hey everyone Gabriel here and in this video I’m gonna be doing a case study on a new store that I’ve been working on that I launched just last month and in 25 days I’ve been able to scale it to over a hundred thousand dollars in sales and this was all with Facebook ads and so I’m gonna be giving you an in-depth overview of everything that I’ve done so far in order to achieve this I’m gonna be talking about the product the store the ads really everything that you want to know and another cool thing that I’m gonna be showing you in this video is a week-by-week profit and loss statement so I’m gonna be showing you how much I made or lost in the first week in the second week in the third week and so on and how much I made overall out of this one hundred ten thousand dollars in sales so I think that’s gonna be a really interesting part of the video as well because one of the most common questions I get is how much capital do you need in order to start something like this so that’s what this video is going to be about now Before we jump right into it I want to show you a little bit of proof so this is the store here as you can see so far today eight point nine K in sales these are the sales since starting so you can see this store was started on June 10th this was the first day and it was a really slow start mainly because this is just a side project of mine I have another private label brand that I’m working on mainly I’ve talked about this a few about this brand a few times in my past videos and this is just a side project that I launched and the reason that I actually launched this store is that I wanted to launch a new store from scratch with the method that I teach in my course econ blueprint and show that it still works you know in 2019 and beyond and so that’s what I did I actually started a brand new store from scratch and with the method that I teach in my course and on my youtube channel it’s the same method that I teach on my youtube channel and on my course my course is just more advanced and so clearly the method still works right in less than 30 days I was able to scale up to over a hundred thousand dollars in sales and yes this is profitable I’ll be getting into that in the video so that’s what this video is about and that’s just not waste any more time and get right into it alright so first off I want to talk a little bit about the product and the store just to give you a better idea of what I’m selling and why I think that it’s selling so well so this is a one product store and I actually found the product for it through a Facebook ad so I got targeted by an ad on Facebook and the product immediately caught my attention as being a good option for a one product store and the reason that it caught my attention is being a good option is that it all of the criteria that I talked about for what a winning product looks like so this this product solves a problem and this is very important problem-solving products are the best to sell in my opinion and this solves a very common problem so this is even better right if a problem is very common that means that there’s more people to target and so you can you can scale more and you can keep selling it for longer a good example of this would be the posture corrector I’ve talked about this product a few times before this this is a product that solves a very common problem right it doesn’t matter if you’re 20 if you’re 30 60 if you’re a man or a woman you could still be affected by poor posture and slouching and so it’s a very common problem and products that solve a very common problem are you know are the best in my opinion that is one of the main things that I look for when I’m searching for a product and this product from this case that he is like that it solves a very common problem now another good thing about this is that it’s not commonly found in stores this is another factor that’s important you don’t want your product to be easily found in brick-and-mortar stores right you don’t want someone to see you’re out of than think oh I should go out and drive to the local Walmart to go buy this right you want them to see your ad and think I’ve never seen this before so I’m gonna have to order it online because I can’t get it anywhere else that’s the kind of reaction you want from someone when they see your ad and so to get that reaction you want products that are not commonly found in stores this product is trending up if you go in Google Trends and search for the product for the product category it’s trending up there’s a very strong trend for this type of product in the past five years so this is this is a great sign for if I want to keep selling this the long term the product has wow factor wow factor once again it’s a very important criteria for a winning product if if a product has a WOW factor it’ll be much easier to advertise on social media realizing that the product meets all of the criteria I decided to do a bit of competitive research to see if I can find any other stores who are actively selling this product because to me that is the biggest form of validation if I can find a few other stores who are actively selling my product and by actively selling I mean they’re consistently running ads for that product making new ads and you can see that they just recently posted a new ads and they have a lot of views already if you can find such competitors that means that the product is selling well and so you can do the same thing and you can probably do it even better if you make better ads and make a better story etc and so that’s what I like to do when I find a product that I want to sell I look for competitors who are already selling it and that to me is the ultimate validation if I can find recent competitors who are actively selling that product and so for this product Inc particularly I found two to three competitors actively selling it and to me that was just the confirmation now a few other things to note this product had approximately three thousand orders on how they express when I started so this is just to give you an idea right I often say you want to look for products that have at least a thousand orders on Aliexpress so this one had at least a thousand but it didn’t have a crazy number like 30,000 or something to the point that you would think it’s very saturated and the last thing that I put here is that I’m doing 3x pricing so I’m pricing my product at