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Before delving into the intricacies of paid ads, it’s essential to make a very important premise, especially if this is the first lesson you’re reading on this blog.

The marketing approach that relies on organic methods (blogging, videos, and social media posts, known as “inbound marketing“), is the one that proves to be the most effective today.

Creating valuable content, crafting engaging emails, and sharing impactful social media posts are precisely what a company must do to acquire leads and convert them into paying customers.


Paid marketing, though a valuable strategy, doesn’t yield the same level of effectiveness at the start of your entrepreneurial journey.

It’s essential not to fall into the misconception that investing $1,000 daily in Facebook Ads or Google Ads will solve all your problems.

In fact, this could lead to completely draining the advertising budget you’ve allocated without achieving significant results.

Rather than rushing into paid advertising, it’s crucial to build a solid audience with organic marketing efforts.

Only then, when you have a dedicated and engaged audience, should you consider incorporating paid strategies into your marketing plan.

Otherwise, you might find yourself with a daily $1,000 deficit, potentially leading to financial difficulties until one day, the bank shows up at your office or store door.

You have to understand these concepts before losing money in paid marketing.

Paid advertisements do not solve the problem of a business that does not perform well with social media and SEO.

If no one has contacted you yet on social media and you haven’t produced any visits or leads after publishing fifty blog posts and fifty videos, don’t waste your money on paid advertisements because they won’t solve the problem and could even make it worse.

You simply have to review your marketing strategy.


How an Ads Campaign Works


A brief preamble for those who are completely unfamiliar with terms like Google Ads or Facebook Ads.

The creation of an advertising campaign on Google and Facebook is based on the installation of specific lines of code – such as the Facebook Pixel or Google Tag – on the pages of your website, particularly on the Thank You Page, which I explained how to create when we talked about marketing funnel.

What is the purpose of this code?

It serves to track the effectiveness of our marketing campaign.

How does it work?

The principle is quite simple: the Thank You Page can only be reached and viewed by those who have taken an action on your website/blog, such as making a purchase or simply signing up for the newsletter.

In practice, a person enters their information, clicks the “Submit” button on the form we’ve created, and we present them with a page containing a thank-you message.

Advertising platforms like Facebook Ads and Google Ads operate on the assumption that whenever a user views this Thank You Page, it means they have completed the action on our site for which we are running the advertising campaign.

For example, if I create a campaign on Google with the goal of getting people to subscribe to my newsletter, the code I’ve installed on the Thank You Page will record “1 lead” every time the Thank You Page is viewed by a user after they’ve provided their information.


Best Step-by-Step Advertising Strategies

Facebook Ads Strategy

Read the blog post How to Create Facebook Ads“.

Google Ads Strategy

Read the blog post What Is Google Ads“.

How to Have Unlimited Budget for Paid Ads and Crush Your Competitors


This lesson will become important if you already have a small budget to start your paid marketing ad campaigns or as soon as you have sold a few units of your product or service.

It doesn’t matter where these sales come from: your blog, YouTube videos, paid marketing, recontacted old customers, etc.

As soon as you have achieved some sales within a month (and thus have a substantial budget to allocate to your paid ads), apply the concepts I am about to explain in this lesson.

Verify the Effectiveness of Your Campaigns

The first thing to do is to check the number of leads you have received and determine if your advertising campaigns are really working.

If you have received few leads but they are very expensive (for example, only 6 leads at $7 each), you need to review something in your ad.

It could be the image, the text, or the audience it is targeting: something is not working.

Review the strategies I linked for the ads platform you are using and make sure you have followed my instructions rigorously.

This is the first thing you should do.

If, on the other hand, you are getting large quantities of leads at a low average cost (initially less than $1), it means that your advertising campaign is profitable and very well planned.

So, you can apply the concepts I am about to explain to you.

How to Have an Unlimited Advertising Budget

Don’t make the mistake of stopping some campaigns because they cost too much.

Advertising is a process that potentially never ends but, in fact, continually grows.

The budget allocated for paid marketing should potentially grow infinitely because, potentially, your sales should also grow indefinitely, and so should the budget for your promotions.

The process remains the same:

Promote your product ➡️ sell your product ➡️ increase the budget for promoting your product ➡️ sell more units of your product ➡️ repeat infinitely

What you need to do is consistently allocate a percentage of the money collected from your sales to the daily budget of your paid ads to have a virtually unlimited cash reserve.

I’ve been taught to always dedicate 30% of each sale.

