enough where I know my add to cards are going to be high because I'm not testing [ __ ] products. But on this one, even though the CPC and the CTR is mid, um, the add to cards are good. So, I'm like, you know what? Let me continue to run it.
This one, this is a winner right here. This is another brand I'm slowly scaling up. Really, really good CPC. Really good CTR. It kind of looks like my million-dollar a month brand that I was showing you, right? My million dollar a month brand in the previous screenshot was a dollar CPC with a 56% CTR. This is even better. This is no question about it. Even if my add to cards are [ __ ] I'm still going to run it. So, even if my add to carts are [ __ ] you know, I'm still going to run this because the metrics are so good. Um, in that case, I'll probably have to offer tests and stuff, but I'll talk more about that. Again, as I said earlier, I'll talk more about those little one-off situations towards the very end of this video. So, but yeah, regardless, the metrics are so good, I'm just going to continue to run this no matter what.
So, for the fourth case, again, kind of like these mid examples, mid CPM, mid CPC, mid CTR, depending on my add to car rate and the sales, I'm going to run this for day two or day three. So, that kind of gives you some real examples of how to actually analyze your ad manager. So, please be sure to apply this to your own product tests.
Okay, so I mentioned I would tell you what to do on these like one-off situations where your metrics are good or mid, but you have low add to carts. Um, this could either mean one, your product is [ __ ] It can mean two, your landing page is [ __ ] Three, which is probably the most common situation, your offer is [ __ ] So, these are the kind of three situations. Um, again, like I said, this one's going to be probably your most common.
So, the first one, your product being bad. Um, if this is the case and you're a beginner, you don't have that much capital, I would just kill the product. And the way you'd know this is if your metrics aren't getting that better after each day, your landing page is really good, um, your offer is really good, right? If all these things don't apply, that means your product is just [ __ ] That's what it means. But a lot of the times with the beginners, I see their landing pages are [ __ ] their offers are [ __ ] and they think their product is bad, but in reality, it's their offer or their product photos or whatever. So, a lot of the times, guys, I'll have people come to me saying their product is bad, but it's usually one of these two right here. But genuinely, if these are really good and your metrics aren't getting better, um, that's mostly a kill for your test. If you're experienced and you have teams and stuff, you can try testing more ads to see if you can dial in the product audience a little bit better. You know, warm them up a little bit more, but most of the times it's a kill.
Um, the second situation, your landing page being [ __ ] This is mostly going to be your product photos. They're not doing enough educating. Um, I've talked about this so much, but this is all meta is all cold traffic. They're people just scrolling on their phone without really any intent to buy. It's not Amazon. They're not coming to Instagram or Facebook to buy. So, their attention span is going to be that much, right? You're gonna have to You're gonna have to educate them through product photos.
All right, I just got interrupted, guys. I just got some [ __ ] nice ass steak from the private chef, you know? Um, don't call me a fat ass in the comments. I got to get the gains. You know what I'm saying? Anyways, what I was saying was with product photos, um, customers are super cold. They don't have that much attention span. You're going to want to convey all the information about your product really visually. Uh, what I noticed with beginners is they'll just put photos of their product and nothing more. or they or they'll do too much writing. You want to make it super visual and super aesthetic and educate them with just pictures, imagery, and a couple bullet points. I can show you a quick example right here. Uh this isn't my store, but good example of really visual bullet points, really visual images. Um these are kind of what good product photos should look like. That's usually the biggest mistake I see. So, make sure that's pretty much dialed in.
Next thing is offer. Go watch my other videos. I'm not going to talk too much about this, but make sure you have a cold friendly offer. So depending on what what makes sense for your product, but buy one get one free free gift. Um sometimes like a quantity break like BOGO 50 like buy two get a discount. This isn't that good. These are much better, but you want to make sure it makes sense for your product. If you're selling a backpack, BOGO doesn't really make sense. Like why the [ __ ] would they need to? Um but if you're selling like clothing or like some like accessory, BOGO makes sense. Free gift. This works for like fitness or like high AOV products. if I'm selling like a [ __ ] vibration plate like resistance bands as a free gift might be good. So pretty much make sure you have some sort of offer in place and if both of these things are good and your add to carts are still [ __ ] and your metrics are [ __ ] product is just bad. So keep that in mind.
