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Ecommerce Plan for Success with Shopify

Published on: December 7 2022 by Nick Peroni

Ecommerce Plan for Success with Shopify

Ecommerce Plan for Success with Shopify

hey what's going on he comment iers nick
here coming to you in beautiful volley
from econ villa you can see just the
amazing scenery behind me i'm on the
roof now of this bill is actually quite
incredible it's been an amazing time
here so far
I love Bali it's paradise here and
there's nothing better really than being
in Paradise and being able to network
with the entrepreneurs that are here the
people that have come it's really
special to me the group this year and
the mastermind this has been going on
there's been some awesome stuff
happening already like we just had
people here from you know all over the
place all over the world we even have
somebody here from Estonia like just you
know so it seems so random at first but
then at the same time we're all here and
it's like these amazing connections are
being made people are working on their
business people are putting the time in
putting the effort in also you know just
getting to have that environment of not
only being in paradise and being here at
a place to kind of refreshing and get
yourself together get your goals and
alignment get you get you thinking about
what you want and what's possible but
being with other people that are help
creating you know like Napoleon Hill
says and thinking Grow Rich when more
than two minds are gathered in one place
focused on the same mission amazing
things happen and for me so far that's
really what it's been it's been awesome
just to actually be here and have this
first event with decom empires and have
this all set up and get them meet people
for the first time from the group you
know like here alive and in person that
has just been awesome for me and so I'm
really enjoying myself and I wanted to
actually take a moment now of course
remember the people in econ empires the
group you know my home which I
absolutely love and we went over some
really good stuff today we are mean
we've been going over some really good
stuff every day but what I like about
today and it actually goes along with a
post adjustment senior just made in the
group yesterday I believe where he
toked about having a plan for your econ
business and so where we really have
been focusing the first couple of days
are like some of the foundational stuff
when it comes to your business and you
know Shopify dropshipping customer can
dice whatever you're doing that
foundational stuff of
owning a store and building a proper
layout and having that all constructed
and then we really moved into a really
really heavy session a lot of time that
we've been spending focusing on niche
research and product research and just
kind of understanding analyzing winning
products that are out there looking at
the market and seeing you know just the
basic stuff when it comes to product
research and so these are all things
that we toked about here and hopefully
you can read this board I'm going to go
over anyway I'm sure if you kind of look
closely you'll be able to see what's
going on I know my writing is kind of
small because it's just jam-packed with
information but this is like the notes
from the session that we went over so it
kind of scattered now but I'm going to
go through all this with you in like a
quick blitz session here that I think
it's going to be really good for people
that are just getting started you know
one of the biggest problems that I see
with e-commerce and people out there in
general getting started in this business
is that they don't have a plan right
they don't have a strategy of what
they're going to do until a very it
seems very random and you know in
reality when it comes to e-commerce when
it comes to Shopify when it comes to the
overall drop shipping business model
there's not too much new information
it's out there right like you can see
this stuff here it's pretty much the
basics of what's going on when it comes
to where we're finding products we're
all pooling from the same places for the
most part right Aliexpress it's still
the lowest barrier to entry for anybody
getting in to drop shipping you know we
toked a little bit here we actually
were blessed to have some people here
who are like connected with sourcing and
manufacturers in China and they've been
shedding some amazing some insight onto
that whole world that is even new to me
as well like I don't really know much
about sourcing from China I've always
just kind of done the dropship model
right and so I'm learning some great
stuff when it comes to that and kind of
getting some insight into what it takes
to take it to the next level where you
want to start being able to source your
own products and maybe control stuff
in-house get a little bit more both
discounts quality control on the prices
and that kind of thing but the beginning
point where you know where most people
are starting at the newest level is
going to be Aliexpress even people that
are killing it right now like you've
seen him in the group people like Manny
and John Zang and you mean here is
killing it yeah well she's actually
doing her own product but other people
like the first two I mentioned they're
sourcing from early express still right
and this is still a very big place of
opportunity for anybody to be able to
get a store set up quickly get it won't
see quickly and be making money and
shout out to both John and Manny for
dropping some amazing content in the
group lately with strategies that have
been working for them and things that
they've been doing so we toked about
Aliexpress and you know there's not too
much new information out there right
like the things that I've put in the
videos are still the basic ways that
people are going out there and doing
product research looking into all
expressed collections looking into the
trending stuff on all expressed looking
at the best sellers and then like in my
videos you know you kind of get started
in one area and then you start
researching you look at related products
you open up the stores you look at
top-selling items and like you just get
into a mode of doing product research
and looking at a lot of different items
right and so that's something that is
not really new we know about that we
know about being able we'll get big
dropship stores okay we we know the
website has been shared in the group in
the my IP thing or just being able to go
out there and look at sites that you
know are our big drop shipping sites
that you can find by looking on Google
and such and using the Shopify IP
address and there's other like things
out there that you can find the big
dropship stores it doesn't really take
that much research if you're looking in
you're diligent and then you can go
visit these stores you can then visit
their Facebook pages you can get
retargeted by their facebook ads and so
you can see the products that they're
selling as they're selling them and a
lot of times that can be a great way for
you to catch a trend as it's happening
right as they might be finding a great
product that might give you an idea or
might be something that you can sell as
well just because somebody's selling it
and making a killing doesn't necessarily
mean that you can't sell it all right so
that's a great way that you can see
what's working and you can kind of
reverse engineer what's out there doing
well getting a lot of sales and it's
the matter of putting time in and doing
the research Amazon bestsellers is
something that we toked about briefly I
shared this in the group with my
original case study store
bold and social that I did for econ
empires when I was first starting this
group and that was the mermaid blankets
right so that was one of the products
