Anton shares a big realization he had after winning 2 big parlays this past Sunday.
Specifically in this episode of the eCommerce Lifestyle Podcast, Anton shares what to do NOW to keep your ad costs down throughout the end of the year.
As always, if you have any questions and suggestions, please feel free to leave a comment below. Don’t forget to share this with someone who needs to hear it.
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What's up everybody? Anton Kraly here from eCommerce Lifestyle.com and welcome back to The Podcast. If you're new here, just know that this show is designed to help e-commerce store owners to increase their revenue, automate their operations and become the authority in their niche. If you are not subscribed yet, for whatever reason, be sure to go to your favorite podcast player, search for eCommerce Lifestyle, then click Subscribe, because we have brand new episodes that come out every single Monday and Thursday morning.
Now, every episode is designed to help you as an e-commerce store owner or an aspiring e-commerce store owner, to be able to build a business that can be extremely profitable without sucking up every free second of your life. Our goal is to empower freedom through entrepreneurship, so everything that I share with you is designed to help you achieve just that, use your entrepreneurship, use your business, and have that provide you with a life of freedom so you can actually do whatever it is you want to do.
And I think today's episode specifically will help a lot of store owners, whether you're just getting started or whether you've been around for a while and have already seen a bunch of success, but maybe have forgotten some of the lessons that got you to where you are. Now, the reason I wanted to talk about this today is because today that I'm recording this, is a Monday, and yesterday, on Sunday, I won some pretty big bets. And I'm not telling you that to brag. Actually, I put in a small amount of money in these bets, but I got a lot of money out.
Now, if you're unfamiliar with betting, the type of bets that I made are called Parlays. And the way a Parlay bet works, when you compare it to like a normal bet, maybe normally you're just going to bet and say, "Okay, I'm going to bet that Team A is going to beat Team B." And that would be your bet. With a Parlay, you're combining lots of different things into one bet. So I bet that Team A will beat Team B. I bet that Team A will score over 24 points. I bet that Team D will beat Team C. And all of those things come together in the Parlay bet, and because you're combining all these things, your odds go up, because it's less likely to happen.
So what that means is, you can bet a small amount of money and if all those things come true, if they all happen, you get a lot of money back. So, just normal example, let's just say you're betting on a normal game, just a straight up bet, most likely it's something like whatever you bet you're betting that to win the same amount. So, I bet $100 that Team A will beat Team B. If you win, you keep your $100 and you win 100. So, that's normally how it works.
Two of the Parlays I had yesterday, one of them was for every $100 bet you win $1,200. And one of them was for every $100 bet you win 1,800. So plus 1,800. Now, really good odds, but again risky, because all these things have to come true. Again, luckily yesterday things came true. So why am I talking about this, right? Why are we talking about sports betting and Anton winning money while he's spending Sunday with pizza and the NFL? Because I realized as these bets hit that previously, like week one of the NFL, all of the bets I made were bigger bets and they were just meaning more money, they were more money for the bet, but just needing one thing to happen.
And a lot of the times that one thing didn't happen. So basically I risked more in terms of money out there and just about broke even, whereas yesterday, I bet less money, but I needed more things to happen. They happened and I had a bigger winning. So I started thinking about how this applies to business and how pretty much everything I've ever done is Parlaying wins, and always going for all of these small things, with a small amount of money invested to get the biggest results. So the message I want to share is that, again, no matter where you're at in business, if you're growing something you have or starting something new, you should have this Parlay approach, not the approach of, "I'm just going to put in all this money and see what happens." But I'm going to put in, again, going with small effort for big results, going with, "I'm going to put in a small amount of money and I need X, Y, and Z to happen for me to get my big payday."
And by the way, this doesn't just happen once in business, it happens over and over and over again. But, just to give you an actual real world example that you might be experiencing right now, right? Let's say you're running Google Ads the way that I teach you at Dropship Lifestyle, by the way if you're not a member, go to Dropshipwebinar.com, but let's say you're running your ads that way. And right now you're spending $3,000 a month on ads and you're getting great results. And you say, "You know what? I want to make twice as much money. So next month I'm going to double my ad budget on Google and I'm going to spend another 3,000." So now your ad budget would be 6,000 total.
Well, if that's all you do, if you go for that approach, similar to just like a straight bet, like, "I'm just going to double my budget, I'm just going to put three K into this." What most likely is going to happen is that you'll see diminishing returns if you don't tweak anything else, and your return on ad spend will most likely flatline or even dip. So let's just say you did that next month, another three K on ads, nothing else changed. Maybe now your revenue grew only three grand and your return on ad spend actually went down. And I apologize with these terms, it's over anybody's head. If again, you're new, go to Dropshipwebinars.com, I'll get you up to speed on everything. But that's most likely what's going to happen, right? And again, that's the approach of the straight bet, just taking that one thing, using a large sum of money and hoping that that one thing pays off.
But what I realized is with what we do when it comes to anything, including ad budgets, is we go with this Parlay. We go with this ideology instead of just saying, "Okay, we're spending three now, next month we're going to spend six." Okay. We're spending three now, let's try to spend 500 more next week, but let's make sure we're also tweaking all of our top trafficked landing pages. So our product pages, how can we optimize them for conversions?
Are we using email properly? Do we have exit intent on all of our pages? What does our abandoned cart sequence look like? Did it convert well last month, can we improve it this month? When we're upping our budget, that 500 bucks in Google ads, are we just simply raising it 500, or are we breaking out our products and making sure it's going to the ones that are most profitable that are already getting a lot of traction? So that approach, what I realized we always do in business, is the same thing with the parlay approach, with a bet. What we're doing is not just saying, "okay, let's put in all this money and hope we win and get the money back." Instead we're saying, "What's the smallest amount of money that we can put in to reach the results we want?"
So if our results are to double our revenue, what's the smallest amount of money you can take to do that? And what else needs to happen? What else needs to work? What else needs to be true? Now, what's better with business than just sports gambling, is if you have a five team or a five bet Parlay, if one of them fails, then you lose everything. With business, if one out of your five things doesn't work, then okay, four of them still hit and one of them can be improved. So, you can still get that same type of effect where you're putting in a small amount for big wins. And again, it clicked in my head yesterday, that's what we always do in every part of our business. We're never the people or the company, and I'm definitely not the business owner that just says, "Let's throw a whole bunch of money and just try to get it back." Or, "Just try to double with it." We're trying to find where can resources be best spent, both time and money, for that biggest payoff.
So with that being said, guys again, not just here to talk about gambling and a good day yesterday, but to share this with you and hopefully it can help you if you're brand new, to not overspend and to not think that money is always the solution. A lot of times it's money mixed and compounded with other things happening at the same time. And for everybody out there that's already seeing a bunch of success that has a big bankroll already, don't just think you got to just throw the money in and just watch the magic happen. It's more about seeing what you think your budget should be, and then thinking about what else needs to happen to get you the results that you are looking for.
So as always, guys, I hope you found this episode helpful. If you did, please do me a favor and go to Apple podcasts or your favorite podcast player, leave a review and a rating. I really do appreciate that. And if you are brand new and you're not a member of Dropship Lifestyle yet, be sure to go to dropshipwebinar.com for a free training from me.
So that's it guys, thank you, I appreciate you. And I will talk to you in the next episode of The Podcast. See you.