My rule of thumb is that if I'm willing to spend $x amount of money for one sale, then I should be willing to spend up to 3 times that for the first sale - given that sales don't come in a regular clockwork pattern but will be in bunches with longer gaps in between the bunches. (The math behind this comes from a 95% confidence interval on the Poisson distribution.) So, you have $5 profit per item? How much of that are you willing to spend on advertising - maybe half? If so, then to be worth using, an advertising channel had better not cost more than $2.50 per sale in the long term average, and you should cut off the advertising after you've spent $7.50 without it bringing you any sales, because it's not working well enough to be profitable.
Throwing money into a new advertising method can make sense if you have some reason to believe it will be better. But there's a basic calculation you need to do here of how much you're willing to spend. Don't spend more than that much.
Just canceled it, day 3 no sales 22 unique link clicks. $15 spent. Matthew would you say this is a strategic way? As in if I continue to do this i will make money eventually or am I just following a false vision that these youtubers portray to get likes and followers? Basically Im running ads for products that have a two niches cross so i can flex target a group of people. Im new to this and Ive tested about.. 10 products spending around 50$ with no success from any. My best one is this rick and morty one with about 22 unique link clicks. Any advice? Im trying my best to make this work. Ive spent about 8-12 hours a day the past week watching youtube and fixing the website up if that says how badly im wanting this to work.
Well, I can't promise what the future holds. But I do think you should think carefully about your business model. It looks like your target market is simply "people who don't know AliExpress exists" - because except for that, there's no real reason for someone to buy from you at a higher price when they could get the same products from the same manufacturers with the same shipping times cheaper by going direct. I don't think that's a profitable market to be in.
My own store sells products that cannot be had anywhere else, with a clearer idea of who will buy them - and I'm still struggling, months of time and thousands of dollars in. It's not at all clear I will ever make a profit.
First of all, leads from Facebook, like from any other platform are not always qualified, and $5 is not that much even. Instead of running ads, I'd more rely on organic leads. I see you target TV show addicts, so why not go and "hang out" with them on Twitter, Tumblr or any other social platform. Thus, you can generate more qualified leads.
But what refers to conversion, I see you are missing the most important an must-have conversion tools for ecommerce stores: livechat, lightboxes (pop-ups). These are essential, especially if you are new. You can try using Backtocart to create time-triggered lighboxes. They offer free templates and advanceed settings.
PS: I am a big fan of Riverdale. I am thinking about buying one of those cases.
Hey Lilit thanks for the advice! I just added live chats but after I posted the original question I did something new and generated 100$ in two daysish So i think Im on the right path. Do you know any good easy ways to email people who left something in their cart, email customers promos, and well made free popup apps? Thanks!
Hey Garland - I help power stores for many owners, including my own at www.qualitybreeds.com and www.chemist.agency. While the folks above are correct with what they're saying, a thick budget isn't always the only consideration. And by the way, startups are going to lose some money upfront to get the engine going and finding traction with an audience. To expect you'll meet or beat your needed customer aquisition cost out of the gate is just unrealistic. You'll burn some money, the key is to have enough margin to make it up on volume as you grow. For this reason it's important to have a diversified marketing plan, from offline (b2b opportunities and partnerships) to direc-to-market options in hand. Display ads should only be one part of your efforts, not the only one. However...
For Quality Breeds, I started by running A/B split test ads to see where some traction was on Facebook. I researched facebook groups and websites within my marketplace, among other things. The best place to do this is within Facebook's Audience tool. After I find some groups, sites, fans, and more, I build a micro-targeted ad to hit those specific groups within my demo. I find audiences around 100k-250k and start playing with ads around $60-$200. The photo provided and link (https://t.co/9AbBobuIHS) to my short video give you an example of this from my three day test. Now, when I find a couple promising targets, like the one shown.... I dump money into them to the tune of $1k -$1.5k over a week or two.
There is an art, a calculated risk that is taken when you do this. But to play in eComm, well, you either put up or shutup; there is simply too much competition to pony around. People either like your product or not. You have to have the right product, a strong message, market differentator, a marketing budget, and more to really make something pop.
Hope that helps direct you some. Make it great! -Robert