March 29, 2020
INSTAGRAM vs. FACEBOOK Ads for DROPSHIPPING (which should you use with Shopify?)

INSTAGRAM vs. FACEBOOK Ads for DROPSHIPPING (which should you use with Shopify?)

Hey guys. In this video, we’re going to be talking about
what is the best way to generate money making traffic to your dropshipping store. Is it Instagram shoutouts or is it Facebook
ads? My regular subscribers here at Wholesale Ted
will already know quite a fair bit about Facebook ads because we talk about it a lot on this
channel and inside our premium dropshipping course, the Dropship Club. Facebook ads are when you create an advertisement
for AliExpress products you’re dropshipping in your store that shows up in a Facebook
user’s timeline, but something that we haven’t talked about much is Instagram influences
and this is how that traffic source works. Let’s say that you’ve got this cute little
mug here that when you drink out of it turns your face into a cat. Well, what you do is you find large high engagement
Instagram page that is related to the product. In this case here, cats. You then contact the influencer and you get
them to make a post on their page which advertises the product and your store. And of course, the goal here is to get their
followers and potentially people that even organically find the page to see your post
and then to go to your store and purchase the product. So which form of advertising is better? Instagram shoutouts or Facebook ads? It’s a super common question that we get asked
here at Wholesale Ted and the honest answer is that each has their own pros and cons,
so let’s jump straight into the video. Which is the easiest for newbies to make money? One of the challenges that we’ve been discussing
on this channel recently for Facebook ads is the issue of trust. Think about it. You just created your Shopify, AliExpress
dropshipping store and now you are running Facebook ads promoting products to users who
have never seen you before, who have never interacted with you before and now you’re
asking them, despite not knowing who you are, to buy what you’re selling, hand you over
the money and trust you to send the products to them. That is huge ask and to be honest, this is
why I think I see people have success with Instagram shoutouts, then struggle to make
the shift to Facebook ads but not the other way around. With Instagram, the issue of trust is greatly
mitigated. Why? Well, because the followers of those pages
already trust them and you can even potentially make money from people who find those posts
organically despite not being followers of that page because of the enormous amount of
social proof that it has. With Facebook ads as a beginner, you don’t
have the luxury of piggybacking off of the existing trust that influencers have built. Of course, you don’t need to let this stop
you from running Facebook ads. There are many tricks that you can use to
overcome the issue of trust if you want to and store owners are doing this every single
day like getting really good at using ad copy and images to make people want to impulse
buy or by using trust symbols and words on your site. But there’s no way around it, there’s definitely
still a bit more of a learning curve when it comes to Facebook ads and so … And the
winner is Instagram shoutouts. Instagram influencers have gone and cleanly
knocked Facebook ads to the floor, but this fight is far from over. Which is cheapest for beginners to get started? I’ve already explained on this channel that
if you want to get started with Facebook ads, then you should be willing to set aside a
minimum of $450 to $500 in startup money. Why? Well, because you need to be prepared to test
multiple products on Facebook to find a winner. And I recommend that most beginners be willing
to test at least 20 different products, which means you need to be willing to test at least
20 different ads. As a beginner, a good ad test length is four
days with a $5 ad budget per day. So that means then that $20 for 20 different
product ads is $400, with the other $50 to $100 of your startup money going towards setup
costs. Now, let’s compare that to the cost of getting
started with Instagram shoutouts. With Instagram, you can negotiate shoutout
prices for pages with within 50,000 to 150,000 followers for between $10 to $20 so immediately,
they are cheaper. And as I’m about to explain shortly, low-cost
Instagram shoutouts usually have a much higher return on investment than low-cost Facebook
ads which means you’re going to make more money back during the initial testing phase
to help offset costs. So given that and also that $10 is half the
price of $20 … And the winner is Instagram shoutouts. Oh, Instagram influencers have pulled ahead
with an early two-point lead. Can Facebook marketing catch up? What makes the most money? With Instagram influencers and dropshipping,
if you see someone making $500 a day as in $500 of gross sales consistently, well, that
is pretty good. But with Facebook ads, you can make millions. In the beginning, Facebook ads are going to
cost you more money to get set up and, yes, in the early stages, the return on investment
is not great. A lot of people ask me the same question,
“Can you really make money if you spend just $5 a day for Facebook ads?” And the answer is no, you really can’t. Why? Well, because as I explained in a previous
video on this channel, those $5 Facebook ads do not hit high-value users. The algorithm is incredibly smart. It knows which users are more likely to click
on ads and buy products and, obviously, those users are in high demand with advertisers
so advertising to them is a lot more expensive than advertising to disengaged users. What this means is that when you run your
low-cost Facebook ads, their Facebook are not going to put that ad in front of those
people because if they did, you would blow through your daily ad budget very, very fast. So these low-cost $5 a day ads that you run
as tests, they’re going in front of low-value users which means your ROI is not going to
be great. With Facebook, if you spend $20 for a four-day
ad test and you break even or make a tiny profit, then that was a great ad, compare
that to Instagram where you spend $20 and you make $40 back. So on the surface, Instagram looks more profitable,
right? But, hold on. Yes, those $5 a day ads are not making you
much money but that’s not why you’re running them. You were running them with the goal of finding
profitable products and ads that have the potential to scale up to huge profits. And if that Facebook ad breaks even or makes
a tiny profit, then you will invest more money and how much you spend each day for that ad. You go from $5 to $10, $10 to $20, $20 to
$40 and so on. And once you scale to $40 a day, then you
enter the budget range where Facebook starts showing your ad to more valuable users and
that’s where the real money gets made. It’s because of this ability to scale that
dropshippers are able to earn millions of dollars, but that isn’t the only reason that
with Facebook you can make far, far more money. With Instagram shoutouts, you have a huge
limitation. When you find a Instagram page that works
with your ads, you can’t just go and post to it every day because if you did, you would
saturate that audience. Consistency can be very tricky with Instagram
shoutouts, so at most you can post to it two to three times a week and if you do this,
