Quick Summary:

Here’s a quick summary of the post so you can tell whether this article is for you are not.

Follow these steps:

Adjust your price to account for marketing expenses (in this case we raised it by 100% while increasing conversions by 6X ) Design your landing page to convey your brand and gain trust with users (this is what skyrockets conversions to 3% – 4%) Research your audience to ensure they are the correct buyers Design your ad to match your entire branding funnel and appeal to your newly defined audience Target your audience and start your ads Optimize for profit

Do you want step by step instructions on how to do this?

Then you’ve come to the right place 🙂

This post is for the following 3 types of entrepreneurs.

Beginner Ecommerce Entrepreneurs that need to build a brand Existing Ecom stores that need to raise their profits Ecom stores that want to scale their business

And above all, you need to have MONEY to invest.

Is that you?

Then buckle down because I’m about to walk you through it!

The FB Branded Conversion Funnel

The FB branded conversion funnel is what I’m going to walk you through today. It’s the step-by-step plan that I personally use to sell just about anything online.

It’s a funnel that will pull new leads into your sphere of influence, and convert them into customers.

Here’s what it looks like:

Automated Growth – That’s what we’re creating

Do you know how cool it is to set one of these things up? Once you get it going, it is largely automated, and grows for you no matter how quickly or slowly you want to grow.

This particular one we created on a demanding schedule to make sales in the matter of 2 months, pretty much from scratch (no momentum to speak of.) If you’ve ever run ads to your Ecom store, you’ll see that making sales at a profit from cold paid traffic is not the norm anymore. If you want to be profitable you definitely have to step your game up.

The goal with this product was to drive sales with an end target of $15 per customer acquisition, with part time work, and minimal budget.

Sigh.

Let’s get started!

1) The Price Hike

I want you to do me a favor.

Think of 2 of your favorite brands right now.

Got them?

I thought of 2 of my favorite brands off the top of my head as well.

What do they have in common?

These are considered some of the most successful, and recognized brands in the world.

Now what I’m about to show you is a business principle used by them that you can easily apply to your business in little time to increase your profits and growth rate.

Now take a close look at the following 2 products.

What’s the difference between the Iphone…

..and the ASUS ZenFone?

I can tell you really quick.

One of these companies has an established brand around their product, and have conducted a campaign that has gotten potential customers to trust them. The other, while I’m sure is a great product, does not have the brand strength that Apple does.

Realistically, the Iphone most likely is better quality and might have better specs in some areas, but the price is just over 4X the ASUS phone. I’d be willing to be that the Iphone might be marginally better in quality and performance, but not 4X better.

People buy it because of the brand, as I’ll prove to you with a real life case study in a second.

First, let’s look at a non-tech example with Nike.

What’s the difference between this…

…and this?

Simple.

One of them you know and trust the brand. It represents status, quality and athleticism.

The other one, you’re not so sure about.

And THAT alone justifies an $80 (5X) price differential. We all know that Nike is notorious for having huge margins.

If the most successful brands in the world are doing this, then let me ask you a question.

Why have you so conservatively priced your product?

I’m almost certain that if you’re reading this right now, that you’ve probably too conservatively priced your product. But then again, you’re probably not using the right tools to convey how valuable your brand is, which is why people won’t buy at a higher price.

If you throw your product on a generic Ecommerce theme check out page, and expect people to convert at a good %, then you’ve got something else coming.

I’ve often seen the exact same products sell, but the one with the better branding can sell for double or triple the price. Let me give you an example.

For Kangaroo Belt Co. I raised the price by $50, yet increased the Conversion Rate by 6X

I did what so many entrepreneurs are afraid to do and I raised price by $50 (100%.) Many entrepreneurs price their products too conservatively, and realize only later that they need to raise their prices in order to make their business plausible. The only problem is they often corner themselves because the market perceives their product as cheaper since it used to be at a lower price point.

This founder in particular launched his product on Kickstarter (for about $50 a belt,) and kept it the same price as part of his longer term strategy.

Only later did he realize that if he wanted to turn this into a real business that he would have to price it higher in order to fund a marketing budget and grow the company.

This is a perfect example of why you can’t just hire a one dimensional marketer. When someone understands the fundamentals of a business and is able to attack a problem from multiple angles, you multiply your chances of success.

And that’s exactly what we did.

So we made the decision to drastically raise the price. But believe it or not, we actually raised the conversion rate at the same time!

This begs the question, what marketing tactics justify a price raise?

We had just raised this product price by 100%! So I knew what the first step would have to be.

Read on to find out.

2) Finding the Right Audience (and making sure it’s big enough)

Before you do anything to your business, you need to make sure that the audience for you to sell to is there.

In this case, we needed to make sure that our audience was willing to spend $100+ on a single clothing item.

This immediately brings to mind luxury brands.

Now, instead of trying to narrow down demographics that might be interested, simply identifying some competitors will do all of that work for you.

Think about it, established brands have already done all of the work to attract their target users to them, so all we have to do now is discover brands that are similar to ours, and target their customers to make sales of our own.

This trick works like a charm when entering pretty much any niche.

So we did some research on luxury clothing brands, leather brands, and more.

It kills me to see so many people skip this due diligence.