approximately three times what it cost for me to get it and ship it to the customer and for the time being I’m doing no upsells and so this I’m missing out a lot of profit here about not doing any upsells and so this this store would actually be a lot more profitable if I was upselling something but like I said this is just a side project which is why I haven’t set this up yet so that’s it for the overview on the product and store I hope that gives you a better idea and now let’s move on to the ads so to put together the first ad to test this product what I did is I took video clips from the supplier on Alibaba so I found the supplier in Alibaba and they had a few video clips with this product and I also took some clips from YouTube and I used all of that to put together a first video ad and so I added here and avoid using clips featuring someone’s face from YouTube you can get in trouble with that and just avoid just be mindful of which clips you’re taking on YouTube because you can definitely get in copyright issues I’m just taking clips that aren’t yours and using them for commercial purposes so be careful with that but usually if you devote using people’s face if you’re using people’s faces and you switch to your own content as soon as possible you’re not going to get into any issues so that’s what I did I took video clips from the supplier and YouTube to put together a first ad I made a fast paced ad so three to four second clips with captions on screen so you know typical Facebook ad it brings up a problem in the first few seconds so my scroll stopper is is I bring up the problems in the first few seconds I put the problem in their face and then I offer the solution with my product in the remainder of the video and that’s the structure that works really well for for this product and for a lot of the products that I’ve run in the past this out is 25 to 30 seconds long and I found the shorter the better for ads and this is just a general rule I mean it really depends on your product on your brand and in specific cases but in my experience it’s better to aim for shorter ads right so try to condense your message and remove anything that’s not necessary and just keep it short and snappy and to the point and that’s what performs best in my experience and to put the ad together I use the iPhone app in shot a lot of people ask you know for free video editing tool and this is surprisingly the best one I found it’s it’s I’m laughing because it’s an iPhone app right you wouldn’t expect a good video editor to be on iphone but in shot is actually really really solid app for for editing things together I also use any motor but any moto isn’t free and shot is free and it’s it’s got a lot of features alright so what I want to do now is give you an overview of my Facebook Ads launch strategy and it’s a bit complicated so I broke it down to three phases to hopefully make it easier to understand and this is the exact strategy that I used to launch this storm so the first phase is the initial data collection this is when you’re just launching a new story you don’t have any data and so you don’t really know who the best people at target are and you can’t build look-alike audiences or anything like that and so your goal in this phase is just to get the ball rolling just to get the spend going so that you start collecting data and you know start to get things moving and so what I like to do for this phase is I like to do first the Tiki campaign so this is how I start off all my products I’ll do a PPC campaign in this case for the store I did 18 plus all genders t4 countries so t4 countries when I write that that means US UK Canada and Australia and so I did this PT campaign at the start to get a video of your data once I had enough video of your data and this video of your data what you want is 95% video viewers and so once I had about two thousand two thousand 95% video viewers and you can see this in ads manager if you pull up the column for 95 percent video viewers once I had this amount of video viewers I launched look-alike audiences based on 95 percent video viewers and so I launched 0 to 5 percent so I did one one to two percent two to three percent and so on so that’s five odd sets there and then I also launched ten broad single interest so just random interest I just thought of different interests that I could think of based on the product different angles right so not just like ten of really similar interest you want to try different approaches and see what works and so that’s what I did here and that’s what I mean by the initial data collection is you just want to launch ad sets you just want to get the ball rolling and get some spend going so that you start collecting data and so that’s what I did here and I put C here if you don’t have any audiences if after testing all these audiences the 95 percent video of yours look-alikes and 10 broad interests minimum if after all of that you don’t have any audiences with the conversion rate above two to three percent then you should work on improving your offer and this is really important because this whole this whole Facebook Ads strategy is based on data and collecting data but if you have a really really low conversion rate it’s gonna take forever to collect data and you’re gonna have to spend a lot of money and it’s just not gonna work well right so the first thing is that if you’re not if your visitors are not converting into at the carts initially checkouts or purchases then you need to work on improving your offer and your store before moving forward so that’s really really important so that’s the first phase the initial data collection now the second phase is data driven target this is when you’ve actually collected some data so now you actually have something to work with and so what you want to do is you want to focus in on the best interest and demographics that you’ve identified right so you’ve been testing these interests which ones were the best based on that you should create an each that you should test the new interests similar to the best ones you should narrow it down if there’s like a specific demographic that performs best you should narrow down to that demographic and also at this point you should have that you should have more data for look-alikes right in the first phase we launched 95% video of yours look-alikes but in the second phase you’ve already been collecting data