How I Test Dropshipping Products Without Spending Thousands

What's going on, YouTube? Uh, today's video I'm just going to break down my exact testing strategy when it comes to Facebook ads. Because a few of you guys have been reaching out to me asking how long do I test ads for, how much to spend on ads, when to kill ads, like if I have any target metrics in mind or anything like that. When I was first starting out in drop shipping, I wanted to be as efficient as I can with my tests. I didn't want to just be burning money on bad products, and I also wanted to make sure that I was testing each product to its maximum capability. There's nothing worse than running off a bad drop shipping product when it was actually good. Now, what I'm going to be doing today is I'm going to be breaking down a bad campaign. I'm going to be breaking down a decent campaign and then I'm also going to be breaking down, if you guys stay to the end, our winning Facebook ad metrics that made us 1.3 $1.4 million just with this one product alone. All right, now testing time. Now, there's a lot of different strategies for this, and I'm just going to give my own personal experience on different testing times and how it's all gone for me. So, I went through a stage there, you guys can scroll back on my channel, where I was testing one product a day. And I was usually spending about $50 per product and then if the metrics were good, I would write it off or I would keep testing and if they were bad, then I would can the product and I'd move on to the next one. Now, the problem with this was is that one of the products that I actually tested, another brand went out and they started running it. But they took their time with it. They took their time on the creators. They took their time on the website. They took their time with pretty much everything. and they managed to scale this product to insane numbers. And the product, if you guys go to nemoya.com, the product was a portable hair straightener. And if you guys scroll back to about 3 to four months ago, you can see that I actually tested that product and I thought the metrics were bad. So that's one example there. The second example is testing products for too long, like 2 weeks or something like that. Because you have to understand that Facebook optimizes for a 7-day click. So, it is optimizing for results or a lower CPA over 7 days. So, past this 7-day mark, if your ads are unprofitable, there's no point in leaving them running. So, we have found the sweet spot to be between 5 to 7 days. This is why I included actual examples of our ad campaigns so I can go through and I can show you which ones we killed at 5 days, which ones we killed at 7 days, and which ones we just left running. Now, one thing I quickly forgot to add over the seven days, you don't just want to be sitting there twiddling your thumbs and just kind of letting the ads cook. You want to be adding adsets in each day targeting a different marketing angle so you can be as proactive as possible. And also if you are running it like a less than 3% conversion rate off the bat, try testing out different offers. It doesn't hurt. Like that's another thing which happened with the second campaign here. We actually implemented a slightly different offer and it took off. We went from being buy 1 get one free to buy two get one free and for some reason people were loving it. Don't be afraid to test. Be proactive and get the maximum amount out of the test as you can. Anyways, back to the video now. How much daily spend should you be running for your ads? Now, this all just comes down to your AOV. So, if you're running a product that's $50, a general rule of thumb is you want to be doing 1.5 times that per day. So, if you're running a $50 product, it'd be $75 a day. If you're running a $100 product, it'd be $150. And this might seem a little bit scary to you guys and a little bit intimidating, but I can assure you, you can get away with a lower budget. This is just the strategy that I use because we have a lot more capital now and I'm able to test products a lot more efficiently, but you can definitely get away with lower ad spend. Okay. when to kill ads and how to make sure you get the most out of your product test. Your creatives are doing all the work. If you have bad creatives and a good product, you're not going to see results. And this is what I'll get to. So, here was one of our unsuccessful campaign tests. So, right here, this was our first day of testing, 20th of February. This was actually for my 0 to 100K a month series, which I'm running on YouTube right now. As you guys can see, the first day, I'm not too bothered. All right, $3.14 cost per click, 3% CTR, which is actually pretty good. I'm not too bothered on CPM and I'm not too bothered on CPC. And I'll show you in a second why. Because if we come to the second day now, this adset right here is taking majority of the spend. And what I like to do is people ask if I optimize per creative or whatever. Whichever adset the Facebook spends the most on, it usually means that it's the best performing adset. One out of 10 times it'll negatively affect your cost per purchase. But then you can always just turn it off. So you can see this was actually the third day of testing and our cost per click actually increased from $3.14 to $3.79. while our CTR decreased. Moving on to the fifth day, uh you can see here I was just testing different adsets. We managed to get a 4.35% CTR, but our CPC was sitting at almost $5. So, this was the point on day five, which I decided to kill the product because the rorowaz I believe overall was sitting at about 1.3. So, this test was not successful. Now, moving on to a more successful test. This is why it is absolutely essential you guys leave your ads running. This is it. If I left this product for one day and I canned it, I wouldn't have been able to see the results. And you guys will see this in a second. 