In today's podcast, I'm sharing a paid traffic strategy that's really simple to implement. In my opinion, it's a strategy that everybody should be doing. Especially, if you're just getting started with drop shipping AND looking to run paid ads profitably.
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Ways to Get High Return on Ad Spend:
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What's up everybody. Anton Kraly here from ecommercelifestyle.com. In today's podcast I want to share a paid traffic strategy that's really simple to implement, and in my opinion this is something that everybody should be doing if you're just getting started out with dropshipping and looking to run paid ads profitably. I should also mention, I've done other podcasts on free traffic. I'll link to those in the description of this one if you want to go back and check those out. But even with that being said, some people have to start for free because there's no other way. Just know that my strategy, 100%, is to go all in on paid traffic, meaning buying ads. Because in my opinion, there is no quicker way to get a business off the ground and to get sales profitably, than spending money on Google or spending money on Facebook, or spending money on Pinterest or any other ad platform and having much more money come back.
Now there are a ton of different traffic sources out there that do work and they can make you money. But with that being said, when you're first starting, you should not go for this shotgun approach and try to get traffic everywhere. Instead, my advice is to start with this simple strategy and then once you get this as profitable as possible, scale out from there. Because this paid traffic strategy is by far our most profitable and it's something any beginner can figure out.
So, here's what it looks like. You have your store, right? Ideally you build your store on Shopify. Since that's what we use, that's what we recommend. You want people to go to your store, you want them to buy. You know that there are places out there that you could spend money for ads, but where are those places and what gives you the best chances of having the highest return on ad spend possible?
Well, when it comes to cold traffic, meaning people who don't know you yet. And when it comes to selling the type of products that you can actually make money with, meaning expensive products that you'll be dropshipping. And if you're following the Dropship Lifestyle system, you already know this. The best place to get traffic, paid, is from Google product listing ads. Call it Google PLA is for short.
Now, if you go to google.com and you search for any brand name or product name, even any skew number, even any product type, what you're going to see in the search results are ads, especially at the top. And what you're going to see a lot of are product images with store names and prices. Now those ads are known as again, Google product listing ads, and they appear in what's known as Google Shopping. Now, these ads are so effective because the person on the other end of the computer, the person clicking that ad, they know they're going to an eCommerce store. They saw the product photo, they saw the price, they saw the store name. When they click that, they know they're going somewhere where the product is for sale.
Now, the difference between this and something like trying to advertise to a cold audience somewhere like Facebook, is that on Facebook, you're disrupting people, right? They're going through their feed, they're zoning out, then you have an ad pop-up for your product and for them it's like, "Okay, here's a product. Maybe I'm interested in this hobby or this category, but I'm not ready to buy." Whereas with Google product listing ads, if you set up your ads correctly, the person that clicks your ad and that sees your ad will be searching for the exact thing you are selling. And as a beginner, when you need your return on ad spend to be as high as possible, the best way to get that high return on ad spend is by having targeted traffic, people who are literally searching for what you sell, having them click your ad and go to your products pages and buy.
Now, how do we set this up? Well, first of all, with Google product listing ads, it's a little bit different than regular Google Ads because you're not allowed to choose what keywords you want to appear for. So for example, if I was selling a 48 inch white stand-up desk, I couldn't bid on the keyword, "48 inch white stand-up desk." Instead, the way Google product listing ads works, is you submit all of your products from your store to Google Merchant Center, and then they basically scan your website, they crawl it, and they pick what keywords they think you should appear for. Now the beauty of this is, is this is something that you can optimize by making great product titles, and having great product descriptions so that you're more likely to appear for the relevant keywords for the products on your site.
Now here's the good news though. With Google product listing ads, you can see which keywords are triggering your results and your clicks once your ads are up and live. So let's say a week goes by and you have your whole product catalog submitted and you're running Google product listing ads, you can see what keywords the people are searching that are triggering your ads, and you can see which ones aren't making you money. So as you could probably imagine, what we do is over time we look at that data that Google gives us, we see which keywords are working, meaning making less money, we see which ones are not. And then what we can do inside of Google is use negative keywords.
So let's just say somebody was searching for a 48 inch white stand-up desk assembly instructions. And let's say Google was sending me traffic for that to my product page because I sell those things. Well obviously, that's not a keyword that has buying intent. That person isn't going to buy. So in that scenario, I would add assembly instructions as a negative keyword. I would no longer have part of my ad budget go there, and I can really increase how well my ads perform. So this is something you're always going to do on an ongoing basis. Again, you're going to start with Google product listing ads. You're going to upload your entire product collection through Google Merchant Center and you're going to look at your keywords over time, increase the ones that are making you money, add the budget there, and then turn off the ones that aren't relevant by adding those as negative keywords.
