Paid Ads Handbook 📖

by Damon Deng

What are paid ads
They're doing 1 to many to cold audiences
They're the fastest way to get greater reach and traffic
They're risky, but when done right, they're going to pay off in multipliers
Paid ads are about efficiency, not reach, reach is guaranteed, not the buy
They go to colder, less willing to buy audiences, but you guaranteed traffic
To make an ad profitable, you have to get the right people to see it, if you don't your paid ads will fail
Hormozi- Needle in the Haystack

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1

Pick a platform that contains ICP
Some ICPs are on certain platform over others, e.g Meta and/or Google

2

Use the targeting methods on the platform
Target the ICP using whatever targeting methods the platform gives you (meta ads, google ads, etc.)

3

Craft an ad that repels
Make sure that people who aren't in your ICP don't click on the ad

4

Tell who ever is last standing to take the next step
Then CTA the final people to take the next step in the ads
Call out → Value → Call to Action
Callout
People knowing and noticing your ad is the most important part of the ad
The purpose of each second of the ad is to sell the next second of the ad
After you wrote the headline, you sell 80% of your people
Focus the majority of your efforts on the first 5 seconds of the ad
A callout is whatever you have to do to get the attention of your audience
  • Think of a cocktail party where someone taps the glass
Examples of Callouts
Using words to get attention
Use descriptors
You must use the words to make the ICP identify with the ad
Yes Questions
Questions that make the ICP say yes and qualify themselves to the ad
If/then statement
If they meet your conditions, then you help them make their decision
Non-verbal callouts
1.Contrast
  • What gets more attention? Bright shirt, plain shirt; movements, no movements
2.Likeness
  • People want to work with people who look, talk, and act like them
3.The Scene
  • The scene that callouts to ICPs who can relate to the scene
Get Them Interested- Value
If people think an offer or lead magnet has big benefits and tiny cost, they'll value it and transfer whatever to get the offer or lead magnet
If the cost outweighs the benefits, they don't value and don't engage
The best ads makes the benefits as big as possible, and the cost as low as possible
What- 5 Key Elements
  1. Dream outcome
  1. a good ad will show the dream outcome with maximum benefit and lowest cost
  1. a good ad could also be a nightmare where the customer will see the worst outcome/hassle/pain if they don't go with our stuff
  1. Perceived likelihood of achievement
  1. lower perceived risk by minimizing and explaining past failures, emphasizing the success of people like them, and show what you have to offer will give them a better chance at success than they currently have
  1. a good ad will also show them how risky it is if they don't act
  1. Time Delay
  1. A good ad will show how slow their current trajectory is and that they'll never get what they currently have at their current rate
  1. A good ad will show and tell how much faster they'll get the thing they want
  1. Effort and Sacrifice
  1. A good ad will show them the amount of work and skill they'll have to get the result they want without your solution, and how they'll be forced to continue giving things up they love and continue suffering from things they hate
  1. Or worse, they work hard, and sacrifice a ton right now and have gotten no where
  1. tl;dr, they waste more time and money doing what they're currently do, than if they just bought our solution
  1. Ease
  1. Disproves the preconceived notion that it will be hard to get the dream outcome
  1. Tells and shows how you can avoid what you hate doing, do what you love doing, without working hard or having a lot of skill and still getting the dream outcome
Who- Added benefits to the prospect
Humans are primarly status driven, show how the added benefits will improve that
The status for one human, is derived from how others treat them
If the product/solution changes how other people treat your customer, it pays to show how
Talking about the value elements from someone else's perspectives will show all the ways it'll improve the status of your customer
Outline 2 groups of people
  1. Your customer
  1. The people giving status to your customer
  1. e.g. Are you more likely to get promoted at work? Their kids say they look less stressed
Add each who angle to the status to each value driver
When- Visualize past, present, future
People often only think about how their decision will affect the here and now, but if we want to be extra compelling, we should explain what their decision led to in the past and what their decision could lead to in the future.
We help them see the consequences of their decision or indecision right now
Weight loss example:
  • Show them getting teased as a kid - past
  • Struggling to button their pair of jeans - present
  • Moving up yet another belt loop - future
You can also run through other perspectives, e.g. their kids perspective
this is all the bad stuff they want to avoid
Contrast to the good
Now we push them towards the dream situation to contrast from the nightmare to show why they should get our product/solution and why it works
e.g. for weight loss
Their kids- who
Month after month- when
Got interested in tagging into the workout- what
Long ads vs Short Ads
The only difference between long ads and short ads is the length that we can use the copywriting frameworks, long ads use more, short ads use less
Add and takeaway parts to fit the platform's mandates, but keep the callouts for the first few seconds and the CTAs the same
Attention!!!!
You don't need to be a good copywriter
As long as you use the what, who, when framework with a good offer, then you can scale with ads
Call to Action
If your ad caught your ICPs attention, then your ICP will have huge motivation for tiny time
Take advantage and tell them exactly what to do, swipe up, DM, click the link, search
Type out the CTA like they're a 3rd grade reader and do exactly what you say
Get permission to contact
After they take action off your ad, get their contact information
Best way is to get the landing page
Make sure that your landing page and benefits match what you promise in your ad
Make sure that the entire process is consistent
If you explain how their first action (CTA) aligns with the second action so they stay consistent, a phycological tactic from Robert Caldini's book "influence"
Now you have engaged leads from Paid Ads… Congrats 🎉
Efficiencies of Advertising
Paid ads are just an investment for ROI
Efficiencies matters most, so make it profitable and you can scale to your hearts content
4 Big Questions about ads

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How much do I spend
The 3 Phases of scaling paid ads

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How do I know how well I'm doing?
Cost and benchmarks

3

If my ads aren't profitable, how do I fix them?
client, find-list, acquisition

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What Hormozi wished he knew before he ran his first ad
Lessons from Hormozi
3 Phases to running ads
  1. Track Money
  1. Lose Money
  1. Print Money
Track Money
Before spending a dollar, set everything up to track returns, so you can do more of the stuff that makes you money, and less of the stuff that loses money
Lose Money
Call it "investing" in a money making machine, your back account has gotta go down when running ads before you'll see any benefit to learn
The number of losses will be high, but the cost will be low
The number of wins will be high, and you can scale it high
You just need to win one big ad, you'll win big
Once you find a big win, you'll scale 5x, 10x, 50x
Print Money
If you're making back more than you spend
Spend as much as you can
Here's Hormozi's breakdown of his budget:
Instead of thinking "how much money can I run to paid ads?", he thinks about how many customers he can handles. The moment an ad becomes profitable, he runs the budget to the amount of customers he can acquire.
How well am I doing?
Efficient paid ads make more money than they cost
Efficiency of a paid ad
Lifetime gross profit per customer (LTGP) : Cost of acquisition (CAC)
if LTGP is greater than CAC, you're in the green
An LTGP to CAC ratio at 3:1 or above is the most ideal amount
Cashflow King Mastery
Client, find-list, acquisition
The profit from the customer's first purchase is often less than the 3:1 LTGP:CAC
Sell more stuff to new customers if it takes more than 30 days to break even and become more profitable (for businesses that are getting MRR or recurring rev per customer)
Add more upsells to brand new customers to make more money
Hormozi Personal Lessons:
  1. Don't confuse sales problems with advertising problems
  1. The cost of acquisition isn't the full cost, there's also sales
  1. Your best free content can create the best paid ads
  1. If you say you suck at something, then you're probably gonna suck at it
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