ClickFunnels VS Shopify & How Upsells increase your AOV for Facebook Ads ROAS

Watch the video, or read the Blog Post below.

In one of our previous videos and posts, we have discussed a few key points about up sells and down sells in ClickFunnels. If you can recall, we tackled on the huge problem of having to deal with different margins and different ROAS for every step in our funnel -- if we only optimize our ads for our front end offer, we might end up losing more money than we would supposedly earn because behind the scenes, we are also working with different prices for each and every product that we offer in our store.

We have also learned that to make things a whole lot easier for us, we simply just need to fix our respective offer prices in a way that would lead us to having but a single ROAS value. That means either increasing or decreasing the prices of our products within each funnel for its ROAS to match that of our front end offer.

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Another thing that we need to take special note of is that we need to do our calculations based on the worst case scenario -- there is no point in making our spreadsheets visually appealing only to find that at the end of the day, we have got our numbers wrong, and that we are losing a lot of money because of our expectations.

We won't go into further detail with regards to this topic -- there is a lot more to discuss, after all!

So, have you noticed something? Why the heck should we even use ClickFunnels and offer up sells and down sells if it would mean that we have to go through the hassle of going back to our original spreadsheets and making some major changes to our calculations? Well, look no further -- all the answers are here!

In this post, I want to show you the power of ClickFunnels and how it can increase your average order value (AOV) for Facebook Ads.

ClickFunnels as an AOV Booster

"Ugh, this seems too much for me! I can't afford to waste any of my time just to go back and start all over again with my calculations. No to ClickFunnels!!!"

...is probably what you're thinking -- and I totally understand that! Most especially if you have already established yourself as a reputable, well-experienced business, there seems to be no point in redoing what you have already proven to be working for you just to add a few more products within your front end offer.

Well, I'm here to tell you that ClickFunnels is definitely worth the effort (no bias added!). Sure, there may be a few additional complexities (what with the unpredictable customer behavior in terms of them actually purchasing your up sells and all), but just think: if your customers will be hooked up to your offer and decide to purchase them along with the original offer, then you would be making MORE profit than you originally would have!

So, how are up sells and down sells beneficial to your business? Let's have a look here.

Do note that this is only an example; calculations do not include Stripe and/or PayPal fees and other expenses.

Let's say that in this example, you are not using ClickFunnels in your eCommerce business, and are only straight up offering a single product for each one of your ads. So, when you buy that product for $13 and sell it for $40, you are going to be working at a 67.50% margin and a 1.48 BE ROAS, which means that your break even cost per acquisition (CPA BE; the amount that you will need to spend in order to have a customer visit your website and actually make a purchase from it) is capped at $27. This is the same amount that will act as the ceiling for your ad spend, and if you are going to invest all of it on your Facebook Ads, that will leave you with NO NET PROFIT, at all! There's nothing for you to put in your pocket and take home (unless you're willing to sacrifice the opportunity to entice more and more people into making a purchase).

Whereas, with up sells and down sells, even if we are going to be working with lower margins and therefore have to adjust prices to make our calculations easier, we get the following benefits:

For this example, we will only be working with one step in a funnel.

Here, we are offering the same product at the same price, but we will have a follow-up offer -- something that complements the front end product but is not required to be purchased. Our up sell is priced at $40 and is being sold by our supplier at $20, which means that with this product, we are going to be working with a 50.00% margin and a 2.00 BE ROAS. Say a customer becomes interested in it and decided to check it out of your store; since we are not running any ads on the up sell, there is no actual CPA value for this. We are not paying Facebook for this sale; we are only paying the platform for the front end offer, and that would mean that a successful purchase would grant us an additional $20 in profit -- something that we could either take home OR spend more on ads.

Aside from actually having something to spend on other business aspects or put in out pockets, why is having a potentially increased ad budget so important and such a big deal?

Remember that advertising on Facebook is a bidding game -- advertisers with more budget are preferred over their competitors. When a customer successfully checks out an up sell from our store, we would be $20 above our competitors, and that gives us a better chance to reach more clients and therefore have an increased probability of making more and more sales.

If all of our competitors are relying solely on their front end offers, then they are obviously going to have lower budgets to spend on their ads, even if they are doing everything they could to beautify and optimize their ads. And if they fail to obtain buying customers from their low budget, they might end up losing money and will be forced to turn off the ads.

You then will have the edge and the power (and budget, of course) to reach their potential audience and make them yours!

SWEET!

Let's Wrap It Up!

YES TO CLICKFUNNELS!

If a few complexities to your ROAS calculations would mean more profit and therefore more money to spend on ads, then why not strike while the iron is still hot? If you want only the best for your business, there's no better time to act than now -- start establishing and optimizing those funnels before it's too late. And especially if you have been doing your ROAS calculations wrongly this whole time, up sells and down sells are sure to be of great help to recovering those lost funds!

If you have any more questions about ClickFunnels and how you yourself can create a profitable sales funnel for your dropshipping store, to calculate your BE ROAS the right way and therefore be more profitable than ever, or anything regarding this video, feel free to personally contact me via the Contact Form HERE. You can also leave your comments and feedback below, and our team over at WagePirate will definitely get back to you with a response. For more reviews, news and updates, don't forget to subscribe to our YouTube channel!

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