Eric Hanefi’s Ad Alchemy Review: Can This Ad Agency Scale Your Business to 8-Figures Within 8 Months?

October 17, 2023

Ad Alchemy is an advertisement agency that uses its Decentralized AI Scaling Script to optimize and scale your business and its unique R.O.C.K. roadmap to plan and manage every aspect of your ad campaigns. This full-service marketing agency guarantees to scale your ROI to 4x within 8 months.

Running paid ad campaigns is a very effective way to rapidly scale your business. For long term and stable marketing, free traffic is the best way to achieve this. SEO drives organic traffic and builds customer trust with the brand, which lowers the overall costs of remarketing.

The best way to become recession-proof is to invest in several types of online businesses. Local lead generation, a type of digital real estate, is a great, highly scalable passive income business model to supplement the cash flow from your business. By using free SEO tactics to rank and rent a site to local businesses, you create predictable long-term passive cash flow. SEO marketing can have up to 90% ROI that can boost your current business' long-term marketing strategy. It's definitely worth checking out local lead generation.

Eric Hanefi's Ad Alchemy 8 Months Guarantee

Ad Alchemy offers a guarantee that if you do not hit the minimum 4x ROI within 8 months, you will get a full refund. This is a bold guarantee, and Eric claims they have a 0% refund rate. They guarantee success by creating a personalized strategy plan using their R.O.C.K. roadmap and ad optimization using their Decentralized AI Script.

R.O.C.K. Roadmap

ad alchemy review

In order to increase conversions, Ad Alchemy uses their R.O.C.K. strategy to create familiarity with audiences. Customers don't usually purchase from brands they only see once. Ad Alchemy uses its strategy to create what Eric calls a "chronological and methodical funnel" using paid ads that lead to recurring visibility for audiences.

ad alchemy review

Decentralized AI Scaling Script

ad alchemy review
ad alchemy review

The iOS 14.5 update created restrictions on remarketing, tracking, and optimization of ads due to adjustment with 3rd party cookies. Ads can no longer retarget audiences that did not convert on their first visit and track user journeys.

Signing up for Ad Alchemy's service will have them install their Decentralized AI Scaling Script into your account. This script is meant to bypass the restrictions in order to track and retarget customers post-iOS 14.5. The script also optimizes data gathering, allowing the agency to cut unnecessary spending while increasing ROI, and coordinates all parts of your funnel.

Pros and Cons of Eric Hanefi's Ad Alchemy

Pros

Flexible and negotiable charge scheme.

Zero risk refund guarantees.

They do business internationally and have proven success in the global market.

The agency offers full-service marketing, creating a hands-off approach for clients and freeing up their time.

Cons

They don't accept clients that may prove a risk to their guarantees.

Ad Alchemy has a small team and a vetting process for hiring. While this keeps work quality high, it may cause problems if they have too many clients.

Price

The cost is negotiated during the discovery call. Ad Alchemy charges by ads revenue share, percentage of the ad spend model, or a flat rate, depending on the numbers and your goals for your brand.

Refund Policy

Full refund if profitable spend is not increased by 25%+ within 60 days. Full refund in 8 months if ROI does not reach 4x.

Origin

2018

Who Is Eric Hanefi's Ad Alchemy For?

Eric states that they only pick clients whose businesses show promise of success. These are 6- to 7-figure businesses that are having difficulties scaling or are launching new brands.

  1. Business owners who are having trouble scaling further. They could be businesses that aren’t experiencing a healthy month-to-month increase in their sales or businesses that want to launch a new brand to scale.
  2. Business owners who want to make $1M-$5M in sales through the use of sales funnels and high level paid traffic.
  3. Companies that want to take the lead in their industry and increase their competitiveness

What Do You Get With Eric Hanefi's Ad Alchemy?

With Eric Hanefi's Ad Alchemy, you get an entire digital marketing team that takes full responsibility for the ad account. They deal with the entire sales funnel, such as the creation and improvement of creatives, email marketing, landing pages, industry research, etc.

