 Okay, in this video. Hi, my name is Jonathan. Sorry. And in this video, we're gonna do help you do a full breakdown of basically this case study right here This case study is basically you can see it's three million dollars a 10x for us in basically 1.5 years Doing this business, right? So This case study as well. Let me refresh a screen right click reload for you Okay, I it's basically a follow-up video to the previous video. Okay, so don't worry about that This one is going to be much more technical and much more in-depth as well. So To be fair, three million dollars is not a lot of money. Okay, it's not very high in revenue per se or whatever But very few people do it at 10x for us. For example, I'm gonna show you basically the steps to do this for yourself For example and stuff like that. Okay, so you can see here That because we are very consistent in advertising in a channel. Okay, we are always Advertising in the channel. We're constantly testing new things. There always comes to a point where you find certain inflections where you find something that works extremely well and you do it You know over a consistent period of time as well. So you can see here, right? We're doing like 100k months, right and slowly but surely even though there's some dip and down months sometimes, right? We are growing revenue consistently and you can see this is the basically the parabolic increase hundred eighty hundred two seventy 250 so on and so forth, right? And so you need to look at your business as organism that is growing and needs a lot of cash at the same time, right? And so you can't look at it linearly That's why a lot of people feel that you come because they don't do things consistently over long periods of time, right? But if you think about it the most successful people, they are just doing the same thing and they're doing it every single day over and over again, right? And that's why people call it overnight success or whatever. Okay, so let me break down the case study But before that, let me Show you the ad spend as well and some of the Google and Facebook ad strategies. Okay, so I showed this before but basically I put it at $3 million because I'm pretty sure we are doing gonna do $300,000 months in queue for a loan considering we are really doing 250 to 270 now So that's why I put $3 million. Okay, but basically we spend over 100k on Facebook spend around 116 on Google and then that's generating a 2.7 back basically Okay, so let me show you the Google ad account first. The Google ad account is not very complicated I'll just be honest with you. Okay, you can see here We run a combination of search campaigns as well as shopping campaigns and obviously display campaigns But they are very very small budgets whatsoever at all. Okay, they barely even spend anything. That's the problem Okay. Yeah, we drive crazy amounts of traffic to the site, right? However, you can see right majority of the campaigns are still search, right? So search obviously Google is still very very strong at what they do and bottom of funnel traffic, which is very high quality It's fantastic as well. Okay, you can see the ad budgets. They were running. They're not like crazy They're not like $1,000 per day on a campaign whatsoever. They are very Conservative and small budgets. They are very manageable for anybody just like me and you right and you still can come into the markets Stuff like that. You can see $20 per day 120 50 50 60 whatsoever Right and the reason why you have multiple campaigns as well is because we want to spread the risk Okay, they call it de-risking, right? But basically imagine your entire business you run it on one entire campaign if for example that campaign does not perform that day At least you have backup campaigns that you can be running alongside it as well Okay, one thing that I don't really like about Google. I don't know what they're doing about this as well But sometimes the attribution is not very accurate So for example, you can see this is all conversion value over cost this column right here And then this is conversion value over cost right both are basically like row as it's basically row as right The same thing on space as Facebook here. You can see this is like over inflated. This is 103 214 207 this is completely out of the park right whereas for example, this one is showing you it 1928 1623 and keep in mind this row as right is over time as well. This is over a one and a half year period So like I would think that this is quite Accurate as of now, but sometimes when you're meat buying on a day-to-day basis It's very difficult to assess the performance of the campaign whatsoever. Okay, you can see here as well A lot of Google ads people right they talk about such impression share our such impression share I'll be honest with you. It's not it's not good at all It's like negative 10% as I less than 10% 33% is not even like the in the high 90s Per se, but we're still able to get this our row as right So in my mind when we meet a bias not very dependent on one singular metric You need to look at the entire campaign when you're meat a buying as well Okay, I show you just now as well that we ran a combination of search and stuff previously We ran shopping campaigns, but the shopping campaigns are generally spotted out like for example They do only like to the 3x row as overall and the reason why I think so is because for example when