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SHOW TRANSCRIPT

Caroline (00:05):

Hi, welcome back to the podcast. I’m Carolina Balinska and today I’m going to be speaking about the red flags of Facebook ads and how to save money running ads that make a great return on investment. This came up a couple of days ago. I have a lot of podcasts that I prerecord and I have ready because I know what I want to speak about. And then things like this come up, these golden nuggets that I think of very important that I speak about and help you understand the difference between success and failing when it comes to your Shopify store. Before we start, here’s a quick word from our sponsor, Gorgias, who my team use every day in our business. Just ask Parker

Lucas (01:34):

Lucas from Gorgias. Thanks so much for listening to the winning with Shopify podcast. One way you can start winning with your Shopify store in 2020 is by offering better customer experience with more and more brands offering the same products. How do you differentiate? Well, a lot of times that comes down to how you work with your customers even before their customers. So it’s not just post-sale during, they help them find their order number and a lot of the other automations that we’ve worked in the past couple of years to really help brands of all sizes give that awesome level of customer service, but it’s before the sale as well. So with a Gorgias, you can actually interact with your ad comments with your messenger inbox and live chat on your website to help with your conversational commerce strategy. So if you want to give your customer a better service, if you want to start increasing your conversion rates through conversational commerce, just head over to Gorgias.com Gorgias. Helped us. We’re the number one help us for Shopify for e-commerce because we are built for e-commerce from the ground up and if you mentioned the winning with Shopify podcast by ask Parker, you will get your second month free so you get a free month, your customers get better service and you get more sales. That sounds like a win win win for me. Just mentioned the winning with Shopify podcast when you sign up.

Caroline (02:56):

So this particular situation is from Reddit. If you’re not on Reddit then I recommend you jump on there. There’s a lot of great groups on their communities and there is a Shopify community. Then there’s other ones and this one comes from another group. It’s not the Shopify group, but it is another one around e-commerce. You can probably find the story, but I don’t want to get into it from the point of view of calling out particular people. So please go ahead and look forward if you want to. But I wanted to bring up this situation and talk about this particular post that someone wrote and help you understand what is wrong with that because I’m seeing a lot of the comments from this post and it’s scaring me, but it’s not only this post, it’s actually what I hear from my clients when I do my private coaching.

Caroline (03:44):

People come to me and they say, Hey, I’ve tried running Facebook ads or Hey, I worked with this company and I’ve lost all this money and I’ve got people that try to work with me, but they no longer have any funds to be able to do that because they’ve already wasted their money, losing all their money in situations back. I’m about to share with you. So I think it’s very important that you learn from this and understand exactly what’s going on. And at the end I’m going to give you some tips on how to know what to do. If you listen to my podcast, I’ve had lots of my clients that had done Facebook ads with other companies and I have got so many disasters. Charles, to tell you to be honest with you, I don’t have that many great stories. I have more disaster stories because it’s very easy to start a Facebook ad company and tell people, Hey, I’m in a Facebook ad expert, I’m going to run your Facebook ads.

Caroline (04:35):

And it’s a chat and burn situation. They work with Shopify store owners, they don’t get them success and they just move onto the next one. So this seems to be a big problem. Now the thing is, I don’t want to say that all of the ad companies are like this. There are good ones out there, but there are lot of terrible ones that do not care about your business and these things are happening on a regular basis. And I did bring up some of the issues that I saw with that particular situation. So some of these ideas I’m going to touch on that I’ve already touched on in the last couple of weeks, but I just want to go over them again. So just start off with Facebook ads are great for certain businesses. They are great in certain situations. I’m going to read out some of these posts that I am reading and then break it down for you to help you understand.

Caroline (05:25):

So this person wrote, and this person is saying that they are actually a website developer themselves. They said, I witnessed a store making $165,000 profit monthly selling women’s clothes. That’s what made me stop and read it because of that headline. I went, Ooh, okay, what’s going on here? I want to know more. There are stores making this much money, but why are people writing about it on the Reddit account? I wanted to know more. So here’s what he says. He says a few hours back, I was hired to do a small coding and I realized that what I was going to do, I couldn’t actually do, but I noticed that they were making 4,000 monthly orders. So I’ll just start off by saying that this guy should not be doing this. If he’s your website developer, he should not be talking about your actual website and looking into your orders because it sounds like you wasn’t actually hired for that particular thing.

