By following this guide you will be posting about your Shopify Success in all the groups! You will be quite surprised with how easy it is to make this your first $5,000 month, and I'm talking net profit.
When starting out with ecommerce very often people get caught up in the details that really do not matter. I am asked all the time about whether their CPM's are too high, if high engagement on a post will result in sales or how big their audiences need to be.
While this has some bearing on the overall product launches they are much further down the list of importance as you might expect.
I am going to show you in this article how easy it is for you to make your business successful, not next month, but this one.
It will still pay to do a course on how to run ads & come up with quality products however the secret sauce is in your process.
Let me explain;
Your Shopify Success: Your First $5,000 Month
1. Consistency of Process – Launches Per Day.
The common trait in every rags to riches story will always stay the same. Every successful individual has the trait that you will shortly possess. In order to be successful we must be persistent and to be effectively persistent we need a plan. For an effective plan we need an effective process.
With an effective process success becomes inevitable. In my time with Teespring and speaking with the guys that were selling thousands of shirts a week the common thread to success was the Launches Per Day (LPD).
The higher the LPD the more profit was being made. The successful guys were doing 20+ launches per day of new designs and absolutely raking it in. They didn't start there but they started with a consistent process that allowed them to have design requests going through to their designers to allow them to have the quantity of work they needed to keep up those launches.
When launching that amount of designs they were learning very quickly what people wanted, what interest targeting worked, what designs sold and were educating themselves with data Facebook was giving them. In order to maintain their LPD's and increase their profits they needed to have an overall statistic that was accurate, fast & reliable.
a. The Key Statistic = Conversions
The statistic that mattered and continues to matter is how many conversions you're getting for your money. The more conversions, the more profit (so long as you are scaling correctly/profitably). Identifying conversions as the main indicator of a campaigns success gave the consistency to apply a process for success.
Think of it this way, if we are only launching 1 successful campaign/product in 20 then we need to get to 20 quickly in order to start making money.
- 1×7=7 (1 Launch per day of the week)
In this scenario of only launching 1 product a day its going to take a very long time to reach a profitable level. Potentially waiting 3 weeks for your first success will be incredibly draining and wreek havoc on your state of mind.
As a starting point I would suggest aiming for 5 products per day.
- 5×7=35 (5 Launches per day for a week = 35
- 35/20= (Number of campaigns launched to find 1 successful product = 20)
When you start launching 5 a day your road to success is much shorter and potentially you will be finding 1.75 or close to 2 products each week that will need scaling. Shortening the length between success is imperative to keeping your momentum and motivation high.
These numbers are arbitrary however serve as a guide to explain the importance of increasing your output to increase your return.
Making this your first $5,000 month is much easier when you lay it out like this.
b. The Key to Profitable Advertising
Alongside LPD's you will need a threshold that you're willing to stake on ad budget (on a single ad. I typically run 2 ads for each product). This is the amount of ad spend you are willing to lose to test a product. A consistent approach here will give you a consistent outcome.
The way I usually work out my threshold is by doubling the profit margin of the product I'm selling. This is obviously easier to do when your products remain the same, i.e. Hoodies or tshirts as opposed to dropshipping where each product will typically have a different margin.
If you are a dropshipper then I suggest working out your AOV (average order value) and doubling your average profit per order to get your threshold.
The reason we have this is so we can turn ads off immediately once they've triggered the stop loss. Every new ad I run (typically 2 for each launch, a broad interest and specific interest ad) these rules apply. Using shirts as an example;
- 1 x Broad interest ad $10 Budget/day – Run for 2 days. If $20 without a sale turn off.
- 1 x Specific interest ad $10 Budget/day – Run for 2 days. If $20 without a sale turn off.
- Potential Loss – $40.
- Potential Gain – Unlimited.
2. How to Increase Your Output – Tools.
To be able to launch 5 campaigns a day you will need to spend some hours researching in order to get your workflow to a consistent level. This may be spending a few hours on Aliexpress searching for products you want to try for your niche.
If it's POD you will be searching everywhere to find sayings that you can spin to your own niche, and I'm not talking about just swapping out the niche…i.e swapping out hunting for cycling.
The important key to making this all work is setting up Trello to ensure every product you find gets launched. While you need to keep a discerning eye on the products you are wanting to launch, i.e. quality, consistency of brand etc you need to remove your emotion from your launches.
Numerous times over the years (too many to count) the products I didn't think would do well were the ones that would go viral. Strange, either my radar is off or the market is just that unpredictable.
Using Trello is incredibly easy and has been one of the keys to my success over the past few years. It allows you to easily keep track of the process each step of the way. Working closely with platforms like this ensures everything is kept central. If you have any notes on a particular product you can add them as a note to your board.
I have my VA's launch products and then add them to the “Ads – To Do” board either for me or for the team member responsible for getting those ads launched.
It is imperative that you do every step in batches and actioned for specific days.
- Step 1 M-T – 1-3 hours of product research. Send to designer or add to launch list.
- Step 2 W – Product Launches – Setup products correctly on platform. Correct ad copy and images
- Step 3 Th – Run Ads
- Step 4 F – SCALE SCALE SCALE
3. How to Increase Your Profit
The reason I love this process so much is that it becomes second nature. It's easy and replicable meaning the consistency allows to increase your available time to look for other opportunities to increase your profit.
Following these steps will ensure this is your first $5,000 month. If you haven't read The Top 10 Best Apps on Shopify in 2018 jump over and read it now. It is full of gold for unlocking extra pockets of profit. Once your store is setup for success with the apps mentioned, following the process outlined above will ensure you are grabbing every bit of profit you can.
Making the most of your front end traffic is hugely important. Particularly when the conversion rate is such a small percentage of the audience that you're advertising to. Every little bit counts and it sure as hell ads up.
Your first $5,000 month is not around the corner, you can be doing it this month. With consistency of action success becomes inevitable. It is by chunking your goals down into repeatable steps that your business becomes easily profitable. Each day you know exactly what you need to get done and will be able to attack it effectively.
To have an action plan for each part of your business is incredibly important. I'm still learning how important it is and have just started using the Best Self Journal which sets each and every day into small goals to achieve a bigger 13 week goal. It chunks your overall goals down into bite sized achievable daily goals. Check it out Best Self by clicking here.