for a little bit so at this point you should have enough data for different look-alike audiences for example website visitors top visitors buy time spent at the cart and issue checkout purchase value based look-alikes these are also really really powerful once you have at least 500 purchases I recommend for for value-based look-alikes but these are all different look-alikes that you can test once you have data and so this is why I call it data-driven targeting is because you have better look-alikes and you also have the data based on what you’ve tested before right so you can break down the ad sets that you’ve been running and see if there’s a specific age group that performs better than narrow down to that right so this phase is just focusing in on the best performing audiences and launching more look-alikes basically using the data that you’ve collected so far to narrow down your targeting and then you want to identify the top audiences that’s that’s important as well you should know what your top audiences are and this is important for the next phase which is ad creative optimization so phase one is collecting data phase two is using that data to find the best audiences and phase three is the creative optimization so what you want to do in this phase is use the top audiences from Phase two and test new creatives right because it’s very unlikely that the the first the first few creatives you test are going to be the absolute best creatives that you can make right and by creative what I mean is a video ad or an image out a creative is just an ad it’s just a term for an ad everything like the headline everything that encapsulates an ad you call that a creative and so you want to test different creatives with your top audiences in order to lower your costs and get more actions taken on your website and so this is how you go from not being profitable to being extremely profitable if you remember at the start of the video I showed you when I showed you the sales graphing it was very very slow at the start and then it just took off and it took off in Phase three once identified new pointing creatives so that’s essentially the launch strategy and I wrote here that buying data at the start is crucial because data leads to strong look like audience targeting and effective purchase optimization so the more data you get the more purchase data you get not just purchase data but purchase data especially the more data you get the better your results tend to become and the reason is is that you get better look like audiences right which is half of the equation the audience you get better audiences to target because you have better source data and then you also get better purchase optimization because you have more data to work with and so Facebook’s algorithm can be more effective at picking out right people to show your ad to and so as you collect more data things just get easier and easier then the most important thing it becomes testing ad creatives hence phase three being ad creative optimization so that’s the launch strategy and now I’m going to hop into ad manager to show you that all right so I’m inside of the I’ll account for that store and let me just refresh that for you as you can see so far today I’ve spent five thousand and generated back 11.5 thousand and these are Canadian dollar numbers so the US dollar numbers would be smaller and the return on adspend is 2.3 so very good results very profitable the break-even return on adspend is right around 1.6 and so with this kind of return I’m I’m around 20 25 percent 25 percent profit probably and so that’s not the point that I want to show you phase by phase and so the first week is a good approximation for the first phase and this is when I was just the the initial data collection phase and so this was from June 10th to the 16th and as you can see I was actually just most of my budget was going towards this audience tests campaign and I was just testing audiences and collecting data as you can see I 11 I spent 18 hundred dollars to generate back 2000 for a return on adspend of 1.1 so in this first week I was definitely losing money now if I go to the next week this is the date of the data driven targeting phase right so this is after this first week I started to have some data right in that first week I collected 1,800 content views 120 active carts so you know I started to get a little bit of data I didn’t have enough data for really good look-alike audiences yet like at the carts that’s barely enough data purchases so I didn’t have enough data for the good look-alike audiences but I could already start doing website visitors look-alike audiences top visitors by times but look-alike audiences and so that’s what we’re gonna see in the next phase is that and my return on adspend gonna go up because I started to use the data I had to target and so you can see there you go in the second phase in the second week I should say in the second week my return on adspend went up significantly and so did my ad spend now if I go to week 3 this is the creative optimization phase so this is what I already have good audiences and I just testing new creatives with it and you’ll see that this is this is when it really starts you know so 24 to 30 ahthe 30 a week since launching this store and boom 28,000 spent sixty three thousand sixty three thousand return on adspend two point two four return so in that third week I spent a lot more it was very profitable and that’s because I was optimizing the creatives and I was finding new ads and optimizing everything and then just to show you since then so this week that would be there you go since then the return on adspend has dropped a little bit but I’m scaling even more right so this week is gonna be even more profitable than last week and so that’s essentially that gives you a good idea of what it looks like when you’re launching your product using this strategy it’s really all about collecting data then taking advantage of it and then testing a lot of ads and so I hope that gives you a good understanding alright so now that you’ve seen what it looks like inside of ads manager for each one of those phases I actually want to show you the profit and loss for each one of them and so I’ve converted all of the ad spend figures from Canadian dollars to United States dollars and I’ve put together these these numbers so the first week I did 1526 in sales so you