Caroline (06:17):

And some people did say that in the comments that no, what are you doing? But it was more the fact of how he’s convinced people that this is actually working, and I just want to use this as an example of how there’s a lot of smoke and mirrors out there. So he says, I’ll shops because that was very average. I was an average looking store. You can find all of these things on Ali express. It struck shipping. There was no effort going on the margins. And then he says their margins are 80% the average best sellers with $7 and sold for $30. So they buying them for $7 selling them for $30. They said their sales have been steady for the past couple months and the store is only six months old. And he goes on to say, you know, it made me think, you know, opening up a store is some things that I found and he goes into saying that they’ve got no SEO, copying and pasting the images from the actual Ali express account.

Caroline (07:11):

So pretty much all the things that I say the problems with people’s stores, he’s saying these stores are making these mistakes so they don’t have a brand they’re charging for shipping and things like that. So these are all the areas that I say, if you have a Shopify store, if you’re making these mistakes, you’re not going to get success. So he’s saying all the things, they’re breaking all these rules, how are they still getting success? And then he goes on to say, the only source of traffic is Facebook ads, which aren’t creative or special. They just product pictures and one line text about the offer and the link. This strength is a logistics that they are from China, so it’s a Chinese company doing this. They also have other stores with women’s clothing, but he’s pretty much trying to tell people like, look at this, these stores making all the mistakes and they’re still making all of this money.

Caroline (08:00):

I think he says it later on that it was $300,000 that they made a month, but their property is $165,000 have not. So I read this and I was straight away going, Oh my God, this is ridiculous. First of all, the guy should not be looking into their account like this for the job that he was hi to do. But besides all of that, I don’t like the fact that that people started writing back saying, Oh wow, this is great. And I was like, Oh God, these are the things that get people in a bad situation with drop shipping festival. When you see these particular posts a lot of the time, not all of the time, but a lot of the time the posts are written by people who are doing it as a way for you to contact them privately with a private message, asking them to help you build your store.

Caroline (08:52):

So I see it on Facebook, all the, when people are saying the same sort of things, Oh, just do this and run a Facebook ad and you’re going to make all this money. And it really is that the guy is at the back end saying with a private message, ah Hey, okay, you want me to help you? If you just pay me, you know, $10,000 I never normally do this, but I’ll help you. And then they actually had just, the whole post was just a scam from that angle. So that can be a big problem. So please be aware of that. The other thing is, there’s a few things going on here. There is another guy on YouTube, I don’t want to say his name, but there is a particular guy on YouTube telling everyone that he’s turning over $1 million a year on his Shopify store.

Caroline (09:31):

He shows the images of screenshots. Well, he actually does a video and he’ll say, here is the backend of my website. Here’s the proof that I’m actually making on dollars. He is making $1 million. However, the truth is that all of his money is going into Facebook ads and by the time he pays for his products, and by the time he pays for the ads, he actually has $0 million left. He’s actually spending more than he’s actually making, but you know how he makes his money? He does it so he can get people to sign up or he’s calls and he sells his course based on these video screenshots saying, I make a million and I saw and I’ll show you how to sign up for my course. His course is terrible. He’s not really making $1 million and he’s selling complete smoke and mirrors. So please be aware of these types of people.

Caroline (10:20):

Festival. There’s a lot of them out there and it’s very dangerous because I hear people getting stuck in these areas all the time. So that’s the first thing. Second of all, when it comes to Facebook ads, if your product is less than $40, so if you’re making less than $40 whether it be one product or with your overall sale, her customer is less than $40 then Facebook ads these days are not going to be a very successful way for you to get more customers. If you’ve got a particular product where people are coming back time and time again to buy from you, then it can work long time and your Facebook ad can be seen as a lost lead, meaning that people will buy, you’ll lose money on the first order, but then they purchase second, third time and you will make money. So running a Facebook ad is actually a completely different scenario now in 2020 than it was exactly a year ago.

Caroline (11:21):

Exactly. A year ago was just before that whole privacy problem with Facebook. There was, at that stage, a big algorithm change happened as well. I don’t. No one is completely sure if it was exactly because of this or it all happened around the same time, but Facebook ads from my particular clients went up from $5 per conversion to $20 conversion on exactly the same ad. Nothing changed. They’d been running one ad very successfully for a long time. They had been very good conversions. They had been testing lots of different ads and particular ads at $5 we’re doing very, very well and that we’re making good money and then suddenly it all happened around that time they went from $5 to $20 and there was many people that had that same problem and that was all because of Facebook’s algorithm changes and because of that, Facebook ads became too expensive for a lot of businesses.