you are Sinking your ad account your Google Google merchant center, right? You're thinking all of your products for example and most of the time all of your products do not convert right? Only stuff that is your best sellers are the ones that convert the best and that's generally that the campaigns that we see Perform the best as well. Yeah, you can see here As well that we are running to four different countries We're running to the US Canada, Australia and New Zealand and we're also running all of them to co-traffic We don't do anything on redirecting Generally on Google the reason why is because we want as much top of funnel traffic as much as possible We want new eyeballs. We don't need old eyeballs because we know that we can monetize that on retargeting on Facebook as well As we can monetize them on the back end on email as well. Okay, so in terms of skags and Stuff like that, right? We are trying to You know build out a lot a lot of ad groups within each campaign as well And so that's basically what a skag is for right the reason why the campaigns are successful I feel is because we just test a lot more than other people and just because we have so much more data Right if you are unwilling to spend money to see the data come through I usually will never succeed because It's just too difficult or it just takes too much time. Okay, so you need to obviously balance a combination if you're just starting out of But cost that you are able to stomach versus being able to see data come through right But if you're not able to spend at first right you you really really need to try to get over that barrier per se Okay, you can see everything like it looks fine, right? Everything you can see the click-through rate obviously on a skag campaigns are extremely high anywhere from 8% to 16 to 22% Right, but none of this matters what matters is row as a day in the day and there's only one metric They should look at and that is row as okay, so yeah, you can see here These are basically how we set up the campaigns. Okay, I don't think how we set up the campaigns are anything special And that is why most of the time the difference is not Generally the media buying but it's the creative the copy and how you position your product. That's important Okay, so that's what What it is for the Google campaigns nothing super special that I can show you or anything There's no magic at strategy or whatsoever. But this is basically the Google campaign. Okay on the Facebook campaign The Facebook campaign is a bit more Moving parts per se and in general Facebook is just a bit more laborious. Okay, but you can see spent around 100k on this account as well and a lot of the times as well I see I don't know why okay, but a lot of other people like they like to separate out their ad at accounts I'm not too sure why they are like they call it de-risking right cause in case one ad account goes down But from my experience, right? This is maybe contrary to what other people have is that like I only run on one one at account It may sound stupid when I say it out loud, right? But it's like I don't I've never gotten an account banned from the from the ads that I've run So like I've never Seen a need to basically like create two three four or five ad accounts just to run one business per se It's always been one ad account in this a lot of data on there And that's not you don't do anything illegal right Facebook usually does not ban you off their platform. That is my That's my experience with them. Okay, you can see here In my other videos I keep talking about this and stuff like that But it's really damn simple right the campaign structures is as follows, right? You can see top of funnel campaigns traffic is majority of the campaigns and that's only like one middle funnel or retargeting campaign right here And we are spending very very little on it's like 20 bucks per day Okay, overall on Facebook, for example, we spend anywhere from 300 to 400 dollars per day It's not a crazy amount of ad spend as well But ultimately, right? We just look at row as that's all no nobody cares The only metric that matters is row as okay, you might be asking me as well Hey John like for example, it's like hey Why why are you still spending money here on two hundred and nineteen dollars cost per purchase? For example, you spend over one point seven K But then you're doing a zero point eight to row as but then that's what short term people think okay If you look into the campaign for example, right? You actually will understand because okay Let me show you the campaign itself. You always need to look at the ads at level, right? It's not like we're spending money on everything that does not work Right, we're spending money on the only things that work and you can clearly see These two ads at the only ones that are converting and the ones that are on right That is why a lot of times the people who don't know how to media by right They just make the decision based on completely arbitrary factors per se and then they just don't know what they're doing and this is especially so I just let you know Okay, a lot of CEOs are like that especially if they are brand owner They are brand owner, right? They don't really understand media by they look at the ad account And then they get angry because they think that the media by is spending money on things that don't matter But why why would anyone do that? This doesn't