you’re going to need to vary up the products that you’re seeling so that, again, you don’t
oversaturate the page and kill it from over promotion. But, it doesn’t work that way with Facebook
ads. You don’t just get to run them two to three
times a week, you get to run them every single day. So even though Instagram influencers can start
out by making you more money, the profits do not scale and have an earning cap which
means … And the winner is Facebook ads. Facebook came from behind and gave a knockout
punch to Instagram influencers. It just got interesting, folks. Time to move on to round four. Which traffic method is the most scalable? Well, we’ve kind of already answered this
question because we’ve established that when you find a winning product and ad on Facebook
that you can keep pouring more money into it and as you increase the ad budget for it,
you reach more people and you make more money, and there is no equivalent here for Instagram
influencers. When you find a page that converts, you can’t
just pour more money into it every day so Instagram just flat out loses here. But there is something else that you also
need to know and that is compared to Facebook, with Instagram, you had a very limited audience. With Instagram, you need to run targeted ads. If you want to go and sell this mug here,
you can’t just run an ad to a general page. You will lose money. Instead, you need to run an ad to a page that
is specifically related to this product, for example, a cat page. Why? Well, let’s say that you go to a broad Instagram
account that has hundreds of thousands of followers but isn’t specifically related to
your niche. If you negotiate to buy an ad from them, you
negotiate to buy it for their whole following. And yes, there will be some people on that
Instagram page that has 500,000 followers that like cats but most people are not going
to be interested so they’re not going to buy your product and you’re going to lose money. But with Facebook, it’s different. Now, yes, in the beginning when you’ve got
a fresh Facebook ad account, you do need to run ads that are specifically targeted towards
your niche. But each day that you run your ad, Facebook
sees how it performs and its Pixel collects data on the types of users that click on your
ad, engage with your ad and buy your products which means that the longer you run your ad,
the more efficient that Facebook gets at picking who it should put it in front of. And it can get so good at this that, eventually,
you can run ads without niche targeting like millionaire dropshipper, Adrian Morrison,
and still make tons of money. Why? Well, because even if you throw it out to
a general audience, Facebook will do the work for you and it will figure out who it should
be putting your ad in front of. So not only are the ads by nature not scalable
for Instagram, you’re always going to be limited in the types of audience that you can target
which means … And the winner is Facebook ads. In the beginning, it looked like Facebook
ads had no chance and that they were an absolute goner but then they managed to come back from
behind and tie the score. It’s time to move on to round five. Which is the easiest for newbies to use? When it comes to setting up a Facebook ad,
it can be quite technical. You’ve got to install your Pixel, set up your
account settings, set up your ad settings and then in addition to having to create the
image for your ad, you also need to write the ad copy. Now, there are several steps involved in setting
up an Instagram shoutout campaign but in my personal opinion, they’re a lot more basic
and a lot less technical. You go to Instagram and you search for some
pages within your niche. You browse through the comments, make sure
that they’re real people posting. Check to see if the engagement score is good. You then email the influencer and ask them
about the price to run a campaign on their page. You then negotiate the price and you figure
out the terms of how it’s going to be run like what day it’s going to be on. And once you’ve done that, you give them the
ad image and the link to your website and pretty much, boom. There are steps involved to get your ad out
there but they require more soft skills, they’re not particularly technical. However, there is one major exception to this
which is important to note. If you are a self-confessed digitally challenged
person, then you might find Instagram shoutouts to be a bit harder. Why? Well, because of the fact that the audience
on Instagram is quite a bit younger and quite technically savvy, especially when compared
to Facebook. To do well on Instagram, you really need to
understand internet lingo and culture and if you don’t, you will not only struggle to
connect with your audience but perhaps more importantly, you are going to struggle to
personally connect with the influencers themselves. A lot of people running these pages, they
are literally teenagers, so you need to keep that in mind when you’re negotiating and talking
to them. And so I suspect for some people out there
that the culture shock of Instagram is going to be harder to overcome than the technicalities
of setting up a Facebook ad. But for everyone else … And the winner is
Instagram shoutouts. You know what they say folks, what doesn’t
kill you makes you stronger. Instagram took a bit of a beating but they
fought back hard. On to round six. Which is the most passive? With Instagram shoutouts, once you find some
pages that convert well with your ads, then you need to negotiate and organize ads for
each week. But with Facebook, once you got a winning
ad, there really isn’t much you need to do day-to-day unless you want to. Is a good practice to be testing new products
on Facebook? Absolutely, but the same goes for Instagram. Is it good practice to be testing different
ad creators like images on Facebook? Absolutely, but again, the same goes for Instagram. Testing is good but that goes for both platforms
and actually testing on Facebook is far more easier, efficient and a lot simpler to track
than it is with Instagram shoutouts. Facebook definitely requires more work upfront
but if you’re willing to put in that time, you get rewarded with a traffic source that
is more passive and requires less ongoing work to grow. And the winner is Facebook ads. And so there you go folks, it turns out that
it’s a tie. There’re advantages and disadvantages to both
traffic methods. Who would have guessed? And if you happen to be someone that is more
interested in Facebook ads, then due to extremely popular demand, we are running a second webinar
with millionaire dropshipper, Adrian Morrison, and there he’s going to be revealing his Facebook
and dropshipping strategy that he’s used to built million-dollar dropshipping stores. And that webinar is going to held on Sunday,
April 22 at 3:00 PM Eastern, USA time. Our last webinar maxed out on registrations
which is why we are running a second webinar, so I do suggest that you go ahead and sign
up ASAP. You will find the link on how you can sign
up in the video description below. Please note registration is essential as we
are not streaming this on YouTube. And of course, we have our free ebook, How
to Make $10,000 a Month Online With Dropshipping. You’ll find the link on how you can download
this ebook and find other videos that have been referenced in this one in the video description