Caroline (12:17):

Now if your Facebook conversion rate is $22 then you’re in a situation where you need to take into account the cost of your product and then of course everything else that you have to spend money on. It’s not completely free for all the other areas of your business, especially if you expect to grow a long time. If you’re going to stay small, that’s fine, but you’re going to start to have to put money away for other team members to come on board. You have to think about the logistic side of it, how you can you not fix that or make it better or your customer service team is serving the areas that having only one or $2 per product of profit. You’ve got to be selling huge, huge numbers to actually have enough money to pay for everything else you need to do. So for $5 spend to a $20 spend on a conversion and then everything in between becomes very expensive.

Caroline (13:07):

So if your product is selling for less than $40 if you’re making less than $40 per sale in Facebook, ads are not going to be the best options for you anymore. In saying that, there is, if you have got some money to burn to put into testing, you could bring that down a little bit. So my $40 example could come down a bit. If you really had a very, very specific product that was super impressive and something that people were like, wow, this is amazing. But if you’ve got a standard pair of yoga pants and everyone else is selling for a couple of bucks cheaper than you on Amazon, then you’re going to find it very, very hard to do in this scenario that I’m giving you, cause I’ve just read out that it’s a very average store. It’s got no branding is nothing special about the products.

Caroline (13:49):

You can reverse image, search the images and find the price elsewhere. You could find it on Amazon. So these are nothing special products. If you’ve got something unique and really special, different different story. But for the average drop shipping customer store, this sort of thing is not going to work anymore. So then really what I think is going on in the situation, because there’s other comments here. This is a good example of proving that what I’m saying is actually the truth there, that there’s a lot of smoke and mirrors and there’s some people actually coming out and saying, yeah, these things happen, but these are the reasons why. So this one passed and required saying I’d been working as a Facebook ad manager for years. I can probably guess that they have some highly developed targeting using lookalike audiences and lots of Facebook pixel events probably before they started this particular store.

Caroline (14:39):

Bang, that’s it. So the person that wrote this post said they have many other stores. You can create a lookalike audience and your Facebook accounts. Now if you have the second business and you have email addresses, if you have things such as other audience insights, another Facebook pixel that you can link up to it. If you can do these sorts of things, then you can actually run adds to your new Shopify store and bring down your ad spend very, very quickly. So that could be one of the things that are going on here. So they still might be getting very good success. So I don’t know if the store is actually making as much money. It’s very possible there are many, many stores making this much money. So the actual amount of money that’s being made as a profit, it could be true, but it could also be the case of smoke and mirrors.

Caroline (15:30):

So this is where I want you to really look at the red flags of this story and taking into account, is this your situation? Do you have a lookalike audience that you can use? That means do you have an email address of very long email address? It can be 50 or a hundred emails. It’s going to be thousands and thousands, 10,000 email addresses. The more email addresses, the easier it is to make these work. All of people who’ve already bought products just like yours, so people who have said, yes I have, I really love these particular yoga pants for example. And then you take that email list of people that bought those yoga pants from a different website, upload it to your Facebook ad account in the new ad account, and then you can create a lookalike audience. I want people just like these people, Dubai for me, it could be that they just have a Facebook pixel that’s firing on another website and they can bring that across and make news that as well.

Caroline (16:27):

That can really bring down the price of your advertising so that could be exactly what’s happening, so they could easily be making that money. The reason why I think that could be it is because they’ve only been running for six months that they’re already getting this much profit. The other thing might be because someone says, hang on, how much are they ads costing them? Do you even know that? Like you’re saying, they’re making $165,000 profit, but you can look in anyone’s Shopify backend. I can see in many of our clients back in Shopify accounts, I have no idea. Zero idea how much money their Facebook ad spend is by looking there. I have to go into their either kid account or I have to go into their Facebook ads manager. So he hasn’t actually said that he has got the proof that this is the amount of profit.

Caroline (17:13):

Right. It sounds like he is guessing that based on the price of the product compared to how much traffic is getting, things like that. It’s he’s not giving any unique section numbers. This same comment, the same reply says this Facebook ad manager that made a comment says Facebook ads are not cheap. An 18 old product may cost from $15 to $40 on ads and to make a sale. Although this cost can come down in time and by using email remarketing, starting off with no pixel data more often leads to big losses before you can target properly. And that’s the issues that I see. So are they retargeting properly? Now retargeting is not just about doing the Facebook pixel retargeting. You can really talk it through Google. You can only talk that through another company. Have you told her and said, I love, you can also run ads on retargeting ads through Gmail ads and through YouTube video ads, so there’s lots of different places that you can actually do this.

