Question about cost per sale

[OscarMike]

Hi everyone, I have a question about cost per sale for a print on demand product (mug). My cost per sale is really high. I'm having a hard time lowering it to be profitable. I'm using picture ads. I've read that video ads do the best with cold traffic.

Is it possible to get a cost per sale that is consistently lower than my revenue on day 1 of a marketing campaign?

The reason I ask this question is because one case study I read showed that, in the context of Facebook ads, the cost per sale can come down over time as the facebook algorithm optimizes. A campaign can start out getting sales but the cost per sale is ridiculously high, but then the cost per sale comes down over a few days as ad spend increases.

Another case study showed that, in the context of TikTok ads, that it's possible to get a cost per sale consistently lower than the revenue, on Day 1 of starting the campaign.

Both case studies involved dropshipping from AliExpress. They used video ads.

I've started a Facebook ad campaign that got a sale and my cost per sale was $4 (much lower than my revenue), but the cost per sale increased to $40 after I let it run for 2 days.

Do you mind sharing your experiences?

Should the campaign have an average cost per sale much lower than the revenue on Day 1, thereby producing a profit right from the start?

Thanks

 

[Graybeard]

1. Law of Large number rules in selling (or achieving any goal).
The smaller the sample the greater the increment of conversion, or; you will get a cluster of a few then none for an extended amount of time.

there were actually 4 "conversions" in this context, 1 didn't accept the Google GA cookie (that's 25% think about cookie loss 'slippage'); this means; 1 premium sign up (actual revenue unknown [if any]) and 3 freemium signups (1:20 may make me some money) I'm down $240 in ads that is a test and data pool for the next phase.

2. My point is three of the signups were clumped in the first week and the fourth in the 3rd week of a 1 month test run. Traffic was pretty much evenly distributed over the time period.

I think the ad method is done and I used 4 different ad networks.
3 were popunder and the 4th was redirect linking for a small sample of 400-500 --that may still be viable.

So, until I have 100K sessions/22K engaged I cannot see any empirical trends.

in the context of Facebook ads, the cost per sale can come down over time as the facebook algorithm optimizes.

Prove it or make zuckface richer MAYBE ....

 

[OscarMike]

Thanks for the response Graybeard.

Does anyone else have any input?

Is it possible to get a cost per sale that consistently lower than the revenue right from Day 1 of a campaign?

Thanks