April 4, 2020
Introduction to the ARM5 Formula for Paid Advertising Success AT SCALE

Introduction to the ARM5 Formula for Paid Advertising Success AT SCALE


(upbeat music)
– Are you ready to transform your normal
e-commerce business into one that experiences
exponential growth year after year using online advertising? If so, this show is for you. Me and my guests will show you how you too can grow your e-commerce
business to seven, or even eight figures,
so you can go on more luxurious vacations, spoil
yourself and your family, say yes to more opportunities, and become financially free so you never have to worry about money again. Welcome to The E-Commerce
Performance Marketing Show. (upbeat music) Hey what’s goin’ on guys? So this first episode of E-Comm
Performance Marketing Show, I’m really gonna over-deliver here. I’m gonna show you how you
can grow your e-comm business very, very fast. Now you might be thinking,
“Okay, are you gonna “teach me something I don’t know? “Or are you gonna regurgitate what other “people are already saying? “Or do you actually know
what you’re takin’ about?” “Have you actually done
what you’re about to teach?” Well here’s the truth, yes. Yes, I have. Since early 2013 I’ve
been growing businesses, e-comm and otherwise, through
our done for you agency. And so we’ve really
established what strategies and processes work to do this, and it’s actually backed
by my book on Amazon, which you can see right here on screen. So what I’m gonna show
you is I’m gonna show you how to basically
turn your e-comm business into a money making machine. Now it’s not overly complicated. All you really need is you need traffic, and you need a system to turn that traffic into leads, customers, and revenue. Now that sounds really,
really simple, I know. But it’s actually really
simple when you can see how it all works, and you know how to get it all to work. The challenge is, you have
to have the right mindset, you have to have an awesome strategy, you have to have great implementation, you have to have great management, great analytics, and you have
to be testing like crazy. And that’s why, that’s
all in what I’m about to show you so that you can
turn your e-comm business into a money making machine. Okay, so what I’m about to show you is what we like to call the ARM5 Formula. Now the ARM5 Formula has been the key that we’ve been using
for the past 24 months to help our clients be able to
grow using paid advertising, and funnels, and marketing automation, and also conversion optimization. So it’s not just ads. Just ads is just traffic. So let me just give you a basic lesson if you’re new to e-comm. So when it comes to e-commerce, you’ve got your storefront, right? So you’ve got your store,
this is your store, and you wanna be able to get traffic into your store, right? So you’re getting traffic
from multiple sources. Now there’s a lot of traffic out there that you could get. There’s organic traffic,
SEO, there’s social media, tons of traffic sources. There’s also paid advertising. Now paid advertising is arguably the best traffic source that you can use
in your e-commerce business, and the reason why is
because it’s controllable. ‘Cause the challenge that most businesses have is getting traffic. And then when you have that traffic, now you’ve gotta get it to work. But the first step is
getting that traffic, and with Facebook ads, Google ads, you dictate how much traffic you get. You spend money on
traffic, and now you have traffic coming in to your business, okay? So what the ARM5 Formula is all about, it’s all about helping
you be able to systematize turn and pay traffic
into leads, customers, and revenue, and maximizing
the ROI you’re getting from your paid advertising sources. That’s what the ARM5 Formula’s all about. Now the first step in
using the ARM5 Formula is you first have to change your approach. If you’ve been running paid advertising, then you’ve probably
been dictating success off maybe one ad, or one campaign. And maybe an ad or a
campaign doesn’t work. Or if you’re trying to scale, you’re probably seeing
your CPMs, your CPCs, your CPAs, which that’s
cost per impressions, cost per click, and cost per customer. You’re probably seeing those go up, which is gonna happen when
you’re scaling your ad spend. Now I’m gonna show you,
during this first episode of The E-Comm Performance Marketing Show how you can counter the costs rising, because it’s gonna
happen, but there’s ways you can counter that. Now if you’re new to advertising, you’re gonna learn quite a bit here that’s gonna really blow your mind, it’s really gonna help you
have the right foundation, the right fundamentals to be
able to use paid advertising effectively, and also successfully
in your e-comm business. So you have traffic
coming into your business from Facebook, Instagram,
Google, Bing, YouTube even, any other paid advertising channel counts towards this formula. Now the first thing you
have to get your head around is that it’s not about
the success of one ad, it’s not about the
success of one campaign, it’s about the success
