How To Use "AOV Maxxing" To Scale To $100k/mo (this might make you bust)

What is up you guys? Anthony here. Welcome back to another video. In this video, I want to show you how I use a technique called AOV maxing to be able to scale a drop shipping business to over $100,000 per month without touching my ad account. So, a lot of you guys are obsessed with creatives, rightfully so. It's one of the most important things, but what I'm about to show you in this video is one of the most underrated ways to increase your return on ad spend in your ad account, increase your ROI from ads, and allow you to scale much further. So, if you struggle with inconsistency in your ad account or not being able to scale because every time you do your ROI drops off, watch this video because I'm about to show you how to AOV max your drop shipping business. And a lot of you guys have probably heard of Auraaxing. If you're really sophisticated and you have a brain, you've probably heard of maxing. What I'm about to show you now is AOV maxing and how I was able to with a product that had a $65 price point, why I was able to have an average order value of 114 and able to decimate the competition. So, let's get into it. Now, let's talk about AOV maxing, ladies and gentlemen. Now, AOV maxing, why is this important? Let's do some very, very simple simple math. Let's say you have a product and you sell that product for $100. Okay, super simple. Let's say you have a cost of good on that product of $40. Okay, let's say you have a CPA in Meta of $40. Okay, so that means after you pay for your uh this was our COG, right? This was our CPA. Okay, after you pay for all expenses, that leaves you with $20. Okay, and this is your net profit. So, in other words, you're making 20% net profit per transaction, which is pretty good, right? Pretty solid. But maybe that's not enough for you to scale. Maybe you want some tighter margins. Now, this just happens to be 20% and $20, right? Let's say you want some larger margins because every time you scale, your CPA increases to the $50 range to the $60 range. And because of that, you start to lose profitability as you scale. So, there's really a couple ways that you can improve this equation. And ultimately, if you want to make more profit from your ads, it's very simple. Then you need to take home more profit per transaction. And I'm talking in the context of a drop shipping store, not a subscription brand that can break even on first purchase because you have MR. Most of you guys are selling drop shipping products. They're one and done. So you need to make all your money on the first transaction. So the question is, how do we increase this so we make more money? Okay, there's really three variables here. Okay, most people are going to try and reduce the CPA, right? They're going to try to get this to maybe 30. But here's the problem with that. As you scale, it's very difficult to lower your cost per acquisition at the same time that you're scaling. If you've ever scaled, you should know that as you scale, typically, if anything, the CPA starts to go up. Maybe it'll stay the same for a period. Maybe it'll actually decrease for a period, but over time, naturally, your CPA is going to go up. As you start to capture all the demand, you're capturing that that supply of demand, and that supply is decreasing. And when the supply is decreasing and you still want the same amount, obviously the price is going to go up. So the CPA naturally tends to go up. So but that's one of our main levers. You can also lower your cost of goods, but typically when you're drop shipping, there's only so little you can do to affect the cost of goods. So this is usually going to stay the same. So the CPA is pretty much always going up. As we scale, the cost of goods is very difficult to drop unless you buy the inventory, at which point you're not drop shipping. Even then, if you're working with a 3PL after fees and expenses, you might actually still be paying the same cost of good. Now the sale price or the actual uh revenue on the transaction is something that a lot of people really really sleep on. Now, the sale price, you can also increase your prices, of course. But the main way that I like to increase this because if we were to take this from instead of 100, if we improve this to 150, now we'd have 150 - 40 is 110 - 40 is 70. And all of a sudden, now we'd be taking home $70, right? Even if we just bump up by 10 bucks, you'd be you'd be making more money, right? Right? So, if we bump it up to 150, now we're taking home $70 in net profit. And the best part is that we didn't even have to get more efficient in the ad account. We didn't have to lower our CPAs. We didn't have to touch our cost of goods. If we're increasing our AOV or revenue per transaction, then we're increasing the flow of dollars to our bottom line. That's basically the the idea behind AOV maxing. Now, the way in which you want to AOV max, there's a couple of ways to do that, and I'm going to show you two of the most effective ways to AOV max. This is the 8020. If you if you know the 8020 rule, 80 20, what I'm about to show you is the 20% uh strategy that gets you 80% of the results with AOV maxing. So, let me show you how to do this now inside of my actual um Shopify store. All right, so I'm here inside of my app, which is called OneClick Upsell. Now, the way in which we're going to AOV max is we're not going to raise the price. Instead, we're going