The #1 Reason Your Facebook Ads Fail
Summary
TLDRThe speaker emphasizes the importance of testing business ideas before fully investing in ads, products, or services. They introduce the concept of 'baking muffins,' which involves creating minimal viable versions of products, ads, or business concepts to gauge market demand before committing significant time or money. This strategy allows entrepreneurs to test ideas, adjust based on feedback, and minimize losses. The speaker shares personal experiences, highlighting the mistakes of launching businesses without testing and explaining how small tests can lead to success in scaling ads and business growth effectively.
Takeaways
- 🚀 **Test Before Scaling**: Before investing heavily in ads, test your business or product idea to ensure it will work and be profitable.
- 💡 **Concept Validation**: Validate your idea with minimal investment to avoid significant losses if the product or business model fails.
- 🍪 **'Baking Muffins' Approach**: Create a minimal version of your product or service to test market response before scaling up.
- 🛒 **Mock E-commerce Store**: Set up a mock e-commerce store to test how potential customers interact with your product without actually selling anything.
- 💳 **Credit Card Trick**: Use the act of collecting credit card information as a conversion metric, but ensure not to process any payments during testing.
- 📈 **Market Feedback**: Use the feedback from your ads to understand what the market wants and refine your product or service accordingly.
- 🔄 **Iterate Variations**: Test different variations of your product to see which one the market responds to best.
- 📊 **Analyze Ad Performance**: Monitor how much money is made back from the ads to determine the potential profitability of the product.
- 📝 **Sales Page and Call Booking**: For software or service-based businesses, use a sales page and call booking system to gauge interest before development.
- 🎥 **Mockups and Videos**: Use mockups or scripted videos to represent products that don't exist yet to test market response.
- 💼 **Feedback for Product Development**: Gather initial feedback on your product to guide its development and ensure it meets market needs.
Q & A
What is the main strategy the speaker suggests before running ads?
-The speaker suggests testing your business or product idea on a small scale before investing time and money, which they refer to as 'baking muffins.' This helps confirm if the market wants the product before launching full ads.
Why does the speaker recommend this strategy, even for advanced business owners?
-The speaker emphasizes that many advanced business owners, like beginners, can waste money if they don't test their products or ads first. This strategy minimizes the risk of failure and ensures that the product will sell before significant investment.
What does 'baking muffins' mean in the context of launching a business?
-'Baking muffins' refers to creating a minimal viable version of the business or product (e.g., a basic website or sales page) to test whether customers are interested before fully developing the product.
How does the speaker suggest testing a product without having the actual product ready?
-The speaker suggests setting up a basic website or sales page with product images and pitches, running ads to it, and seeing if there is customer interest. You can either not accept payments or refund them immediately if someone tries to buy.
What example does the speaker give from their personal experience to highlight the importance of testing?
-The speaker shares a personal story about launching a supplement company and spending time on manufacturing, webinars, and ads, only to find the product didn’t sell well. They later realized they could have saved time and money by testing first.
What is the biggest risk of not testing a product idea before launching it, according to the speaker?
-The biggest risk is wasting months and thousands of dollars building a product that the market doesn’t want or that can’t be sold effectively through ads. Testing prevents this risk.
How does this testing strategy work for different variations of the same product?
-The speaker recommends running ads for different versions of the product idea (e.g., different types of protein powder) to see which one resonates best with the market before developing the product.
How does this approach apply to software or SaaS products?
-For SaaS products, the speaker suggests creating a mock version of the software, such as a UI demo or a scripted video, and running ads to see if potential customers are interested before fully developing the software.
What analogy does the speaker use to explain the testing process?
-The speaker compares testing a product idea to baking cupcakes for a wedding cake. Instead of making a full wedding cake upfront, bakers make several cupcake samples to determine which flavor the customer prefers. The same approach should be taken with product testing.
What is the ultimate goal of this strategy, according to the speaker?
-The goal is to design a business that will be profitable and scalable through ads, based on what the market responds to, without wasting time and resources on products that won’t sell.
Outlines
🚀 Importance of Testing Ads Before Launching
Before investing in any ads, whether you are a beginner or advanced, it's crucial to test if they will work to avoid wasting time and money. Many businesses fail when they launch ads without first ensuring there’s demand for their product. The speaker shares a personal example of launching a supplement company, investing in products and ads, only to see it fail. The key lesson here is to validate your idea by testing it on a small scale before fully committing.