Ad Alchemy primarily focuses on Facebook ads but will pivot or do in conjunction with other platforms based on where the bulk of your customers are coming from. Other channels where they run ads are TikTok, Google, YouTube, Amazon, Pinterest, etc.

The team meets with clients weekly, biweekly, or by request. They can be contacted 24/7 via chat. You will have shared access to the Ad Lab spreadsheet for copy and creatives, where you will be able to approve the proposed ad campaigns and give feedback.

Are Clients of Eric Hanefi's Ad Alchemy Successful?

ad alchemy review

Some of Ad Alchemy's clients

Clients of Eric Hanefi's Ad Alchemy are very successful. There are case studies posted on Ad Alchemy's website that show the challenges of the business, the solutions the agency applied, and the results that are reflected.

Ad Alchemy Case Studies

Here are some examples of Ad Alchemy's client problems and agency solutions.

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ad alchemy review
ad alchemy review
ad alchemy review
ad alchemy review
ad alchemy review

Who Is Eric Hanefi?

eric hanefi review

Eric Hanefi is a digital marketer and CEO of Ad Alchemy from Frankfurt Rhine-Main, Germany. With his partner and COO, Juan from Portugal, they run a multinational team of advertising experts. Ad Alchemy has been able to generate their clients $56.2M total revenue with an 6.88x average ROI.

In order to pay for his own college, Eric tried side hustles and get rich quick schemes. It was during his attempt at a dropshipping business is when Eric learned about the processes involved in advertising. After getting his health declined from the stress of what he called "semi-legitimate" businesses, Eric pursued advertising full time.

Originally a Facebook ads agency, Ad Alchemy eventually transitioned into a full ecommerce ad agency. The business donates 10% to charities around the globe and uses a performance percentage pay model for employees.

Is It Worth It To Get An Ad Agency?

Whether you have a startup business or a large company, ad agencies are always worth getting. An ad agency does the analysis, planning, creation, monitoring, and optimization of a business’ ad campaigns. Ad agencies can also determine the optimal platform to run the client’s ad campaigns. You do, however, have to be aware of the risks and choose the right type of agency that fits your needs and goals.

Advantages of Contracting an Ad Agency

  • Experienced teams - You will have access to an experienced team that will plan and create your personalized marketing plan. Your marketing strategy will be based on the fundamentals and needs of your business and created using up-to-date methods that have proven effective.
  • Creativity - If you are not confident in your creativity, ad agencies are 
  • Specialization - Ad agencies usually specialize in a certain type of digital marketing. You can hire an ad agency depending on your marketing needs. Single-channel marketing agencies are experts in the channel that they work with. Multi-channel agencies specialize in several channels, allowing you to spread your visibility on other platforms.
  • Access to resources - Ad agencies have access to the resources and tools used to optimize and monitor your ad campaigns. You do not have to learn these programs or pay for these resources, as they are operated by the agency.

What Are the Main Types of Ad Agencies?

  • Full-service advertising agencies - Full-service ad agencies can cover all aspects of marketing, from website design to ad campaign management. These agencies usually have a team of designers, creatives, managers, and more, depending on what other services they offer. For new businesses that want a team that takes care of setup and management, full-service agencies may prove to be the perfect choice.
  • Single-channel advertising agencies - Single-channel ad agencies specialize in one marketing channel. These specialized agencies are often experts in the marketing channels they focus on. Businesses that target a specific channel or wish to add another marketing channel usually choose single-channel ad agencies.
  • Multi-channel advertising agencies - Multi-channel ad agencies specialize in creating and managing ads for multiple marketing channels. These are usually handled by team members with different specialties who work in coordination with each other. This type of agency is perfect for businesses that want to run a coordinated ad campaign across multiple platforms.

How Much Should You Spend on Ads?

For small businesses, you should budget 5%–10% of your projected revenue for ads. The larger your business, the higher the budget you need to inject into advertising in order to scale effectively.