to leverage upsells, but we're not going to leverage the same post-purchase upsell that everybody uses. We are going to leverage the pre purchase upsell. And for me right now, this is one of the most underrated, underappreciated ways to AOV max your brand and absolutely add anywhere from 30 to 50% to your AOV now or increase it rather. So, as you can see, I had a 47% conversion rate on my upsell funnel and 53.99% on the pre-purchase offer. So, let me show you exactly the anatomy of this funnel. So, you can set it up and literally copy it for yourself. So, here was the funnel and as you can see, a pre-purchase upsell is basically an upsell opportunity that opens some as somebody clicks on the cart page. So, if somebody clicks on the or the cart button, so somebody clicks on the add to cart button, what's going to happen is an offer is going to be shown to them. And the offer that you want to show to somebody on the pre-purchase upsell is an offer that is a complete nobrainer. And I have some guidelines here for what kind of products you want to use in that offer. So, let me show you here. All right. So, if you sell a hero product, which is a oneanddone product, meaning a product that if you buy, if you were to buy, you would not need need more than one of outside of maybe gifting it to someone. Cap water fountain is a good example. A LED mask for skincare that's like $300. That's an example of a product you buy it once, you're not really going to come back and buy it again. Maybe you buy it for another person, but it's very unlikely. For those kinds of products, you want to focus on upsells that are complimentary products that are a nobrainer. Okay? So, if I'm selling a cat water fountain, I typically want to pre-purchase upsell filters or I want to pre-purchase upsell. Another really good one that worked for me was the basically a mat that goes underneath the fountain. So, that way if the cat splashes it, there's something there to protect your floors, your countertops from getting wet. If you sell a a skincare device, let's say you sell an anti-rinkle mask, then you want to upsell a product that maybe also solves the product of wrinkles that they can maybe use during the day. Just things like that that are complete no-brainer. Now, if you sell a consumable, low ticket, or any product where people inherently want more than one of where the best and most effective value proposition you can offer someone is more of that product at a discount. typically things like skincare masks that are consumable, um creams, serums, really any skincare or typically a lot of these subscription products that you see coming around more and more. Those are the products that you want to upsell just simply more of that consumable at a discount. This is why you see a lot of consumable brands such as tape here. Um a lot of their offers are built exclusively around how they can get the customer more of the product. Um, so here, buy one get one free. Buy two get two free. Buy three get three free. Okay. A lot of people make the mistake when they set up offers like this of selling maybe one product and then having one product here with like six, seven free gifts. But when you have a product like this, what people want more of ultimately is more of this existing product. So you can upsell them maybe a one-year supply of this product or six month supply or you can upsell them a subscription. You can do a lot with oneclick upsell. But if you have an offer that is truly a no-brainer, you're going to see some really crazy results. So, check this out. 51% conversion rate on this pre-purchase upsell. So, 51%. And this offer that we were offering them was basically worth, I believe, like about $25 uh. So, if people were adding to cart the $65 fountain, those orders were getting bumped up to $80. If they were adding to cart the $80 variant, add 25, they were making 105 on that uh purchase, right? If they had 105 in their cart, they were going all the way up to 130. Sometimes I had orders that were all the way up to like 140 cuz people would buy like uh you know, two fountains and the upsell. But as you can see, I had basically more than one and two customers. One out of every two customers that purchased would take the pre-purchase upsell offer. And again, if we go back to our math example, okay, if I had one out of every two people taking it, that means let's say my original sale price was 65. Let's say my cost of goods was 20 and let's say my CPA was 20, which let's just use the approximate actual numbers, which is like 30. Okay, let's say this my CPA, my cost of goods. If I subtract this now, 65 - 20 is 45 - 30 is 15. So, that was my net profit. You know, decent. But now I'm getting 50% of my customers to add 25 more dollars to their cart, which means this number just became, okay, this number just became, let's just put it over. Oh, I'm a mug. It's not It's not uh 80, it's 90. I can't even do math. It is very early in the morning. So, um, now these orders are becoming $90. So 90 minus that same 20. Well, actually the cost of goods went up very small because uh the upsell was a lowcost consumable. So it went up like I think it was like five bucks. So now we're doing 90 minus 30 which is 60 minus 25 is 35. So now we're making $35, okay, in net profit. So we're making more than 2x the amount of net profit if we just multiply this number by two. We're making 2x over 2x the amount of net profit per transaction just by adding