make sense, right? You need to spend money on things that convert, right? And then they don't look at the data and then they cannot media by and decision decision make properly. Okay So you can see here for example Let me show you one of the campaigns as well. You can see this is getting purchases at a $52 cost per purchase on in general Right? That's obviously fluctuates from 36 73 etc etc, right by more importantly, right? People look at this number this matter actually this number actually does not matter The only number that matters is row S and you can see my row S here For example, this is average of 5x row S, right with some campaigns that perform Well other campaigns perform, you know marginally and you know quite sub par, right? But more importantly is like you just need to look at a rose everything else does not matter if I am getting a thousand dollar Cost per purchase and the row S is 2x for example That is that a good campaign and the answer is probably yes because you're able to do it at scale Okay, people think that getting a 40 times row S at a $20 ad budget is good, right? But the question to you is hey, can you do this at $1000 per day? Okay, and that's what a lot of people cannot do that. That is the problem Okay, so people are very sometimes they're very narrow-minded because they think that a small ad budgets are good Okay, if you're able to do it at scale that is what matters Okay, because there's no point building a small One two million dollar business you rather build a ten fifteen million dollar business and have lower budgets because bigger businesses operate And they're able to kill the competition most of the time Okay, so just keep in mind like you need to aim and optimize for skill and profitability at the same time There's no point running small There's running a small business per se. Okay, so that that's the really the mentality that you need to come into it Is especially when you're me to buying on Facebook, okay? Okay, so I don't know what else I can show you because usually Facebook is quite boring Okay, so I think I would just go into my Okay, I guess another thing as well for example, right? There are a lot of the campaigns that in the past right that are already working for example You try not to turn them off you try, you know, you don't have to read reinvent the wheel here Right, it's very very obvious. What works on Facebook what works on tiktok whatsoever, right? So you just need to go and Decision make and media buy based on what it's already working. Okay, you don't really have to reinvent stuff Okay, okay, so I think that's pretty much it for the Facebook side I don't really want to say much because a lot of the other videos that I created talk a lot about Facebook already Okay, so let me go right into the presentation so that I can give you some tips as well I'll for yourself. Okay, and so that hopefully, you know stuff the information that I give you In today's video right here. I can help you as well. Okay, so let me just present give me one second Okay, so this is basically a breakdown video like edge strategy wise explanation of what is what is happening in e-com As well as what is happening in this ad account and in this business as well in this case study Okay, so I just want to before we start right as you can see this video is very long It's not really meant for YouTube. Okay, so if you're the type who cannot watch a long video and cannot pay attention Then please help off this call Right, we only want people who want to better themselves and actually want to learn want to take this knowledge And actually help improve their businesses. So if you're not this type of person, right? Please stop watching and you can just move on with life. Okay, so let me continue on Okay, so I just want to put you in the perspective right three million dollars is technically not a lot of money Okay, but for people like us like everyday people who are just you know running ads or learning marketing in and just You know came from nothing like three million dollars is a lot of money Okay, so just keep this in mind like this is a small case study just technically okay, right? But for everyday people like us, right? This is why I want to force you to think bigger here Okay, I want you to set your goals at not three million for example Try to aim for eight for eight mil for 10 mil for 15 mil for example, right? And if you're unable to do that, right? At least you aimed high and at least you you know Achieved a smaller goal at the process. Okay, so the yeah, I've went through this slide just now as well Okay, so let me explain to you what the strategy is on the Facebook and Google ad spend Okay, so Facebook and Google they are multi-billion dollar companies, right? They have enough traffic on their platforms for anybody in the world to do at least 10 million dollars per year Okay, there's enough people on these platforms alone Okay, so a lot of the times people try to fickle and try to find new ad platforms and stuff But the order the best platform is the platform where your customers are hanging out not necessary Not necessarily what is the best platform, right? Actually, nobody cares what platform is as long as you can get a ROI nobody cares, right? So I just need you to pick your traffic channel and you need to dominate that channel Okay, if you are serious about advertising in that channel, you need to be