Caroline (18:12):

It’s very, very important to understand that if you hear from a person who says to you, work with me, I’ve got these statistical proof that I’m helping this tool do, this could be very, very true that they could be doing for that particular stall. But understand why that is happening. If you don’t have the same things, if you don’t have a lookalike audience, if you don’t have an email database, the numbers are gonna be very, very different than if you do have them. A lot of people are saying they’re making a huge profit margins on profits, but do you actually know how much they’re spending on marketing? I can give you another example. Last year we had a client come to us. It just asked pop up. I’ve spoken about him on this podcast before, so I can’t remember the exact numbers, so please don’t shoot me for getting it a little bit wrong for memory.

Caroline (18:59):

It was about a year ago that this particular client came on board. He came on board and adjunct in an ice, keep an eye on our clients that are in that. And I had a look and I saw that he was making approximately in the first three months of the year, I think it was, he had made over $300,000 in sales in the first three months. And then it was like a month five by that stage, I think. And he sales had gone down and he came to us and I thought, because some products, it’s actually based on the time of the year or you can turn off advertising ads, the sales can go down. So the fact that he went from $300,000 in three months, two down, I think I was actually 700,000, that memory. Now when I think about it, you know, it was a huge amount of money.

Caroline (19:42):

I just don’t want to get specific on the amount. But he’d gone from one of these huge amount of money downtown, almost nothing. And when I asked him what had happened, I said, okay, well why are you working with us just off the talk or it’s actually the smaller companies, you’re better off going with a big company that can help me much more directly. It’s not how services are provided to people. And he explained to me that he had bought the company recently and the company that I get bought it from made that much money and it made it look like when he did the sale and made it look like he was buying his company with so many saddles. And he was like, wow, this is amazing. And he bought the company and auto website, the Shopify store. And it was actually, he found out that because of the way you run your Facebook ads, and there’s a little bit here, a little bit there, and a little bit of Google, they have completely, they the numbers and it was pretty much that whole amount of money was going into the ad spend.

Caroline (20:38):

So there was literally no profit left in the company at all. So I went and he came to us. He had turned off those ads because I will literally make no money for it. And yes, he had huge numbers in the back end. Just like the other story I told you, but this guy wasn’t trying to sell himself as a professional. He was buying a company, bought the company like this and he was pretty much starting from scratch trying to build it out into making sales based on real profits. So being aware that these things do happen. And another thing to take into account, there are a lot of refunds, especially with clothing in this sort of area. Somebody had been says that there is a bunch of these sort of stores, they get poor reviews, they get a lot of free funds because of the clothing is not quite quality.

Caroline (21:24):

So once you think about it, and depending on what this guy is actually looking at, yes, the store might’ve been turning over $300,000 but if you’re getting a 30% return rate on your products, that is down to 200,000 so you’ve already lost 200,000 now that is on average. So there’s thing really bad. He’s saying it’s not nothing great. So they might be getting more returns in that and it might not be going through their Shopify account the way he can see it. So maybe he’s not telling us, maybe he can’t see that maybe the way they returned the money is in a different sort of way. So always take that into account that yes, the store might be turning up for a load of money, but what is the actual refund rate on that? Getting a whole lot of cheap price from China is not always the best way to do it.

Caroline (22:11):

Especially I buy a lot of stuff myself personally from alley express a half for before anyone had even heard of it. I’m talking 10 years ago when it just started. I was always ordering things from there, but it’s very hit or miss. There’s some great things. There’s some bad things and a lot of people run truck shipping stores that don’t actually check the quality of the product. They just put it on their website and hope for the best and then end up with a lot of returns. Someone else wrote here that 80% margin of profit drops to 10% for you factoring ads. That’s not the person’s client. And then he replied, the the person that posted it, okay, even if it was only 10% that’s $16,000 in profit. Does other people saying, yeah, it’s hugely profitable. It is. It can be. It’s definitely true. But understand what’s actually going on.

