Modern Marketers with Blake Beus and Greg Marshall

What actually happens when you scale your adspend? EP-043


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Blake Beus  0:00  scaling like everybody, every client there, they always get nervous. Yeah, anxiety when they when it comes to scaling, right? So you found something that works. You're spending maybe 100 bucks a day or something. And now you're telling them alright, let's do 200. Let's do 300. Let's, yes, let's do this. And then they have a ton of questions as they do do that. So what happens? Yeah,
Greg Marshall  0:22  so, and it's normal to be nervous. I don't think that's abnormal at all right? Right. Because no one wants to like spend more money and risk losing. So typically, what happens? So number one, scaling, all that really means is do more, right, get more sales than you're currently getting, or more leads that you're currently getting. And typically, what happens? So here's usually the concern or the misconception of scaling. So let's say something is working really well, like $50 a day, right? Really, really low spent, and you're getting a good return. Let's say you're getting a four return on adspend. No, nice, right? So let's, let's just pretend that's happening now, if you haven't scaled before, or you're new to it, and I have made this mistake, okay. So I'm not like excluding myself, it is very easy to believe as well, if I spent 50, why don't I just spent $5,000, and I should get the exact same return of what I'm currently getting now of a Forex, right? Unfortunately, that is not how it works. And it pretty much I don't want to say it's impossible, but close to impossible to keeping maintaining that ratio that return as you spend more. And the reason for that, and Blake can probably attest to this is the audience, right? So the way these algorithms work, is when you're spending low spend, you're like forcing the algorithm to work harder to find that little pocket. That's a perfect match for your offer. But then what happens when you expand that audience?
Blake Beus  2:01  You will you start, you start having to boil over into the the people that aren't perfect for the fit, and that's fine. Yep. There's more of those. And that's a good thing. Yep. Because there's, that's a much, much, much bigger audience. But instead of finding the people that are ready, right now, you're finding maybe people that are going to be ready, tomorrow, next week, or even a few or even in a few weeks, or maybe the offer is not exactly what they need. And they're comparing a couple of alternatives. And it takes them some time to make a decision. But all of that drives your costs up. Yep. And so people, in my experience, people start seeing the cost per acquisition go up, yep. Which means their row as return on adspend starts coming down, and they start panicking because they think this is a trend, that's eventually going to mean, I'm losing money. So I'm spending all this money and I'm losing money. But in reality is a good thing.
Greg Marshall  3:04  Yep, in my eyes anyway. Well, and one of the things you have to keep in mind is, in my experience, okay, so I'm just speaking, in my experience, when you scale you actually, so people, I think incorrectly focus on the wrong part of the scale. And you should be thinking about the second sale, you're gonna give them the upsell, how many more orders they can make, and really focusing your energy on that. Not the the advertising part. Because it's inevitable that the cost per purchase, and the row ads is going to go down, the more you spend, but if you if you only focus on the advertising part, what's going to happen is you're going to get scared every single time it goes up, and you're going to retract or, you know, go back to what you were doing. And you're not ever going to be able to grow that and get more customers that you're looking for. And so that's the mistake that I see constantly is when they're trying to scale going, what worked out for x and 50. How do we make it work at $5,000 a day for x? Let's just keep looking at the ads over and over and over again, which is a
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Modern Marketers with Blake Beus and Greg MarshallBy Blake Beus & Greg Marshall