Okay, real quick I'm going to go over some metrics that matter more so when you're scaling. Um you don't really want to be looking at these when you're testing too much just cuz um all these require a lot of effort and a lot of time. So, this is what really matters when you're scaling because you're going to be testing ads and stuff. You want to make sure you want to make sure money is not bleeding.
So, the three, this is pretty general, um, but the three most important ad metrics I kind of look at are hook rate, hold rate, frequency. Hook rate, basically the rate at which your customer stays for the hook, right? So, the first like two or three seconds of your video. You want to make sure at least 40, not even say 50 to 60%, but let's just say 40 to 50. 40 to 50% of your viewers are staying at least for the hook. So, the first two to three seconds hook is literally the easiest [ __ ] thing you can do. Um, if your hook rate is [ __ ] so let's say your hook rate's like 20 to 30% and not at this like 40 to 60% guideline that we have right here. You're literally missing out on 20 to 30% of customers just in the first two to three seconds. That means your ad can be great. The copy, the body could all be great. Say a minute ad, all that's great. But if your hook is [ __ ] [ __ ] you could literally be missing out on 20 to 30% extra customers, which could literally mean hundreds of K in revenue if your hook is bad. So that's why hook rate is really important. And honestly, it's not that hard if you have a good understanding of your customer demographic. So be sure to look at it. Let's say for like a winning copy, you know, everything is good in the body. Um, and your hook rate is like 20 to 30% and you're still profitable on that. Imagine if hook rate was actually meeting KPIs and it was at 40, 50, 60%. You could literally double your [ __ ] revenue from the ad if your hook rate is good. So, this is really [ __ ] important. Always be looking at it.
Hold rate. This it doesn't matter that much, but 15 to 25%. Basically, the customers that make it to the actual body of your ad. Um, if this is [ __ ] if it's like 5 to 10%, just make sure your copy is good. Make sure your visuals are good. Make sure you're not using too much stock footage. Make sure you're switching up the visuals as fast as you can, especially in voiceover ads and stuff. So, um, make sure it's really, really good. Especially for UGC ads, you want a really high hold rate just because it's supposed to be super authentic and stuff. So, if your hold rate is [ __ ] figure out what type of ad you're doing. If it's a voice-over ad, make sure your copy is good. Make sure your visuals are good. Make sure the visuals are fast. Like I was saying, if it's a UGC ad, make sure you know it's an authentic ad. It doesn't feel [ __ ] so salesy. Cuz if it's super salesy and it's super like just [ __ ] your hold rate is going to be ass. So, be sure to look at this as well. But hook rate is always going to matter way more.
Frequency. This is basically just the amount of times your viewer sees the ad. Um, you want to make sure this isn't exceeding like 1.5. Like it should be less than 1.5. Um, if it's more than 1.5. So let's say it's like around two, that means it's like a retargeting ad. Um, that's what Facebook Visa has. And retargeting ads are basically just ads that are like kind of bottom of funnel, kind of targeting customers that are much warmer, people that have seen your ad before. So this could be like a bottom of funnel ad like 50% off sale or something or like review of brand's product, right? Something that's not catered to completely cold top of funnel people. So if you see your top of funnel ad is having a really high frequency around two, um that means something's wrong and your ad copy is probably [ __ ] and Facebook thinks it's [ __ ] So make sure it's around under 1.5. Um if it's also really high, it could be ad fatigue as well. So just watch out for that.