Caroline (22:59):

Be careful of these red flags because being sold that fulls hope that these things can happen for you. Yes it can, but understand what you need to do. This is another person talking about what you should be doing with SEO and things like that. Disguise, not able to give too much information. So we don’t actually know how much he knows, but what he does know is not enough to make it sound as great. Once you understand what he’s actually saying, it does not sound as great as what it sort of sounds like on the outside. So as a professional, I can tell you, I would not be reading that saying, wow, this is amazing. I want to do this. I would be thinking the exact opposite of that as some of the people are saying, yeah, it’s Facebook ads, it’s about testing. On that note, I want to give you a couple of things to think about.

Caroline (23:49):

So I spoke about it the other week and I mentioned it all the time. There’s a lot of Facebook ad companies out there that are doing really, really dodgy things, so they don’t care about you. I had a client just the other week that had some bad things happen to her with her ad company. So here’s some things that you need to take into account. Now, most of these, you want to make sure all of these are covered when you work with an ad company and understand and even have it put into a contract so then you can have that old itemize so then they can’t come back later and say, Oh, we didn’t think that that was relevant and it wasn’t important. But the other thing is for yourself, if you’re going to run some Facebook ads and try it, these are some things that you really need to think about.

Caroline (24:29):

So you’re working with a company. Think about things like they need to know your audience. This is for men. I constantly, every time I see this that the Facebook ad agency is not looking at your audience. My client, just the other week, same thing, she actually go into the backend after they’ve been running her ads for a few weeks and said nothing was converting that was spending all time money. Yet they don’t care. It’s not their money. It’s her money. They get their monthly retainer, they get their monthly amount and they just take your money and they just say, Oh well we’re just testing things. That’s BS. I do not care what any IRM agency tells you. There is no reason to test in inverted comments. There’s no reason to test using your money if they don’t know your audience properly. They can find this out and this particular situation that I’m talking about, she told them my audience are over.

Caroline (25:22):

It was like 35 year olds. They were running ads to 18 year old people and it was such the wrong audience and I sweat. This is like one of my biggest pet hates. I’ve never met of all the bad stories I’ve had every single one of them not understanding the audience is the number one problem that they have. So they have to understand your audience, get that into the contract if they do not understand your audience and they should not be running ads to you. Now these are things like the age, it’s also locations. I have a list of locations when anyone works with me, whether it’s private coaching, they come to be private coaching or they come to us for just as PACA services. We have a list of locations that we recommend and how do I work that out? I work it out on high income areas as the low hanging fruit.

Caroline (26:09):

So I’m not saying that those are the only locations forever, but when you start off running ads, you want to try to get conversions as quickly as possible and start making money. The more money you start making things thought, the more money you can put back into ads. So let’s say for instance you are running ads and you are selling, let’s go back the yoga pants. You’re selling yoga pants. Now you could go and say, I’m going to try to tag an 18 year olds to 65 year olds all over the U S fine. You could try that. However, the problem with that is is that there’s going to be a lot of those locations, but people kind of forge your $20 a yoga pants. They’re buying $3 yoga pants from Walmart and then never ever gone to afford your $20 yoga pants and forties on whatever it is.

Caroline (26:53):

They can only afford those three little yoga pants. So why run ads and test the marketing locations where they’re never going to be able to, Oh, poor them anyway. So what I say is run the ads in locations where they actually have a lot of money. We know the areas, we know these zip codes, we know these locations and ads to those locations first. Once you start making money there, then start broadening your locations out. You know, adding an extra 50 kilometer radius to it, adding an extra hundred and 50 kilometers, then start testing other locations, but do not just target. I’m going to target the whole of California because there’s going to be over 50% of California that I’m not going to afford your yoga pants or whatever you’re selling. The next thing is interests. I am shocked by this. This particular client from last week.

Caroline (27:40):

Can I use her as an example? Only because it’s happened in the last couple of weeks, so it’s very easy for me to use her as an example because I remember very freshly what it was about her particular situation. They would just running interest groups to anything to do. Rita, she sells pet food, just dogs, everything. Dogs. Now that’s great except when you’re doing 18 to 65 and you’re doing the whole of the country and you’re just doing dogs in general. Oh my God, I can’t tell you how crazy this is. She’s got a very high end that is not for all dogs. Now if you’ve got a mat or you’ve got a puppy or if you’ve got certain dogs, you probably don’t care as much to buy this particular food. Then if you had say a pure bread, a poodle for example. Now I’m getting quite specific and in this situation there’s a lot more to it than just that, but I’m just trying to use the example in a very graphic kind of way.