🧁 The Concept of 'Baking Muffins' to Test Ideas
'Baking muffins' refers to testing a minimal version of your business idea to determine if it works before fully investing in it. Instead of creating a complete product or service, you make a basic version, like a landing page or ad, and see if people show interest. The speaker explains how this approach would have saved them time and money in past business ventures. They suggest running ads for products that don’t exist yet to gauge interest before finalizing anything.
Mindmap
Keywords
💡Ads
💡Baking Muffins
💡Conversion
💡E-commerce
💡Investment
💡Market Validation
💡Product Idea
💡Scalability
💡Traffic
💡Webinar
💡Profit Margin
Highlights
The importance of testing ads before investing heavily in them.
The concept of 'baking muffins' as a metaphor for testing business ideas.
How to avoid losing money by launching ads without market validation.
The story of a failed supplement company and the lessons learned.
The idea of creating a sales page and ad graphics to test an idea.
Running ads to an e-commerce store without an actual product.
The strategy of not accepting credit card payments during the testing phase.
The danger of spending too much time and money on a product that doesn't sell.
The concept of designing a business around what the market wants for advertising.
How to quickly test different product variations with ads.
The idea of not taking payments while testing ads to avoid ethical issues.
The analogy of baking wedding cakes and testing with cupcakes.
Applying the 'muffin' method to software as a service (SaaS) businesses.
The potential savings in time and money by using the 'muffin' method.
Using mock software or scripted videos to gather initial feedback.
The importance of building businesses based on what works in advertising.
How to transition from a fake product to a real product after successful testing.
Access to the speaker's ad scripts and strategies for growing a business.
Transcripts
so before you run any ads especially if
you're a beginner but this super duper
applies you if you're Advanced and you
actually do something that takes
investment you have to do this this is
going to guarantee that when you
actually start to spend money on ads it
will work it will give you a basically
green light to actually start running
ads for your business and know that they
will work and you can scale them to the
Moon without you investing any money
effort or time and the reason you want
to know this is because 90% of people
not just beginners but Advanced people
all the way to me if you don't do this
you are going to launch ads you're going
to make a new product you're going to
launch a new business this is where it
gets really nasty if you're just
launching businesses without doing this
you're going to lose so much money and
then you put it up on advertising and
then it doesn't work for example I made
a supplement company back in a day I
made a whole webinar from it from it I
invested into the products the
manufacturing the whole shebang and then
I launched ads and it didn't sell well
at all it it it was like selling old
teeth and if you don't know I don't know
if you ever tried to sell old teeth via
ads it doesn't work I don't know why the
Market's not there maybe it's just I'm
before my time in 2025 selling old
people's teeth going to be crispy but
for real you just need to do this one
thing and this will fix all of it it is
called baking muffins so what does this
mean and how does this apply to your
business so baking muffins means making
as little as you can to test whether a
business or product idea works so like
all these videos I try to keep these
short so if you want to see the actual
YouTube ad scripts I use for this how I
test the ads for this on Facebook the
funnels I like to use these will all be
linked at the end of this video and
unlike other channels I don't have some
course to tell you because I've already
made a comical amount of money actually
doing this so you can just sit back
relax and take your skeptical glasses
off so what does this involve well let
me just give you a situation how I could
have determined whether that e-commerce
business that I made would have worked
or not so I made all these supplements
these biohacking supplements and whatnot
I made a big old webinar for them all
the manufacturing everything you know
what I could have done instead of
investing all that money time and effort
I could have just made the sales page
and then the first graphics for the ads
and website and then just made an
e-commerce store and then ran ads to
that e-commerce store without having a
product just made the big old page and
then the pitch and everything in fact I
could have skipped the pitch and just
made a basic e-commerce store and see if
that even gets traction but I know what
you're thinking but Alex what if they
come to the store and buy well right
before they buy I could have just not
accepted their credit card and I could
have counted that as a conversion wait
what am I what am I saying here am I
saying run traffic to websites that
don't actually have a product on them
run traffic to pages that sell products
that don't actually exist and don't
collect money yes that's exactly what
I'm saying here why let me explain so
look the most damaging thing you can
ever do in business is spend a month
making a product making all this stuff
without confirming that the market
actually wants it or most importantly
that it will sell from ads see a few
videos ago I talked about how to build
your business around what the market
wants in terms of advertising how easy
is it to advertise your customer how
unique is your product to get it to your
customer and how easily will you be able
to run ads at a high profit margin
because you are targeting or running ads
in a way that is highly profitable you
design the business for ads but before
we even go and design a business we
don't want to spend months and tens of
thousand of dollars or hundreds of
thousand of dollars or 500s of dollars I
don't know what range of business you're
