Transcription
Hello Facebook, as people, I'm Ganos, and today we're going to discuss why you cannot scale with one product, one creative, and why eventually your ad account is failing after doing so many videos and explaining this and that and the other. I just see the trend of some questions coming, and I'm guessing they are coming because of the crazy method. So, a lot of times, people think that they will take the crazy method, that if they have something which is working, they will make it work 10 times more. Yeah, if the market is there to actually absorb all of these ads that you're going to do.
So today, because I'm getting a lot of times the question, "I have only one creative, only one uh, winner product, how can I scale it?" A lot, maybe you cannot, is the answer. But today, we're going to explain why so that we can have a visual example which I have created so that all of us we can understand why you cannot scale by just having only one creative, and why Costados is saying again and again that you have to scale with many campaigns, many creatives, many products. Because if you don't do so, eventually Facebook is going to stop you, and you're not going to be able to scale and spend more or scale more in a profitable way.
So, for the sake of this example, I want you to imagine that this here is is one country, okay? So this year, it's 1 million population. Let's call it uh, Jonathan. So we have the the country Jonathan over here which is having 1 million. We don't need this in million. So let's discuss a little bit about this country which called Jonathan. Let's say that inside this country we do sell this pen, and we, for the sake of this example, we have to say that we are the only people that we are selling this pen, and the daily consumption rate of this pen is 12 pens per day. So if we're going to do ads, no matter how many ads we're going to do, we're going to sell 12 pens per day because this is what the market can absorb. Of course, in this example, again, I'm not going to add other factors like competition which is selling pens; we are the only one selling. I'm not going to add factors like passive competition, which means that some people are going to buy a pen or something else, so they have to decide if they will buy one of the two because they like both and they have money only for one. So this is also outside of the equation. And last thing that we are not going to have as a variable over here, but uh, for the sake of this example, we're going to keep it 12, is that we don't have good days and bad days; all the days in Jonathan Country and with 1 million population, they are actually very good days, and the people are buying the same things every single day.
Hi guys, I would like to interrupt this video in order to talk to you about my new mentorship programs, and uh, I would love if you go to the website; you're going to find the link in the description, or you can find it in the menu of my website, and over there you're going to be able to see the different mentorship programs that I have. You can find the one that's is going to fit better your needs, and I will hope to see you there.
So in this boring country, people are buying only from us, which we have a monopoly, 12 pens, these specific [Music] pens. So what is happening here is that if we do one campaign with $100, and we're selling six pens—remember, here we're having the same creative, the same product, and we're just doing ads in order to have to actually cover this demand—so we're having with $100, six sales. We do another $100 campaign, exactly the same, you know, as you do in some of your accounts, and you are having another six sales. And then you do a third campaign with $100, but suddenly you're not having six, six, six sales; you're having 4, 4, 4, because the demand is still staying on 12, and you are just stealing two sales from each campaign in order for you to be able to have another campaign.
So what did it happen here in this boring Jonathan land, that we everything is the same every day? If you don't change something, then the demand is going to stay the same. For example, if you change your offer, then you're going to be able to actually lure more people. If you change your creative, there are not going to be only 12 people buying because now with another creative, more other people are going to decide if they're going to buy or not. So instead of 12, maybe you will go to 16. If you're going to change the fact that people are coming and they're buying one pen, but they buy also um uh the thing that they replace inside in order to uh, ride, so that when the pen finishes uh, they have another um, how how do we call that? A few minutes later because I'm bored of Googling it. Let's say replacement part, okay, replacement part of the pen; they take another. So we have higher AOV. So now we are able to profitably spend $100, $100, $100, even if we get four sales on each campaign because at the end of the day we are getting more money within the website from the AOV.
So I hope that this visual example is actually helping you understand how the demand is being uh, made, and why you cannot just scale with the same thing over again and again and again. Now, on top of that, we have a boring uh, State, as I said, that we have a lot of things that they are staying the same so that I can explain to you, but now I want you to add more things. If in our boring land we had good and bad days, some days the demand was going to be 10, sometimes it was going to be 14, and if we had the month with bad days, maybe all the days were going to be between 8 and 10. So over there our campaigns were going to struggle. If we have now competition which is also selling pens, and let's say that in the boring land someone else came, and suddenly instead of us being able to uh, I'm not going to say that he took half of our market, but he took let's say 30% of our market, so now we're selling four pens less. We are having this kind of situation of um, having new rules coming inside the game, and then we have Meta doing changes; we have uh, a period that more people advertise, so it's more expensive for us; we have bad periods; we have uh, competition; we have passive competition which I explained. So this becomes more and more difficult, and this is why in my initial example I just removed all of these factors so that you can understand why you cannot scale by just using the same product, the same creative, all over again, again.
Even if you ask me 1 million times in these comments and in all of the questions that you do, "How can I scale?" The answer is going to be the same: keep doing it until you are going to be able uh, to see that it's not helping you anymore, okay? You're just losing money. The problem over here is that we cannot know, like in my stupid example, if you can sell 12 per day; we don't know that, so we have to just try to find it, so so that's the biggest game over here, doing ads. Even if you do the same campaign, eventually it's going to collapse because there's not going to be enough demand to the market, and your ads are going to become uh, super expensive. But if you are able to do that with different creatives and all of that, and you are always by just doing a new campaign you are also introducing more people to this daily demand trade, then you are actually going to be able to scale.
So that's my example. I hope that I helped you understand more on how this thing is working and why you cannot scale as much as you want with just one creative and one winner product and one winner creative. Don't forget guys that if you want to learn more, you can check my book, my course, my website, and of course my mentorship programs. And until we meet again, be creative and be C [Music].