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PROFITABLE Dropshipping Products WITH Facebook Ads – How to VALIDATE Products!


When it comes to profitable dropshipping
your ads are just as important as the type of product that you are selling a
very common question that I get often is what country should i target when it
comes to my facebook ads and on the flip side of that is what country should i
target when it comes to selling my products in general in this video I will
answer exactly that so if you follow me you know that I’ve found success by
using Facebook Ads but the platform continues to change the
statistics that you see here though is great and this is a part of the Facebook
Ads challenge that I ran about a month ago and this is just purely the month of
August or half the month of August because today is the 13th of August not
sure when this videos gonna go up but within half the month you know we can
see a six times row s are already from the 8k spent and this is a really good
result but a lot of people they don’t really understand the profit margins and
structures to the exact row s here so let’s talk to that first then I will
drill into what sort of countries that you should target with what sort of
product so going on to my whiteboard here let’s talk about the product cost
and selling price first because this is really important to Facebook Ads okay
let’s start off with product cost first so let me initial PC and by the way I’m
using my mouse again so excuse the bad handwriting but product cost starts up
front and then we’ll break it down in a second with prices and examples but the
second thing you want to add in here is selling price so that’s the selling
price on Shopify or whatever platform that you’re using plus the markup okay
that’s the markup then there is disparity between these two equals the
profit margin so that is the moneymaker here okay so this is the product cost
with selling price plus markup the disparity between these two equals the
profit margin now pretty straightforward stuff however when it comes to Facebook
ad okay we need to keep this in mind this
profit margin is extremely important when it comes to Facebook Ads
because the profit margin equals the Facebook Ads maximum CPA so when it
comes to Facebook the CPA allowed equals profit margin okay
the reason being here is because the CPC NCPA should be determined by the profit
margin the profit margin will guarantee whether you break even or not so this
might all be confusing but let’s use a specific example here let’s say you sell
a $60 bag the product cost let’s just pretend you got this from Aliexpress is
$30 okay so therefore the selling price is $60
therefore the mark-up is $30 your profit margin is then 50% so a 50% profit
margin is $30 and this is pretty simple so far so from that your profit margin
is then your maximum Facebook Ads CPA you know you you can only have a $30
margin to play around with on Facebook Ads to achieve break-even profit margins
so you only have $30 to achieve that CPA on Facebook no more than this otherwise
you’re a negative now that’s that’s pretty straightforward but a lot of
people don’t seem to understand this concept and ideally you should have a
low CPC to be profitable so let’s say you know in the bag niche clicks aren’t
that expensive if you’re getting $1 clicks then you’ve got 30 30 people okay
on average viewing $1 clicks and you’ve got 30 chances to convert and get
someone to buy the bag itself now that’s not bad at all but ideally you don’t
want to spend all your thirty dollars on getting that conversion otherwise you
know not make a single cent and so from here you know
with a thirty thirty dollar CPA you’ve got to calculate the average conversion
rate so the average conversion rate in an econ store is roughly three to four
percent so three to four percent is your conversion rate typically okay unless
you have a really great store with a really great product and a whole bunch
of different variables and that is why conversion rate is so important to boost
up rather than you know trying to trying to do anything else so conversion rate
is three to four percent if you’re getting 30 people in there three to put
three to four percent of 30 that’s typically how many people you’re going
to convert in general so from this you know general formula you can see already
the number of people that might convert and that might not convert and what you
should be playing around with a lot of people they just throw in money into
Facebook ads and then just hope for the best but that’s not really an effective
way you need to treat it as science going on beyond this okay let’s go into
some statistics here one large variable to cost per click you
know in cost per click is extremely important to gaining that profit is the
product and niche itself so for example if you’re selling a kayak or general
high ticket item you’re going to have a very high cpc’s but you can afford
higher CPCs our cost per clicks as a product has higher profit margins to
play with now secondly and the very common question that I get is how do I
know which country I should sell product to or which country I should target in
my ads so these are the statistics that I want to get into surprisingly the
impact cost per clicks and your profit this impacts your cost per click and
profit massively and this is the CPC by country now and this is the latest data
that I could find and this is pretty important stuff to bear in mind with
your next ads that you push live now I’m in Australia and the CBC in Australia is
surprisingly very very high so the average cost per click in Australia
is almost at that dollar mark and this is by far the most expensive according
to at espresso the average overall worldwide is roughly thirty thirty-five
cents so looking at this you know if you were if you have a global audience that
you can sell to and you’re not restricted by country then you should
take a look and understand the CPC charts by country and see where it might
be appropriate for you to sell your product now of course certain countries
might not make sense for instance Taiwan you know they’re not predominantly
english-speaking country yes they do speak English but Chinese is still
dumping their first language so from that you know if you’re from the US and
you’re selling a product that is let’s just say American culture driven then
you’re not going to sell in Taiwan just because there’s cheap clicks doesn’t
