There's a good chance you're reading this post because that headline caught your attention and maybe even confused you.
After all, if you've done some research on dropshipping and started a successful online marketing business, you've probably seen a lot of advice on how to best use Facebook ads and how important they are for driving traffic to your site.
In fact, you're probably very familiar with Facebook ads as a consumer.You always see them as you scroll through the site, so why shouldn't you use them yourself when it comes time to sell your product?
I promise you that the headline is not meant to be a click bait.We honestly almost never use Facebook ads for our site.If we use them, it's never our first stage strategy.It's always for retargeting.
Overall, using Facebook ads doesn't reliably drive enough sales to make sense as a first-line advertising strategy for carriers, especially if you're just starting out.
In this post, you will learn more about the different types of marketing.You'll learn how to make sure you're driving the necessary traffic to your site.
This will result in a real profit from the sales that come from finding focused and guided site visitors.
UNDERSTANDING QUERY-BASED AND INTEREST-BASED MARKETING
Before we delve into why Facebook ads aren't the best use of your advertising budget, it's important to first understand the difference between query-based marketing and interest-based marketing.
A query is a question.Queries show that people are looking for direct answers to a specific question or direct solutions to a specific problem.
If someone is entering a search engine and writing a question, they are already busy and prepared to make a purchase.
In query-based marketing, you're trying to showcase your product to people who are looking for solutions or answers related to what you're selling.
This marketing strategy is based on targeting specific keywords and matching your product listing to the words people use when searching.
In interest-based marketing, you're looking to share your product with a group of people based on interest sharing.
You're hoping that the ad will grab their attention and lead them to explore the site and eventually make a purchase.
The funnel between seeing the ad and buying is much longer because these are people who weren't looking for the product or keywords in the first place.
FACEBOOK: INTEREST-BASED ADS THAT AREN'T FOR BEGINNERS
Facebook ads use interest-based marketing.If you sell, for example, a German Shepherd Dog collar, you can find people on Facebook who have a German Shepherd.Sounds great!You've found people with specific interest related to your product.
However, to make a sale, you need to take those people from not knowing who you're interested enough to click on the ad to trust you enough to consider the product to actually decide to make a purchase.
It's a long journey, and every step of the process involves losses.Many people can see your ad on Facebook, but far fewer will engage and even fewer will make a purchase.
Learning the entire marketing sequence and effectively getting people through it is actually very advanced.Only the best marketers can do this successfully.We know people who have wasted thousands of dollars trying to make Facebook ads work.
One of our drop shipping business partners – a smarter, younger, hardworking guy – has lost thousands of dollars, but he won't stop trying to make it work.Even though his drop shipping store with us is earning him $10,000-15,000 a month, he keeps throwing money chasing Facebook ads that don't generate sales.
Many people invest in coaching to make them better at using interest-based marketing.That's even more money spent on a strategy that often doesn't pay off.
People who successfully use interest-based marketing are sophisticated advertisers.They know how to create an offer and make money on the backend.They know how to cultivate an advantage in a sale.This is not a strategy for beginners.
QUERY-BASED MARKETING: BEST FOR BEGINNERS
First of all, we would never sell a dog collar as part of our dropshipping strategy to begin with.It is a low-cost item that does not have the margins we need to see a real profit.
We would be much more likely to sell pet products at high prices such as an obstacle course for dogs.
If a potential customer is in the market for a high-ticket item, they are looking to spend at least a few hundred dollars.It won't be an impulse purchase from a Facebook ad.It will be something they are actively looking for as part of their sales research.
Someone on the market will go online and search for "obstacle course for dogs". If we can make sure that our product shows up in those search results, we know that we have a potential customer who is already interested in the product we have and who is already considering a purchase.We have therefore overcome many of the first obstacles of advertising without having to do any additional work.
Query-based marketing doesn't require as much nourishment in the sales funnel.All you have to do is present yourself in front of potential customers with an attractive website and a competitive price for the market.If you can master the right keywords, you'll show yourself in front of the people who are actively trying to buy.
Interest-based marketing doesn't guarantee that potential customers will need your product.Just because someone has a German Shepherd doesn't mean they need a new dog collar.
