Today, I will be breaking down how we took this business from averaging around $83K a month to $200K monthly recurring revenue (MRR), just as promised in the $12K to $88K case study.
So, once we hit $88K a month, the client continued managing the campaign, trying to get to the $150Ks and $200Ks. He kept running ads to the same advertorial but couldn’t get it past $100K a month.
After about six months of trying; managing the campaign himself, peaking at $100K and plateauing at $80K, he consulted us again; this time to help with media buying and hopefully scale to $200K.
What We Did Differently
We knew the advertorial (like most ads) had reached its lifespan. So, it was time to move on to a new creative and test new angles.
Creative
The client had collected a bunch of genuine video testimonials from satisfied clients to post on Youtube. He created a montage of these satisfied clients talking about how much they love the service one after the other. They talked about how it saves them time; they could spend more time with their family now, and it doubles and triples their sales.
We ran Facebook ads to that video and all hell broke loose… it was like a tsunami! 500+ comments from clients vouching for it, to those wanting to know more, and also the ignorant ones calling it a scam. Haha.
We sold 187 packages worth $11,338 from a mere $836 ad spend in the first 14 days. That’s a 13X ROAS – unheard of (at least in my world).
Targeting
This is a Poshmark service with a monthly subscription. Most of the clients also resell on eBay, Mercari, and other reselling sites.
So, naturally, our client would jumble anyone interested in the aforementioned sites in one ad set and it would look something like the screenshot below.
The problem with putting multiple interest groups in the same ad set is that you’re not able to tell what interest group is responsible for what conversion(s). Thus, making it hard to pinpoint and spend more on a winning interest group.
Here is how we segment ours and that’s how you should do it too.
We put just one interest group in each ad set but we narrow them down with Poshmark because they’ll have to know Poshmark for the service to make any sense to them.
So it looked like this;
Poshmark Solo
eBay x Poshmark
Testing - Finding Winning Interests
We tested several variations – Etsy x Poshmark, Depop x Poshmark, USPS x Poshmark, and many more. We scaled the winners and shut down the losers after 3 days of spending $60 ($20/day) on each of them.
We also created lookalike audiences based on purchases and it crushed it for us. The lookalikes and retargeting ad sets were some of our top performers in terms of cost per purchase and sales volume.
If you don’t get anything from this case study, get this – never pile multiple interests in one ad set. This, alongside the genuine customer review video, are the two main reasons why we were able to scale to $200K and $250K months.
Scaling Profitably
We increased the daily budget of any interest group that had a positive ROI in the testing phase and subsequently sent it to a CBO when it started slowing down.
We spent $4,292 the following month; August on ads and sold $27,973 worth of packages through the ad. We also sold a lot (I don’t have the numbers) by giving out discount coupons via email. Total revenue for august was $148K.
You’re probably saying, ‘but not all of the $60K+ increase came from Facebook.’ You’re correct. It didn’t all directly come from Facebook but Facebook is responsible for creating the awareness. You can see the ad reached over 120K people on Facebook but only 477 bought right there and then.
People don’t always buy on the spot. They sometimes look at independent customer reviews on Google and Youtube before buying. Sometimes they are just waiting for a paycheck. I say that to say, some people saw our ad on Facebook and googled us hours/days later to buy (Facebook doesn’t track that). There are so many instances like that (you can kind of gauge that from your Google Analytics report).
And others came from Facebook to our website, joined our email list, and bought via email when we announced sales to subscribers.
We spent $9,958 in September and sold $28,450 on Facebook. $138K total monthly recurring revenue (MRR).
We spent $19,056 in October and sold $72,767 on Facebook. $202K total monthly recurring revenue (MRR).
We spent $24,783 in November and sold $59,824 on Facebook. $256K total monthly recurring revenue (MRR) thanks to our Black Friday campaign where we sold $98K in 24 hours, before dropping to $148K in December because people had already bought two to four months in advance during the Black Friday sale.
Conclusion
To recap what you’ve just read, I’d say, always have a great creative (ad) that people can’t resist, don’t put more than one interest in an ad set, test new interest groups every few days; scale the winners and cut the losers. And don’t be afraid to spend big on ads if you’re making it back.
If you’d like us to build you a profitable campaign like this, feel free to reach out to us on our website and hopefully we can make some millions together.
Cheers! 🙂