All language subtitles for 054 How to scale correctly-en

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Original subtitles

1

So you run your ad in the test period for three days and it's either created a profit or it's broken

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even so you have a winning test.

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And we talked about this in the previous lecture.

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You dropped all the other ones.

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Now what are you going to do.

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How are you going to scale this thing up.

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To start making some serious cash.

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Well rookie mistake number one do not be tempted to ramp it up by 100 x 100 times for example.

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So this is a classic mistake.

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You're spending $3 a day and you think.

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Right.

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I found it.

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I will now ramp up to $300 a day because if you do that and I can understand the temptation because

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suddenly going to much and enormous The not going reach a massive audience compared to before and presumably

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you know starts like 100 times more product and therefore 100 times more profit if you do that.

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What happens is you confuse believe it or not the Facebook algorithm.

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Ok just need to accept the Facebook and a little bit sensitive piece.

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And you can't just ramp up by 100 X in one go.

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So what it do do is you increase your budget by one and a half times.

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OK.

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So if you're spending $3 a day for example and you found the winning ad increase it to four and a half

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dollars a day.

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All right.

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So you go from $3 to for a half dollars and then at three and a half dollars keep that for another three

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days.

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So we are making baby steps.

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And in fact this makes a huge amount of sense because not only are we not confusing the Facebook algorithm

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but in business is duff to suddenly make huge increases in spending when you're still not 100 percent

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sure about this product.

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Sure the test period went well but what you still want to do is make little baby steps and make sure

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that you're on the right path each time.

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Yeah.

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Each time we go see just go from $3 multiply by one and a half.

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So four and a half dollars and keep it for another three days.

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Now at the end of that three day period it's the same question you need to ask yourself or you can say

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it on your on your manager did you generate a profit or at least breakeven.

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Yeah it's a yes or no question it's very very simple to answer.

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If I say yes then you increase the budget by another one and a half x.

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So we up for a half dollars.

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And if I try to do that in my head we're going to end up like six dollars let's say right a little bit

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more.

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So you know and I'll hold that for another three days and see if I can break Crear profit or breakeven.

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And if I do then increase it by another one and a half or three days.

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And so I'll go on and on like that.

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Now eventually you're going to get to you know spending a hundred or maybe 200 300 400 dollars a day

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but all the while you've been doing that you are making sales you're covering your costs very least

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if you're breakeven and if you're making a profit then happy days.

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So sticking my in the bank this is great stuff but if you don't do that what you want to do is go back

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to the previous budget.

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So any time in that in that loop of increasing the budget by one and a half X and holding it for three

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days if you don't make a profit just drop it down to where you before where you were before.

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Keep it for another three days.

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You know if it didn't work that time then maybe drop it back down again or if it did bring it back up

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again.

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Yeah.

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So you are making these small changes either way.

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And that is how you scale correctly.

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OK.

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It's it's baby steps.

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It's bit by bit it's patience.

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It's using your hard earned money correctly and wisely in order to generate profit.

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