The mindset of an employee versus a profit maximizer
One of our team members asked if they should increase the budget on a campaign from $80/day to $140 a day. Here’s what I said.
Please choose whatever budget you see fit in your expert opinion. You’re the pro!
You know our business goals and are best positioned to determine what tweaks to make to maximize revenue at the target ROAS.
As we know in eCommerce, unlike most agency work, it’s not about a daily budget (which is about managing expenses), but about maximizing profit (at whatever spend maximizes this).
A typical agency employee has the goal to spend exactly $X as the budget– which can be too low if the campaigns are profitable, but too high if we’re wasting money.
So use your pro skills to test and optimize, while we’re here to advise in our areas (me on strategy/optimization), the client on content/financials, Daniel on analytics, etc…
Dennis Yu
Dennis Yu is co-author of the #1 best selling book on Amazon in social media, The Definitive Guide to TikTok Ads. He has spent a billion dollars on Facebook ads across his agencies and agencies he advises. Mr. Yu is the "million jobs" guy-- on a mission to create one million jobs via hands-on social media training, partnering with universities and professional organizations.
You can find him quoted in major publications and on television such as CNN, the Wall Street Journal, Washington Post, NPR, and LA Times. Clients have included Nike, Red Bull, the Golden State Warriors, Ashley Furniture, Quiznos-- down to local service businesses like real estate agents and dentists. He's spoken at over 750 conferences in 20 countries, having flown over 6 million miles in the last 30 years to train up young adults and business owners. He speaks for free as long as the organization believes in the job-creation mission and covers business class travel.
You can find him hiking tall mountains, eating chicken wings, and taking Kaqun oxygen baths-- likely in a city near you.
Ready To Take Your Marketing Game To The Next Level?
Register today for the Dollar-A-Day Coaching Program and accelerate your growth journey!