6th of March, we started this ads. This was the first day of running $3 cost per click. Yeah, you guys are in drop shipping, you'd know that. That is pretty terrible. Same thing with $125 CPM. Now, well, like I was saying before, I'm not too bothered on CPM and I'm not too bothered on cost per click initially because Facebook is testing different groups of people. And your CPM is actually purely based on the product and the creators because you can imagine if you're in skincare and there's a lot of big companies bidding in skincare, your CPM and your CPC is going to be pushed up as if you're in like a pet niche or something like that where there's not as many big companies bidding, your metrics going to be a lot lower. So, yeah, first day $3 cost per click, $4 CTR, which is actually really good. And then, let me just make sure we got the right day here. third day immediately $1 cost per click. Now, this is why you leave your ads on. And you can see as well, CPM dropped $300. We went from being $120 CPM to $40. Our clickthrough rate did slip a little bit, but because of this slipping as well, and also our cost per click slipping, this is in Australian dollars as well. So, this is like an 80 USD cost per click, which is really good. Now, moving on to the fifth day, you'll see it reduced again. Like this is what I mean by let your ads run guys and I think we're sitting at about 3 3.5 rorowaz for this test and this is also for the 100k a month series which you guys will be seeing next week. You can see also as well our CTR recovered to almost 4% and our CPM dropped again. Now the only problem with this product as I'll break down in the next week when I do a case study on it. We didn't have enough ad creators for it. This was purely running off for creatives and that's why you guys can see this campaign structure here. Broad online engage interest targeting. If I don't have a lot of creatives, I'll usually run an interest campaign for the product. Now, the seventh day, you can see that cost per click is still sitting below a dollar. And keep in mind as well, this is a AUD campaign. So, this is like.7 USD. Our CTR slipped a little, but our CPM is continuing to reduce. And this is lining up to be an absolutely sick product. I mean, we've been running it now for about 20 days, and we've made about $2 to $3,000 profit. So, this is another example of a product you can test. Decent results, but nothing insane. Now, if you guys did wait to the end, I'm going to [ __ ] reward you with one of the best campaigns I have ever ran on Facebook. And before I get into it, this was a winning product combined with a winning angle and we just [ __ ] printed money. And yeah, I'm going to show you guys the results now. So, here, 17th of July, just wanted to put this in there. We hadn't been running the campaign at all. Nothing. No results, no nothing. This is the same ad structure we used last time. Where is it? First day running 50 cent CPC, almost a 5% CTR, $23 CPM as well off the bat. Now, this [ __ ] cooked. Fourth day, 43 or third day, sorry, 43 cent cost per click, almost a 6% CTR between the adsets. Like genuinely, when people say to me, "Oh, you don't find winning products. Winning products don't work." Explain this then. A winning product combined with a winning angle, you [ __ ] print money. Ridiculous. This is what I was saying when our life changed overnight. This took us from being $0 to being at $10,000 a day within less than a month. Now, moving on to the fifth day, 33 cent cost per click, and it's still it's holding at a 5.5% CTR. This is how insane Facebook ads can get. And then on the seventh day, our cost per click reduced again. Our CTR is sitting at about a 6% and then or it's sitting at a 2% for link clicks, but that's just an engagement and stuff. $14 CPM. Like come on. You guys ask me when do I know to scale or whatever. This example here and this example here, these are clear and obvious signs of a product that can scale. This one here, [ __ ] insane. Well, I mean, that's why we did literally two 10,000 order plaques from this strategy here. Now, one more thing to point in as well. My scaling strategy, very, very simple. Won't take much time to explain. We are increasing the budget for 20% that we hit our target rorowaz. And the way you find your target rorowaz, if you want me to do a video on it, I can break it down. But every single time we are profitable, we increase by 20%. Until we become unprofitable. And then if we are unprofitable for three days in a row, then we will decrease by 20%. You guys found this useful, subscribe.