in making a product and all these things
and then it goes to ads and it doesn't
work what is so much easier to do is you
make the pitch or the product offering
without ever doing anything else so for
example let's imagine I went and just
made an e-commerce website selling a
protein powder let's say I have an idea
or a spin for protein powder and I want
to see if it works what I can do is I
can make a simple
onepage or mostly empty website we don't
want to put a ton of time into this
maybe we have a homepage and then just
the product page selling it I'm assuming
at this point you've been to an
e-commerce webs site where they sell
protein powder or something like that we
put the whole pitch we put an image of
the product on the page we have
everything that we use to sell and then
what we do is we send traffic to that
page and if it doesn't convert we assume
hey this product sucks people don't
actually want this and what we start
doing is we start then running traffic
to different variations of our idea so
we're let's say we have a protein powder
that has vegetables thrown to it then we
have a protein powder that increases
your IQ and then let's say we have a
protein powder that improves your skin I
don't know okay and so what we do is
instead of going and making a
formulation or building a business
around all three of those products what
we're instead going to do is we're going
to run traffic to the page and the
person will go through the site just
like any other site say we're using
Shopify in this example right here we
can build the entire website up until
the cart checkout we can even take the
person's credit card and payment
information and then just refund them
instantly or not take the payments at
all and if you take payments while doing
this you are a stage five poople head
and I'm not suggesting doing that what
we want to do is we want to say hey if I
spend $100 on ads right here how much
money will I make back and very quickly
we'll see oh wait this this product is
actually clicking and advertising this
product is something that people are
actually buying and so we start running
traffic to these pages and of course
we're going to lose money doing this but
not as much money and time as we would
have lost if we launched the entire
business and it didn't work and then
what we're going to quickly do is we're
going to have the market tell us what
variation variation one variation 2
variation three or even confirm entire
business model all together they're
going to tell us what they're looking
for and then then what we're going to do
is we're going to go and start actually
building the product and making the
advertising for this see what a lot of
people do is they make the entire
product business advertising funnels
everything before even testing if the
market wants it that is like baking an
entire wedding cake without tasting what
it tastes like it's like baking an
entire wedding cake without checking if
people actually want it instead what do
people do when they're baking wedding
cakes for weddings they make dozens and
dozens of little cupcakes and then they
give this to the person who's having the
wedding and they say which cupcake do
you like the most and they go this
cupcake and then they make the entire
wedding cake this is what we are doing
with ads so for example what could I
have done better when I was launching my
SAS companies like hyos and my original
autoresponders and other SAS companies
well a lot of times I'd launch a SAS
company and the product would fall flat
and I'd be like oh this doesn't work for
mads I wish I just hadn't invested
hundreds of thousands of dollars to see
if this works or not what I could have
instead done is made maybe just a sales
page for the software and then a call
booking page and then had when it start
getting calls start actually doing the
calls and then at the end of the call
say hey by the way this product isn't
here yet but you can get on the wait
list and I can contact you when it's
here this would have saved me bazillions
of dollars in time because I can get
this entire process right here done in
about two days and see what SAS prodct
will actually get me calls or customers
coming in same can be done in e-commerce
same can be done with virtually anything
I could have made a mock software or a
video of a software that doesn't exist I
could have just had the UI put together
and then a video running the product but
it's really just a scripted video of me
running something that looks like the
product but it's not actually here and
then see how people respond to that run
ads to that you can even also use this
when Gathering feedback and initial
feedback on your product as well always
always do this because again what we
want to do is we want to build
businesses based around what will work
in advertising what's going to work
easily advertising so that we can scale
it really far and if we want to see
what's going to do that without going
investing tons of time and tons of money
we can go and make little muffins or
empty businesses that don't actually
sell anything but look like they sell
something and then see how the market
responds to that first when we see a
powerful response then we take
everything down we take the magic
lightning that we just discovered then
we bottle that up then we make the
product and then we go berserk with the
ads and that's how you're going to
almost guarantee it your ads will work
day one so that being said if you
actually want to see how to run the ads
I have my entire ad script everything I
do in video ads right here you want to
see how to actually grow this business
and actually find the best advertising
for it once you kick it off once you
take it from the fake empty product to a
real product this is right here and you
want to see in my opinion the best ad
funnel or the best way to sell a product
well that that's oh my gosh just
confusing where I point at it's
somewhere on this video popped up on the
screen right here I have nothing else to
tell you I'll see you in the next video
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