of your entire account. So let’s just say that
you’re using Facebook ads. You wanna look at your entire ad account, and you wanna judge your
whole ad account’s ability to generate ROI. Not a campaign, not an ad. So that’s the first thing. So you’ve gotta get
past that if that’s you. Now if you are running Facebook ads, and you’re way past that, and you get it, but you’re just not able
to scale your ad spend and still see profitable
results consistently, well there’s reasons for that. Here’s what I’ve seen
as the biggest reason, in my experience, so the biggest reason is that a lot of advertisers out there are using direct-to-buy type ads. And they’re not using enough content ads, and they’re also not
using enough backend ads to really monetize their leads and their customers to be able to increase their ROI from their ad account. Those are the biggest
problems that I’ve seen, because when you’re using,
for example, content, you reduce your cost to acquire. Your cost to acquire the
click, the Pixel person, the customer, which is
gonna help you profit as your costs go up. But then on top of it,
if you’re maximizing, arguably the number one
metric that you should be focused on in your business,
customer lifetime value, if you’re maximizing that
with your paid advertising, then you can counter the
cost of acquiring customers when that cost goes up
because you’re scaling your ad spend to $1000 per day, and you’re now going up
against some big players in the advertising world, in your industry that are spending a lot of money as well, that are basically trying
to compete with you in the auction with
Facebook ads, for example. And so at that point, you
have to do a really good job of monetizing every click,
every lead, and every customer that you’re getting in your business in order to be able to
counter the rising cost that’s bound to happen. Now the next step there
is with using content. Now you’re using content to reduce cost, you’re also using it to position. And that’s the first
part of the ARM5 Formula that I’m gonna show you today. So a big key when it
comes to being successful online and being successful
with paid advertising is positioning your brand. And you can position your brand
by using valuable content, research-backed that you know that your audience cares about, that
also positions your brand to be the experts in
what it is that you sell. And that is what A stands for, authority. So you wanna use content
to create authority. We’ve seen this work time and time again with all of our clients who we’re running paid advertising for. If we’re creating that authority early on through content when
someone is first exposed to our client’s brands,
they’re much more receptive to consider the offers
that we show them next. Another thing too, going
back to what’s happening right now with trends on Facebook. Now this is also in my
book, “Facebook Advertising “Trends and Strategies for
E-Commerce, 2019 Edition,” backed by some of the industry’s best, such as Molly Pittman, Sam
Bell, J. Trevor Chapman, I can go on and on, there’s
12 other contributors, there’s 12 total
contributors I should say. And they all say the same thing, that you have to use content. And here’s my take on it, the reason why is because Facebook,
they want to keep people on Facebook, that business,
they’re in the business of making Facebook a place that everybody goes to, and stays. That’s why they keep you
on it with dating now, with the marketplace,
with groups, you name it. And so when you show, going
back to what I said before, that I’ve seen happening
with a lot of businesses, when you show a direct to buy ad to someone that knows
nothing about your business, what are you doing? You’re just pushing them away. You’re just pushing them away,
unless it’s a trending offer, unless it’s a hot offer,
or unless you have a brand that’s recognized. That’s the only way you should be making direct to buy ads to a cold audience, in my opinion. ‘Cause when you’re doing
that, you’re actually causing people on Facebook to see your ads and just not like being on Facebook because all of a sudden they’re like, “You know what, I don’t wanna be here, “I’m not here to be marketed to. “I don’t wanna see an offer left and right “in my newsfeed.” And then Facebook will ding you for that. They’ll basically charge you a bunch for acquiring the click, or for acquiring even the view if it’s
a video, on a video ad showing an offer. So that’s why that approach doesn’t work. It worked years ago, but
it doesn’t work today ’cause Facebook’s been
maturing as a platform. And so you have to work within
the confines of Facebook, you have to follow those trends. And they want you to
use Facebook advertising the right way, and this is the right way. So the first step is creating
authority, that position. Now as you’re doing
that with your content, and you’re showing content,
let’s just say videos, and blog content, you’re driving people to your blog and your website. You’re now creating that reciprocity. Now reciprocity, if you
don’t know what that is, it’s relationship equity. This is reciprocity, I’m