Caroline (28:37):

Using the interest of the word dogs or using it interest of the word pure bred Trudel or pure bred dogs is going to give you a very different results and it’s a very different type of person. The person who says, I’m, you know, I’ve purchased a pure bred Dalmatian is going to be a very different type of person that just goes, I found a dog on the side of the road and I just took it in because we have, you know, spoiled dogs already and you know, we just want to do the right thing. They’re not going to afford or want to pay for what she’s selling. So it’s very important and that’s the ad company’s fault. That agency really, really did the wrong thing by this client in mind by doing this because it’s terrible to do these sorts of things. At the end of the day, what their job is is to understand the interests.

Caroline (29:24):

Now the other thing about interests that you really cannot forget that a lot of people don’t understand is that when you run a Facebook campaign and at the end of it when you want it check the results. You can look at that campaign and you can see the age of the people. So if you just opened it up, if you just said, I’m going to run an ad for a test 18 to five going into all of the U S and I’m going to do the interest dogs, I needed the word purebred poodle and you did the word Mark as an example of those three words. If you were running that test, when you put all of those interests in that one campaign, you can not understand, you can understand which age was a good one. You can understand which location was the one. Even though if you wasted money in those areas, you can still see the success, but you can’t understand the interest.

Caroline (30:12):

That’s not how Facebook ads are broken down. So if you ran this ad, you would go, Oh, okay, well I did get sales for all of those interests groups, but guess what? It might’ve been to one of those interest groups, and if you’ve got them all in one campaign, you can never understand that. So you need to run them separately as ads and you need to say, okay, and we’ll run one ad that’s only for the interest dogs. I’m going to run a different ad only for the interest purebred for another one only for the word purebred Dalmatian as an example, and break it down in an all the other things can stay the same. You can run the ads exactly the same. Everything can stay the same, but the interesting to be separated, otherwise you do not know which interest group is going to make you the money.

Caroline (30:53):

That’s very important. These are the things you need to go forward to a Facebook ad agency and tell them you must be doing these things and I want to know it’s in the contract that you’re going to be specifically what she needs, because I can tell you right now that you can talk to them and they’ll tell you the old talk. Yes, yes, yes, we know exactly what we’re doing. Don’t worry about it. Relax. We’ll do it and then you don’t do these things, so please understand that this is where you lose your money if you’re running the ads. Those are things you need to think about. Again, low hanging fruit. What are the low hanging fruit areas now it might be that they might find, let’s go back to the dog example. They might find that currently purebred poodles, like the big, big thing because maybe it’s pure grid poodle month.

Caroline (31:34):

So in that case, running ads to that group is going to be a really good success to you. So where’s that low hanging fruit? There’s many different types of low hanging fruit. That’s just one sample. Next is our Facebook ads. Even the best view if you go to a Facebook ad agency or do you think they’re going to tell you? They gonna tell you yes, this is the best for you. That’s why we just asked Pako we have so many different options. We say to people, no, don’t run a Facebook ad. It’s not best for you. Your products are $5 and you don’t do a second sale on the back of that. You literally never ever going to make money. That’s the Facebook ad agency will take your money and say, well, let’s test it. Let’s try it out. And at the end of the trail, six months, they’ve taken your monthly management fee.

Caroline (32:14):

They’ve spent all your advertising budget, and then at the end when they say, Oh, sorry, we didn’t get you any sales. They can go all. We tested it and now we know they do not care about you. They’re just making money. And there’s a lot of agencies that are out there that are set up. It taught how to set up a set up an agency that is just there to just take your money and I do not care so be very careful. The next thing you have to think about whether it’s agency that’s working with you or if you’re doing it yourself, the time to advertise. I brought this up before I had one of our clients, it was a long time ago and she was working with an ad agency and they were just running ads consistently through the year and she came to me for some private coaching and when we spoke she said, my ads never worked and we started to talk about it and I found that has sales may remade it two times a year straight after summer holidays and at Christmas time that’s the two times leaders are really from that August through to December is her best time of the year without running ads all year round and normal ads, cold traffic ads rather than just running retargeting ads for that time of reminding people and giving them some free stuff and keeping them interested.

