Everyone’s looking for the perfect, no-failure method to success in their advertising campaigns. But here’s a little secret:
It doesn’t exist. There is no one singular method that guarantees profit 100% of the time.
I’d even be hard-pressed to find someone that says more than 40% of their ads are significantly profitable.
Let me ask you: are you playing the game NOT TO LOSE or are you playing the game TO WIN?
Most people in life are playing the game to NOT LOSE- that’s why they’re trapped living mediocre lives in mediocre relationships with mediocre health.
In order to find profit & success in the long-term, you’ll have to take a few short-term losses. The ego does not like this.
Most ads that are launched will not go anywhere or perform that well. In my ad campaigns I typically create a minimum of 4 ads, though I often have upwards of 16 ads under a campaign.
I’m only aiming for about a 20% success rate for my ads, and it is in fact profitable to have as low as a 5% success rate.
Example: let’s say you launch 5 campaigns each at $200 each. You spend $1,000. $800 (4 campaigns) fail. Then the last one you spend $200, but make back $1,000 ($800 revenue).
In this scenario you are losing a small bit of money (around $200-$400) because the $800 revenue is excluding your product costs.
BUT, once you know that campaign #5 works, you can KEEP LETTING IT RUN. So then you spend ANOTHER $200, and make ANOTHER $1,000. Then ANOTHER $200, and yet another $1,000!!
You see, the “failure” (if it shall be named as such) of the 4 prior campaigns was inevitable, but it DOES NOT MATTER because the 5th working campaign will generate a profit for a very long time!
You spend $800 on tests that bring in $0, $200 on a test that brings in $1,000, but then you can keep that ad campaign running and drop $10,000 on it to make back $50,000.
When you factor in the testing costs, your total results would be $10,800 ad-spend and $50,000 returned so $39,200 return on advertising cost- or profitable AF!
In short, stop trying to search for success 100% of the time. This is for every area of life.
Get your head out of the gutter and start looking at the battlefield from a bird’s eye view. Many campaigns & ads will fail. That’s expected. You only need a few to succeed to win.
Should you play the game in such a way where you avoid any failure, then you will never win.
Found this post useful? I’d appreciate you giving it a like and commenting on what you think!
Thanks – Michael
Post inspired by Denis Iliev‘s question.