I recently got a comment from one of my subscribers who said he is making around 5-10 sales every day from his drop shipping store.
Every couple of days he increases the budget by 20%.
However, he noticed that the more he increases the ad spent of his winning ad sets, the worse his results are. His ROI drops like crazy and he’s getting less sales although he’s spending more money.
This is a common misconception when it comes to Facebook ads. It’s very common.
Facebook ads don’t follow a linear curve.
It’s a bell curve.
There is no linear relationship between the ad spend and your results. So if you just keep pumping more money into your winning ad sets, your results won’t increase in a linear way. In fact, your results will start to exponentially get worse after a certain spend is reached.
Since Facebook ads work like a bell curve, there’s a peak and also a drop off point. At the peak of the bell curve, you get the most results for the least money. Right after that your results will decrease. And that’s not good.
So the key to scaling up Facebook ads is to scale up each individual ad set until it reaches the peak of the bell curve. You can do this by incrementally increasing the ad spend of an ad set and seeing how it impacts your results over a one week period. Once you’ve discovered the ad spend that gets you the best results, don’t touch it again.
Instead, scale up by going wide rather than deep. Instead of pumping more money into your winning ad set, start duplicating it or target additional interests. Create new ad sets and run them in parallel.
Most of the time it’s better to have 100 winning ad sets running at $1 per day, rather than having 1 ad set running at $100 per day.
Always keep in mind that advertising is counter-intuitive.
You can’t follow your intuition when it comes to running Facebook ads. A lot of things will go against common sense and many of your assumptions about advertising are simply wrong at this point.
That’s not a problem.
Keep this bell curve paradigm in mind when you set up your ads next time and you should be able to get much better results long-term.
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