consistent As Rafaia Stone keeps talking about this, right? If you're advertising in the channel, it needs you at least six months to understand what works in that platform, right? Then it takes you another six months to scale up that platform, for example Right, but most of the time people don't consistently advertise enough to be able to be recognized in that channel That is the problem. Okay. The next thing Google is extremely targeted in their keywords Okay, so obviously everyone knows that the ROI on Google is always higher than Facebook Right, but I'm telling you why we're going to spend more on Facebook in this in this account as well Okay, what we do on Google is basically extremely targeted keywords So I know the traffic is very, very qualified, for example What I want to do here is I want to take the data, right? I bring it to lookalikes and then I bring it to Facebook, right? Facebook is still very, very effective at bringing in new customers and eyeballs while tapping into demand Right, so on Google, if there is no such volume, for example, I cannot sell to the customer Right, but at least on Facebook, I can force the customer to basically look at my product And force them, force demand on the product Okay, that's why it's so powerful, but that's why it's also more expensive You need to understand it takes more time, energy and money to convince someone who does not know you to buy a product Like this is common sense, right? So that is why Google or Facebook is a very effective channel for creating demand in the marketplace Okay, another thing, like I said just now, right, you want to always try to do things at scale Okay, so for example, Steve, Steve Tanya is a Singaporean dropshipper I think he said something like this, he said he'd rather do 100 mil at 10% margins than $10 million at 30% margins Okay, like the net profit on this is like 10 mil, the profit on this is 3 mil, right? And so you rather do things at scale because you know for a fact this 100 mil, right? You are going to get the email list and everyone knows that the traffic channels are getting more expensive day by day So you rather do a higher volume in sales and do a smaller profit margin than make a small business Okay, when you are a big business, right, you can bully people in the marketplace because you have so much data You have so much people on your email list, right? But when you're on a small business, like 10 mil or so, whatever, right? Then you're just a small fry, like you barely can do anything in the marketplace Okay, so most of the time it's better for you to try to grow as fast as possible And obviously it's going to sacrifice short term profit But honestly, like who cares, right? If you are a long term focused company, you understand that you're going to grow this company in three to five years time, for example, this is going to be a long hole for you And your business is going to be very, very big over that period of time Then you shouldn't be too worried about spending money up front first Okay, as long as you don't lose money, like who cares, right? So like that's what most founders, that's why they struggle because they need Profit to survive, right? They need tons of profit to go and buy their cars or whatever it is, right? If you can, you know, shiver up, you decrease your expenses, right? Take, you know, take, they call it austerity, right? Austerity for like one, one and a half years or so, you can make a result like this, like what I'm showing you, okay? You just need to be really heavily invested into the business every single dollar, put it back into either amplification or a better product, better customer service, et cetera, et cetera, okay? Your business is an organism. You need to grow it, okay? Ezra Firestone keeps talking about this. I want to emphasize that, okay? So next thing is we test more than you, okay? So I just be honest with you. I am pretty sure I test more creative. I test more copy than you and the reason why I know that is because I am in the ad account every single day. You are probably not, you are not testing new things, okay? And so because we are testing every single thing every single day, right? We are, we have depth into a channel, right? We understand the channel more than you, right? Basically you saw my ad accounts now, right? That one is like what 78 campaigns, like who is going to launch 78 campaigns if they don't have that time, right? So that is what I mean by I do more work than you. I try more than you. That's why I see more results than you. It's not like I'm smarter than you. Like really honestly, you're probably just as smart as me or much smarter than me, okay? So don't worry about that. Okay. You want to test everything. You want to test a new copy, new creative, new angles. Super important, right? And so because the people who don't try, who don't consistently test new things are going to fail because if the thing doesn't work, right? How do you expect things to work if you don't change anything? Right? Einstein said like you can't expect a different result and you can't expect to do the same thing and expect a different result basically, okay? On Google site, very very simple. We just go straight for target roles, target CPA campaigns that objectives, right? And advantage of Facebook, okay? You might be asking if Google is more profitable for you guys, why do you still run on Facebook? For