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Question around dealing with cashflow once you have a winning campaign... (5)

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Hey STM!

Been giving this some thought and figured it's best if I get advice from people who have a better picture than I do.

I'm trying to understand how the cashflow part of this biz works.

To give you some context, I'll have $5k in the bank to start with by the time I plan to launch my first campaign.

I plan to run FB traffic on low payout offers (likely lead gen so I can test more for cheap).

Anyway, what I'm trying to understand is how you deal with cashflow once you have a profitable offer and want to scale it?

Is $5k good enough - or should I save up more so I have enough to scale too?

Are you able to quickly roll over the $$ you receive from networks or are delays something I should prepare for financially?

Thanks in advance!

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Amex business gold card is what I'm using. Unlimited "employee" cards, cashback, and it helps with cashflow. Much more advanced affiliates in here that can chime in but CCs have helped me scale multiple business in the past, especially ecom, with biweekly payouts.

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Ask networks how much rev you have to make for shorter payout spans (e.g. weekly).

If 5k is your startup budget then focus on working with one good network rather than with several at once, for the beginning.

Otherwise you may end up having bits of revenue here and there and maybe not make it for the payout threshold on each network.

With good network I mean networks that are trustworthy and have proven that over quite some time. So do your research and ask around.

Well you kinda need to enter the game to understand the risks as well as its potentials.

There are always things that can break. For FB, account bans seem to be an issue you have to be prepared for (am not running FB but people report about it a lot).

That being said it is always good to have some cushion.

Last but not least...

I would not worry about scaling too much in the beginning. I understood that you have not started with FB yet.

Besides finding a good offer you might also need to find out how you to keep a camp alive /profitable over time.

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Exactly as Lars suggested above. Work with a limited amount of networks and negotiate weekly payments as soon as possible. That way, you only need enough cash to cover about 15-20 days of Ad expenses, depending on how fast the network is with payments. Once you become profitable, your cash reserves will grow quickly and all the cash flow problems will go away pretty quickly

Having some CC with a decent limit can help too, just make sure you spend the funds wisely to scale promising campaigns, you don't want to go into debt, right?

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Remember that you have an affiliate manager to help you out,ask them for the winning offers and traffic source.
if you're going to promote on fb know that you can spy on competitors ads and landing pages. you can use bigspy.com for this
you don't have to use a lead generation offer and if you are find out what others are doing ,know your customers pain-points and desires so you can write good copy.

To see your competitors' ads, open the Facebook Ad Library and search for their brand name. Alternatively, you can open their Facebook page and click the Page Transparency box in the right-hand navigation. Then, click on View in Ad Library in the Ads From This Page box.




Dont re-invent the wheel.

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