that sold on there that did well for me
that helps bring that sort of five
figures and the mermaid blankets were
something that I found on the Amazon
bestseller list so this is a place that
you can go from time to time and you
search bestsellers and I'm not saying
your drop shipping from amazon or saying
you're finding there and then kind of
going Holly expression see if you can
source the product yourself in all the
Express you know just using this as a
way to find ideas we also toked about
Google Trends and being able to look at
Google Trends to kind of research your
ideas right like you can go to Google
Trends and you can research ideas that
you have to see if the trend is going up
sees the trend is on its way down like
we look to facial spinners and we look
at some other things just to see like
you can watch out the trends spiked up
and as the trends coming down so Google
trends can be a way that you can kind of
look at what is happening in the market
because the search volume is a good
indicator of you know where are you at
and the trend of this product that
you're looking at to give yourself an
idea of what type of success you might
be able to have with it or if this is
something a lot of people are searching
for if there's a lot and interest around
it's just kind of way to do your
homework and double-check what you're
looking at and then Pinterest is
something that we toked about brief
week we're going to tok about this more
Pinterest is a big resource for almost
anybody doing print on demand or custom
merchandise we're going to tok about
that more we actually we've been
spending so much time just kind of
analyzing products and reverse
engineering some stores out there that
we haven't really got into Pinterest too
much yet but
Pinterest is a goldmine of information
for most niches to be able to see the
type of stuff that your niche response
to right that's popular the type of
phrases sames
images and things that really get some
type of emotion out of people and that
can work really well not only for custom
merchandise and print-on-demand for you
to be able to find designs and take them
to a designer and get them printed but
also as a way to just get ideas in your
mind of again what
can go back to Aliexpress and be looking
for now there are other drop shipping
sites out there there are other
wholesale sites that you can use but
again for the most part I really still
have not seen anything yet in my
experience for a brand new person
getting started is much better than
Aliexpress this is a great way to just
have a really little barrier to entry
keep your profit margins nice you know
because a lot of the other drop shipping
sites out there we haven't even really
toked about because your margin is just
like it's just not there with some of
these US wholesale drop shipping sites
and all the big stores are generally
still drop shipping right from
Aliexpress and so you know it shows that
it works right when you look at these
big stores out there and you see people
that are pushing lots and lots of sales
through on a monthly basis their drop
shipping products Mali Express their
shipping page is very open and direct
and blunt about the fact that orders
take you know however they decide the
word at 10 to 15 working days or 10 to
15 business days or 15 to 21 days like
we looked at so many different sites
that are killing if they're like in the
traffic top spots of Shopify stores
worldwide and you know they're all still
drop shipping from Aliexpress so the
model still works alright they may be
pushing bigger budgets but you can still
get in and find unique products and
start with small budgets and still make
it happen right it's still very
available as an opportunity as a matter
of fact we've had people here who have
gotten just started as we've been here
and launched like new stores and have
already gotten sales so that's you know
that's really cool and we see people
getting new sales in the group all the
time we see people in the group breaking
like new milestones all the time you
know we had that post in the group the
other day that I didn't make where
somebody came out and was like I wonder
how much money this free training is
responsible for and you know like how
did the number ended up somewhere people
were guessing like in the 5 to 10
million dollar range that people in the
group has been able to I mean there's
one store in the group up I'm not going
to say what it is of course I told them
here because I know what sort is I know
the person
group but there is one store in the
group actually one of our members who
started basically from scratch and
Shopify stores now in one of those top
kek dropship stores
drop shipping oil straight Carly Express
so so that's really cool but so the
point that I'm getting at here is not
about as much the product research right
I mean it is like everybody's always
like you know the product research the
product research how'd you find the
winning product and it is very much
about the waiting products right like
you want to find a winning product that
you can scale and make a lot of money on
but what's almost equally as are more
important than where we're all pulling
the same information from right we're
all pulling from the same sources if
your strategy going into it all right
and that's where we really kind of focus
today because we've been spending all
this time on looking at you know just
ideas in reverse engineering and looking
at what makes up a winning product
finding winning products out there and
just kind of analyzing why they work we
had case studies in the group people
sharing different things and you know
experiences from winning products that
they've had but the strategy is really
the most important part okay because you
want to have a strategy going forward so
that you are able to not be random right
you're not just throwing stuff against
the wall you're not just throwing darts
in the dark hoping that something stiks
you have a strategy and a formula and a
plan something that you're guiding
yourself by something that helps you
remove the emotion from what you're
doing so that you have a system you're
following and you're able to actually do
this on a continual basis and be doing
what you need to do to find those
winning products as quickly as possible
now I'm not really going to tok as much
about the Facebook Ads right now because
you know we toked about that in the
past I'll tok a little bit about it but
you know I'm really going to get into
kind of what your overall strategy is so
one of the things that I've toked about
in the past but I don't know that I'd
ever put it down the paper like this is
kind of your general store strategy
getting started all right I still
absolutely 100% to just
new people getting started unless you
know a niche very very well or you're
partikularly like focused in a niche if
you have a lot of experience in or you
already have like some kind of insider
information that you know you can sell
stuff in this niche that you start with
a general store idea and that's not
necessarily that you're going to stay
there forever but the general store idea
gives you the flexibility to be able to
test a few different niches right so the
overall concept here is that you'll have
a general store and then maybe you'll
focus on like three broad niche ideas ok
broad categories I'm toking about broad
like pet broad like broad like military
brawled like outdoor hiking right those
are broad categories ok and you're
picking a general store name that is
branded in the sense of something like
collective cultures write the case study
store that I did with the group in have
plans of actually reopening soon there I
just like has been swamped honestly I
don't even have time for it but the
general overall format of collective
cultures is still you know something
