2

My Store Update: After One Month

As they say…the first month is always the most difficult.

A Brief Overview

  • I ran my first Google Adwords ad on April 3
  • My budget started at $15.00 a day
  • Averaged 15 to 25 clicks per day
  • CPC (Cost Per Click) averaged $0.80+
  • Made 9 sales total
  • Majority of clicks came from ‘mobile’
  • Twice I adjusted my Max CPC
  • Added a second ‘Campaign’ separating ‘mobile’ bids from ‘desktop’ bids
  • VERY happy I joined Anton’s Drop Shipping course.

 My Methodology

Throw as much sh*! against the wall as I could and see what sticks…

(let the ads run and learn as I go)

Two Methods of Starting a Google Adwords Campaign

Method 1: Turn on the spigot (large budget) to get as much data as possible.

Method 2: Let your ad budget trickle (small budget) and slowly increase.

Method 1

‘Turn on the spigot’ is very subjective because a ‘large’ budget to some may be a small budget to others.

If you have a very small amount of working capital, this probably isn’t the method  for you.

Pros:

  • You can quickly see what ads (products) customers are searching for / clicking on
  • You can quickly find what words customers are using to click on you ads

Cons:

  • You will burn through a lot of money quickly
  • Your likely to take a loss for the first month (paying more for ads then is needed)

Method 2

Pros: 

  • You can start your store with very little money
  • You can see if you can reach your budget bidding very low
    • (is there room for low bids in your niche)

Cons:

  • To make informed decisions (what works / what doesn’t) you really need a large data set
    • You might make changes that turn out to be wrong…once more data comes in
  • You’ll start out with minimal sales and this could become quite disheartening.

What I did…In My Humble Opinion

As I stated before, a large/small budget to me might not be large/small to you.

My month one budget was $450 ($15 per day).  To me, it was middle of the road.

I started making adjustments between weeks two and three.  To be honest, I think it was a bit too soon because I don’t think there was data.  That said, this was my first month and I am new so I was winging it quit a bit.

Changes You SHOULD Make Within First Month

  1. Find non-commercial intent keywords (in Adwords) and add them as ‘Negative’ keywords.
  2. Optimize ‘product pages’ that are drawing traffic (customer clicks ad that leads to specific products).

google analytics changesTo find out what product pages are being visited the most:

  • Go into your Google Analytics account > scroll down to ‘Behavior’ > click ‘Overview’
  • Click ‘Page Title’ and the Top 10 pages will show.
  • Optimize these pages first (ignore the pages not being visited often)
  • Note: If you ‘turned on the spigot’, click the ‘view full report’ for more product page to consider optimizing.

Changes You Should NOT Make Within First Month

  1. Adjust bids in Adwords (unless after two weeks you aren’t reaching you daily bid limit).
  2. Turn off/on mobile/desktop ads completely.  Mobile ads don’t convert as well but those mobile ads visits may turn into a sale when the customer revisits your site from their desktop when they are ready to make a purchase.

Google-Adwords-1

As you can see, I made drastic changes without enough data and it cost me MANY CLICKS and my max ad budget wasn’t met 8 out of the last 30 days.

My Statistics (Results)

Shopify

  • After 30 days, I had $4,100 in total sales
  • I averaged 20+ visits per day
  • NOTE 1: I removed mobile ads all together (majority of my ads came from mobile thus I had a LARGE drop in visits)
  • IN BETWEEN: Turned mobile ads back on
  • NOTE 2: I adjusted my bids so mobile was turned on but at a low max bid
  • AFTER: I ratcheted up my mobile max bids because that was where the traffic was coming from
  • TAKEAWAYSimply turn on your ads ad let them run (at a minimum, for the first month)

Google Adwords one month inNumber 1: As stated before, I split my my campaigns into to in order to bid mobile & desktop ads separately

  • I’d wait for a month or two before doing this so you have more data to work with (mistake on my part…see dips in traffic above)

Number 2: My CTR (Click Through Rate) is a bit low at 0.81% which could cause Google to charge me more for ads in the future.

  • Google charges advertisers under 1% (in general, depending on niche) CTR more for ads so definitely tweak ads to compensate.

Number 3: My average CPC (Cost Per Click) is a little high for my liking (this number is VERY niche specific).

  •  Lower CPC = Higher Profit.  I wouldn’t worry too much about this until after month one (unless your meeting you max daily spend every day).

Number 4: I am under the $450 I budgeted for the month.

  • This is partially because of the bid adjustments I made prematurely.

Shopify

Number 1: My ‘Conversion Rate’ of 1.46% isn’t bad for Month One but good stores are usually 2.5% to 4%.

  •  This, I suspect, will increase as I optimize more product pages and my ads are also optimized.

Number 2: Worth noting, the majority of my ads were being showed (and clicked) via Mobile ads.

  • I think even though mobile ads don’t convert as well (1/3 compared to desktop), customers may return later via desktop.

The Bottom Line (after one month)

  • $4,100 in Total Sales 
  • $380 in Ad Costs
  • NET:  My profit margin was roughly 15% or about $600.

$600 in Net Profit after month one…Not Bad!*

Shopify monthly fee ($23) and Grasshopper phone fee ($18) not included.

What About Your First Month?

How did your store do after one month? Share with the community in the comment section below.

Click Here to Leave a Comment Below 2 comments