giving you value up front, before you even do business with me. I’m showing you how you
can use paid advertising effectively, consistently, and profitably, and at scale in your e-commerce business, up front, 100% for free. I’m creating relationship
equity, I’m giving you all this value. I’m not charging you for this. I have companies coming
to me wanting to spend 1000 bucks an hour with me,
to spend an hour with me for them to learn stuff like
this for their business. So I’m doing this with you,
so that is reciprocity, just so you know. So when you’re showing
that valuable content, and people are seeing
it, people are seeing all that value from all
the content you’re putting out there, you’re
creating that reciprocity. So now you have that relationship equity. Now people are starting to know you, they’re starting to like you, they’re starting to trust you, and that’s why it’s so
powerful in your Facebook advertising stack, and just
within your whole advertising. ‘Cause you can actually
take an omni-channel approach to this too, like
we do with our clients. Or you could just use Facebook. Now M stands for monetization. Obviously the goal with any
type of paid advertising where you’re spending
money and you’re investing in advertising, is you wanna see an ROI. You wanna see a return on your investment, and that’s why monetization
has to be a key integral part of your advertising strategy for you to get the
biggest bang for your buck from your ad spend. And that’s why it’s a big
part in our ARM5 Formula. Now the five, you’re probably wondering what that stands for. So the five stands for the
five profit amplifiers, and they kinda tie back into ARM, A, R, M. So we have the authority engine, we have the trust amplifier,
we have the monetization amplifier, we have the
testing matrix amplifier, we also have the persuasion amplifier. When all those are working in tandem, that’s when we’ve seen
some significant returns on ad spend for our clients. Something as big as a 1500%
over six months, for example, for one of our clients. And it’s because we’re using all of those amplifiers within our
process, and our strategy, and our formula. So the takeaway here is you need to really think about your advertising differently. If you thought about your advertising with one ad, or one campaign before, that’s not the way to
think about advertising. You wanna think about
your advertising stack, your entire account. And you have to think about,
if you’re using Facebook, for example, you have to think about, what is your step-by-step-by-step
ad campaign process, to acquire, to engage,
to convert, to monetize? You have to think about
that in your campaigns and structure ’em as such. And you can do that with
all of the targeting that Facebook gives you access to. There’s so many different
re-targeting configurations you can use to really be
able to acquire people from your content, re-target
them into your offers, and re-target your
leads and your customers into customers, or repeat customers, so that’s when you’re
maximizing your overall ROI from your ad account. So that’s the first thing that I want you to really take away from this episode. Now besides that, you
also wanna think about, what’s the number one metric? What’s the number one metric
that I should focus on to really be able to maximize
my paid advertising ROI? Well, it’s not gonna be
some of the vanity metrics, such as CTR, I mean obviously not, that doesn’t dictate ROI, right? It’s not gonna be relevance scores, which are now three different scores. It’s not gonna be cost
per click, CPM, CPL, even cost per customer. I know that if you’re
working with an agency that’s doing only ads, they’ll wanna talk to you about what’s your
CPA that you can afford in your business? And that’s actually a good approach for an advertising
specific agency to take, because that’s all
they’re doing is just ads. They don’t take care of a funnel, they don’t take care of the follow up, they don’t do any of
that, they just do ads. So they wanna make sure that
they hit a cost per customer that’s a cost per customer
that you can afford based off of your numbers. And I’ll have a freebie in the notes below where if you don’t know
what your CPA should be, use my freebie below
to be able to identify what that is. So this way you can make
sure that when you’re running ads, whether you’re doing it, or whether you have a team doing it, whether you have an agency doing it, that you’re doing it according to the CPA that you can afford in your business. Okay, so going back to what
I was talking about here. So we have now talked
about the ARM5 Formula, and what it can do for your businesses, what type of impact they
can have for your business, and what the number one metric is, it’s customer lifetime value. So customer lifetime value
should be the number one metric that you’re focused on if you’re running paid advertising. And the reason why is
because when you’re focused on maximizing the value of every customer that you get, you’re then gonna focus on getting more of your customers, and you’re also gonna focus on making sure that your customers spend