that I suggest and I think works well
and that we verified these other big
dropship stores are doing something very
very similar like these stores are doing
anything elaborate there's nothing there
that's like you can't do that you can't
duplicate that requires millions of
dollars to get started they're using
very basic formats very basic templates
the stores look very much exactly like
the case studies stores that I've done
and the only difference is they are
working on a system they found a system
and a strategy that allows them to move
through quickly buying winners quickly
and you know once they start getting a
system down there in a process of
constantly making money and reinvesting
money and testing new products and
making money and reinvesting money and
testing products right like that's what
it's all about getting in that system
and for me personally you know I don't
know most I don't know how many people
know this or not I mean my cat out has
been around $100,000 a month range all
right and I'm still working to surpass
that but this is for me is absolutely
the stuff that can get you to that level
and it's the stuff that I believe that
they drop the hip stores are doing to
push it even higher they've just been
testing more
rosalie than I have right they've been
they've been added better they probably
build bigger teams than I have where
I've kind of tended to stay on
solopreneur path but either way getting
back to the strategy what we're looking
at here is giving yourself something
that's going to help you get started
okay a lot of people are still focused
on like you get hung up on the idea of
what type of products or what type of
store or what type of brand or what type
of niche or what type of product age or
you're asking about new content versus
Add to Cart versus purchase and you're
asking about look likes and you haven't
even found the winning product yet right
like you need to get started you need to
just add it you need to be going at it
and get into a cycle of moving I have a
new store now that I started about a
month ago and when I started that store
we started with a concept right I had a
concept and we moved into it and we got
started and the concept was good they
was there we use the basic format of
what I'm going to show you right here
with this this kind of bracket strategy
here and we use the basic format to get
started and so the conversion rate in
the beginning wasn't very good I'll be
just completely 100 with you the
conversion rate was like maybe point
five point seven percent I don't know
but it wasn't good it wasn't where I
wanted it to be but I didn't hold off on
running ads and just start asking a
million questions and start posting in
groups all over the place right like
there's nothing wrong with asking
questions and getting information but
the point is you want to be moving in
perfectly towards perfection right you
use the goal is to get better the goal
is constantly evaluation and getting
better but you want to start imperfect
and just get started because it's those
actions that are going to drive you to
the way that you get there so I got
started and I looked across the formula
of what was working right so I was
looking at having you knows you have
basically your ad to your product page
to your cart to your purchase okay and
so you have a mule at this point right
now that's a formula right as simple as
that is that's a funnel and that's a
formula so you start here are you
getting quick if you're not getting
clicks then your ad sucks okay if you're
getting clicks but you're not getting
any ad cards then your product page so
if you're getting people on your product
page and you're getting antik carts and
you're not getting any purchases and you
need to work on your cart page right so
there's formulas that you had that you
can understand in the funnel along the
way but you're not going to know what's
not working until you get started right
you have to absolutely get started and
start driving traffic and understand and
have the faith and belief in yourself
that you're going to fix it along the
way and that's what I did I got started
and I kept fixing it along the way and
now my conversion rates up there around
if you know when to 1% and then went to
1.5 and then the 2% and then the 3% now
I'm hovering around three three and a
half percent and I'm still focusing now
on this area they're hearing out what I
can do better to continue to improve my
conversion rate on that store right so
that's like what you want to be focusing
on in the beginning is you just want to
get started but you want to get started
with a strategy right so I basically
break this down into four parts here
all right the first part is looking at
your foundation okay the foundation of
what you're doing that is the basics all
right you can get this stuff in dropship
Academy in my group you can get this
stuff and customer converse Academy you
can get this stuff by looking at the
case study store so that built you can
get this stuff by you know almost
anywhere right you this is the
foundation of building a store doing a
Facebook page finding some products
signing you know like that that's the
foundation you want to have a store set
up you want to have a brand name you
want to put some kind of story to that
brand some kind of theme that unites the
whole store together right there has to
be a purpose even if it's just a drop
shipping store even if it's just a deal
site there's still something there right
if it's a deal site there's still some
kind of story there hey you know we
source products from all around the
world to bring you the best stuff at the
cheapest prices thank you for shopping
with us you know like there's still some
type of story collective cultures the
story was everybody's got their own
unique identity their own unique
after that they grow up believing and
loving and identifying with and our
stores here to bring the most unique and
best items of those cultures to you
right and so that was my foundation of
my store going into it you set up the
pages you need the minimum conversion
points right make your product page will
could get those trust badges in there
nothing to gimmick mean nothing over the
top just making it look solid and
complete all right when we look at the
big dropship stores we saw that more
more than more of them were not using
the gimmicks than some of them were
right like some of them are definitely
doing it but most of them a lot of them
were not using any type of crazy
gimmicks right they had very clean
layout clean header you know trust
badges where they need to be surprised
where they need to be big clean image
product description and then related
items in a footer that surprised the
basics of what you need and then you
need the pages that you can see all that
stuff in the group that they choose the
contact page you know easily
identifiable shipping policy easily
identifiable return policy the type of
thing and people want to see to know
that they can trust your store enough to
buy from it it doesn't need to be fancy
it doesn't need to be look like a
million dollar grocery store unless
that's your brand that you're going for
it just needs to look trustworthy enough
to buy and it needs to fit a common
theme a common story across the whole
thing okay
that's the foundation of your store all
right and then from there you want to
move into the plan okay you need to have
a plan something that's dining you along
the way of what you're doing so it's not
random so it's actually kind out so why
not timed out necessarily but so it's
actually like structured okay because
that's what a lot of people we decided
he or have a problem with it I'm sure
you all agree is this people go into it
and they're not really sure and it's not
that you can't come up with a plan it's
