A misconception people have is that an amazing ad will produce amazing results, however, this is not always the case. Let’s talk about what actually makes paid ads work on a large scale.

Imagine this: a client approaches an advertising company and says, “Hey, I hear that you guys are great at ads…” However, upon taking a look at their ads funnel and the offer, most of the time, it is not up to par. This is what should be looked at first, not the ad account or their existing ads, the offer and their funnel is the most important.

What Makes Paid Ads Work?

There are three elements that work together to make paid ads work at scale, and three big secrets to making any paid advertisement program work. The three are as follows:

• Offer
• Funnel
• Ads

The Offer

By far the most important aspect is your offer-what you are selling. It is essential to have a great offer and be able to package it in such a way that people want to buy it.

Why is this so important?

• If the offer is terrible, people will not be happy with it, which leads to a high refund rate, making paid ads more difficult.
• If your offer is not packaged the right way nobody is going to want to buy it. It’s imperative to focus your energies on your offer before you even think about the funnel and the advertisements themselves.

The Ads Funnel

The second most important part of making paid ads successful is your ads funnel.

What is your funnel?

The funnel is the actual way you sell your program, your course or your product. It is the technical and marketing steps that are followed to make a rewarding ad. Basically, it is the method of conversion from a lukewarm lead that doesn’t really care too much about your business into an actual purchase. This includes the marketing message and all of the various steps involved.

Important – the marketing message of your offer funnel and your ads must align.

You want to make sure it is a straight line and you are not seeing different things or have different angles and different parts of the funnel.

Funnel Math

If you pay $5 per lead and you generate $8 on the backend, if your revenue is $8 from the $5 lead, then you are not going to be able to scale paid ads that much. That is because the big players are spending $20 a lead if they need to. If you start scaling up, start spending $5,000 a day, you’re not going to get $3 leads because of the fact that you’re now doing it on a larger scale. You’re trying to generate qualified leads and reach a wider audience. The wider audience is going to be less interested in the leads generated from the smaller scale.

Therefore, at the higher end of the scale, you’re going to have higher acquisition costs and you need to make those numbers work. What this means is your revenue per lead has to be higher, your funnel and offer have to be accurate, and your funnel has to be able to convert people into buyers that will purchase the offer or product.