as much money as possible with your business. And the key to that is really just making a lot of offers. And that’s why a simple
takeaway you could take from this as well, to
really be able to maximize monetization of all the
traffic that you’re paying for with your ad campaigns, is by
having a promotional calendar. You should map out the next 12 months and have offers planned out, in advance, over the next 12 months,
and you should utilize your team, and your resources to be able to implement those promotions
on the specific dates that you’ve planned out
over the next 12 months. The more offers you make to your list, to your audience, your Pixel audience, even if they haven’t become leads yet, the more money you’re gonna make in your business, and the more money you’re gonna make from paid advertising. So that’s why customer lifetime value is so important. You also wanna make upsell offers when someone purchases. So if you don’t have upsells installed on your e-commerce site,
that’s gonna really, really make it very, very
hard for you to be able to acquire a customer at a good rate, especially as you scale, when
costs are going to go up. You have to increase
your average order value, so therefore, when people are checking out on your store website,
you need some upsells, you need some downsells that are relevant. If you don’t have some of your own, get some affiliate offers. This way you’re maximizing
that average order value, which is gonna allow you to spend more to acquire a customer,
which is gonna allow you to also scale, and afford
the higher cost per clicks, which are gonna also equate to your higher cost per customers that you’re gonna get as you scale your ad spend. So that’s a huge takeaway as well, is adding upsells, adding downsells, if you haven’t done that already. And there’s very easy ways to do that. Now beyond that too, you
wanna get your customers to spend more money. After they have purchased,
if they don’t purchase those upsells, don’t give up right there, put ’em into an email
and Facebook messenger follow up sequence, even SMS possibly. And get them to reconsider the offer that they said no to,
so this way you can get them to spend more money
with you right away. Have them come back if you
have a consumable offer. Have ’em come back in 30 to 45 days when the product consumes
itself from the customer, or the customer consumes
the product, I’m sorry. And have them come back,
purchase that product that they just purchased,
this way they can purchase it again, and automate that process. Part of the ARM5 Formula
strength is the processes, is setting up systems that are gonna allow you to really maximize the
ROI that you’re getting from your ad spend. That’s why the ARM5 Formula’s so powerful is because it’s not just
an advertising strategy, it’s an overall marketing strategy that encompasses paid advertising, but also includes sales funnels, marketing automation, and
conversion optimization. So that is the ARM5 Formula,
and if you were to use a lot of what I just taught
you about the ARM5 Formula, you would see significant impacts to your performance. You would see first off
your offers converting if they’re not, if you’re
starting with content, building value, building
reciprocity first, then people are gonna
be much more receptive to buying your offer. If you’re already
established and you’ve got a validated offer, and you’re just having a hard time scaling, well
honestly, do more content. Do more content, and do more funnel, and maximize your customer lifetime value, that’s the number one metric. If you can do that, you’ll be
able to scale much smoother. It’s gonna give your
business basically armor against that higher cost per click that you’re gonna yield
when you’re scaling your daily ad spend. So think about that as well. Now if you wanna find out more about the ARM5 Formula, and
about how we can help you, head on over to CVOAcceleration.com,
or CVOAccel.com. So I hope that you enjoyed this episode, I hope that you appreciated all this value that I just presented to you, that I just gave you,
and all these lessons that I gave you as well when it came to using paid advertising
effectively, profitably, and also at scale in
your e-commerce business. If you wanna find out more, like I said, head on over to CVOAccel.com. Be sure to subscribe and like this video, and definitely tune in
for the next episode, you’re not gonna wanna miss it. This next episode has Ron
Lynch, who has been responsible for over two billion in advertising sales, so he has a wealth of
experience that he’s gonna share with you, and I can’t wait for you to dive into that. So make sure to subscribe,
make sure to like this video, and make sure to tune
in to the next episode. (upbeat music) Thank you for tuning in to The E-Commerce Performance Marketing Show. If you enjoyed this episode,
be sure to subscribe, like, and comment with a
timestamp of your favorite part and share it with a friend. Until our next episode, here’s to you and the success of your
e-commerce business. (upbeat music)

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