that people just don't think about it
because no one showed them how to come
up with a plan right and they get new
and they get in the e-commerce and they
just hear about product this product
that big winner here screenshot there
and they're like doing all this crazy
stuff when really if you were to just
start out with a plan then you would be
able to find a way to actually start
doing some of the stuff we're going to
look at up here all right and the plan
is really important and again this is
actually something that one of the guys
that we have
here it was interesting he just went
through like a webinar kind of case
study with somebody doing big big
numbers who kind of broke down their
entire system and their system is
basically a high level version of
exactly what I'm showing you this is my
playbook that I came up with that other
people use as well because you know it's
a good playbook and I'm not the first
one to think of this but this is the
PlayBook that I use and it works and it
still works and it continues to work and
even the guys that are out there pushing
bigger numbers than I am are using a
very similar playbook they're just doing
it to a much higher level right they're
cycling through products much faster
they're pushing much bigger budgets okay
so this is what we're looking at here
you have your general store concept okay
and then you're picking maybe three
broad category sites we toked
self-selecting collective cultures if I
were to continue that store which I
started in and out sales and I can pause
it but you know there's the military
culture I was doing there like this EDM
culture there was the travel culture so
let's just pick those three right there
are three big broad niches okay and they
all have people that buy in those niches
they're proven buyers mortgages then
there was the family mix actually let's
say that let's say family travel
military right so family travels
military and that's my general store
concept now the idea with the general
store is not that you necessarily have
to grow it and test all these niches at
the same time that's what a lot of
people get confused on they're like
going out there random and just picking
products from everywhere and I mean you
can do that in a way and kind of be
testing the scale but really I think
that you should start with categories
and focus in there because my concept in
my idea has always been trying to focus
in and find the one niche and I know is
making me a lot of money and then focus
my attention on that and then maybe turn
it into a general niche store where I'm
focusing on that broad category and you
know putting my money there and starting
to build that up and make a lot of money
that's what I've kind of done in the
past over and over and over again to be
successful and I think that it's a way
that can really guide people the other
idea is to just have a large general
store and just keep taking products
across
niches and always be focusing on finding
that one winner both ideas can work it's
really based on what you want to do and
what your vision is so from this year we
have three main categories right and
then from there I broke it down into
same pick like three subcategories for
each one of those big niches okay so you
have your main categories and then you
breaks down into the sub niches for each
category so like for military that
should be example that are in done right
women's veterans right men veterans gun
roads women veterans like there's those
could be three different subcategories
in size and military get inside the
family niche it could be Paris it can be
kids that could be grandparents like
really simple these are subcategories
within it inside the travel image it
could be like digital nomads it could be
beach goers it could be outdoor you know
like those are all different types of
subcategories and they all have products
and proven buyers in them right if you
have trouble and looking at categories
to come up with go Dali express and look
at their homepage there's all kinds of
on the left-hand side you'll see all
kinds of big big broad level categories
and when you hover over any one of them
it'll break it out into multiple
multiple sub categories that you can be
using the good ideas okay and then from
your sub niches you're going to break
that down and look for like three to
five hot products winning products good
idea products that you can find within
each one of those and now you have the
context of a general store already
build-out you have products that you can
start testing across the board or you
can focus in one niche at a time like
you see here what I did where I thought
is it out like you can focus one niche
at a time or you can be testing products
across the board however you feel most
comfortable doing that but you know that
that's up to you like to fit one of the
big guys out there that we were toking
about that we were kind of breaking down
saying store he's just kind of picking
products from each niche and he's
pushing them out there to see what is
winning and he's testing like you know
multiple products a day and he's doing
it at a fast enough cycle that he's able
to stik to the 80/20 rule and find the
products that are working and scale
those quickly we're going to tok about
that more in second
so once you have this concept here you
have like a framework to go in within
and you shouldn't have to cycle through
this framework more than two times
really to find a winning product all
right if you're picking and focusing on
a niche and then testing a few products
within that niche you're using my micro
ad set theory to test quickly and save
money and get the winners quickly you
should be able to cycle through and you
should be finding winning products
pretty pretty soon within that method if
you don't understand that carbonyl in
this video so I can elaborate more and
then the final thing is when it comes to
the product is how are you testing all
right that's where the microwave set
theory comes in you need to have
judgment frames you need to have some
kind of framework for actually testing
these products we're going to tok about
that in a minute so if you're just doing
a niche store you have a niche that
you're focused on then you're just
focusing in on one of these boxes right
you have your niche already you're
focusing on finding the sub niches
within that that's what we're doing is a
group case study store just within our
own little mastermind here we picked a
broad category niche we set up a store
last night today we went through a
little bit and put two sub categories
and then we found a bunch of hot
products within that sub category we
used these exact methods to go to Google
and basically type in you know my
Shopify comm and then the niche and then
we typed in like and we went to Amazon
and we looked at like that niche and
then we went to Pinterest and we looked
at niche so like that's what we're doing
here and we were able to find several
several several good products that we're
going to start putting on the store
today
and we're going to start testing and see
and going into the next phase of how are
you testing your products all right so
this is the plan this is the plan the
strategy something that you can follow
something that can keep you grounded as
you go through you just want to be able
to put something on paper you want to be
able to know where you're headed what
you're trying to achieve what the
outcome is what the intentions are with
every step that you're doing you don't
want to be random if you're just doing
stuff randomly that's when people are
struggling and they're saying oh man I
watched all the videos but I can't
anything to work because you're just
being so random about it you're out
there watching six webinars a day and
you're just constantly making one
webinar assessment you know and then