In terms of the site, we have add to cart to purchase ratio. So this is really important. Um, basically just saying what the percentage of people who add to cart actually buy. What's that percentage? So, let's say I have 100 add to carts. Um, you want ideally anywhere from 20 to 30 actual purchases. So, like a 20 to 30% ratio. I typically hover around the 30% ratio for my ATC pair. So, if that's not the case, if it's like 10% something dog [ __ ] probably your price, your offer, or lack of trust. So, that can mean your site is [ __ ] dog [ __ ] Um, you might want to have a prelander. It's going to kind of tie into your conversion rate as well. So, any problem your conversion rate has, usually if this is [ __ ] it's probably the same problem as your conversion rate. So, offer price, trust, make sure you look at that.
RPV, really, really important. Um, this is revenue per visitor. So, typically, you're going to have about a $2, whatever. Um, this is also dependent on your cost per click. Let's say your cost per click is a dollar, right? You're probably going to want a $2 RPV. pretty much two x ROAS. Um, if your cost per click is more expensive, right, like two to four dollars, you know, it's going to be a lot higher. Your RPV should be a lot higher if you're profitable. If your RPV is bad, um, it's all just going to be offer pricing. You want to offer test, price test, anything to get the AOV up. RPV is really, really important when you're AB testing. Uh, this is kind of advanced, but when you're testing like different things like prices, offers, landing pages, um, the main metric you're going to look at is RPV. Really, really important. But these are all things that are necessary when you're scaling. This is just to give you an idea of what to look for when you're scaling. Probably not that relevant to most of you, but just thought I'd add it in here.
All right, [ __ ] it. While I was editing this, I was like, let me give you guys another metric just cuz uh I didn't include it the first time cuz I don't know how many people this would really apply to. But this is for the people that are actually scaling. But this is more so for people who are doing like multiple six, seven figure months. Um, NC ROAS versus ROAS. Um, this probably looks super confusing, but this is basically new customer ROAS and this is just your overall like all customers. So, the reason this is really really important, very important, um, is because this is going to matter way more than scaling than this one. And that's because when you have a big brand that's doing multi-ix, seven figures a month, you're going to have a lot of return customers, right? And when you have a lot of return customers, your ROAS is going to be inflated, right? Because you have more people buying, right? And in niches like supplements, beauty, any any sort of product where they need multiple of it or where they can need multiple of it, your returning customers are going to be really high. So, let me just include this right here. Return customers. This includes return. This does not include return customers. So, let's say you're doing a thousand orders a day when you're scaling, right? And let's say out of those thousand um only 800 are new and let's say you have 200 return. So your ads, you know, they might not be getting these 200 returns. This could be from emails. This could just be because they bought the product and they liked it. These are not attributed by your ads. These are not getting top of funnel cold audience. These are all just people who know your brand. So the reason this matters is let's say you're at that 800 new 200 return customer and let's say with that your overall ROAS is two, two ROAS and it's inflated because those 200 return customers are within this two ROAS right here even though your overall ROAS is two. Even though it might look good at first, even though it might look good at first, right, your ROAS is two, it's made up of the 200 extra return customers. So, it's inflated. What that means is your new customer ROAS is probably like 1.8, 1.9. And to a lot of people, it might not matter that much. It's like, oh, whatever. It's just a 0.1 difference. But this could get more extreme. Let's say you have like [ __ ] 600 new customers in 400 return cuz you're selling some sort of supplement, whatever, or even running subscriptions. um this number your your new customer ROAS could be like 1.6 while your overall ROAS is going to be two. And what's going to happen is if you only look at your overall ROAS and now your NC ROAS, you're going to try and scale up your ads when in reality your ads aren't performing. They're not getting new customers. The whole point of your ads, your overall ad account is to get new customers. Sure, you're going to have some retargeting ads. Sure, you're going to have some like bottom of funnel ads, but your whole point is to get new customers. Top of funnel, that's what's going to be eating up most of the spend. So, if your top of funnel is only working at like a 1.6 to 1.8 ROAS and your return customers are inflating it to a two and you keep on trying to scale it up, right? You keep on trying to scale the budgets up, then this is going to continue tanking and tanking and tanking and in return, this is going to tank. It's going to go down. So, when you're scaling, it's really important you look at NC ROAS. Um, just because that's what's the goal of your ad account and not your overall ROAS. So, I hope that kind of makes sense. Um, I'm probably just yapping to a bunch of you guys, but to the one or two people, this might help. I hope it helped.
