You’re always hearing “you’re one winning product away.”
When you’re able to find that one product that really works for you, you’re able to generate passive income, month-after-month.
Today we’re exposing some myths about winning products.
Enjoy the video as Rito why winners aren’t created equal:
Some products actually produce false positives when advertising on Facebook.
It may seem like a winner but can actually cost you money in the long run.
The reason for this, is because there are 3 primary types of winning products when drop shipping:
- Small Winner
- Decent Winner
- Blockbuster Winner
It goes without saying, but I’ll say it anyway…
We’re always aiming for the blockbuster winners.
These blockbusters are the ones you’re waiting for.
When you hear people (mysself and Rito included) mentioning “that one winning product” we’re referring to the blockbuster.
The Problem With The Drop Shipping Industry
There’s a lot of noise with plenty of myths surrounding the drop shipping industry.
Because of this, many people assume that a product with a few sales is an automatic winner.
That’s actually a losing strategy.
It’s because you need to analyze and realize which product is which type of winner.
Placing each of your converting products into one of the 3 categories of winners will help you make some powerful informed decisions moving forward with your Facebook Advertising.
Small Winners
When determining which products fit into which category, regardless of small, decent or blockbuster winners, use the first sale chart as a guide.
When you follow the first sale chart to determine which products are winners, you’ll end up creating 3 ad sets.
You’ll usually spend between $15 – $45 to test a single product.
On average you should not be spending more than $25-$30 to test a product before realizing if it’s a winner or not.
If you’re spending more than $25 to $30 dollars on every single product, you’re likely doing something wrong.
Definitely go back through Facebook Advertising Stage 2 and be sure you understand the first sale chart within it.
When you follow the first sale chart strategy, you will likely end up with a few sales during the testing phase.
But with “Small Winners” your sales will begin to quickly decline.
So you may very well get a few more sales over the next few days, but your return on ad spend will continue to drop.
Within a week your return on ad spend completely diminishes and at that point the campaign is ruined.
Be quick to recognize the small winners and pause the campaigns before you hurt your margins.
Decent Winners
The second type of winner is the “Decent Winner.”
Now these are going to play a critical role in your overall drop shipping journey, because it’s the Decent Winners that maintain profits when you struggle to find your Blockbuster winners.
Most of us need to go through several small and decent winners before we find even one Blockbuster winner.
Some people will find their Blockbuster on their first attempt.
Others may have to test 100 products before they find their first Blockbuster.
Either way, your Decent Winners will generate sales during the initial testing phase. Then, when you scale and launch a few more ad sets, again, the decent winners will pull in a few more sales.
They’re great for generating consistent income, and can effectively be enhanced by Manual Bidding as well as with the implementation of Lookalike Audiences.
But, like the Small Winners, Decent Winners too will fizzle out after a few weeks. In most instances 2-3 weeks. And in some cases they work well for up to a month.
Once your ad sets begin to show a downward trend regarding the clicks, conversions and return on ad spend, close the campaign and move on to the next product before you begin losing money.
Remember the more products you test and rule out, the closer you are to finding your Blockbuster Winner.
Blockbuster Winners
The Blockbuster Winner is “that one product” everyone keeps talking about.
That product that’s going to put your Shopify store on the map, and earn you that passive 6-figure income you’ve always dreamt of.
At this point in our Common Panda journey (about 7 months), we’ve found multiple Small, Decent and Blockbuster Winners.
Blockbuster Winners are the products that generate sales during the testing phase, then they continue generating sales during the scaling phase…
After that you implement manual bidding and lookalike audiences and again, they continue to generate sales.
Basically they just continue to work well for you… Tried and true month and after month, the Blockbuster Winners act as a cash machine for your Shopify Store.
How To Find Your Blockbuster Product
We’ve revealed several of our Blockbuster Winners within Bizathon4 and Bizathon5 so be sure to go back and check those out.
In order to continue finding winning products for our Shopify Drop Shipping Store (Common Panda), we utilize several things each week:
- Reverse Competitor Analysis
- Facebook Searches
- Rabbit Hole Strategy
- Pexda
- ShopGenius
The entire point is to find as many products that are working for other drop shippers as you can; so you can test them within your own Shopify store and find your Blockbuster Winner faster.
In order to do that you will go through small and decent winners first.
Here’s what we recommend:
Allot a budget to test 100 products.
That means you’ll need about $25-30 per product, which will end up being about $3,000 spent on testing, via our first sale chart if you’re diligent about your ads and are quick to recognize false positives.
Even if you spend the $3,000 on testing, you’ll come across small and decent winners that will help recuperate that investment.
That’ll do it for Episode 16 – Great work!
Questions, comments or just want to say hi?
We love hearing from you in the comments below!
Success by choice, not by chance,
-David Aston
P.S.
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