like you're testing products but you're
not really looking at that or you're not
really giving it a real follow-through
and so you're just throwing stuff out
there and hoping to find something that
stiks and I'm not saying that that
can't work there are lottery winners
right people do when the lottery it
happens all the time
but the chances of winning the lottery
are one in like million so that strategy
is not a strategy you want to bet your
future on you want to have a plan that
guide you there and then we get into the
execution right the execution part it's
how you're testing and that's where
we're going to tok about here how
you're testing is the execution of your
ads and of your plans okay and then
finally constant evaluation is the last
part of this strategy we're in the Army
we call it after-action reviews ARH
after every time you're executing you're
always going back and reviewing I'm
reviewing every single day constantly
reviewing every like I'm reviewing on a
daily basis on a weekly basis on a
monthly basis and you're constantly
looking at what have you accomplished
what have you not accomplished and what
you need to change to accomplish the
things that you want to accomplish right
and so you need to be working within an
execution strategy to make sure that
there's no emotion okay that's another
problem that people have is they're
trying to make decisions based on their
gut like all I just feel like this
product could really do it I feel like
it could really get there you know and
it's like no that's that like that's not
really it you want to be judging on data
and that's again goes back to one of the
big stores that we were toking about
today and we will reverse engineering
from this guy that kind of shared his
entire blueprint is that exact thing
he's ruthless
you know he's judging ruthlessly on the
data and looking at that all the time
and you guys have seen that that's
exactly what's in the micro ad set area
as well is that I kill stuff quickly if
it's not working I don't fit into it I'm
just killing the product you can hear
the deal all right
Facebook is a really advanced algorithm
Facebook knows what it's doing okay most
of the stuff that we're seeing out there
now from big spenders and people
they're doing things or that they're
doing we're starting off with one asset
and they're sending one budget to it and
then they're just seeing how that adds
that performs okay and you can see what
we're doing here we were toking about
this guy he was doing 30 dollars a day
right he's doing 30 dollars a day he's
testing several products a day for one
day at a time and he's looking to get
two signs within that $30 of a winner
right and purchases he's looking for
purchases within that first $30 and more
than one okay a couple purchases you
know that's what he's looking for
because think of it like this somebody
offered a really good strategy while
over here which is why I love this kind
of stuff mastermind people bring
different perspectives so a really good
strategy is to think of it like this if
you had a retail store and you say $30
is going to get you you know let's
assume a $10 average of CPM so let's say
$30 gets you three thousand impressions
right and so out of that three thousand
impressions that's now three thousand
people that have seen your product and
you know several of them are going to
visit well if you've had three thousand
people that have seen your store and
some of them have come in and walked
around and looked at your product that
you're advertising and you haven't sold
a single one chances are you're not
going to sell anymore and you might
still one but it's not going to be
profitable like the whole point is that
Facebook is going out from the very
beginning and optimized for the cheapest
conversions okay so it doesn't matter if
you're testing thirty dollars a day or
five dollars a day
the point is Facebook is going out based
on your budget and looking for the
cheapest conversions in that asset that
you give it and so your feedback loop
might be different right if you're
spending thirty dollars in a day then
all you need is one day to test and see
if I didn't get any sales well this
sucks I'm moving on right I got a couple
sales well is it profitable no all right
moving on
I got a few cells and this is profitable
okay perfect so I know that I have
something in exacting scale now if
you're getting a few sales and it's not
quite profitable like then that's up you
know you could continue that for the
next day to see if it becomes profitable
the next day but if you're not getting
any sales in the first thirty dollars
you spent then
you're it's not a winning product and I
would even venture to say if you're not
getting sales in Pike the first 15 to 20
dollars that you spend then chances are
it's not a winning product all right and
you know that's you can disagree with
that if you want but you'll also
probably end up wasting a lot of money
okay
so I like looking at my stuff in these
types of judgment frames now here's the
deal
right so we're looking at the 80/20 rule
when we're toking about this so if
you're testing ten products this is what
it looks like okay if you're testing ten
products out of those ten you're going
to have eight to fail eight products out
of ten that fail okay and out of that
ten hopefully you'll find to the scale
maybe only one but hopefully you'll find
two that you can scale maybe one of them
will be a big winner that you can really
scale and the ones profitable but not
like something that you can continue to
scale really really high alright and
you're getting into a cycle of repeating
this okay so the deal is though your
feedback loops is what I want to tok
about in a feedback loop is how quickly
you're receiving the information from
when you start to test all right because
that what really matters is your
feedback loop so if you're testing ten
products or you're going by the 80/20
rule but you're only testing three
products a day well those first three
products might fail right and it might
not even work out like this it could be
by chance that the product it hit are
the last two all right so you have to
first of all give it time to test enough
product all right you can't test three
product and just assume if all three of
them are dead that that means you're a
failure right because it takes more than
that people are still the 80/20 rule is
still true okay like no matter how much
money you're selling lots of people
other than myself that they're testing a
lot there's no substitute for testing
okay there's no magic formula out there
there's nobody out there that's got a
button that you can press and it's just
going to pop up winning products every
time like the age 20
is all about testing in e-commerce and
finding the products to work and so you
have to understand number one your
products feedback loop where you out of
ten products you're testing should
hopefully designing one or two products
that are winning now a lot of you might
at this point they will let them and
products and I haven't down winter but
chances are you probably haven't tested
it within the judgement frames I'm going
to give you here and second chances are
you probably haven't tested it within
the strategy that I just outlined here
alright because like I said you
shouldn't have to go through this cycle
more than my two times defined and leave
some semblance of a winner okay because
if you're going through this and say
you've has twenty products if you're
testing 20 products and not finding
winner you're doing something wrong okay
and that's not to be harsh it's just
being real with you because you need to
know when you need to understand this
you shouldn't be able to test twenty
products and not buy the winner that
means you're doing something wrong down
here in your planning stage you're doing