know I’d spent 1,400 cost of goods 518 fees 41 so the first week might actually lost money so the first week I was negative 433 dollars and so you know when people ask how much money do you need to start drop shipping I had to spend 1400 but I only lost 400 right I didn’t actually spend 1400 to get it off the ground because I got some of that back and so a lot of it is actually a cash flow problem rather than an investing problem because I only had only lost four hundred and thirty three dollars in the first week and then in the second week I recoup that loss right in the second week can see that I made four hundred and forty dollars profit and so overall since starting in the second week I was up so week two that’s when it started to get profitable but barely profitable and then week three that’s when I started scaling because it was the creative optimization phase and I found and you add that was performing really well and I was able to scale that ad and so you can see that week three the profit and loss was just short of 10,000 so just short of and this is about twenty percent you know ten thousand out of fifty thousand and so the profit and loss since starting on week three was up to ten thousand and then week four so far this is Inc sailes 56,000 had spent 24,000 cost of goods sold 20,000 these 1500 so the profit in lost further week so far is almost at 12,000 u.s. dollars and since starting the profit and loss is at 21.5 thousand so overall in these 25 in these 25 days since I’ve launched the store the profit and loss has been 21 thousand US dollars all right so now I want to go a little bit more in-depth on the creative optimization phase because this is really important so one thing to note is that you only want to change one variable at a time when you’re split-testing creatives so there’s multiple variables and you can change when you’re testing Korean if it’s red you can test different scroll stoppers different videos different thumbnails different ad copies headlines news feed link descriptions call to actions you know really a ton of different things that you can test but you only want to change one variable at a time because if you change multiple things you won’t know what changed cause the increase or decrease in performance so for instance if you’re testing two videos you only want to change you know you want to duplicate the first data then change only the video leave the same ad copy same headline everything else and so that’s really important now another thing is that if you want to test a lot of creatives without without spending too much budget right a good way to do this is with PPE because if you test a few test creatives optimizing for purchases it gets really expensive really quickly but instead if you do with PPE you can test with like 10 dollars to $10 each per creative is usually enough and PPE and then you can see which creative drives the most clicks to your website and add to cards if any and so you won’t get the the lower funnel data with PP you won’t get as many active cards or purchases but you’re going to get a lot more clicks for less money and you can use the clicks to to make a prediction on how it will do once you switch it to purchase optimization campaign and so this is what I like to do i do PPG campaign to test ads and I do one AD per ad set and I compare the relative performance and so total so far I’ve tested three different videos five ad copies three leading clips and by leading clip I mean a scroll stopper the first few seconds of video to catch your attention and then five thumbnails and I’m still testing new things I actually recently ordered an ad from a media company to get my own content made and so I’m still waiting for that to delivered but I’m gonna keep the creative optimization phase goes on forever and this is how you stay consistent and this is how you continually scale and grow the business and I mentioned this earlier but the best creative in a pee-pee creative test is the one that drives the most actions on your website so the most important metrics to look at are the CTR link click because this is how many people actually click through on your website and then the cost per view content and cost per at the cart if any a lot of the time you’re not going to get out two carts in PPE but if you do that’s a good sign and that’s an important metric to keep track of you know because you could have an ad that drives a lot of traffic but no one actually adds the curt and you can have an ad that drives not so much traffic but the people that do go on your website always Add to Cart and so you need to look at all the metrics and if you get any purchases in PPE this is really rare but if you do get a purchase in PPE that’s usually a really really strong selling that it’s a winning ad and that it’s gonna do really well once you switch it to purchase optimization alright so just a few quick notes on scaling I’m not gonna go in-depth on scaling because this is the video about launching but scaling is really easy honestly once you figure out the right targeting and the right ad it’s just a manager it’s just a matter of increasing your ad spend and so I scaled using super look-alike audience to see video campaigns and demographic with no detailed targeting and so I talked about both these CBO scaling strategies in my video new Facebook ads Evo strategy and I also talked about this in my course econ blueprint and so this is these are the exact strategies that I used to scale and I’ve been increasing the budget 50 percent every day at account midnight time until the road starts to significantly drop and so this is how I’ve been scaling I’ve actually hit the Add Account daily spend limit currently like there’s a five thousand US dollar spend limit by default on that account and I’ve unlike maxing it out right now and so that’s why I’m not scaling further so I’m in the process of getting that raised and then I’m gonna try to keep scaling and another thing to note here is that value optimization works really well this is something that Facebook recently introduced once you have I think it’s 100 purchases on your pixel but I could be wrong this becomes an option when you’re optimizing for conversions you can select to optimize for value and this is similar to optimizing for conversions but it actually just gets you higher value customers which leads to a high average order value hence