Caroline (33:22):

They will literally just running ads and she was not making any conversions. So if the ad agency doesn’t understand the time of the year, it’s best to advertise. They should not be running Facebook ads. Also, what types of promotions? Back to that dog food company, they should have been running video ads, but this ad agency didn’t even think to set up a video ad. It was my client that turned around and said, Hey, why aren’t you running Facebook video ads for me? We’ve got videos for you. Use them. And that already given them a whole lot of content, but they just didn’t even get around to using it because once I looked at the ads, I was so absolutely disappointed with what they did. It was actually pretty horrific. All of a sudden the number of tests, this particular ad agency, they were just running, they set up, it was something like full campaigns.

Caroline (34:06):

Each campaign has four ads in ads and after four weeks or six weeks of no sales, they just turned off most of those ads and that was it. They didn’t replace them with anything. They just turned off. The ones that they thought weren’t working, which clearly none of them were working because I didn’t get to sales, but they literally would just turning off that. That is not how an agency should be working. If they charge you a monthly management fee in just us taco, we set up one at a time for people and they just pay per one ad. So that means we can set up on Etsy and then you can go in and you can set up the rest of your ads based on what we’ve done and you can test that or you can come back to us and say, Hey, do some more ads for us.

Caroline (34:44):

We’re not running a monthly management for you, for your Facebook ad marketing. However, if a company is charging you monthly, it’s a management phase. They should not be setting up 10 or 20 ads at the start of the month and then just not turning anything else on. They shouldn’t just be turning them off. So you need to understand these things and you can’t do that either. Don’t just sit back and go, okay, I’ll just turn them off and just see what happens. You’re not going to get success. You need to look at the ones that are not working. Look with the ones that I’ll look and say, okay, well what can I do to make some better ads and keep testing? So that is my little effort. So much more to say about this topic. If you’ve been listening to my podcast enough, you know that Facebook ad agencies and Facebook ads in general are an area that I really get passionate about and that’s because most people, at least 80% of store owners that come to us, come to us with that expectation.

Caroline (35:36):

The Facebook ads are going to be this safe. Yeah, and they don’t understand all the ins and outs that have to come with that. When they go to a Facebook ad marketing agency that will just take their money into, go for it and at the end of whatever it is, three or six months, they just go, Oh, well we tested it. Okay, it doesn’t work. We know that now they do not care about your money because it’s not their money. They’re doing it with your money and if you don’t get success, it’s no skin off stabilize at the end of the day and they just churn and burn, move onto the next customer. They go into referrals. Again, like I said at the beginning, not all of the agencies are like that so I’m not trying to put everyone down, but a lot of them are because they’re not actually there for the right reasons.

Caroline (36:19):

So best off running your own ads if you know how to do it properly or funding an agency that’s really there to help you and make sure that they cover these things off in there contract so then you know that they’re going to do the right things by you. If you have any questions, come into our Facebook work winning with Shopify and come and ask us questions. We’re definitely there to help you and also sign up. Then Just Ask Parker. We do a seven day trial, try us out for seven days. If you don’t love us in seven days, you can cancel and not pay anything else and you can ask us to run an ad you and see how we go with that for you or something else. We do emails now before you jump ahead and think, okay great, I’m going to go and get an asset set up now or I’m going to kill myself.

Caroline (37:00):

There’s a million things you need to do before the yet you, not a million, but there’s quite a few. You need to think about your retargeting before you run an ad to cold traffic. You need to think about your email. How are your emails going out? How is your abandoned cart set up? Asia conversions that are probably on your website. There’s many other things and we do a website audits to help people understand that, so don’t think Facebook ads are your first port of call to get sales. There’s things you have to do way before you do a Facebook ad. I am going to link underneath this podcast a checklist that every single merchant needs to make sure they’re doing that you’ve done these things before. You run a Facebook ad, so there will be a checklist. Have you done these things before you start running any paid advertising, not just Facebook, Google, anything.

Caroline (37:48):

If you have checked off everything on this list, then I will tell you it’s okay to run that. If you haven’t checked off everything on this list, then do not start running ads until you have, otherwise you’re just going to be losing money. Or you might get one or two sales, but you’re never going to make the full amount of profit. You really can, and you’ll just be wasting money. So download that checklist completely afraid. Go and download it, take a look at it and make sure you’re doing all of those things before you start running ads. Have a wonderful day, and until next week, keep smiling.

Outro (38:19):

Sign up for free for the Shopify approved marketing course at 1000salesandbeyond.com and get our show notes at justaskparker.com/podcast. Thanks for listening to the winning with Shopify podcast.