something wrong in the foundational
strategies stage okay and you need to go
back and focus on some of this stuff so
that you're not being so random and just
testing products and aren't working okay
but if you are testing products
according to with a good foundation and
with a good plan then out of every ten
products you're testing give or take you
should be finding something that's
winning all right and those are the ones
that you want to scale the rest of them
you want to kill quickly now just look
at this just consider sites that you
have you're spending $30 a day on ten
products okay and eight of them are
failure so out of eight products you
tested them one day that's $240.00 your
spec on products that you know didn't do
anything so you spent two hundred and
forty dollars there right but say then
you go through here and you have one
product and two products one of them
hits okay makes you like a thousand
dollars and sales over the next week or
so and the other one over the next two
weeks makes you like three thousand
dollars and still it's very very
reasonable numbers all right very
reasonable to do four thousand dollars
in sales when you find a winning product
and if you're operating on say a 30
percent profit margin that would be ten
percent would be four hundred times 3
that would be twelve hundred right
1,200 profit so after you take out your
testing cost you're still looking at
nine hundred and sixty dollars pure
profit that you made from that one
feedback loop right and as you do this
that's just assuming scaling to a very
very small degree right one of these
products should be able to continue to
scale much higher than that it's very
reasonable to assume that when you find
one product it's a big winner that you
can do five to ten thousand dollars in
sales without much effort it's not that
hard to scale to find ten thousand
dollars in sales
especially if you're following the
microwaves that theory that I have okay
so the idea here then you're getting
into a repetition you're getting into a
cycle you're getting into a continuous
cycle that you're your going through
this now you may only be testing three
products today you may not be testing
ten products today and that's completely
fine but the cycle continues right three
three three and then back up in three
three three and then back up in three
three right like it continues and if
you're doing it correctly you're finding
winners along the way you're scaling
those winners as you go and you're
you're building up you know your profits
in the bank and you're using that money
to then reinvest right back in to this
right like that's that's the whole point
that's the whole purpose of what we're
doing here so which on another note that
is the whole purpose you should be
reinvesting this money in the beginning
right back in you know I would
absolutely wait a little bit and start
pulling money out until you already have
built this is what I did in beginning in
my first store I was making a lot of
money but I wasn't pulling anything out
right like maybe here and there for like
a dinner to celebrate or have some fun
but I was not pulling a lot of money out
everything was going right back into the
business so as that money was going in
it was cycling back up to this you know
if you like that that kind of cycle
there and the more money that comes in
the more that that feedback loop
continues to grow on products that I put
that money back in the scale right and
you want to get into that cycle of
reinvesting and not getting lazy like
some people do when they hit a winner
and then they just want to sit back put
their feet up and act like they're Mark
Cuban or something when in reality all
you just did is make a couple thousand
dollars in sales like you know it's
really not something to start sitting
back and
like you made it so you want to keep
keep putting your money back in and keep
scaling that's how some of these guys
get to the level that they're at that's
how I've gotten to where I'm at so 8020
rule
judgment frames alright now what you're
looking at here we're starting to wrap
this up as we get into the ads so you
can understand testing alright you have
the micro edge set theory already but
this is going to break it down maybe in
a little bit different of a format where
so like if you're not testing 30 dollars
a day that's fine right you don't have
to be you can be testing 15 dollars a
day and looking at it over 2 days you
could be testing 10 dollars a day and
looking at it open 3 days which is what
I like to do a lot now as you see up on
the arrow there I've kind of moved into
a $10 a day budget because it's a
quicker feedback loop right if you're
testing $5 a day you're going to have to
wait probably three to five days to get
you know even close to the same type of
data that they're getting in one day so
it's all about how quickly you want to
be getting your feedback okay and you
have to have the base and understanding
that if you're doing this the right way
you have a good foundation and you have
a plan but as you go through this that
you are able to understand you may be
spending money upfront right like a lot
of people like oh man I'm prepared to
put the money in like you may be sending
money up front but the whole goal is
that you're going to find a winner
that's going to pay you back in profit
right like you have to understand the
return on investment and the way that
that goes so that being said you can do
five dollars if you want to like it
makes no difference you're still going
to optimize the best conversion to five
dollars today you are thirty dollars a
day that's testing budget that you know
mindset but it's just how quickly do you
want to get that data back you want to
get it back in one day two days three
days or three to five to six days really
I mean if you're looking at this as
spending $30 which I don't believe
thirty dollars is like the rule that you
have to spend I'm just saying that's
what he's doing in a day that's that's a
nesting strategy and I really like that
I just I'm stiking with ten dollars a
day for now because you know I'm willing
to spend it over three days to see
because what I'll offer do is all
probably killing add to $20 if I haven't
had a sale right if I get the $20 and I
haven't had a single sale and I know
that I need my cost for purchase to be
at like $8 did you cross
the bolt then chances are arm killing
that ad buy $20 there's no reason to let
it keep running it's not going to get
more profitable all right that's another
thing people seem to misunderstand they
think oh if I just let it keep learning
it'll get more profitable I'm not saying
there's never exceptions to the rule and
if you have something with a big profit
margin that was one of the questions
today like if you have something with a
big profit margin then yeah maybe you
can kind of if your tolerance level
right it's like whatever you want your
tolerance level to be when you're
testing so you need to understand what
your cost per purchase needs to be going
into it all right if you have an item
that you're sourcing for ten dollars and
you're selling it for twenty then you
know that you have a ten dollar margin
in there right so your cost for purchase
needs to be like five bucks to make it
work otherwise it starts to become not
worth it unless you think you can push a
really really high volume okay if you
have a product you're sourcing for $30
and selling for ninety now you have a
sixty dollar margin so you can probably
play around with it a little bit more
maybe you let it go a little bit longer
because even if you're getting cost for
purchase at 20 bucks it's still really
profitable for you all right so that's a
distinction kind of a caveat to
understand but I know most people are
testing was with kind of slimmer profit
