The dirty little secret of paid ads
This is the dirty little secret of the paid ads industry. In my work as a startup mentor and a Google Ads consultant, I have met hundreds of business owners telling me how ads did not work for their business.
But here's the thing: your business has to be ready to run ads, not the other way around! When you hire someone to run ads for you, they just want to get ads up and running. They probably don't know what I’ve dubbed the Rule of 2.
The Rule of 2
If your conversion rate times your average order value does not equal at least $2, you are probably not ready to run ads 🙅
I just had someone tell me the other day, “Google Ads isn’t working, I haven't gotten any conversions.” So I looked at the account, and guess what? They've only gotten six clicks! 😵💫 Even the most well-optimized Google Ads account wouldn’t see a conversion come out of only 6 clicks.
Most conversion rates are 1-2%, which means you need 50-100 clicks before you're going to see any conversions - on average. 50-100 clicks is going to cost you anywhere from $50-250, on the low end. For 1 or 2 sales. Will that be profitable for your business? 😔
So don't hire someone to run ads for you until your business is ready. Until then, focus on organic marketing strategies for organic growth.
How to drive organic growth
And how do we drive organic growth? Good thing that's the first topic in my latest course for startup founders and business owners, The Growth Formula for Successful Entrepreneurs.