Spending 1x the payout vs 3x the payout during Testing phase?

[OscarMike]

Hi everyone, PPC Coach teaches his students to test Facebook ad sets with a budget per adset of 1x the payout. So, if the profit per unit sold is $15, I'm spending $15 per adset. If I don't get a sale after spending $15, I kill the adset. The goal is the create 5-10 new ad sets each day, spending 1x the payout per ad set. From there I can optimize. My ultimate goal is to make a 25% roi on each winning ad set. I'd like to make $18.71 in revenue.

However, Propeller Ads has a case study for promoting sweepstakes and they recommend spending 3x the payout per ad zone on Propeller Ads. If you'd like, I can post a link to the guide but I don't want people to think I'm spamming the forum.

Which would you recommend? Testing 1x or 3x the payout?

Thanks

 

[Graybeard]

Welcome to the casino of life </sarcasm>

What is an acceptable conversion ratio? 3X that?

That could cost $200 to $300 in ads and a lot of set up time.

If it hits --you make bank. If it flops you lose it all.

A calculated risk unsubstantiated with any real empirical data.

3*(35*0.42) = $44.10

3*(1 in $conversionRatio * $adCost)

That *should* net 1-2 CPA conversions or 3-4 on the outside.

But with an unknown historical conversion ratio --you are spending your money to prove someone else's claim.