example, right? The advantage of Facebook, like I said before, is a demand driven platform. We are ability to differentiate based on creative and the competitive advantage is creative. Most people cannot create video ads. Most people don't know how to create video ads. That is why you should go into Facebook, eat on top, even though you're doing Google already, okay? And then not only that, when you go into Facebook, right? People don't understand. People see your ad on Facebook and then they search your brand on Google. So that's where you're going to have those high row S campaigns on branded search as well. Okay? The next one is the advantage of Google, right? So Google search in 10 base. Obviously the performance on Google is generally more stable because the conversions are, you know, the cost of purchase is lower, right? Although it's very, very high quality traffic, right? Although not every day you see conversions come in. Okay? I don't like this about Facebook or Google. I don't know whether it's the same for you, but Google has a tendency to spend higher than what is given. So for example, if you put down $100 per day campaign, right? What they'll do is they actually spend 140, 150 instead. I don't know why they do this, but they generally will spend more, but overall, I guess average, they will just spend what you prescribe to them. But it's a bit difficult because if they spend more than what you have, you know, you're not, you're not ready for that situation, for example. Okay? So every ad platform is different. You just need to really get into the learned behavior of the ad account for that as well. Okay? So every action that you take, right, needs intention as well. Okay? So there's a reason why we are using a Facebook and Google. There's a reason why we are not using Pinterest, not using TikTok, for example. Okay? So for Facebook, right, I'm not trying to hit home runs here. Okay? People think that you try to scale and scale as fast as possible all the time. That is not normally the case. If the fulfillment cannot catch up, right, there's no point scaling that hard. Okay? So we are trying to not trying to hit home runs. Right? We're trying to be consistent and get conversions in at a reasonable clip. That is all we're looking for. Okay? We're not trying to go to crazy scale. Okay? And then they aim it for Google. Okay? The aim of Google is to try to get much cheaper conversions than Facebook, obviously, and try to get super qualified bottom of funnel traffic. That is the aim of Google. Okay? The end goal is email collection. Right? So I all I want to do at the end of the day is to collect more and more emails. Right? The front end, bro s is great, but honestly, I couldn't kill us as long as we're collecting emails. So a lot of the times, right, people think that the profit is made on the front end. This is the front end where you spend ads to get people into your funnel the first time. Right? But actually, it does not matter. Honestly, what matters is that at the end of the day, I'm collecting emails. And because I know that in three to six months time, I'm going to treat the five acts that money anyway. So that's why the people who win the e-com are the ones who built for the long term, right? And they don't think in one, two month situations. They think it's three to six months, six to 12 months, stuff like that. Okay? Yeah. All they want to see is revenue increasing into the right. Okay? Okay. So testing campaigns that are literally the same as what we've been doing. Okay. So the testing strategy on Facebook and Google is very, very simple. It's basically the same as what we've been doing since the dawn of time. Okay. Obviously on Facebook, you always want to try with three different creatives. You have your ABOs, you spend anywhere from $10 to $30 per day. You can even start at $50 per day. If your, if your product is a higher ticket item, you always want to run for four full days. Okay. Then you reiterate from there. Okay. You need to run for four full days to see the data come through. Otherwise you're going to be emotional and irrational at the same time. Then you continue to test from there. On Google as well. Google, basically you can spend upwards of $30 per day, right? Then you want to run for, you know, four seven days, minimum per se. Okay. I usually run search and shopping. I don't even run YouTube ads. Okay. And then it takes a long time for a merchant center to get approved or troubleshoot. Right. The problem with Google is like, yeah, the merchant center is very confusing sometimes. And then sometimes your feed gets rejected for some particular reason that you don't even know why. Okay. So I don't know the Google system for product approval. It's sometimes a bit difficult. Okay. Okay. Next one. There's tendency to not spend sometimes. Okay. So even with really bad ads, right? I realized on Google, right? Even if the ad copy and stuff is quite sucky or whatever, right? Even though, because the traffic is so qualified, as long as your lender, your landing page, right? Banks, it can convert, right? It actually can convert. It actually converts very well as long as the qualified traffic on there, right? So it always comes back to the code that if you put the correct product in front of the correct customer, sorry, if you get the correct message in front of the correct customer, you usually can convert the customer. Okay. And