On the other hand, if you use query-based marketing strategies focused on what people are actually looking for, you'll get a lot more sales.
A NOTE ON HIGH-PRICED ITEMS AND PROFIT MARGINS
Let's take a closer look at the examples we used in this section.
We have repeatedly advised to focus on high-priced products when starting a dropshipping business.Some people may worry about selling an item at a high price because it seems that it would be harder to sell something so expensive.
However, you need to remember that using query-based marketing puts your product in front of people who are already looking to buy that specific product.
People buy high tickets every day.It's just a matter of putting the product in front of them when they're looking for it and showing them that it has value and solves their problem or meets their needs.
It takes the same amount of work on your part to sell a dog collar, as it does to sell an obstacle course through query-based marketing.However, your profit margins will be much higher on the obstacle course which you will see a return on your investment much more quickly.Often, high-ticket items generate a return on investment from the very first sale!
If someone is actively looking for a high-priced product, they are much more likely to make a purchase.This fact leaves a lot of room for error.Even if your advertising strategy is not the best, if you have a good product, someone will buy it.
Also, people are often looking for specific brands when looking for a high-cost item.This means you can focus on associating your ad's keywords with the specific brand or brands you sell for even more segmented marketing.
In short, high-ticket items offer the highest profit margin and are more likely to lead people to online research.This makes them ideal for query-based marketing strategies.
WHAT IS THE BACKEND?
In the discussion above, we mentioned that people who are able to use interest-based marketing know how to make money on the backend.People who are new to ecommerce businesses may not know exactly what that means, so let's take a closer look.
No matter what type of marketing strategy you use, if you're going to sell a low-cost item like dog collars, you'll need a sophisticated backend to see any profits.That means you're probably going to break even or lose money on that real dog collar.
Why sell a product at a loss?To get the customer's email address.
You know this is a person who buys stuff online, so he's a good potential customer for future sales.Now that you've made the sale, you have their email address and can continue marketing them directly and indefinitely.
Such an ongoing market strategy will include items sold with a higher profit margin.This is the backend.
If you're selling low-cost items, you need a sophisticated and complex backend to increase lifetime customer value (LCV).Setting up requires a lot of expertise and an ongoing marketing strategy that effectively uses the email addresses you get from a low-margin sale.
EFFECTIVE ADVERTISING STRATEGIES
If you're just starting out, it's in your best interest to start by selling something that's more expensive.This gives you a high profit margin for each sale.
Once you have a high-priced product, you can focus on query-based marketing that puts your product in front of people who are actively looking to buy it.
It sounds simple, and that's because it is.What's even better is that you can always make it more complex as you learn more about marketing.
If you're selling high tickets and also have a sophisticated back-end marketing strategy, you'll get even more money.However, you don't need to have this type of system in place to start generating profits, which makes query-based marketing on high-ticket items the best option for beginners.
Simple query-based marketing: Google Ads
Every time you search for a product on Google, you'll see ads with product listings.There will be a photo of a product with prices.People pay per click to appear at the top of search results.There will also be some sponsored links at the top of the search results.
Basically, 70-80% of what you see before scrolling down is sponsored content.
Selling products online is really profitable if you want something profitable enough to allow you to quit your job and have a real business.
People who are searching on Google are looking to buy, so these are the people you want to see your product.
If you're just getting started with a dropshipping site and want to learn how to maximize your advertising budget, this post hopefully gave you some important tips on how to get started and where to best focus your resources.Let's recap the most important points:
- Focus on high-ticket items so you can profit from your first sale.
- Advertise using query-based marketing strategies like Google Ads so you get your product in front of people who are already looking to buy it.
- Don't waste time with interest-based marketing strategies for low-profit items unless you have a sophisticated backend for ongoing marketing to existing customers.
- Chasing customers through Facebook ads can cost a lot of money without a return on investment.
If you want to learn the real secrets of people making profits through ecommerce businesses, we've created a series of free videos called Online Assets Playbook.
Here you will see the current business models and methods that we used to go from $0 to over $1 million in online resources.To see these internal perspectives, goto BuildAssetsOnline.com/Playbook.