margins products that are in the 20 to
50 dollar range so you just need to
consider the fact that as you're
spending this money if you're getting
twenty dollars and there's no sale yet
you know your profit margin kind of
already destroyed at that point you know
Facebook's all rizal now and shows your
products for thousands of people at that
point and people are deciding they don't
want to buy so why do you think it's
going to get better the longer you let
it run right like it's not very very
rarely and again that's just a lottery
mindset that's not a system that's not a
process okay so these are the judgment
frames that I'm using you know based on
how much money I'm sending to understand
how long I'm letting an ad run to see
what type of results that I'm getting
and then here are the metrics and I'm
looking at right it all comes down to
the metrics you're judging on data okay
now you'll notike first of all number
one impressions aren't up there alright
I toked about impressions as a way of
understanding like why you would kill
something because of a thousand people
see an item and nobody's clicking
then chances are your item sucks or you
complete your down the wrong audience
right but I'm not judging anything based
on my CPM okay I don't even look at my
CPM because I'm not optimizing for
impressions all right now I'm only
toking about conversion that's here not
optimizing for impressions okay you're
not optimizing for impressions if you
are I don't know why you are like you're
not optimizing for impressions so the
only thing that matters is your possible
purchase okay that's what you're going
for that's what you're optimizing based
off both is your purchases most people
now that I see out there are just saying
goes straight for optimizing for
purchase I think you can still optimize
for ads and card if you want to but
either way you're not optimizing for
impressions so you know like seriously
the impressions tok is is almost
pointless at this at this level okay but
the more you get purchases obviously
you're looking at your cost per went
click right so this is something else
that is important for judgment frames in
the beginning because as I said in my
garage set theory if I've spent $5 $10
on an ad and I haven't had a single
click that means that you know Facebook
is going out and so my ad to say 500 to
a thousand people which is plenty for me
to know because if I know I'm doing my
targeting the best of my ability and I'm
going out and I'm stacking the precise
interest in a bar I'm finding the good
interest to start out with in my target
to test my product and it's showing it
to five hundred to a thousand real
people that have seen it and nobody's
clicked that link then this is done it's
game over I'm not going to lie to keep
running I don't care because it's not
like it's not sustainable right like if
you get your first link click
at five dollars spent again unless
you're selling something with a high
profit margin this is generally not
going to get any better right where
you're going clear it might come down a
little bit but you're already at five
dollars it took to find one person who
is willing to click your link so what
makes you think in the next five dollars
it's going to be in better people say oh
well the pixels optimizing well that's
true but the pixel was really smart now
and I think that what we've seen from
the data out there is that Facebook
within like the last half of the last
year or this year has really made the
pixel something that it's going out and
it's optimizing for the cheapest
conversions right off the bat okay I've
seen that in my test with what I'm doing
I launched ads and you know I'm getting
it I'm getting purchases right away
right like I'm not waiting link clicks
are happening right away link clicks are
happening
well mate click should not be difficult
to get okay point clicks on winning
products are happening right out to gate
all right within the first cut within
the first dollar spent within the first
two dollars so if you're getting the
five dollars and you're not getting it
sale something it's wrong I'm not saying
that you can't you know readjust or
maybe find a new yeah find a new add
image or like you know like that's true
you might be able to do that but
whatever you're running is not working
with that level okay so a lot of times
for me testing you $10 a day you know
maybe I won't do it at five dollars but
I keep on in that five to ten dollar
range and I mean I probably will do with
five dollars but just for the people out
there that are kind of like yo man you
know I want to live it optimize like if
you get to ten dollars and you're not
getting any clicks then I game over stop
wasting your money because it's not
working and it's not going to work all
right when you're getting purchases now
that's what you're looking for right but
it's not just about getting purchases
you want to get purchases you know you
should be wanting to get purchases limit
versus like twenty dollars percent
really I mean because this guy's saying
at 30 dollars a day he wants to see a
couple like he wants to see you know
three to five purchases right so you
should be getting purchases within the
first twenty dollars spent because his
three to five purchases aren't coming
from $20 to $30 right it doesn't work
that way so you should be seeing
purchases happening pretty
oonh when you're optimizing for purchase
which is why I think optimizing for
purchases is pretty good right out the
gate now and that's based on Facebook
just kind of updating the way that in
testing updating the algorithm that'd be
super intelligent and super smart and
optimized like right away for the best
conversions that you can get all right
so cost per purchase this is what you're
looking at now right this is your magic
number once you start getting purchases
within your judgment frames here now
you're looking at your magic number your
pulse per purchase which basically has
to do with your ROI return on investment
right you want to know based on how much
you're spending this is everything right
so like if I look at it as red yellow
and green light stops lowest still so if
you have a product going back to our
example say you have a product for
twenty dollars right
so you're sourcing it for eight dollars
okay you have a twelve dollar gross
margin all right that's without your
marketing cost that's just that's just
your product - your fulfillment cost is
leaving you with a twelve dollar gross
margin so whenever you look at product -
fulfillment cost whatever you're left
with that's your gross margin and then
your marketing comes out of that your
cost per purchase comes out of that to
give you an idea of how profitable you
are so if you're getting a cost for
purchase here I'd say we'll stay from
here you're getting a cost per purchase
for six dollars right that's your CPP
well that means you're on the other side
of that then right you're getting six
dollars fifty P equal
six dollars pure profit right that's
pure profit in tanks so what does that
mean that means every six dollars you
spend your getting a purchase and making
six dollars back in pure profit right
you're making a twenty dollar sale for
every six dollars you spend - your
fulfillment cost and your marketing cost
six dollars of pure profit so it becomes
at that point that's when it becomes
like an ATM right that's when you hear
about that base book magic money kind of
where now you have a cost per purchase
and you're in a green light get help you
know take that in scale if you're
running this at $10 a day right here and
you're getting a cost for purchase in
that first $10 up maybe like two days
right you run it for two days and you're
getting to get three sales in the first
two days it's six dollars cost per
purchase boom scale double that budget
to $20 and see if the holds right and