we build on Shopify, right? So anything for you works as well. You can use a web flow or anything else. But basically we even use landing page designers on Shopify, which generally they have the reputation of being slow and then they still convert very well. Okay. So this is basically it. Okay. Okay. So some media buying tips for you or some nerdy stuff for you. Okay. If you want to see there's normally a delayed attribution on both Google and Facebook. Okay. I see that there's significant longer purchase cycles. What I mean by this is with iOS 14, right? The data comes through much longer than normal. And so the, the, I put this line here. Emotional CEOs are losers inability to detach themselves from the product. Okay. So what I see, right, is that the CEOs of the people who are running ads, right, especially if you're a business owner, usually they are losers because they are too attached to the product. Okay. They don't see the data come through. And so they make decision based on emotion and not based on data load. Okay. And then that is why they don't take long enough. They don't allow the ad to breathe long enough for the data to come through and then they just f up everything. Okay. So you don't want that situation to happen. Otherwise you're going to get screwed. Right. And most of the time if the product does not convert on cold traffic, right, your brand is completely screwed. If you can't convert on cold traffic, it's just an end game because you're in your inability to acquire customers profitably. Right. For the first time round for the for cold traffic. Right. You can't scale scale your company profitably. Right. If you are profitable on cold traffic, retargeting is going to be so profitable already. So that's not the issue. Right. So this is the issue with most brands. They cannot they cannot convert on cold traffic. Okay. Next one, smaller budgets allowing data to pull through. Right. So you don't really have to start with big budgets nowadays. Nowadays you can go with small budgets. Right. You allow data to pull through. You allow the ad to breathe. Right. Then afterwards, right? Then, you know, you're the ad is going to come in. It's going to start optimizing and then purchase is going to come in. So it's okay starting at lower budgets and allowing it to run for longer days instead of, you know, shorter days as well. So you can do make a decision making based on seven instead of four instead. Okay. I realized the creatives kind of need to be polarizing as well. So what I mean by this is that the creatives right, you probably should create something that when someone looks at it, they are not only intrigued. They are entertained. They are educated and then they also feel a certain way about your brand. Okay. The reason why most companies don't see any resonance in the market, right? Because they think people want to buy their product. I'm sorry to say, right? Nobody cares about your product. Nobody cares about you. They care about themselves. Okay. So when you create creatives, you need to create creatives that evoke an emotional response in the user. Otherwise, they're probably not going to buy it. Okay. Just be upfront of you. Okay. Next thing is that great copy can literally decrease your cost of acquisition by 50%. Okay. A lot of people don't know how to write good copy. Okay. That's okay. It's fine. Okay. But if you can write good copy, right? You can literally change your marketing angle, change and go into unsaturated markets and decrease your cost of acquisition. What I mean by this is I give you an example. Okay. So for example, I was selling helping run traffic for someone that is basically selling gifts, right? And when they sell gifts, right? Those gifts, right? Able, I'm sorry. Most brand companies who sell gifts, they sell to the audience who are looking for gifts already. However, if you think about it from the customer perspective, in their newsfeed, for example, everything they see is all gifts. So they're seeing the same thing throughout the entire newsfeed, right? So they're seeing the same thing. And so there's a lot, a lot competition. And so the customer, right, has a lot of options, a lot of people that they can sell to, right? However, if you go into unsaturated markets, what I mean by this is that you go into markets where for example, the niche of the people are business related business people. They usually see finance ads. They see accounting ads. They see investing. They see stock market ads, right? However, if you're selling gifts, right? That is one thing you're standing out from the marketplace, for example, and that is how you're going to unsaturated markets. And that's how you get high ROI because you're selling to people who don't necessarily see a similar ad, for example. Okay. Hopefully that makes sense to you. Okay. Yep. The next thing when you want to run traffic, especially for brands, right? I'm not talking about drop ship people at all I'm talking about brands. Okay. Your messaging, especially for cold traffic needs to be long-term needs to be evergreen. What I see a lot of brand owners think, right? Is that, hey, I should run a 70% discount. I should run it for cold traffic. Okay. People don't understand. You are going to kill your brand. You are going to absolutely destroy your brand because your reputation and your equity of your email list is going to go down when you try to