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You have up to $500k/mo ad budget- what would you do? (5)

04-20-2020 05:25 AM #1 billyblanks36 (Member)
You have up to $500k/mo ad budget- what would you do?

Lets say you were approached by a group of investors with capital, of up to $500k. They wanted a return of 150% minimum, so $1.25m+ in revenue per MONTH. It's a JV and you make 5% of revenue over $1m.

What would you do?

What offer would you run & what ad networks? What offers can scale to that level & get ROI like that do you think

04-20-2020 07:41 AM #2 twinaxe (Senior Moderator)

I would say thanks and bye.

With $1.25m it would be even 250% return of your $500k and this is not realistic to achieve stable and guaranteed.

04-20-2020 10:05 AM #3 jack_l (Veteran Member)

@twinaxe makes excellent point

Just for fun though... I suppose if I had to try to spend 500k per month on one offer profitably... I would do a combination of natives and facebook. There's definitely a few folks who spend 500k/mo (17.5k+/day) on a single offer on Taboola/Outbrain (although I'd guess not more than a small handful at most), and I imagine there's people who spend that in a few days on Facbeook...

Google Display and Youtube would be possibilities too... but Youtube seems more congruent with webinar funnels and stuff like that...

Would definitely depend on the type of offer too obviously as some offers would do better on some networks vs others

Edit: And it seems most of the biggest media buying outfits with huge volume use everything in tandem - facebook, youtube, gdn, natives, search, etc, as each feeds into the other.

04-20-2020 05:32 PM #4 matuloo (Legendary Moderator)

It's a JV and you make 5% of revenue over $1m.

So first you have to make 100% profit for them and then only will you start getting your share? That's just plain BS and I would never agree to something like that.

On top of that, maintaining a 150% ROI at such high volume is not easy at all, unless you have access to some specific campaigns.

04-21-2020 11:16 PM #5 janigmoney (Member)

this type of budget would be better off if you owned the backend such as your own eCom offer / Shopify with Upsells, and follow up, backend offers in your email sequence... as you are also collecting the emails of buyers and non buyers. Although I have not spent that much in ad spend per month but those are my thoughts as I have owned my own offers in the past and i know its easier to make higher ROI at that type of scale with your own offer. I think a 20-30% ROI would be more realisting at $500k per month as an affiliate?

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