a higher return on adspend so I’ve been getting better results with value optimization than just conversion optimization I would recommend switching to this once you have enough data alright now I just want to quickly touch on automation how I’ve made all the tasks for this store because obviously once you once you scale to a level like this you start getting a bunch of customer requests and you need to fulfill all the orders on time and everything and so I just want to quickly touch on how I’m doing that so when I was first launching and testing the product of only getting a few orders I was doing fulfillment with the aesir’s so I haven’t talked about the aesir’s on my channel yet but this is a newish app they released it a few months ago from Aliexpress and it’s it’s the most convenient Aliexpress fulfillment solution it allows you to bulk order and bulk pay for you know for all your orders and it’s really convenient to use and so this is what I use that the start while I was testing the product and as soon as I had enough enough orders per day to switch to an agent that is what I did so after I had twenty to thirty orders per day I switched to my agent usually the minimum for an agent is 50 orders per day and so yeah as soon as I had enough orders I switched to an agent because that gets me faster shipping and better prices so the agent sourced the product he verified the quality and we ordered to stock based on the quote on the current order volume and then we streamlined the fulfillment right because now he has stock he’s shipping it out every day and we have fast lanes to the main countries and so you know we’re gonna have happy customers fast shipping and there shouldn’t be any problem with our ad account getting disabled and the last thing is customer service is an important thing that you need to automate and to automate this I used virtual assistants and Zendesk I’ve already talked about this in a video so if you haven’t yet watch my video automating your store and I talked about this more in depth and it’s very valuable if you don’t know how to set up customer service for your store because you definitely don’t want to be stuck doing this yourself alright so that is it for this case study I hope you enjoyed it now before I end the video I have an important announcement to make about my course so if you’re interested in my paid course or you’re already a member then make sure to pay attention to this because it applies to you so the econ blueprint course will be closing enrollment on July 20th so I’m about two weeks I’ll be shutting down enrollment you won’t be able to purchase the course or access to the private group anymore for about one month and the reason that I’m doing this is to add some new Khan and so I’m gonna be adding a full case study based on this store that I’ve been talking about in this video so picture this video but a lot more in depth I’m going to be revealing this store the product the ads and I’m also going to be adding new Facebook ad strategies that I’ve been using based on over 500,000 of my own personal ad spend for my stores in 2019 and so that’s why I’m closing the course so on July 20th I’m closing it so in the next two weeks you can get in for the current price then it’s going to be closed for one month and then in August I’m gonna be relaunching and the price is going to be going up and so if you want to get into the current price now is the time to do so if you don’t want to pay more later on if you get in now you’re gonna get the free updates you’re gonna get all the updated content for free and you’re gonna have paid less than if you wait until later and so definitely take action if you’re interested in the course and until July 20th acts you have a special offer for you guys like this is already a really good deal 297 but until July 20 if you can get in for only 247 with the code save 50 so this is your absolutely absolute last chance to get in for only 247 to the course and private group and this is until July 20th and then I’m gonna be closing enrollment and adding this new content so definitely don’t miss this if you’re interested and like I mentioned existing members will get the new content free if you’re still on the edge about the course I just want to show you this this is actually kind of just a coincidence because while I was recording the video someone posted this testimonial in the course private group there’s a ton of testimonials like this all the time but this one is really really impressive so he’s saying hey guys first off I want to say thank you so much to gabriel saint-germain you of course changed my life forever thank you is enough but really thank you thank you not trying to brag but my stores about to hit five hundred thousand dollars in sales so that is absolutely crazy in three months he’s had five hundred thousand dollars in sales and he’s showing us here he’s showing us like proof inside of ads manager of the return on adspend it’s all legit four hundred eighty one thousand in sales so this is really really impressive and this is just following the course method right and there’s a lot more testimonials like this if you want to see more testimonials you can follow me on instagram at gabriel st. cheer and i actually post screenshots from inside the private group here pretty regularly so you can see a bunch of testimonials i have a save story here testimonials and there’s a ton of them these are all real testimonials from inside the private group so it’s really crazy the results that people have been able to get with the course I can just I could keep so I’m not going to show you all them because it’s gonna take way too long you can see how many there are and you can go see for yourself on Instagram if if you’re interested but yeah if you’re interested make sure to join before July 20th when enrollment closes and that way you’re gonna get the updates free and get the best value possible so this is what the website looks like and all the info is gonna be in the description you can find the link and the coupon code there and it’s WWE comp blueprint everyone so that is it for the video I hope you enjoyed it and got a lot of value out of it and if you did please make sure to leave a like and subscribe that always supports the channel and also leave a comment below telling me what you want to see next and on that note thanks for watching and I’ll see you next time