In my opinion, this is the module that will either make this course great or forgettable. Facebook Ads is one of THE most important components of a successful dropshipping business, and therefor it is one of the aspects that I am most critical of.
Let's see if Oberlo and Jessica delivers.
Jessica and Oberlo suggests that you use the CPM method, not CPC. This means that you pay per 1000 impressions (you pay to have your ad on 1000 feeds), as opposed to paying for each individual click.
Jessica says that $0.35 is a decent ball park figure for your CPM. So, with $35 dollars, you hope to get 100 people to your store. If you only get a conversion rate of 2% and those two people spend $20, then you made $5 profit.
BUT, what if you want to go the CPC route, as many other courses suggest?
Here are some (fat) facts for you to chew on:
The average CTR of FB Ads for all industries, is only 0.9%...
This means that for every 1000 people who sees our ad, only 9 will click on the ad...
And that is only the Click Through Rate. That is NOT the conversion rate... This is only the amount of people who will go to our site, not necessarily buy from us.
See how FB Ads can make or break you..? You need to be VERY careful where budgeting and bidding is concerned...
According to a Wordstream article (last updated 27 August 2019), the Top 5 FB Ads by industry with the highest CTR's, are as follows:
FACEBOOK COST PER CLICK
You need to decide which tactic is the right one for you - CPM or CPC? You'll probably only know once you've run Ad Campaigns with which to compare data...
For more stats on FB Ads, visit the informative post on Wordstream, titled "Facebook Ad Benchmarks for YOUR industry".
If you'd like more info on Facebook Ads themselves and their associated costs, then click here for a post from AdEspresso.
We start off creating three separate ads (the same ads, targeted at the same audiences, but in different countries), with a total daily budget of $30.
Jessica suggests you do NOT use the "much-advertised" $5 per day method - according to her it simply doesn't work...
I tend to agree, as $5 per ad per day doesn't leave FB much to play with, which means gathering data is going to take a long time. The FB Pixel only really starts working once you've had a hundred different interactions from visitors...
One of my biggest beefs with these dropshipping courses, is that no one gives you an idea of what your marketing budget should be.
That's because it all depends on your niche. And the product. And the competition. If you have a really specialized niche product with very little competition, you can expect good returns on $500.
However, if you have a product with a high level of competition, expect to pay thousands... (I know this from personal experience.)
Things to remember:
- Do not create a split test for your first ad sets.
- Don't start your bidding high - let the ads run a few days before you decide to scale up.
- Follow the suggested settings that Jessica shows To THE T. Don't stray and change something. Don't skip anything. Follow AS IS.
In closing, we created three different (draft) ads with the same settings, targeting three different locations.
This is also an added little bonus, as most other dropshipping courses only focus on targeting audiences in the US.
This is where MOST of the dropshipping courses fall short. They tell you to look at your data and to use it in order to make decisions on whether to kill or scale your ads, but very few coaches actually teach you HOW to interpret the data.
Jessica actually takes the time to go through the columns with us, explaining what to look for that would indicate our biggest winners.
Our next big step is a doozy! Based on the data we've analyzed, do we take it slow and steady, or do we go balls to the wall..?
Buy this course just for the tutorials on FB Ads.
Jessica starts the lesson by saying that her store has generated sales. But NOT as soon as she would have liked. The initial idea was to film this lesson video a week after the Custom Audience, Retargeting Campaign and Lookalike Audience Ads have been running.
But then Green Kitchen Goods only had a single sale. So Jessica went back, did some tweaking and another week later she had four sales!
Yes, I know what you're thinking: After all that time and effort (and she's a pro at Shopify), and she only has FOUR sales?!? (See why I don't like dropshipping / eCom anymore..?)
But that is beside the point. The point is that Jessica and Oberlo actually disclosed this AND Jessica shows you EXACTLY what she changed in order to get "more" sales.
How is that for transparency / full disclosure..?
NONE of the other courses have done this, and this is something that EVERY single new student / online business owner wants to see and deserves to see.
We need to know when something proposed by a course didn't work, and most importantly HOW to FIX IT.
(And whether the business model is actually worth looking into...)
To get back to the lesson:
Jessica shows you the results from her Ad Campaigns and how she interprets the data.
The solution - Jessica found variants of her platinum product that would be compatible with different coffee machines.
This solution will in all probability not be applicable to your products, but it shows that there is a possible solution to every problem.
So? Did this fix the conversion problem on Jessica's store?
She re-organised her store around her platinum product by redoing her banner image on the homepage, adding a link to her platinum product on the Menu (so that it shows on every page) and changed the Font.
After all this, Jessica had to make a decision. Up to this point, her FB Ads had already cost $500 for ONE, single, solitary sale... Do you quit, or keep pumping money into your FB Ad Campaigns?
- First: The timeline - the store has been up and running for more than 5 weeks before it got it's first sale on August 6th for $16
Up until the 6th of August, the Ad Campaigns had generated 92 222 impressions and 8 408 clicks, with a total Ad Spend of $792.29. For one sale. Of $16...
Most entrepreneurs would call it a day when seeing that kind of ROI, but Jessica decided to spend more on her winning FB Ads.
She spent an additional $222.51 and closed three more sales in a couple of days after scaling her ads.
This brought the Total Ad Spend to $1014.80 and Total Sales to $95.96... (and remember, the $95.96 is NOT profit...)
You decide whether this looks promising or not... Hopefully Jessica and Oberlo share later Sales Figures so that we can make a more educated decision.
The standout lesson in this module, is Video Lesson 04: Set your campaign goals.
Jessica goes into great detail on how to do the settings for a conversion campaign - it is one of the most detailed lessons on FB Ad settings that you will find in dropshipping courses.
We're shown EXACTLY which options to use (and how), and which options to skip. It honestly is one of the highlights of the course... Kudos to Jessica and the Oberlo team! Their attention to detail is outstanding.
As a beginner, this is exactly what you want from a course - clear and concise instructions PLUS the reasons behind the choices.
There is a downside though... I discussed those in my review of the last lesson, Video Lesson 08: Optimize ads for more sales...
It boils down to your initial ROI being terrible...
The question to ask yourself is:
- How much time and money are you willing to put in before seeing success, or pulling the plug?
OVERALL IMPRESSION OF MODULE 4: LAUNCH FACEBOOK ADS
First and foremost: this is one of the better (if not THE best) modules I have come across dealing with FB Ads.
Does it guarantee success?
If anything, it shows you the realities behind FB Marketing.
It's not pretty. It's not cheap. Most of the time it's pretty competitive. And most often than not, it is NOT as successful as you would like.
You need a lot of patience and skill (and most probably deep pockets), to make FB Ads work in your favor.
Despite this though, this is an excellent module on FB Ads.
It is informative, brutally honest and up to date.
There's one more Oberlo module to go!
Scared that FB Ads might sink your business?
The sad reality is that it happens - more often than you think.
So if you think it's a little too risky for you, why not read about my number one business suggestion for 2019 and beyond?
Click below to learn more...