The 4-Step Facebook Ads Strategy That Demands Money Flow To Your Business

If Facebook's algorithm is designed to pump customers to your business, why do most people who run ads not make any money doing it?

An article by Glew.io did research to see if Facebook ads were profitable for most people.

The results? Staggering.

75.8% of businesses that spent at least $5,000 in Facebook ads LOST MONEY.

That was in 2015. Which seems like it's irrelevant at this point, but back then, Facebook ads were A LOT less competitive than they are now.

So it's actually become HARDER to make money in Facebook ads since then. I imagine the number has only skyrocketed since.

Between 2017 and 2021, CPMs (cost per thousand impressions) on average increased by 25%.

That means one thing:

ADS ARE GETTING MORE EXPENSIVE & THE COMPETITION IS GETTING MORE VIOLENT & RAVENOUS BY THE DAY.

If you're trying to "make it" in business, one of your superpowers will have to be how to turn SPENT money into MADE money.

But how do you do that on a broken surfboard in the middle of the Pacific Ocean surrounded by sharks who haven't eaten in a week? All while you're broken and bleeding from running your business during a recession?

No chance. Unless...

The Cascade Effect: Watch Sales FLOW Like Niagara Falls After A Flood

This is a process I discovered through thousands of hours of working on my own ads for my business.

I spent $5 million dollars to learn this.

That's a big price tag, I know.

But it's been worth every penny.

That's because I sent every dollar out like a little soldier. Every soldier over my ads career has brought me back 10 prisoners (dollars).

(If you're doing the math with me, that means for the $5 million I spent in ads, $50 million came back to me)

This was all through this strategy: the Cascade Effect.

The Cascade Effect is all about managing flow, and feeding data.

Facebook's algorithm is like the Cookie Monster, only this time, the Cookie Monster can never get full.

You have to feed this Cookie Monster as much data as you possibly can.

If you don't feed it, it'll get hangry and your ads will SUFFER. BIG TIME.

You'll be in the 76% of businesses that LOSE money on Facebook.

So at every step I'm going to walk you through, you have to make sure that in your Pixel settings, data is feeding through back to Facebook.

Otherwise this strategy, and all your ads, will not be able to target people properly.

Let's get to the nitty gritty.

4-Steps To Your Facebook Money-Machine

Your first major step of creating your Facebook money-machine is to get views on your landing page (if you are selling physical products on an e-commerce site, these are product page views).

You will set up your campaign level to target for sales.

Then your ad set goal will be landing page views or product page views. (I'll shorthand to "page views").

You'll see a much higher click rate on your ads with this targeting setup, so don't get ahead of yourself yet.

You need 50 total events that Facebook receives data for in any given period of 7 days for Facebook's algorithm to be optimized for that conversion event.

(see below for what it looks like in Ads Manager)

Once you've optimized for page views, you'll wait until that ad starts converting the next metric:

In E-commerce: Add to Cart

In most other industries: Lead

Again, you need 50 conversions in a 7-day period before this conversion event is considered "optimized" by Facebook.

Pro tip: While you wait for this to happen, you can get other audiences testing against your targeting. If you get 100 conversions in a 30-day period, you can create an effect Lookalike Audience based on that conversion metric. The further you move up the list I give to you below, the more valuable your traffic tends to be. (Look at the bottom of this page for more on this.)

You'll rinse and repeat this process for every conversion event in your funnel. For E-commerce, that usually looks like:

1. Product Page Views

2. Add to Carts

3. Initiate Checkouts

4. Purchases

In most other industries, that looks like this: (assuming you have a funnel that collects leads and tries to monetize a product to pay for ad spend)

1. Landing page views

2. Leads

3. Initiate Checkouts

4. Purchases/Conversions

How To Get Customers as Cheaply as Humanly (or Robotically) Possible

As you move through the "cascade" you'll notice your costs for each metric will go down significantly.

For example, I've seen Add to Cart costs go from $11 each to $1.50.

The truth: I realize that you can't take Add to Carts to the bank, but that's a step your customer has to take in order to purchase anything from you.

As you narrow this conversion data for Facebook's algorithm, Cookie Monster goes from a cute and cuddly puppet, to a badass, Godzilla-looking, monstrosity that rips through your competition's strategy like a lightsaber would cut through paper.

Throughout this whole process of "cascading" conversion data, you'll want to update and test new audiences.

When a conversion event receives 100 data points in a 30-day period, you can create a Lookalike Audience. (Note: we like to wait for 2,000 data points based on principles of statistical significance, so if you want to take it slower, you can wait for 2,000, as it tends to work more effectively)

The list above lays out the conversion events and time periods you can test in your ads manager.

P.P.S. If all this feels like a brick house sitting right on your left lung...

If all this feels like a brick house sitting on your left lung, and you're committed to getting more customers, I've put some time aside on my calendar to help you understand the unit economics for YOUR business and how to make you more money.

Fill out the form below to get in touch.