and do that and then you have your cross
for purchase running as long as your
cost per purchase stays where it needs
to be and keeps your return on
investment profitable right this number
this number has to stay above zero to be
profitable this number here when you're
finally at a sale price gross sale -
fulfillment - your cost per purchase
that number needs to be higher than zero
for you to be able to scale right so if
we're looking at div and say now we
change this up okay we start to scale
and we've been running this for a while
and now our cost per purchase is ten
dollars 50p right so we're still
profitable at this point but now while
you making $2 so it starts to become
light in the yellow like slow down is it
really worth it at this point my cost
per purchase you just jump by you know a
lot and it's not as profitable and
nearly as much anymore so it like you
it's a sign that you're slowing down
you're not in the scale zone anymore
right something's happening either you
need to refresh that ad set either you
need to find a new audience you need to
open up a look like you need to try a
new ads like which one photo - the video
video to photo you know vice versa
whatever it may be start a carousel add
like but that is signs that you're like
it's not working as much anymore right
and then say now your cost per purchase
and jumps to I mean I think you guys get
where I'm going but say now your calls
for pressures jumps to a $12 50 P now
you're not making anything right and you
might even start losing much at this
point and so you're in the red right now
like depending on your strategy if
you're not just doing front-end sales
like you could still be optimizing this
on the backend at a $0 break-even cost
to make money but that's a little bit
more confusing for the average person
getting started out and this is one was
coming up on an hour here perfect so and
this is for the average person getting
started out looking to make the front
end money off of Shopify right because
this only works if you have big budgets
and push through and then you're able to
optimize on the backend make money so
what we're toking about here is making
money on the front end and that's what
most people here are interested in right
they didn't really want to tok about
back-end kind of stuff or you know
building a list or anything like that
like this is what most people are
focused on is making money on the front
end and so you're looking at your cost
for purchase in terms of red light
yellow light green light okay and you
want and that's actually something that
that's an analogy I learned and I just
think that it's really really good at
understanding why this number matters so
much this is your magic number right
here a distance like one of the biggest
most important things that matters in
facebook advertising when we're toking
about e-commerce
I mean if it's you know it could be cost
per purchase cost per lead cost per
action like based on whatever you're
optimizing on that's what this number is
because that's what's telling you if
your campaign is successful or not
that's what's telling you if you're
getting a referral an investment that
you can keep scaling into the future and
keep making lots of money right that
that automatik ATM at Facebook ATM where
you're putting you know like so as an
example of a product
that I've run in the past okay
it was selling for $22 I'm rounding I'm
not going to tell you which way a
welding because you know people try to
be all kinds of clever and so it was
selling for $22 it was sourcing for $7
right so we were making $15 gross margin
on every single sale and then our cost
per purchase was generally hovering
around $5 CPP thread so that equals $10
in pure profit attachments okay that's
basically updates go to the ATM that
right there is one of the ways that I've
scaled and gotten to like the big push
in the beginning to help get me to one
of the levels in a mint is that I was
running something like this I had a big
audience I had lots of different
vertikals I could expand into and then I
was able to know the numbers I knew my
numbers to a science down to the point
where it was down like this going for 20
to $7 even you know I was even factoring
in okay if I refund them on the shipping
here because I was charging for 95
shipping and I was only making $17 minus
7 I was making $10 still in $5 PPP I'm
making $5 so no matter what I was
averaging in between five to ten dollars
pure profit for every $5 I've spent
right and if I have an audience size in
the millions then it just becomes a
matter of putting money in right you're
spending as much as you can
putting it in putting it in putting in
and then constantly taking your you're
taking your profits and reinvesting
right back in because at this point I
know every five dollars are spent on
making five I'm just doubling my money
on putting money I'm changing money and
basically through Facebook and and
that's able to help you grow a business
really quickly when you know your
numbers when you have a formula when you
have a strategy when you have a plan
when you understand the metrics of what
you're doing removing the emotion from
it judging on the data working through a
system and then when it gets down to
this finding the numbers that work
finding the numbers that win and then
pushing them as hard as you can all
right
that's everything I hope that you found
that extremely valuable I know if you're
new to this and you're just getting
started even if you're not if you've
been struggling for a while this is it
right here guys this is really valuable
information this is the kind of stuff
that we're working on here at the
mastermind and you know it's I'm not
going to lie it's exhausting it's like
we're really we're really focused we're
really putting in a lot of the
brainpower into it but this is good
stuff because this is the kind of stuff
that builds businesses and makes people
successful and makes a lot of money and
you know that's what I want to see for
everybody including the people here who
came out here to spend two weeks as part
of this together and be connected to
network with each other but also for
everybody in the group you know
definitely take this stuff and apply it
in your business make sure you have a
good foundation come up with a good plan
something like this it doesn't have to
be what I'm saying I'm just telling you
I know this works right so come up with
a good plan come up with a good
execution strategy use the microwave set
theory to your advantage you know blend
it with other things mm I all means but
I'm just saying use something that you
know works and it's been proven and
tested over a long period of time the
stuff that my group has been tested over
a year now and it still works is still
getting people results every single day
all right
and then constant evaluation so you're
making sure that as you grow you're
growing right that's not the only source
of information there's other stuff out
there that's working people doing bigger
numbers people doing better there's a
lot of stuff you can learn from them but
in the beginning you want to find one
thing that works so you can get started
and get yourself to a position of
leverage
before you know you start absorbing just
too much from all over the place that
just confuses you and just kind of
stunts your growth or blocks your
progress right and then again the
constant evaluation that's never stopped
never ever stop it just changes along
the way because you evaluate different
and you evaluate better as you go so
thanks for watching guys hope you got a
ton of value hope you're having an
amazing day wherever you are in the
world I'm going to get back to enjoying
Bali tok to you remember class tok to
you later
remember lizard

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