sell to people on cold traffic. Right. And you say that there's a discount, for example, right? It's going to be very, very difficult for you over long periods of time. Okay. But because you're so short-term focused, you need that sales come in or whatever, whatever. You don't want to try to solve cold traffic for your acquisition on the front end. Right. This is what's going to happen. Right. Your email list, your dollar per recipient is going to go down. Right. Your the quality of traffic on your side is going to go down and those things don't show up in the numbers in the first month or whatsoever. Right. You can see sales come up. You're very happy blah, blah, blah. But in the future, when you want to run traffic again, you're going to struggle a lot. Okay. Most of the brands do this. Even for, for example, a former business partner of mine, they're doing this. They're going to get destroyed. Okay. This is stuff that you don't want to do. Basically. Okay. So, yep. Okay. So these are the problems that are happening in Ecom right now. Just nothing you know. So the iOS stuff, product shipping costs, markets have matured and your supply is selling your product and more competition than ever. Okay. So let me explain to you point by point. Okay. So iOS 14, the tracking efficiency has decreased. Everybody knows this. Right. If you create bad ads that don't convert in the past, right? Now with iOS, the tracking efficiency is worse. It's extremely bad ads. Okay. So previously, you could get away with subpar marketing, subpar product, everything and still be profitable. Right. Now you need to actually know how you need to know how to craft offers that people actually want to buy in order to stand out from the marketplace. Okay. If you're unable to do this, right? It's very, very difficult for you basically. Okay. And that is why most Ecom brands are going to die because they don't know how to market and get to market profitably. Okay. You can see here, for example, this guy's Nick Cosman is a big internet marketer as well. Right. I think the way he explains it is very, very good. So let me read this to you. Okay. The cost of ads shot up by a factor of four to six due to an impairment of advertising tracking. The harder it is to track data, the less efficient the ad buying, more it costs the advertiser to reach audience harder for buyers to make money. Therefore, only buyers with high gross margins, high ticket businesses are able to profitably run ads. Buyers with high gross margins are more likely to be B2B. Okay. This is not relevant. Okay. Lower gross margins will be forced into outbound channels because they have no choice making it more competitive for high gross margin businesses driving down outbound efficiency for everybody. Okay. The solution for low margin business is either to raise prices, right? Or make viral ads stuff like that. Okay. So you can see here a lot of ecom brands like they fundamentally they're not good at marketing. So they're going to die serious. They're going to die. If you are bleeding now, you, you know, you understand what I mean. Okay. So in order to fix this, you need to stand out and you need to sell better offers than other people. Okay. So next thing is product shipping costs are increasing. So obviously stuff with pandemic stuff like that is going to affect everybody, right? But everybody's supply chain is affected, right? Everybody is of course are increasing because demand is increasing at the same time. So the supply chain cannot fulfill their demand. So what do you do is to raise the price? Okay. So previously you could do a 2x overall and you will still be break even or profitable, right? Now imagine because your cost increase, right? Your price stays the same. You have to do 2.3x just to break even. Okay. And generally Ecom especially because everyone is selling low ticket products most of the time, right? These are razor thin margins. Okay. And they people forget, right? You need to pay staff. You need to pay employees, refunds, transaction fee, 4x fee, blah, blah, blah. Okay. If you do not know how to properly price your product, right? You're going to get destroyed because you fundamentally you don't have enough margin to play with on ads. Okay. And so obviously if you are a YouTuber, for example, if you're David Dobrik, if you're PewDiePie, for example, these people, you have a lot of organic traffic. That's not a problem like profit and ads is not a problem because you are the ad basically, right? But not everybody is a social media influencer, right? So you need to run ads for margin for product whatsoever. Okay. So you need to think about these things because these really actually cut into your margin. Okay. Okay. Next thing is markets have saturated. Okay. Consumers understand what ads are, right? They understand a social media ad nowadays. They don't even like Facebook nowadays and they what tricks marketers to use convinced people to buy product. Okay. So like a lot of times in the past, right, people have been using tricks like free bus shipping, free warranty, 7 to 30 day shipping times, for example, I know a guy, for example, all he does is sell like free warranty and then he charged like recurring fee on that. But over time, for example, people are going to look into these tricks that are going to be less effective and stuff like that. And that's not how you build a real business, right? You