an additional $25 in the form of this upsell. So pre purchase upselles if you get them right because if you think about it when somebody's about to purchase um like when they're the most interested in purchasing it's going to be when they click the add toart button. That's really our only indication of intent before somebody actually makes a purchase. Um, the way that we know they're interested in is if they actually add the product to cart because they probably want to see what they're going to get, how much it costs, you know, you know, this cart screen here. So, it's when they're the most interested outside of when they actually purchased. And so, we can leverage that intent to push them over the edge, right? If we know they're interested and then we show them an even greater offer that they can get, that is what's going to push them over the edge to actually purchase. And if you do it correctly, if you follow this guide here, right, you can get pre-purchase upsell take rates of anywhere from 40 to 50%, which is incredible. Okay, so that's it for the pre-purchase upsell offer. Let me show you the post-purchase upsell offer. Now, on the post-purchase, as you can see, I didn't have as strong of a take rate. In fact, we only had about 7.61% uh take rate on the where is it? 7.61% 61% take rate on the post-purchase uh offer and oh wait I'm totally boofing. Let me zoom out. That's why I can't see anything. Okay, so we had a 6.37% conversion rate on the post-purchase offer upsell. Then we had a 7.61% take rate on the downell offer. So the downell offer in this case was right here. It was the same 30% that we were offering to them. the same 30% that we were offering to them on the pre-purchase and then this uh post-purchase upsell offer number one here was actually a one-year supply of filters. So, we basically said, "Hey, if you don't want the offer, the pre-purchase offer, then let's try and take a big swing and see if you would want this really massive value proposition in here." And then we supplemented that by saying, "Okay, if you don't want this post-purchase upsell offer, then last chance on the other offer that you saw previously." So that's kind of the anatomy of the entire funnel, right? Pre-purchase upsell offers and post-purchase upsell offers. Now, you can supplement this with thank you page offers and cart drawer offers as well. For me, I tested cart drawer offers. I tested thank you page upsells and nothing converted as effectively as doing a pre-purchase offer and two post-purchase offers. Your upsell uh right here and then if they decline that showing them a downell. That is the simple way to AOV max and basically allow you to take a product that maybe you sell for $60, $70 and get an AOV of anywhere from on the low end on some days $100 all the way up to 120. And if you're clocking in an AOV um and standing on business, if you're clocking in at a $120 AOV while your competitor is clocking in at a $70 AV, $80 AOV, guess what? You can spend more to acquire the same customers. So, if you sell the same product as your competitor, let's say your AOV is 120 because you watch these videos and you AOV Max and their AOV is, let's say, 90. And let's say your cost of goods on this AOV now is 40 and their cost of goods is 30. Guess what? Here's how much gross profit you have left to work with. You have $80 in gross profit. They have $60 in gross profit. Guess what happens when you go into the auction and you're paying a $40 CPA and he's paying a $40 CPA. Guess what? You are going to make $40 on that sale and he's going to make $20. Here's another cool part. Let's say you want to beat your competitor, right? And you're willing to now spend $60 per transaction. What happens if they spend $60? Okay, they make zero. You make 20. So, you can pay more to acquire the same customers because you're AUV maxing right here because you're creating more gross margin and you can stomach higher CPAs, which means you can actually spend more. So the point at which these guys can't spend anymore because they hit their CPA, their break even CPA, you can actually keep going. So not only are you making more profit per transaction at your original CPA, but because you can spend more to acquire a customer than your competition, guess what? Your customer can't acquire customers at 60. They can only acquire customers at 40. So what about all the people that cost 60? Guess who's getting them? You. And when you're scaling, guess what? More of them are going to start to increase in CPA. And that's going to allow you to collect more net profit per transaction. Okay, so guys, that is going to do it for this video. Hope you guys enjoyed the content. As always, if you did, make sure to leave a like, comment, and subscribe. Let me know in the comments below if you enjoyed seeing more content on the backend side of things. I know I do a lot of videos, understandably so, on creatives, copywriting, AI tools, but I haven't really done a lot of videos on back-end systems like increasing AOB, uh, you know, funnels and landing page building, uh, that sort of thing. So, if you guys are interested more so in seeing some of that content, let me know in the comments below. Otherwise, drop a comment. Let me know what kinds of videos you want to see next. And otherwise, I will catch you in the next one. Peace. Oh, by the way, if you want to increase your IQ and really scale your business, check out this channel. Reach our max. Let's go.