If you have many sales resulting from your marketing, you will no longer have a financial limit.

Mathematics supports this system.


Practical Example

Let’s suppose my daily budget for paid ads is $70.

In one month, I sold 200 units of my product at a price of $20 each, and I collected $4,000.

What should I do now?

I will set aside 30% of that money to increase my daily budget for the next month.

Here are the calculations:

  • 30% of $4,000 = $1,200
  • Divide $1,200 by 30 days of the following month: $1,200/30 = $40

So, my daily budget for the next month becomes $70 + $40 = $110.

More budget means more sales, so next month I could potentially have 500 sales instead of 300, and my budget will grow even more.

And so on.

END OF THE YEAR AND BEGINNING OF THE NEW YEAR

How do you calculate the daily budget for paid ads at the start of each year?

It’s a simple business management action: take the profit you earned in the previous year and invest a percentage to create the daily budget for the next year.

As always, I recommend allocating 30% of sales.

Practical Example

Last year, you earned a profit of $100,000, net of all expenses.

  • Calculate 30% of $100,000, which is $30,000, and place it in an advertising bank account that you never touch.
  • Divide this amount by a year: $30,000/365 days = approximately $82.

Therefore, your daily paid advertising budget, starting from January 1, will be $82.

As soon as you make the first sale, apply the concept of the 30% monthly increase again to boost the daily budget for the following month.

This is how you can have an unlimited budget and outperform your competitors.

Even though this process may seem obvious to some of you, I assure you that very few, if any, actually apply it.


Common Mistakes in Advertising


When it comes to paid advertising, entrepreneurs often make several mistakes that could compromise their campaigns without giving them enough time to yield results.

Let’s take a look at these errors.

Mistake 1: Considering Paid Advertising as an Expense

Lead generation is not an expense but an investment.

Like all investments, our goal is to increase it as soon as possible.

A catastrophic mistake is aiming for a positive return on investment and trying to reduce the costs of lead generation, which should be the primary focus of a company’s economic efforts.

Cost reduction can have a negative impact on advertising campaigns, causing them to fail and not generate more leads (and consequently, no more paying customers).

On Facebook, changes to the budget are less detrimental, while Google is very sensitive to budget reductions.

If you reduce the budget, Google often suspends your campaign and stops publishing your ads.

If a campaign is performing well, you should try to increase the budget as soon as possible.

Mistake 2: Limiting the Cost per Lead or Turning off Campaigns with High Costs per Lead

Fear of lead costs is merely a mental barrier.

Good leads, statistically those who will eventually buy your product or service after being properly educated by your email marketing, are usually the most expensive.

Allow the various platforms to determine the cost per lead; you should never adjust the prices.

If campaigns have a high cost per lead, they will likely bring you quality leads that will eventually purchase your product or service.

Always keep these campaigns active.

Mistake 3: Turning off Campaigns After the First Sales Dip

Sooner or later, your sales will experience a period of decline.

This is normal and part of the business cycle.

Even Apple has experienced sales declines in the past: One of the most significant declines occurred in 2016 when iPhone sales began to drop for the first time since the device’s launch in 2007.

In the last quarter of 2016, iPhone sales decreased by 5% compared to the previous year, marking the end of a period of strong growth for Apple.

And what did Apple do?

Did it turn off its advertising campaigns?

Absolutely not.

They doubled down on their marketing efforts and recovered practically immediately.

Turning off campaigns after two days of poor sales is a serious mistake.

Facebook and Google continually improve and gather more data to enhance the quality of your leads.

If you turn off campaigns, you will reset this process and have to start over, losing a lot of money (I know what I’m talking about; I’ve made this mistake countless times).

Mistake 4: Focusing on Competitors

Many online marketing experts, most of whom have never taken any marketing action in their lives, believe that the only way to beat the competition is by banning competitors’ campaigns, posting negative reviews on their blogs and social media pages, and speaking ill of their products.

In summary, they think that focusing on competitors is the only way to defeat them.

The problem with this approach is not just ethical but even strategic.

If you concentrate on your rivals, you will always be chasing them.

They will make a move, and you will only react after their move.

This means that your competitors will always be one step ahead of you.

They will spend their time thinking, planning, and expanding their business, while you think about how to sabotage them.

You can write negative reviews, ban their campaigns, and say bad things about them, but you won’t earn a dollar.

Focus on yourself, the strengths, and the benefits of your product, and differentiate your brand from competitors.