Scaling Tik Tok Ads [LIVE] | $1,700/Day Dropshipping Tutorial Strategy

Introduction

Hey everyone, it’s your man Muhammad Kamara, and welcome back to the channel! Today, I’m excited to share a highly requested video on how I am scaling TikTok ads effectively—taking it from the ground up to $ 1,700 a day with 30% profit margins. If you’re ready to dive into the details, let’s jump right into it.

Setting Up for Success

It’s almost midnight, and I’m preparing my ad sets to kick in at 12 AM. Before we head into the specifics of the ad sets, I recommend watching my previous video on testing TikTok ads for foundational understanding. We need to maintain a minimum return on ad spend (ROAS) of 1.87, which is critical for achieving those profit margins.

Live Dashboard Insights

Here’s my Shopify store dashboard. I’ll refresh it for transparency, and you’ll see that we’ve been on a steady climb this month. Our goal? Reaching $ 50,000 in sales in the first month!

Initial Testing Phase

Our journey began on July 28, and now it's September 3. In the first few days, our ad spend was low, resulting in minimal sales. As we progressed through the initial testing phase, we gradually trimmed ineffective ads based on performance. A typical pattern here is to scale, trim, scale, trim, which is essential for refining your ad sets.

Gathering Data

We’ve gathered substantial data—around $ 25,000 in sales just from this testing phase. Typically, scaling will reduce profit margins, but the critical question arises: would you rather have 30% of $ 1,000 a day or 20% of $ 3,000 a day? We often choose the latter for higher net profits.

The Scaling Strategy

With sufficient data gathered, it's now time to scale. Over the last three days, we pushed the campaign further, and I want to focus on one specific campaign. After running this for two days and averaging around $ 40 on each ad set, I will analyze the ROAS.

Time for Trim and Scale

We will categorize ad sets by ROAS. Anything below my target of 1.87 gets cut. After sifting through, I’ve identified several ad sets performing well, with a minimum of 30% profit margins. The next step is to increase the budgets of the top-performing ad sets.

When scaling, the rule is to increase the budget by 20%, but TikTok requires a minimum $ 10 increase. Therefore, I’ll increase the budget of winning ad sets to $ 30 each.

Daily Management

I spend roughly 30 minutes a day managing these ad campaigns. After making adjustments, I’ll come back the next day to analyze performance. Even with slight drops in ROAS as budgets increase, we can still maintain profitability.

Financial Breakdown

To illustrate, today we spent $ 510 on ads, and our costs totaled $ 329 for goods, along with $ 252 in shipping—resulting in a net profit of $ 630 for the day. That’s a significant return for minimal time spent!

Conclusion

That's it for today! If you found value in this video and article, consider subscribing for future content. We’re on our way to scaling this store to $ 50,000 this month and beyond. Comment below for a chance to join EBC3 for free, and don't forget to share your thoughts with the hashtag #MoneyMafia. Thank you for watching!

Keywords

TikTok Ads
$ 1,700 a Day
Dropshipping
Scaling Strategy
Profit Margins
ROAS (Return on Ad Spend)
Shopify Store
Ad Performance
Budget Management

FAQ

1. How do I start scaling TikTok ads?
Start by testing various ad sets to gather data. Identify your winning ad sets with a minimum ROAS of 1.87, and begin scaling with budget increases based on performance.

2. What is the ideal profit margin to aim for?
While a 30% profit margin is a common goal, scaling might push this down to 20%. However, it’s essential to prioritize net profits over percentage margins.

3. How often should I check my ad campaign performance?
Daily checks are recommended. After each day, analyze performance and make adjustments to budgets based on the profitability of each ad set.

4. Can I run TikTok ads with a low budget?
Yes, start with a low budget during the testing phase and gradually scale as you identify profitable ad sets.

5. What is the significance of trimming ad sets?
Trimming ineffective ad sets helps you reallocate your budget to winning ads, improving overall campaign performance and profitability.