Part 1 – The Background
So you want to learn how to manage $100K per month in ad spend profitably with Facebook Ads, huh? The good news is that you have made a wise decision to invest your time in checking out this case study that will detail exactly how our agency, Terry Foster Consulting (TFC), does that for one of our e-commerce clients, CurlMix® (www.curlmix.com). Yup - the same CurlMix® you may recognize from their appearance on the show Shark Tank (this case study was written prior to the airing)!
The bad news is that managing $100K per month profitably takes a LOT of work. If you are looking for the shortcut to success - then please stop reading because you aren’t going to find it here.
What you will find are our systems and processes that we have developed after spending over $10 million dollars of ad spend, thousands of hours on testing, and thousands of hours studying and sharpening our craft.
In other words - nothing that you read in this extensive case study will be just “theory” - this is all backed by cold, hard data that brands like CurlMix® pay handsomely to collect.
So you may be wondering “why are they sharing all of this valuable information with me?” That’s a good question. The bottom line is that although what we are sharing is extremely powerful - none of it is exactly a secret. If you were to spend enough time and enough money - you could find everything that we are sharing. What we are doing is just presenting it in a pretty package that can now serve as your go-to guide for managing six-figures in ad spend.
Who is TFC?
Allow us to take a few paragraphs to properly introduce ourselves. TFC is a digital advertising agency that specializes in helping e-commerce brands scale to seven-figure sales quickly, efficiently, and profitably as possible.
As alluded to earlier we have managed north of $10 million dollars of ad spend which has resulted in over $50 million dollars of sales of physical products.
Over the last four years, we have helped 11 different e-commerce brands produce over seven-figures in sales (with 7 of those starting from under $150K a year in total sales prior to partnering with us).
Within the e-commerce vertical our specialty is reaching African-American consumers and converting them into loyal customers.
We are passionate about helping business owners transform their businesses and their lives through the use of effective paid media buying - and we have put a lot of time, energy, and heart into this content to ensure that it helps any and everyone who takes the time to read this and implement the strategies.
Now enough about us...let’s get to the good stuff!
Where We Started
A lot of the information that you read from these self-proclaimed “gurus” always have a habit of forgetting to include the background. They seem to want to make you think that you just need to apply some kind of magical “formula” that they created - and presto you can then go from 0 to 100 real quick. That’s not how we roll - so we are going to start from the “bottom”.
When Kim first reached out us - she told us that “I suck at Facebook ads. I need them to actually convert”. Her monthly budget was $5K a month - and that is what we started with.
Over the first $5K in ad spend we were able to create $12,706 in sales for a return on ad spend (ROAS) of 254%. CurlMix®’s overall sales during the time frame were $22,145.
We felt that this was a pretty positive first 30 days considering that we were pretty much starting from scratch. We knew that once we got things dialed in we would be able to increase the ROAS if the spend stayed at that level.
Over the next $5K of spend we were able to increase the ROAS up to 304%. Overall sales rose to $25,669.
By July, we doubled the budget to $10K a month and still maintained a ROAS of over 300%. During this time, we also installed the Shopify App One Click Upsell which allowed us to increase sales by approximately 10%. If you are interested in finding out more about One Click Upsell and our strategy for it - click here →.
By August, we scaled the budget up to $20K a month and hit $95,386 in sales...falling just short of the coveted six-figure goal that we always aim for.
We didn’t have to wait long because in September we finally crossed six-figures in sales!
So, all in all, it took us about 5 months to take this store to six-figures in sales.