What is up, everybody? Fred Lam here and welcome to our daily huddle episode number 68.
I seriously hope that you guys are getting a ton of value and content from the video training that I’ve just released starting yesterday. Now, here’s the deal, every single day I will be releasing a brand new video for you guys for the coming week. So, make sure you actually watch out for my YouTube channel to be first to notify what our video training is all about. Now, if you guys have already watched the first two episodes, leave me in the comment right below and tell me what you guys think about my new video series. If you guys have not watched our Print Profit series yet there’s a link right above this video on Facebook. right below on YouTube there’s a link and on Instagram I don’t know how to put a link on there, so you guys can actually go to my YouTube channel to check out my new video training series.
With that being said, here’s today’s topic – How 10 Sales On Your Shopify Store Can Make $200 to $500 A Day. It is actually a lot easier than you guys think. Now here’s the deal, for the past year or so I’ve been talking a lot about dropshipping and it is one of the most profitable way for me to actually start an eCommerce store in fact it is one of the easiest way for you to actually get started. Now, throughout this week, in the next several weeks I’m going to transition in you to actually share with you a new opportunity which is called print-on-demand. Now, if you guys watched any of my episodes of my Print Profit series you actually learned about what this is all about.
In a nutshell, you’re really selling products that don’t even exist. You heard that right, you’re literally selling products that it doesn’t even exist. In tomorrow’s episode, I’m to cover in terms of margin numbers, net profit, all those other stuff in our third episode. Definitely, watch out for my YouTube channel. Here’s the deal you might be wondering well Fred how the heck are we able to make 10 sales and earn $200 to $500 a day. The answer to that is actually very simple. Nowadays, if you go onto the internet or if you actually go to the retail store, they just buy a t-shirt.
A t-shirt would only cost you as a consumer around $20. So, for your to actually sell $20 t-shirt, it’s a far much easier than you would think and expect. As a matter of fact, what drills down into selling that $20 t-shirt goes into the design. The design is going to be the lifeblood of your business when you are running a print-on-demand business. Also, if you actually can make 10 sales using one design, that’s already $200 a day. You might be wondering well Fred how can I make more than $200 day? How can I make $500 a day? Guess what, people that are going to buy your t-shirts are more likely to buy a hoodie and with a hoodie, you can actually sell it for $40 all the way to $50 per piece.
Your cost is going to be roughly only 30% so you’re going to make a very massive margin with your product for print-on-demand not only that, for you to actually make $200-$500 a day, you technically only need 10 sales, JUST 10 simple sales, it will give you the ability to sell and make $500 per day on Shopify again without a single penny in investment of your inventory. You’re selling products that don’t even exist and the beauty of all this is that you know what, there’s going to be no competition because you are not going to fight with everyone else that may be selling the same product in Facebook or Google or merge by Amazon you’re literally going to be selling a product that is unique, that is only for you so you don’t even have to worry about competition.
If you want to learn more about this, all you got to do is simply watch the Print Profit series because right now, starting tomorrow we’re going to actually dive even deeper into the three-step process. You guys are going to be mind-blown and I would say you will be pretty much overwhelmed when we released our 3rd episode because we’re going to go deep into helping you sharing you our knowledge and basically canning you the entire business blueprint for you to get started with Shopify. Again, without dropshipping, we’re just going to cover how you can use a design to make quite a whole lot of money. Now what that being said, let me dive right in into our daily huddle for today which is me answering 5 questions every single day.
If you want your question to be featured in our daily huddle, make sure you go to www.fredlam.com/ask, put in your question in there and I will get your question featured as soon as possible. Now, with that being said let me pull up my 5 questions for today.
[0:06:18] Question 1: I run ads on purchase conversion and found that CPM is nearly $30 for USA market. It makes CPC over $1.50. When I continue run ads for day 2, day 3, I get only 2-4 clicks per day for $5 ads and no sale. I find that CPM dropped to $24 but my CTR dropped too. So CPC is above $1.50 same as day 1. Do you pause your ads when you find your CPM at $30 or do you make something to lower your CPM?
Now, the first question is actually from John. John said,
Hi, Fred! I run ads on purchase conversion and found that CPM is nearly $30 for USA market. It makes CPC over $1.50. When I continue run ads for day 2, day 3, I get only 2-4 clicks per day for $5 ads and no sale. I find that CPM dropped to $24 but my CTR dropped too. So CPC is above $1.50 same as day 1. Do you pause your ads when you find your CPM at $30 or do you make something to lower your CPM?