make sense but if you do have something that is relevant to their culture let’s
just say like a bubble tea case if you guys know what that is then that’s
that’s going to work really well with Taiwan now of course you have to tell
you ad copy and whatnot to suit that region but you know with you know 15 15
cent clicks on average that’s that’s insanely cheap and I’ve seen something
similar so what’s really important when you start to scale and you’ve got a
winning ad winning product as well then the next thing you need to think about
is beyond just winning ads in Australia I had to spread it out beyond Australia
and target different countries and what I did was look at this chart and analyse
which country I should hop into next from my experience Singapore works
really well for me see PCs are about average but they can be driven down
further as you can imagine and they’re really receptive to purchasing products
in general so that’s another thing you need to bear in mind it’s not just cheap
cpc’s but the country’s purchasing power the consumers purchasing behavior which
is extremely important to get that conversion
– but going further down United States is pretty pretty fair surprisingly when
it comes to cost-per-click averages about 25 cents now this is surprising to
me because when I advertised in the US when I do advertise in the US it tends
to be higher cpc’s from my experience but this chart in general is really
important and I want to show you a couple more charts – which are extremely
important to the second chart is the CBC by campaign objective now campaign
objective you know this is very important when it comes to your overall
strategy but breaking it down you can see that reach has a CPC of $1 no
surprise because the objective here is not to get clicks but to reach as many
people as possible most people are not going to click onto the ad so you get
that’s hence where you can see a dollar CPC in comparison to the other adage ad
objectives video views 61 cents I love you views for good reason off-site
conversions 37 cents so that’s about average no surprise because conversion
can’t painter by far the most popular and page engagement has the lowest CPC
and again that’s not really any surprise there but overall you can see how this
all impacts CPC and the point here is to give you an idea so you can be weary of
your campaign objective and also your targeting options and how they impact
cost per click and going back to this how it should impact your bottom line
and profit margins because you have a limited amount of budget to spend
effectively on Facebook and most people don’t bear that in mind the next chart I
want to show you is CPC by month as you can tell there’s a lot of variables on
Facebook beyond just these charts that that impact CPC you need to do some
testing here to figure this out by looking at ma by month this is again
surprise if you take a look at it from a logical perspective you know in the
middle of the year you’re going to get the cheaper cpc’s doesn’t mean you
should hold off your ads and only advertise in the middle of the year no
but things to be wary of is October November December now if you think about
it here okay it’s the holiday season and that’s why it’s impacting cpc’s you’re
looking at Thanksgiving you’re looking at Christmas Boxing Day in New Year’s
that is why December has the peak CPC and then it drops significantly in
January when people are just bird to help from purchasing goods consumer
goods so that’s something to bear in mind and here’s my overall
recommendation my recommendation is and all of this having advertised to many
countries myself is too sick to a country that you must understand when
starting out the most important thing is being able to speak to local countries
to the local countries audience once you’re scaling and expanding out then
consider the next country potentially based off cpc’s and cheaper ad cost as
you can see here but of course don’t sell culturally inappropriate products
other countries this is really important like a beach towel and shorts or country
with no beaches such as Austria for example so things like that you need to
keep in mind now having said all this this was all important but I do want to
shout out to the program that is about to launch very very very soon and it’s
going to launch in October but this is your last and final chance to preen roll
with a massive 50% discount now by the time you check out this page and check
out the links below the prices will be up but if you’re on the fence about this
program then you should just check it out anyway before I close off the 50%
discount and for the pre enrolls but with this program it’s all about a
six-week implementation program it’s an implementation program guys it’s not
just purely a course or you get access to a private class with me in
class and we go through a slack channel and we basically you know support each
other and there’s direct feedback and a direct line to me but beyond that this
is a very very robust program based on what I’ve learnt as a digital marketing
manager what I’ve learnt based on talking to Facebook on a daily there’s a
whole bunch of insider ad secrets in here
it’s a up to date program so everything to do with CBO and the latest ad ad
platform changes in facebook is all in here and there is a ton of content in
the program itself there’s 50 plus hours worth and I’m telling you guys there is
a lot of value in this program with a 50% discount this is basically a steal
and you know like if you’re on the fence like I said you should go check it out
either way and suss out if this is something up your alley and I’m telling
you if you’re spending money on Facebook ads this is something you should check
out because it’s very easy to burn money on Facebook ads so what I tried to do is
save you the guesswork and lay you the foundation for winning ads no matter
what service you’re selling no matter if you’re trying to freelance no matter
what sort of products you’re selling so I’d love to see you as a student in this
program but with that said hope you enjoy this video I’ll see you in next
week’s video

Norman Bunn

5 Comments

  1. why is this little queen showing a video from August, with a chart that's from 2016? the point of this video is to plug her PAID course— the end of the month, her rent is due. also, useless without telling us where WE can access/ source these UPDATED charts

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