Also, real quick, guys, I know the tools that I mentioned and a lot of other people mentioned that are necessary for ecom are pretty expensive, like Cale Data, PP Ads, Canva, Flare, all that stuff. Um, so I just wanted to show you guys this tool. Um, I know other people use like different tools to access all those programs, but there's something called Luxury Tools, which I personally use. Um, I'm serious. I actually use this. basically gives you all these tools right here. Cale data for product research, PP research, winning hunter, even ChatGPT, Canva, Flare for product pictures, like AIGC, a bunch of [ __ ] Atria for ads. Um, basically gives you all that at like $20 a month. And it's [ __ ] sick cuz you get your own browser and a lot of the other tools when you like there's other tool services um that give you access to the same ones, a little bit less, but they like log you out. And that's what I noticed because a bunch of my like in real life friends are starting to get into ecom and stuff and they were trying to use those tools and they would always get logged out. And my friend told me about this and I was like, "Holy shit." And it's [ __ ] sick. They have their own browser and like anytime you log into these tools like Cale Data, I just opened it as you can see I'm using it. Um, it doesn't log you out ever and you can literally launch a bunch of [ __ ] like PP ads. If you want to go look at TikTok ads, it'll just log you in. Um, even like ChatGPT, which is [ __ ] crazy. and you all get your own little login which is sick. So if you guys want a good ecom tool provider to use, this is really really good and a bunch of my students are using it. So just go check it out if you want.
So that's pretty much it in terms of this video. If you actually make use of this video, this should save you a [ __ ] ton of money. Every video is honestly something I wish I [ __ ] learned. I'm just dropping mad [ __ ] sauce, making it as easy as possible for you. This video, if you actually listen to it, it should save you hundreds if not thousands of dollars from testing products. says, "With this video, we should have learned one, when to kill a product test early, which could save you a couple hundred. When not to kill a product test early, which could literally save you a six or seven figure brand in the making, cuz imagine you have a winning product and like, oh, the CPMs are trash." Like, and you cut it like, bro, you just [ __ ] you just gave somebody else a free winning product. You just threw it away. So, this could literally save you a six or seven figure brand. You also learned what to do when you're like, "Yo, what the [ __ ] The metrics make no sense. It's not bad. It's not good. What do I do?" You learn what to do there. You learn the basic metrics of scaling and what to really look for so that you don't bleed out your money on [ __ ] [ __ ] ads. So, probably saved you a couple thousand dollars there. This is what millions of dollars of ecom has taught me. So, please take everything I said to heart. Don't let it go through one ear and out the other like a [ __ ] [ __ ]
If you have any questions, you could drop it down. I'll be responding to comments a lot more. I do have a one-on-one membership. Um, if you're one of those kids in my comments that are like, "Oh, why are you selling a membership? You're fake. your your money is not real. Like, bro, shut up. When you have systems in place, running a business is not that hard. My day is literally just waking up, checking on my employees through like WhatsApp and Discord and stuff, making sure the ads are good, maybe looking for products, done. I have [ __ ] eight hours of my day left to go and I don't know what to do. I'm also saying this because there's a lot of retards online that I've had to [ __ ] unfortunately go through that sell [ __ ] So, if you're looking for a good place to learn, go to me. If not, my YouTube videos are more than enough. But I'm just throwing it out there. But besides that, let me know what you guys want to see next in the comments below. And I will see you guys later. Keep scaling. Keep making money. Peace.