Great question! A lot of people ask about this. How you can actually fight higher CPM. Here’s the deal, when I look at CPM I only look at it in the last phase of my optimization. What I mean by that is obviously step one you want to look at your cost per purchase. Basically based on what you told me, you’re not really getting your cost per purchase right now. I’m moving to step number two which is looking at your cost per click. Right now your cost per click is $1.50. It is a lot higher than what I recommend. You need to actually get it to a $1.50 or you have to get it to a $1 or less in order for you to make it to convert, now which drills down into the third thing which is our click-through rates.
You did not specify what your click-through rate is but your click-through rate is going to be one of the key factor to affording a higher CPM because you can be paying a very high CPM of like $40 or $50 but if your click-through rate is like 4% or 5%, it makes your cost-per-click low. You don’t even have to worry about your CPM. With that someone asked me what CPM is. CPM means cost per thousand impression or cost per thousand reach every time your ad has been showing a thousand times, you have to pay X amount to Facebook, Google or Bing.
Now with that being said there’s really nothing that you can do to lower the CPM because the CPM is driven by the market, it’s driven by the advertiser, it’s kind of like when a product is out in the market if there is a high demand, a low supply, price goes up. It goes down to the exact same thing when it comes to CPM. When there’s a lot of the same people, or a lot of advertisers that are advertising in the exact same interest targeting as you, the price will go up. For you as a store owner, for you as a digital entrepreneur, what you got to do is to figure out the copy, the ad, the product, that will create a connection and emotional feeling to these audience so you can actually increase your click-through rate. When you increase your click through rate, thing basically what will happen is that your cost per click will go way down making it affordable for you and hurting your campaign into profit and not lose money.
Now another key to really fight high CPM is to increase what you call the average order value. Have upsells in place, have a back in place, have profit multiplier in place so that you are maximizing the revenue or the money that your customer is going to be spending in your store and if you increase that, then it doesn’t really matter what your CPM is going to be. Now, let’s say that right now if you have a campaign that hey I’m not getting my cost per purchase my CPC is a $1.50, my click through rate is already hovering at above 1.5%, it’s doing 2% to 3%, then what’s really going to happen is at the end of the day, the CPM is going to be a big factor because you’re not able to make that market to convert, then I will look at the CPM.
If the CPM is actually higher than 15, I would not even waste my time to figure out how to get that to convert because I’m just going to be wasting time. I should just move on, be de-attached to your product, move on to the next one and find the next one. There are millions of products that you can sell. Now, with print-on-demand there are now a big series like thousands of combinations that you can actually sell. So do not try to fight the data, very important stuff.
[0:10:51] Question 2: There is so much confusion about Facebook pixels seasoning. Some people say it doesn't matter nowadays, if you want, you can start straight from website conversion purchase even if your pixel has no data, whereas some say you must season the pixel first.
Moving on to the second question is by Tanvir. Tanvir said,
Hey Fred. There is so much confusion about Facebook pixels seasoning. Some people say it doesn’t matter nowadays, if you want, you can start straight from website conversion purchase even if your pixel has no data, whereas some say you must season the pixel first. Thanks for the free value.
Regardless if you seize in your pixel or not, you should always go after the main objective. Basically your main objective right now is to get a sale or to get a lead because what essentially is happening is as follow, let’s say that you have an audience size of a million people. I’m using a million only because of easy math. Let’s say you’re going after a size of an audience of a million people. Well, when you are running your ads unless if you throw in $1000 per day, then you would have to see what works the best for you. Now, if you’re running a small budget, what’s going to happen is that Facebook is going to take their 1 million audience size and inside the audience, they will extract based on your budget a portion of the interest that will most likely convert for you.
So, if you’re telling Facebook, “Hey, Facebook. I don’t have my pixel data yet, but the reason why I’m advertising in your platform is because I want a sale.” Well if you’re doing that then what Facebook will do is they will take your budget out of your 1 million audience size, they will take a snippet of that 1 million audience and find the ones that are most likely will make a transaction on a third party website because Facebook don’t just look at your pixel, Facebook also looks at all the pixel data that they have. They look at the entire ecosystem of that 1 million audience, there’s going to be a big portion of people that are making purchases off of Facebook and Facebook knows that they are making a purchase off of Facebook because of other people’s pixel.
