Scaling up an online business is very popular in the health supplement industry.
Online supplement marketers like to think in terms of scale.
It is talked about all the time in internal circles, brains and conferences.
But how do you do that? What key elements do you need to put in place before you can evolve? And what does evolving online really mean?
Many of our supplement customers have grown at breakneck speeds, often because of the optimization we have helped them with.
Scaling your supplement business is possible, but it’s also tricky if you don’t know what to watch out for.
What does it mean to grow a business?
The definition of scaling a business is really simple.
The scaling essentially increases in size.
Size, in the case of supplement companies, is net profit and lifetime value (LTV).
Different business owners think in different terms. For example, increase sales through conversion optimization or increase traffic through more visitors.
Ultimately, profit and LTV are what really matters when trying to scale your business.
What do you need to know when scaling a business?
A business can increase traffic by attracting more visitors to a sales page.
Or it can increase sales by getting more people who visit a sales page to buy through conversion rate optimization.
The two go hand in hand, however.
With so many different perspectives of scale, sales, traffic, etc., it seems a little intimidating at first.
But there are really only two ways a business can grow.
Vertically and horizontally.
You can increase traffic vertically by increasing your advertising budgets.
Or you can scale horizontally by expanding your reach across audiences and hooks.
Most people just think of the first type of business development. Vertical scaling with more traffic.
But, you should do both and I’ll tell you why. But first what do I mean by horizontal scale?
Horizontal scaling is generally easier than vertical scaling.
There are two ways to scale a business horizontally.
The first is to add different audiences to your ad traffic.
The second way is to find different hooks.
The two methods work together to successfully scale businesses.
With horizontal scaling, you expand the scope of your supplement’s destination.
Once you’ve learned through split testing and optimization. You will know what works for which audience segment.
You can then scale vertically with each horizontal segment.
What do you need before you can develop a business?
Before you can scale a business or funnel, there are a few things that you need to put in place first.
When you focus on vertical scaling, you need to compose your ad campaign into a single ad channel.
Your KPIs will tell you that you might be on something ready to change.
If there are profitable ad units and campaigns from day one. This is a sign that it’s time to increase the budgets for these ads if you can scale them.
In all likelihood, you will break your ad campaign.
And they will almost always break.
This means that they will lose their profitability from day one. Its good.
The game you are playing is to pull one rope and another back.
That’s why a / b testing is a consistent thing you never want to stop doing.
This is the fastest way to get those channels back online.
Because at any time to increase the volume (more people) the data will change.
Horizontal or vertical scaling
Horizontal scaling makes sense when your campaign experiences ad or audience fatigue.
In this case, the horizontal ladder becomes your best friend.
Scaling horizontally means testing new hooks and angles. At the most, it requires a new big idea and A / B testing around anything related to the big idea.
At the very least, it requires a new ad creative, just to measure click-through rates.
Then move on to testing a new title and a new track.
The horizontal scale also means testing new audiences.
To try to find different types of people who find your offer attractive.
Most people just broaden the top of the net at the ad campaign level, but that’s not what works most effectively.
A better approach is to take your existing health supplement and change who it is for.
Many supplements already have a large following and are either too broad or make them work by reducing them.
For example, one way to scale horizontally would be to take your supplement and market it to a different group.
If you have extra sleep, you can scale it horizontally by creating a dedicated landing page that sells sleep only to moms. Where all of the sales copy speaks directly to tired moms who have spent all day looking after everyone but themselves.
Finally, the horizontal scale can also take the form of testing different types of advertising creations.
For example, take your creative ad and create different formats of it, like video or image only.
I would even go so far as to say that you should scale horizontally all the time. Even before your stats start to dip.
Scaling horizontally from the start mitigates the inevitable decline of all campaigns.
Avoid These Business Sizing Mistakes
The only thing no one tells you is that scaling a business is fraught with pitfalls.
There is no other way to scale as it is not a linear path.
Scaling is a constant effort to increase sales.
When you increase traffic you attract more people and they don’t always behave the same, so you start to see your conversion rate drop.
This is why constant A / B testing is so important.
But if that was the only obstacle to your attraction, you would be in luck.
The common advice is to wait until your ad budget increases until your conversion event reaches 300 conversions.
Scale traffic before it leads to wobbly performance and really messes up the data engine of the traffic source.
To get more people to your landing page, you need to increase your advertising budget.
If you do this too quickly, your ad campaign could go back into the learning phase.
Resulting in a performance hit.
The best way to change the budget is slowly. Not increasing more than 25% each day.
Horizontal scaling errors
One way to avoid just turning on the tap on ads is to scale your ad campaigns horizontally.
Horizontal scale means adding different audiences.
Adding them as new campaigns is the best approach.
But with more audience, you’ll have more to deal with. Make sure you don’t overextend your management capacity.
There is only so much that you will be able to watch out for at the same time.
Most people turn to automation to help solve this problem, but you need to be careful not to optimize too early with automated rules.
Even though there are many advertising platforms that push you to do so. You don’t want to add too much complexity because you won’t know what works once things break.
Not knowing what is working limits your ability to grow.
Another scaling mistake that most people overlook is outside of the ad platform.
It is in the area of logistics and stocks.
Aligning your order management and supply chain with expected demand will keep you from crashing and burning once you scale up.
It’s not much of a problem to have when scaling.
Think about it. You have scaled horizontally and vertically.
Slowly increase your spending by 25% each time.
A / B testing of landing pages, offers and checkout flows and just when your ad campaigns start to gain traction …
Or worse once they have traction. You are forced to put the breaks because you cannot execute the commands.
All the learnings of the ad algorithm disappear in an instant.
The worst thing you can do is stop an ad campaign.
What scaling tactics should you use?
Now that you know what to avoid, let’s end this with some quick scaling tactics.
If you have a functioning funnel, a quick thing to do is duplicate your functioning ad units.
By duplicating the right ad units you are telling the ad algorithm that it is doing a good job, keep looking for more profitable pockets of ad units.
On the traffic side, duplicating the ad set is a good idea, while doubling the budget.
Many of our supplement customers spend five or six figures a day on ad spend when they’re in hyper growth mode.
The second tactic for rapid scaling is to use alternative auctions.
Changing your bidding strategy sometimes forces the algorithm to find another profit center.
A quick way to do this is to simply double your ad budget in a matter of days.
Don’t let the ad algorithm get comfortable.
Don’t be afraid to break what works.
If you don’t, you’ll never push your limits.
Is your supplement business ready to scale?
This advice is not for the start of the supplement.
Breaking your advertising campaign, navigating the fatigue of advertising creation and audience fatigue… All of this will happen to you as you evolve.
There is no way to evolve without some damage along the way.
Even with a conservative approach of increasing your ad budget by 25% every 3 days, you will have some drops.
This is the nature of scaling.
But if you can get through the trough and optimize along the way.
You can adapt to more buyers and bigger profits.
Three funnels every health supplement company needs to build a multi-million dollar empire
Through our work in the field of e-health, we have optimized many dietary supplement companies. During this time, we discovered the three critical funnels for success.