In this episode, we talk about four advertising fundamentals that apply when buying ads on Facebook, Amazon, GoodReads, and more!




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Talking Points:

In this episode, we are going to talk about the fundamentals of advertising.

1) Have a “Good” Book

  • Excellent Cover that makes the right kind of promise 106 & 107
  • Excellent Back Cover Copy 111. TLDR: Make people curious.  
  • Lots of Reviews
  • Budget in advertising into the book’s price. (Advertising often means you need to charge more)


2) Measure Measure Measure

  • Find out Cost of Reader Acquisition | CRA $ Dollars Spent ÷ Books Sold = Cost of Reader Acquisition
  • Track Sell Through Rate Book 2 Unit Sales ÷ Book 1 Unit Sales = Sell Through Rate
  • Life Time Value of a Reader | CRA – Book 1 Profit + (Book 2 Profit x Sell Through Rate) = LVR
  • Track ROI | Profit ÷ Investment = ROI


3) Experiment

  • Test Ad Copy
  • Test Back Cover Copy
  • Test Book Covers
  • A/B testing


4) Follow the Matthew Principle

  • Take money from your in-effective ads and give them to your effective ads.


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