don't see Apple giving free bus shipping. You don't see Apple giving 7 to 30 day shipping times, for example, right? So you need to sell better offers because the markets have saturated. Okay. The next thing, more competition than ever. So consumers understand what ads are, right? Like I said before, okay, the beginner people in Ecom, I feel right, they're going to get stopped out. They feel that they are going to is going to get increasingly harder for them, especially if they don't know marketing, right? Because all the gurus, for example, they're going to teach all the same tactics, right? And obviously over time as well because the margins didn't, right? It's going to make it more difficult for everybody, right? So the beginner people in Ecom who don't understand that this is a battlefield per se, right? They're going to get stopped out, okay? And the cost per clicks are going to go up across the board, right? This is not, this is self-explanatory, right? And so you need a message that cuts through the rest of the market. If you don't have this, right? Your cost per clicks are going to go up and then not only that, your ads are not going to resonate as much and then you're unable to convince and convert customers profitably, basically. Okay. And the last thing, I think, I won't say this is the worst thing, but this is definitely something to look into. Basically, the venture-backed companies have entered the space, okay? In the past, right? People don't understand how to sell on Ecom anymore. These days, the biggest companies, for example, they are public companies. They are venture-backed companies. These rich people have private equity and a lot of money slushing around, right? So the whales, the people who have like, you know, 10 years, $10 million, go and spend it on Facebook ads, for example. Those type of people have entered the marketplace, okay? They are consolidating. If you see, for example, Amazon, FBA and Shopify and stuff like that, they are buying up businesses and they are basically consolidating the entire portfolio. So these whales have entered, right? They don't care about ROAS. They just throw money at the problem, right? And so you're completely competing against these type of people, right? These people have teams, okay? They have graphic designers. They have developers. They have the media buyer. They have their CEO, blah, blah, blah, blah, stuff like that. And the reason why I know this information is because I've worked with this type of company before. That's why I'm telling you this. Okay, these type of people, right? They don't care. I came into the ad account. I came into the ad account, right? They spent 300K, 300K USD, okay? They have a ROAS of 0.2, okay? Can you imagine that? Like nobody can imagine that, right? Because people who don't have money, people who are not venture-backed, they don't operate like this. But the people who have money, they operate like this. They don't care, okay? So you're competing against these type of people plus more competition than ever, plus higher shipping cost stuff like that. So you need to think about these things. Okay, so how do you fix this problem? How do you compete with these type of people? Okay, you need to build faster, better, stronger funnels that have deeper unit economics than other people, okay? That's the only way to beat them, okay? If you do, you cannot execute this, right? Then it's very difficult to scale as well. Obviously, it's easy to build a small business, but if you want a big business, you need to fix these things, okay? Yeah, okay. So that's pretty much it. This is my last pitch. But before I go on, hopefully you understand everything that I've covered in this presentation, okay? I'm going on for around 35 minutes already, okay? I know some of this stuff is a bit technical. It's a bit very long-window stuff like that, but it's everything based on the experience I'm telling you in the market right now, okay? So hopefully this is useful for you. I need you to take this information and go there and make money for yourself basically, okay? And so if you want to have a more in-depth of it, I basically have a book. This is my pitch. This is my offer to you, okay? If you're interested, this book here, many people have bought it already, okay? All of the feedback is positive, okay? So I am very, very comfortable selling this to you because I know it's going to help you, okay? This book here costs 39 bucks. I don't make anything on it because I need to pay for ClickFunnels for the software basically, okay? So if you're interested, right? If you're running e-commerce business right now, you're listening to me, basically 35 minutes in. I know this is going to help you. Please check out the book for yourself. Go to this link, go.osg-media.com-book, okay? Go to this link, go and check out the page. If this is something that you're interested in, okay? Please go and... Sorry, please go and check it out, okay? Please go and check it out. If you don't buy it, it's fine. As long as you check out the page and see where it's useful for you. I know it's useful for you because that's why I'm selling it. But please go and check it out for yourself and see, okay? That's pretty much it from me. If you have any questions, you know, please feel free to ask and stuff like that. And this is basically it. Okay, thank you so much for watching and I will see you soon, okay?