Before you can aggressively scale your campaign, you have to understand your numbers.

By “aggressively”, I mean when you want to spend over $10,000 a day.

These are the metrics you have to know:

• Product Selling Price - How much do you sell your product for?
• Product Production and Shipping Cost - How much do you need to pay your supplier to produce and ship your product?
• Transaction Fees - Do you have to pay processing fees for PayPal or Shopify for each transaction? If so, how much?
• NET PROFIT – The money you end up with after paying Production and Shipping Costs and Transaction Fees.
• MAX COST PER PURCHASE - The maximum cost you pay to make at least one sale.
• MAX SPENT FOR ZERO PURCHASE - The maximum amount of money you’re willing to lose by making no sales.

Net Profit is the most important number we need to know before aggressively scaling.

When you know your Net Profit, you’ll know the maximum amount you can pay for each transaction.

Next, we’ll calculate MAX COST PER PURCHASE. It’s the maximum amount you’re willing to pay to make one sale.

Normally, Facebook won’t fire the pixel correctly, so you won’t see every conversion in your Facebook Ads account.

For example, if you make 10 sales in your shop, it might show up on Facebook as only 8 conversions. This makes the cost per purchase shown in FB Ad Manager higher than it should be.

I add 10% to Net Profit and make the result the MAX COST PER PURCHASE for my product. You can add a higher percentage if you want, but I recommend a number between 10-20%.

For example, if the net profit for a product is $15 per sale, the MAX COST PER PURCHASE for this product will be $16.5 or $18.

Another number we have to know is The MAX SPENT FOR ZERO PURCHASE. It’s the amount we’re willing to lose by making no sales.

I usually double the net profit for this number.

In this case, my MAX SPENT FOR ZERO PURCHASE WILL BE $15 x 2 = $30.

Okay, these are all the numbers you have to know.

Let’s move on to the next step.