Say, you spend $200 on an ad on a particular network and you wind up making 200% in profit. The natural temptation at this point to scale up immediately. weâve even seen marketing courses which advise you to do just that! But do this at your peril.
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ONE test is not what we would call a foundation. The rule of thumb is to scale GRADUALLY, increasing each subsequent âtestâ by 50% to 100% percent. This way youâll always have maximum assurance that an unexpected event wonât wipe you out.
As a general rule, your profit margin should be as high as possible â while your products or services remain competitive.
Traffic campaigns which earn you on average 25% to 50% can be borderline dangerous â if your other running costs are not strictly controlled. In principle 100% gross return should be the starting point â at least as far a aggressive scaling-up is concerned.
To put it differently, if your campaigns regularly return 100% in profits, you can scale up quicker than if your campaigns return only 50% or 25%. Itâs just prudence and common sense.
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Book 3 – Chapter 54Maintenance |
Course Overview | Book 3 – Chapter 56Budget Considerations |
Book 3: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, , 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, Overview
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