Now, does that mean you're only going to focus on Google product listing ads for paid traffic? No, because I want you to take some of your budget and put it into Facebook, but not into Facebook for cold traffic. Instead, what I want you to do is put it into Facebook for remarketing. So that person that came to your website, that came through an extremely targeted Google product listing ad, well, they can buy from your store, right? You can make money off that transaction, or they can be like 97 and a half percent of the people that normally come to the websites and they can leave without buying.
So, when they leave and you don't have a sale, you don't want to just let them forget about you. This is where remarketing comes into play, and remarketing works extremely well on Facebook. Unlike where the product ad in their Facebook feed is just popping up out of nowhere, with remarketing, they're seeing it because they were already on that product page on your website, meaning you're simply sending them back to where they already were. You're bringing them back to the product that they showed interest in.
Now the way we do this with Facebook ads is called Facebook DPAs. That stands for dynamic product ad, and that's what you want to be running. Now if you're thinking like, "Okay, I guess that makes sense, I'm going to put my budget into Google product listing ads to make sure I have the best quality of traffic coming to my store. I'm going to be using negative keywords to remove everything that's not making me money. And then I'm going to use Facebook to remarket those people that came from Google that didn't buy. But how much money should I spend? Where should I put it? How should I split up my budget?"
Well, I'll make this really simple, and I'll tell you exactly what we do and what you should do when you're getting started. With Google, I want you to put 90% of your budget there and I want to see you put 10% of your budget into Facebook dynamic product ads for remarketing. So a 90/10 split.
Now, if we just want to choose numbers to make this super simple, let's say the first month of your store being in business, you said, "I have a $1,000 ad budget for the first month that we are up and running." Well, pretty simple. I would take 900, put that into Google. I would take 100, that would be my budget for Facebook dynamic product ads.Now, what do you do after that? How do you scale? How do you cut back? Well, one thing you should know, if your store is set up correctly... Again, if you're using the Dropship Lifestyle system, which by the way, if you're not, go to dropshipwebinar.com. I'll link it up below, but I have a free training there that goes deep into all of this. Again, dropshipwebinar.com. Well what we have to do is make sure that our stores are converting, meaning that people are actually buying from us. And what we'd like to see is a two and a half percent conversion rate on the low end and we want to build from there. But if we see that we're getting traffic and the sales aren't coming in, we're going to look at a couple things.
But typically those things could be avoided if one person has the actual business as their own and then they can make the decisions of how they want to run it, how much time they want to put into it, what they want to outsource and how much vacation they want to take, right? You can make those decisions when it's yours without having to worry about what anybody else thinks.
The first is, can we optimize our site better to increase how many people buy versus how many people land on our website? And from there we're going to continue to be optimizing the Google Ads, adding in those negative keywords, maybe even excluding products that people just aren't buying. And then again, the ones that we are, we're going to put more budget behind to increase how many people click through. At the same time, always focusing on increasing the conversion rate on our store. And that is how you start guys.
And I do think $1,000 is a reasonable budget for your first month. But if people are coming to your store and you're not seeing conversions within two to three days, there is a problem. Because most of this traffic, since it is so targeted, does convert, meaning purchase within a few days. So if that's not happening with you again, get into your Google account, optimize it even better. Get into your store, work on conversion rate optimization like we teach you inside of Dropship Lifestyle. Make sure everything is as good as it can be, and just know that you're going to be doing this for the eternity that your store is in business. You're going to constantly optimize. You're going to constantly spend more where you can. You're going to cut money where it's not making money. And this is how you can build an amazing lifestyle business, at least when you're first getting started.
Now, once you get this working, I can help you with Instagram ads, with Pinterest ads, with Twitter ads. I can help you with native ads, blog ads, influencer ads. But in the beginning, this is where you want to be. This is where the most money is made, especially when you're just started.
So, any questions guys, please let me know as always. If you got value from this podcast, please do let me know by either leaving a comment, sending in an email or leaving a review on iTunes. It means a lot. It really helps us get the word out there. So thank you all for being here. I hope you enjoyed this episode. And with that being said, I will talk to you in the next episode of the podcast. See ya.
But if you do that, please, please, please, whoever you're planning on giving equity to do it on a vesting schedule so that if for example you were going to give up 20% they don't just get 20% the day they deposit that money into your bank account. Instead you have a contract and regardless have a contract that both people sign please, it should lay out exactly what both parties responsibilities are and it should lay out how much of that equity they get access to over time.
This might be on a quarterly basis, it might be yearly, but do it in a way so it's not just instantly part of your business is gone and you have to cross your fingers and hope for the best because more often than not, the best is not good when it comes to partnerships. Again, it's like marriages and you really need to think it through rather than just saying, okay, let's be partners to the first person that says I can build your store, help you set up ads.
So as always, guys, I hope you found this episode helpful. If you did, please do me a favor and like the video. If you're watching on YouTube, please go to Apple podcast and leave a review. Really helps us. And if you want to know how we build highly profitable semi automated stores, be sure to go to dropshipwebinar.com for my free training. So thanks guys. I appreciate you and I will talk to you in the next one. See ya.