The most successful businesses spend a lot on ads. According to Statista, HBO Max was the leading brand for digital advertising spending in the United States in 2021, with a spend of 634.52 million U.S. dollars. Disney Plus trailed behind with 403.02 million U.S. dollars, while Walmart secured the third spot with 331.35 million.

How Much Do Ad Agencies Charge?

Around 3% to 15% of the ad spend is the typical ad agency fee. Small new ad agencies that deal with small business clients sometimes charge a retainer fee. Ogline Digital, for example, charges 10% of the total ad spend or at least$1,000, depending on which is bigger.

On average, digital ad agencies make about 20% profit margins. The bigger the clients and ad spending, the more money the agencies make. There are various pricing models that ad agency use:

Ad Agency Pricing Models

Ad agencies make money depending on their pricing model:

  • Monthly retainer fees - Ad agencies that work on monthly contracts often charge a monthly retainer fee. This can range from a few hundred dollars to about a thousand. This is common with small agencies and small businesses.
  • Performance-based pricing - Some ad agencies may prefer to charge clients based on their performance. The pricing depends on the deal agreed on by both parties. Usually, the ad agency would take a percentage of the return on advertising spend (ROAS).
  • Percentage of ad spend - The most common way ad agencies charge their clients is through percentage pricing. In addition to a small retainer fee, an ad agency would typically take 3% to 15% of the total ad budget.

Why Do Ad Agencies Fail?

The failure of an ad agency to deliver fulfillment for their clients can be attributed to several reasons, according to Forbes:

  • Mismanaged finances - A classic mistake of miscalculating the agency's incoming and outgoing cash flow can leave the agency unable to pay for the necessary facilities, payroll, or services to complete the contract. This can lead to the agency losing its client and ending up bankrupt.
  • Team utilization - Not properly utilizing the maximum potential of team members may stifle the ability of the agency to perform to the client's satisfaction. It is important for an agency to assign team members responsibilities that best fit their skill sets.
  • Neglecting metrics - Financial statements usually come a month late, which could mean that it may be too late to respond to critical problems. Hiring an accountant to handle the finances and strategists to help interpret long term data will help agencies make accurate projections.

There are also companies that offer done-for-you full-service ecommerce automation that includes marketing and management. Roman Cresto's Automators AI is a company that pairs investors with automation companies. You can also learn how to create your own marketing agency. You can learn from courses, such as Rene Lacad Training, which specializes in social media marketing or Faizan Saeed's Lead Gen Accelerator mentorship, which focuses on starting and scaling a lead generation agency by sending cold emails.

Best Highly Scalable Passive Income Business in 2024

Local lead generation is my number on recommendation for a online passive income business. This easily scalable business model is a great way to supplement your income. By using free SEO tactics to rank your site on Google, you can earn $2,000+ from renting your digital space out to local businesses. After an initial investment of about $500, it costs very little to maintain in both time and money.

Once your first site ranked and rented, you simply have to repeat the process to scale. There are thousands of local areas, over 40K in the United States alone, and hundreds of niches that you can get into. This means that the competition is low, and the scalability is virtually endless. These qualities make local lead generation a great source for additional passive income while you focus on your business.

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Ippei Kanehara
Founder/CEO

$52K per month providing lead generation services to small businesses

Ippei.com is for digital hustlers, industry leaders and online business owners.

His #1 online business recommendation in 2024, is to build your own lead generation business.

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  1. Great! We signed up for their software offer last week after the free trail. Both the onboarding experience and leads have been top notch so far

  2. I can only talk from our experience but what I appreciate about Ad Alchemy is their straightforward approach to email marketing. They have helped us refine our strategies, leading to a steady increase in engagement. While the results did not skyrocket overnight, we have seen consistent growth over time, which is exactly what we were looking for.

  3. We’ve been working with the Ad Alchemy team over the past year. We’ve had some doubts initially but this Q4 has been record breaking. I noticed a lot of changes in terms of their team structure and systems which was new to me but based on the results it worked out really well for us. Looking forward to continuing in 2024.
    – Marissa

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