So with that being said, what you’re trying to do is that you’re going straight in and you’re telling Facebook, “Hey, I’m advertising because I want a sale.” That’s the reason why and you don’t really need to season your pixel. At the end of the day, your pixel will become an asset. It’s very important that you nurture that pixel only when you start to run look-alike audiences, when you run zero targeting and when you’re basically testing all other products and creating custom audiences then yes, having a seasoned pixel is very important. But right out of the gate you don’t need to really season your pixel, you just have to tell Facebook that hey I want you to advertise this ad to these audiences and within these audiences, here’s my budget I want you to get me results and that’s what it is. I hope that really helps you out.
Someone asked, can we test product by advertising on Instagram influencer page? Absolutely! You can also do that. Influencer marketing is also another strategy that is built for eCommerce especially for apparels, fashion accessories ,those do really well at the same time. Now I know that there are some people that use influencers to season their pixel at the same time too. So, there’s different strategies, different ways but the answer to Tanvir’s question, you always want to go after website conversion regardless if you have a brand new pixel or not.
[0:14:27] Question 3: What is a good ROAS to for?
Moving on to the third question Lisa Fraser Smith asked,
What is a good ROAS to for?
For those of you that don’t know ROAS stands for Return On Ad Spend. It really depends again on where you are at in your journey where you’re at in your store process. So right on the gate, when I try to go, if I have a brand new store that I’m going out of the gate and if any of my students are going right out of the gate, brand new store, brand new everything, the return on ad spend should be roughly a 100%.
So, what I mean by that is whatever you actually spend you make it back so you are essentially breaking even. That’s actually a big step already for your business. If you can find a product right on the gate to actually have a 100% return on a spend so that you are breaking even you are off to a big race, you are going to do super well because at the end of the day, you are again investing in your pixel data. You’re investing into data for you to know what audience or who is actually going to buy your product, number three you are now able to find a product that will attract customers and all you got to do is increase the average order value, have upsells, have back-end to make all your profit back.
That’s what you want to do. Now, let’s say that you already have a store running for let’s say 6 months to a year now, things are doing great and you’re in the face of wanting to build profit then your ROAS, I would say should be around 1.3. You want to make around 30% profits. That’s what you should aim for but at the end of the day it doesn’t mean that you should stop all the ads that are breaking even. You still want to have your ads that are breaking even to be running because you are adding customers email address into your database, you given the ability to do retargeting on your customer to actually ask them to purchase more stuff etcetera.
Again, in all in all a 100% our ROAS is what I would aim for, but if you are in the second phase which is you’re wanting to actually get profit, you want to try to get 1.3 so you’re making 30% profit. Now when you are in the first stage which is you’re now basically wanting to build a brand, diversify, start to create a strong brand and to invest into having team members to really expand your business, then what you want to do is go back into 100% so that your front end sales are all breaking even and you’re using those profits to actually invest into other stuff. That’s what I would aim for, breaking even is always what I suggest you to aim for because again the money is always in the back end. Not your rear, but the back end of your business and that’s where majority of the companies actually make money.
It does make sense because if you think of McDonald’s, McDonald’s will give you crazy coupons every single month, they may actually give you a coupon or maybe dollar drink days. They charge $1 for a pop or a coffee, iced coffee, ice pop or whatever. Their cost is actually going to be more than $1 not just because of the cost of the goods because they got to pay for rent, they got a play for employees, they got to pay for benefits, they got to pay for a lot of things but McDonald’s still run dollar date events during the summer because they know for a fact that if you go into the store at McDonald’s to buy a dollar drink, you will not settle for just a pop or an iced coffee, you may buy a burger you may buy french fries, you may buy the apple pie, you may buy a mcflurry, you may buy all these other stuffs and because McDonalds had the calculation in place knowing that if a person just comes – supposingly attract the person to come and buy the dollar product, guess what they are going to actually spend more money.