34 thoughts on “INSTAGRAM vs. FACEBOOK Ads for DROPSHIPPING (which should you use with Shopify?)

  1. Hey Sarah, you kept talking about this cat guitar coffee mug, but I can’t find it anywhere… I was thinking to get it for my husband since that he is a big cat person…

  2. Hi Sarah, How to use influencers data to build Lookalikes on Facebook ? And how to use facebook pixcel when doing ads? Thank you so much, lm so confusing

  3. Hi Sarah. What would consider a winning ad? If you re not going to make any sales off of a 5 dollar a day budget, how do you know when to scale? what should your click-through rate and CPC be on Facebook before you know you are doing alright?!?

  4. Another video jammed packed with valuable information for us newbies…..Thanks Sarah!….Still trying to figure out the 25,000 question. Whos Ted???….Happy Holidays from Sunny Naples…

  5. So! I want to share with you all my experience in Shopify business! It was a great experience at all. I am so happy that I've experience this kind of shipping method, Very smooth, very well cared off. The reason for this is Fulfillman! That's all I need and it's all you need. No Worries about Advertisement because they have the state of art expertise! Truly success is within your hand. You may contact my trusted friend, Arnel-Fulfillman in Skype.

  6. I got a quastion, how can i know the results of an instagram shoutout? Is there any way to track how many leads there where from that instagram shoutout URL?

  7. Please, can anyone advise me on this facebook ad question?

    When advertising on Facebook ads, exactly when should I increase the budget and by how much over the testing period if I get one sale at every increase?

    For example, on Saturday I advertised a new product for $15; I set the ad at $15 and got an order on the same day and fulfilled it.

    Should I have increased the budget at that moment or left it at $5 for the testing period of 5 days or should I have increased it at every sale request?

    After Saturday, I did not get any other sale; but then on the following Tuesday, which is today, I increase the budget by another $5 and got another sale within hours.

    It seems like that every time I increase the budget I get a sale; is that what is suppose to happen?

    How often should I increase the budget during the test period if I get one sale on every $5 increase of ad budget?

  8. Sarah, you are truly an angel. Thanks for putting all this stuff up; appreciate that. Would you like to make your opinion known about Pinterest. As Pinterest is a more visual platform like Instagram, I guess the comparison would become inevitable. What are your thoughts?

  9. Can I get some opinions on my site? From anyone would be great. Extra points if Sara can do it: Just a heads up I'm not using Shopify I'm using WordPress. I've been trying to follow tutorials on how to make sure my website converts. I'm starting a Google campaign tomorrow and I want to make sure it all seems ok!

  10. Hi! When you said use Instagram data and import it to Facebook ads. Do you have a video on that ma’am?

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