by /
This is an extract from the Tom Ferry Podcast Experience with Jason Pantana and me, where we discussed the Dollar a Day Strategy to boost posts.
The Background Behind Devising A Dollar A Day Strategy
You might ask what problem the Dollar a Day strategy attempts to solve.
We had Quiznos, Allstate, Nike, and Starbucks as our clients. And they have many locations. So when we did some testing, we found that certain kinds of content would work in the Midwest versus on the West Coast or the East Coast. And to be able to test its scale required a different way of thinking.
It used to be, here’s $50,000 on an ad campaign. We hope it’s got a good jingle and it works. This was in the days of TV and mass media.
But then, in the world of social media, the algorithm can figure out exactly who’s going to resonate. So if you click ‘Like’ on Donald Trump’s content, you will see tons of it.
The Algorithm Is a Mirror
The algorithm reflects what it is. So all you need to do is feed the algorithm.
For example, when you post one-minute videos about meeting with the broker, with the buyer, or with another agent, the system sees this, and it’s like the law of attraction, except it’s really just algorithmic.
The dollar-a-day strategy allows the algorithm to deliver those messages to the people you want to reach.
What we’re doing is we’re counting on the algorithm being smart enough to figure out what we want and what the audience wants and that connection to have high engagement.
All social networks are free. So they want to drive the highest engagement.
When you put a video out there, the system looks at what’s driving the most engagement and connections. The algorithm knows all that data about who your friends are, people who are not friends with these other people, or they’re trying to hide a friendship, or that this person might be friends with you.
A dollar a day – think of it not as advertising but as social postage. You’re paying FedEx for delivery.
Now, a dollar a day is the least amount you can spend.
Identify the Winners
So it’s a dollar a day per ad. So you spend $7 a week and see how it performs. We look at through plays, which are 15 seconds or more. And if you can get that down to 2 cents or less, or even a penny, which is a home run, the system on Facebook’s saying this is really great.
When you find a winner, which is usually one in 10, then you say, “Okay, I’m going to spend a dollar a day for another 30 days. Then, after that, I’m going to keep extending it.”
So now you’ve got a bunch of these things running evergreen. You start stacking; you might have 10 or 20. However, your videos will all suck the first 10 or 20. You find these ones that win, and you keep putting more and more into it.
Conclusion
That’s what’s beautiful about it, and the dollar a day is letting the algorithm do the work for you. So make lots and lots of one-minute videos using the 3×3 grid.
Most people go to Facebook or Instagram or whatever it is, and they just make one bet, and they’re like, I tried it, and it didn’t work.
Just like going to the gym, you work out hard for three hours. Then you’re like, “I didn’t get six-pack abs,” and you conclude that your gym is a fraud, a sham. No, it would be best to put in lots and lots, and the system will figure out what’s working. And the thing that you think is the best is usually not.
If you start to get sophisticated, you can put them into the same ad group, and they can compete against each other. So just like with Google, you have these ads that compete, and then the system will figure out which of the ads inside that ad group will win.
The stuff that you’re doing on social will then impact your Google search results. So, when you look inside your Google analytics or your Google My Business, you can see how many phone calls you’re getting. There’s a direct correlation between the two.
Even if your budget is only a couple of hundred dollars a month, it will still work. So, don’t think you need a 10 million monthly budget to do this, like Nike, Starbucks, etc.
However, the key is if they look like an ad, they don’t work. People scroll right past that. Also, it needs to be a vertical, not horizontal, video. It needs to be lightweight. It needs to feel authentic.
Listen to the full episode here:
Interested to learn more about how you can take advantage of the Dollar a Day Strategy? Here is a course that will keep you up to speed.
Dennis Yu
Dennis Yu is co-author of the #1 best-selling book on Amazon in social media, The Definitive Guide to TikTok Ads. He has spent a billion dollars on Facebook ads across his agencies and agencies he advises. Mr. Yu is the "million jobs" guy-- on a mission to create one million jobs via hands-on social media training, partnering with universities and professional organizations.You can find him quoted in major publications and on television such as CNN, the Wall Street Journal, Washington Post, NPR, and LA Times. Clients have included Nike, Red Bull, the Golden State Warriors, Ashley Furniture, Quiznos-- down to local service businesses like real estate agents and dentists. He's spoken at over 750 conferences in 20 countries, having flown over 6 million miles in the last 30 years to train up young adults and business owners. He speaks for free as long as the organization believes in the job-creation mission and covers business class travel.You can find him hiking tall mountains, eating chicken wings, and taking Kaqun oxygen baths-- likely in a city near you.