That’s the same analogy that you need in your eCommerce store and that’s why you want to aim for simply, you want to simply run and aim for break even on your initial products and all your upsells are your back-end is where your profit actually come in place. So, I guess I dropped a lot of knowledge bomb for you guys. Leave me a comment rep you know if you guys actually caught that. It’s not a theory it’s actually a tactic. It’s a strategy. If you guys love that, leave me a comment right below and let me know right now.
[0:19:15] Question 4: I had all my accounts shut down but my banks for the simple reason that they didn't recognize my IP while traveling. BS. Aweber, Facebook, clickfunnels all shut down for non payments I am in an affiliate business, I need help. How can I do otherwise?
So moving on to the fourth question is by Amina Lamarre. Amina asked,
I had all my accounts shut down but my banks for the simple reason that they didn’t recognize my IP while traveling. BS. Aweber, Facebook, clickfunnels all shut down for non payments I am in an affiliate business, I need help. How can I do otherwise?
I would assume you’re saying that your accounts got shut down by your bank or it got shut down by other ad accounts. I’m not sure what your shut down is, but here’s the deal, for Facebook my tip for you is that please – there are a couple things that you wanted to do : for Facebook is always have a business manager account and always use the same laptop to actually log in. So that Facebook will not trigger suspicious activities. A lot of times a lot of people that they travel a lot like me, I travel a lot and I always use my business manager account and using the same laptop and using the same login so that it doesn’t trigger Facebook thinking that someone’s trying to hack my account.
Now with that being said, for Aweber and clickfunnels, I think it is a very easy thing for you to do. You’re paying for these services, all you got to do is hit up their support and say that hey I do not want IP restriction on my account access because I travel a lot and majority of the time all these softwares will grant you that ability to have no IP restrictions. That’s what you wanted to do and again these companies have all these restrictions only to protect you. They don’t want you to get affected. They don’t want you to get anyone hack into it.
But anyways at the end of the day, what you wanted to do is simply go after that. Now, for your bank I hope I’m interpreting your question correctly, it seems like it is your bank that is shutting down your stuff, that is not allowing you to process stuff. So, what you wanted to do is when you actually call the bank of your credit card and say hey I have all these online transactions I do not want you to add limitations on my credit card for all these online activities.
When you do that, then the credit card company will remove that lift for you and maybe remove fraud protection control so that your transaction can go through and it can obviously get your transaction go through and not get you suspended with these accounts. So that’s my thought process and that’s what I am suggesting for you right now. Anyways, that’s what I would do regardless of what business you have, just do that.
[0:22:33] Question 5: May I know what web builder are you using for your sales page and are you writing the sales letter by yourself for your digital products?
Moving on to the last question is Pei Tong. Pei Tong asked,
May I know what web builder are you using for your sales page and are you writing the sales letter by yourself for your digital products?
Great question! To answer you is I have a big in-house team. A lot of people that actually come visit me, they are pretty much blown away that how big my office is and how many team members I have. I do not run a solo business. I do not run a business that basically is there to make just profit for me. I’m here to build an empire. I actually have a team of close to 40 people now, surprisingly or not. So for me, I actually have all my sales page built in-house. We don’t use any softwares. All the sales letter copy is written by me or my copywriter, all my emails are written by me or my copywriter, that’s what it is. We do everything in-house. That’s what we do and I encourage that only because that’s how you can keep scaling up your business.
That’s really it for the five questions for today. Again, if you want your question to be featured in my daily huddle, make sure you go www.fredlam.com/ask, submit your question in there and I will get it featured in our daily huddle. Last note, please make sure you check my YouTube channel every day until next week, I am dropping a new video in the Print Profits series. It is going to be a lot of training, a lot of knowledge that we’re having off right to you. If you have not caught or watched our Print Profits series, there’s a link right above on YouTube, on Facebook.
Again, at the end of the day again keep hustling, keep taking action, I will keep providing as much value and knowledge to you as possible to empower you to help you escape the 9-5 rat race and most importantly, to get you onto the right path of entrepreneurship. Other than that listen I look forward on seeing you guys tomorrow. I am actually going to be traveling to Orlando tomorrow. So, if you guys are at the Orlando 3XC event, I will see you guys then, if not, I’ll still be doing my daily huddle as much as I can. I’m going to be traveling and traveling usually kick my butt but at the end of the day, I will do everything to be here with you guys. Last but not least, make sure you go to my YouTube channel, watch my new episodes and I’ll see you guys tomorrow. Bye now!