Did you know that you can actually target people on FB that have purchasing behavior to buy exactly the product that you’re selling?

Here’s a quick example of some of the purchase behavior of one of the selected targets in our ad grouping

Most Facebook advertisers don’t go as far to target this closely.

This audience interest (which is related to the brand we were promoting) is highly likely to spend money on clothing. About double the probability of the typical Facebook member.

These simple tweaks are the workhorse of your campaigns. If you can’t find people that are likely willing to buy what you’re selling, it doesn’t matter how great the rest of your material is.

Make sense?

The secret is to find multiple audiences like this.

Sign up to get our detailed targeting and see our actual ads.

3) Create a Landing Page that Justifies Your Price Point

Previously, the team had been sending their traffic directly to the Ecommerce checkout page. It’s surprising how many people do this, because it’s a big mistake, especially with higher priced products.

You must realize that people buy products online based off of 2 things:

1) How much they think the product will help them selfishly

2) How much they trust your brand to deliver on its promises

And we can clearly address those problems with a properly built and branded landing page.

Branding

Your landing page is the thing that introduces your brand to the potential customer. Honestly, when advertising online, this is where 75% of your branding work is done, and as the old saying goes, you can’t make a first impression twice.

For your landing page, you should focus on 3 things that will convey your brand in a positive light (and probably double your conversions.)

1) The copy

Here’s the rule of thumb.

If you want to charge more for your product, you’re going to have to write some good copy.

Take away this principle. The days of generic checkout pages with a sentence written about your product should be gone in your story.

Even if you don’t raise your prices, it will drastically increase your conversions if you write more copy for your products.

Think about it. You’re selling something online. The buyer doesn’t get to touch or feel it before they buy it. Filling in the features of the product

2) The design

This comes down to your design and photos.

KBC already had great photos, but their website had only displayed product photos previously! We can’t have any of that.

Before pic:

So we put their great brand photos to use and built a new product landing page.

After Pic:

3) The call to action

Once people like your brand, know it, and trust it (all of this can be done in only 30 seconds) it’s time to call them to action!

Here’s a huge secret.

Don’t ask them to buy on the initial landing page.

I could go into the whole psychology of micro-interactions and how they influence the buyers end decision, but let’s keep it simple and say:

If you get someone to say yes, it’s much easier to get them to continue to say yes.

So your call to action on your landing page should be to get them to go to the shop. This does something very important.

The potential customer has already read all about your product, and seen what it is. Often, when you throw the price in their face immediately, they don’t have anything else to find out so they’ll leave the site right then.

When you get them to click the “Shop Now” button though, and wait until after that to show the price, you get them to virtually raise their hand, and take a micro-interaction that says “I want this product.”

Bottom Line: Get your visitors to say “Yes” before they see the price

Now when they make it to your store, it will be much easier for them to browse and finally complete an order.

And that is why doing it this way is important.

4) Create Your Ad to Match Your Funnel

If you’ve made it this far, you’re already shaping up to be a success. Now we just need to keep filling in the gaps until you have an awesome process set up.

Based off of our audience, we decided to highlight the belt’s quality, longevity and uniqueness.

5) Target Your Audience and Launch Your Ads

It’s time to test your ads to see how they’ll work! By this point, you will have already done your audience research and designed your ad and copy. So it’s time to put them out there and start testing!

It’s best to let your ads run for 3 days to see how they will perform. This will give you some preliminary data to help guide your next steps.

This is exactly what we did here. After running the ads for about 3 days we checked in to see how they were performing.

Here’s a quick little tidbit of what they looked like so far:

This is exactly what you want!

Keep an eye out for ads with a relevance score above 5. These ones are great opportunities to optimize. The high CTR means that this audience in highly interested in what we have going on.

Having a high relevance score means that there is lots of potential to profit. It means that your audience is interested in your ad.

If you’ve targeted the right audience, this is highly targeted traffic that buys, and there is plenty of room for profit. This was the case for Kangaroo Belt Co. here.

If you’re testing out multiple ads, you’ll have multiple opportunities to have ads like this.

You also need to remember that it only takes one successful ad to drive your business forward. It’s your job to find that ad (or ads.)

6) Optimize Your Ads

Now you’ll be getting data on which groups are buying, and which groups are not buying.

What you will want to do after the ads have run for about 2 weeks, is turn off age groups, and targeting groups that are not profitable. If done correctly, this will drop your price per customer acquisition, and keep your sales volume the same, which is good news for your business.

Here you can see for one of our ad sets, we had all of the results clustered with the older age groups.

After 2 weeks you should have enough data to be able to confidently turn off age groups, and other aspects that are not performing, or under-performing, and that’s what we did here as well!

This keeps you profitable.

Conclusion

The process laid out in this blog post is what you have to do repeatedly in order to continue being profitable with FB ads.

When you branch out into larger audiences (such as lookalike audiences, retargeting and more) it will take more ad spend to find what will be profitable there, so it’s important that you start with this process early on of making focused ads for a focused audience.

We talk about a lot more of these advanced techniques and scaling on our newsletter, which you can sign up for here.

Trust me, this is not our best campaign (best so far gets 650% ROAS) and we share A LOT more about this stuff to our inner group on the newsletter. So make sure you become a member today!