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Dennis Lieu

$144K in 3 Months - CASE STUDY - [INTERMEDIATE]

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Posted (edited)

Hey there! Dennis here, video editor for VerumEcom,

While I'm not making sick videos and animations for the team, I am operating my own stores with some guidance from John and the team, 

This store has been going about 3 months now, with not too crazy of an ad spend
Peak was Ad Spend $2000 per day , $5000 revenue  with a net margin of 15% 

What worked for me - Zipify was good until I couldn't use stripe anymore because they placed me in a 25% per day hold. 

My custom coded own upsell was built in to the product page, and using Shopify's automatic discount, I made a buy 1 get 1 half off offer, automatically. 
* Change the theme liquid to display Discount in bold text* 


This raised my AOV from $20 to $30 . 

Margins are slim because of Break even ROAs was too high for my COGS. 

Ads were not profitable UNTIL I Spent $25k in ads. Every day it was below or break even. Until i had enough data to run $1000 CBO's Worldwide Broad Targetting with a few exclusions

What worked for me

  • Cycle and run new $1000 CBO's until their CPP is no longer profitable.
  • Create a Cost Cap Campaign at your Average CPP during profitable ROAs. $1000 CBO. 
  • Duplicate your winning Retargeting campaigns if the Low CPP starts to Rise


Retargeting worked well at a 2.5-3.0x ROAS for me. Ad sets were 75% VV , ATC 30, IC 30, WV 30

Stay tuned for more! And if you haven't already follow me on Instagram

703480033_CaseStudy.thumb.PNG.11eafe78a708f2c557812d01ffcd58cf.PNG
 

Edited by Dennis Lieu
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Posted (edited)

Thanks for the case study, although 25k$ in adspend before being profitable seems a lot.

You would probably be more profitable with another product, at least you could have been profitable before 25k$ adspent I guess 🙂 but as we all know data is money 🙂

15% net margin on the 144k or on your best day at 5k ?

 

Edited by Phillip_B

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Thats good well done . What was your overall profit on the 144k? How well did your open targeting CBO'S do when you launched them? Why did you wait so long to launch your open targeting CBOs?

 

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1 hour ago, Phillip_B said:

Thanks for the case study, although 25k$ in adspend before being profitable seems a lot.

You would probably be more profitable with another product, at least you could have been profitable before 25k$ adspent I guess 🙂 but as we all know data is money 🙂

15% net margin on the 144k or on your best day at 5k ?

 

15% Net throughout. 

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1 hour ago, Nick said:

Thats good well done . What was your overall profit on the 144k? How well did your open targeting CBO'S do when you launched them? Why did you wait so long to launch your open targeting CBOs?

 

Cashflow issues. And scared to drop $1000 a day is more risky. 

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thanks for the post, its wild that you were only profitable after spending 25k!

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Can you explain more on what is the niche for this product.
What were the CBO budget and how many adsets per CBO. What methods of Verum did you use? 

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That's awesome Dennis! It's motivating to know that you persisted through $25k before becoming profitable, 99% of people would've quit by then 🙂

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43 minutes ago, cezarjont said:

Can you explain more on what is the niche for this product.
What were the CBO budget and how many adsets per CBO. What methods of Verum did you use? 

Pure End Game.

3 Ad sets. 3 Ad per. 

Cannot reveal niche, but its problem/pain solving

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8 hours ago, Rcheung said:

Curious question! When did you start dropshipping? 

I've started in 2018 with little success.
I had run a few fashion dropship and shoe sites, which got hit with DMCA take downs from nike etc. 

Those stores I've profited probably only $30-50k total in 2 years

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when you first launched the $1000 open  CBO how long did it take before it was profitable?

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On 3/29/2020 at 8:11 AM, Nick said:

when you first launched the $1000 open  CBO how long did it take before it was profitable?

It took 2 days to optimize 

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13 hours ago, Dennis Lieu said:

It took 2 days to optimize 

How much do you allow your campaign to spend (without getting a purchase) before deciding to turn it off?

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On 3/30/2020 at 10:31 PM, Dennis Lieu said:

It took 2 days to optimize 

Thanks... So you spent 2k before you were profitable. How were there metrics after day 1 ? were you losing alot or breaking even? Thanks

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If it was unprofitable until 25k, what sort of stats were you seeing / improving / waiting for that made you confident end game will save you ? 

 

I’m 600-700 usd into ads at the moment and my product has sold about 600$ back. BEROAS is 2.02 but I’m sitting on 1.01 at the moment. Tried 8-15 diff adsets and 4-5 ads. Thinking to keep pushing but was hopin to hear what people see in their data that makes them know if they keep pushing through and making improvements will prevail 🙏

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24 minutes ago, ETUISNY.COM said:

If it hadn't turned profitable after the second day, how long would you have waited before pulling the plug on the campaign?

This is slightly outdated, my views have changed greatly. so Now if i don't get 25-30% margin from the first week I move on to a new product

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Just now, ETUISNY.COM said:

Thanks for the update... Is that you in this Verum Q&A I'm about to watch? (Small world)

Yes, as stated in the beginning of this post I am the Video Editor on the team.

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