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how i made $5,000 (profit) daily with tiktok ads dropshipping.

How I Made $ 5,000 (Profit) Daily with TikTok Ads DropShipping

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In this article, I'm going to show you my exact TikTok ad scaling strategy that allowed me to generate over $ 260k in just two weeks on my brand-new Shopify Dropshipping store.

Introduction

Before diving into the TikTok ad strategy itself, here’s a brief overview of the numbers and profits within those two weeks. I'll use the True Profit app on my phone, a tool I personally use across all my Shopify stores for tracking profits in real-time. This app helps me see exactly how much revenue and profit my store generates every day.

Financial Breakdown

Between July 11th and July 25th, I managed to generate $ 236,000 in revenue with a total profit of $ 71,000, giving us a margin of around 30%. The True Profit app provides a detailed breakdown of all expenses, allowing transparent tracking of various costs:

  • Cost of Goods Sold: $ 77,000
  • Transaction Fees (Paypal and Shopify payments): $ 6,900
  • Handling Fees: (Shopify's sales tax calculations)
  • Custom Costs: $ 888 (app subscriptions including email marketing, upsell apps, bundles, etc.)
  • Total Ad Spend: $ 76,000

Detailed Day Breakdown

  • July 13th: $ 14k revenue, $ 5.7k profit (40% margin)
  • July 15th: $ 16k revenue, $ 5.5k profit
  • July 18th: $ 21k revenue, $ 7.4k profit (35% margin)

Strategy

Initial Testing Campaigns

For effective scaling, having a good way to test ads is crucial. My testing campaigns usually involve five unique ad creatives in their own ad sets. Each ad set runs at $ 20/day with smart creative optimization turned off.

  1. Important Metrics:
    • Cost per Complete Payment (Cost per Purchase):
      • Critical for determining if campaigns are profitable.
      • Compare with the profit margin to ensure profitability.
    • Complete Payment ROAS (Return on Ad Spend):
      • Calculate Breakeven ROAS: Selling Price / Profit Margin.
      • Scale only if ROAS is at least 2x the Breakeven ROAS.

Scaling Campaign Strategy

  1. CBO Campaign:

    • Set the budget at $ 250.
    • Include three ad sets with broad targeting and smart creative optimization turned on.
    • Only the best-performing ads and ad copies from testing campaigns.

  2. Decision-Making:

    • Allow the campaign to spend at least 2x the profit margin before making decisions.
    • If purchases are profitable, continue the campaign for another 24 hours.
    • After 48 hours, if the ROAS is 2.6 or higher and CPP is profitable, proceed to the next phase.

Scaling in Phases

  1. Phase Two:

    • Create a new CBO campaign with a $ 500 budget.
    • Include five ad sets with broad targeting.
    • Based on the performance, either:
      • Duplicate the campaign with a $ 1000 budget.
      • If highly profitable (3x ROAS), duplicate with a $ 2,000 budget.

  2. Additional Tips:

    • Smart Performance Campaigns as backup for underperforming CBOs.
    • Analyzing Data consistently to determine which ads are performing.
    • New Creatives Testing weekly for longevity of campaigns.

Conclusion

In conclusion, TikTok ad scaling is about rigorous testing and diligent optimization. Following the outlined strategy and continuously analyzing data ensures sustained profitability. The True Profit app helps keep track of every expense, allowing efficient management of the business. This strategy helped me achieve remarkable results, and it might work for you too.

Keywords

  • Shopify Dropshipping
  • TikTok ad strategy
  • True Profit app
  • Scaling campaigns
  • Return on ad spend (ROAS)
  • Cost per complete payment (CPP)
  • CBO campaign
  • Smart creative optimization
  • New creative testing

FAQ

Q1: What’s the True Profit app?
A1: A tool that helps track real-time profits and expenses for Shopify stores, breaking down costs like goods sold, transaction fees, handling fees, and ad spends.

Q2: What’s the first step in testing TikTok ads?
A2: Create testing campaigns with unique ad creatives, each in its own ad set, running at $ 20/day without smart creative optimization.

Q3: How do you know when to scale a campaign?
A3: Scale when your cost per purchase is under your profit margin and your ROAS is at least 2x your Breakeven ROAS.

Q4: What is a CBO campaign?
A4: CBO stands for Campaign Budget Optimization. It means setting a campaign's budget at the campaign level rather than at the ad set level, allowing TikTok to optimize the budget for the best performance.

Q5: How often should new creatives be tested?
A5: At least once per week to ensure the longevity of successful campaigns and keep ad engagement high.

Q6: What to do if a scaling campaign flops?
A6: Consider creating a Smart Performance Campaign that lets TikTok handle the targeting, and ensure to include only the best-performing creatives and ad copies.

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