INSTAGRAM vs. FACEBOOK Ads for DROPSHIPPING

Facebook Shopify

Facebook ads are when you create an advertisement for AliExpress products you’re dropshipping in your store that shows up in a Facebook user’s timeline, but something that we haven’t talked about much is Instagram influences and this is how that traffic source works.

Let’s say that you’ve got this cute little mug here that when you drink out of it turns your face into a cat. Well, what you do is you find large high engagement Instagram page that is related to the product.

In this case here, cats. You then contact the influencer and you get them to make a post on their page which advertises the product and your store. And of course, the goal here is to get their followers and potentially people that even organically find the page to see your post and then to go to your store and purchase the product.

So which form of advertising is better? Instagram shoutouts or Facebook ads? It’s a super common question that we get asked here at Wholesale Ted and the honest answer is that each has their own pros and cons, so let’s jump straight into the video.

Which is the easiest for newbies to make money? One of the challenges that we’ve been discussing on this channel recently for Facebook ads is the issue of trust. Think about it. You just created your Shopify, AliExpress dropshipping store and now you are running Facebook ads promoting products to users who have never seen you before, who have never interacted with you before and now you’re asking them, despite not knowing who you are, to buy what you’re selling, hand you over the money and trust you to send the products to them.

That is huge ask and to be honest, this is why I think I see people have success with Instagram shoutouts, then struggle to make the shift to Facebook ads but not the other way around. With Instagram, the issue of trust is greatly mitigated.

Why? Well, because the followers of those pages already trust them and you can even potentially make money from people who find those posts organically despite not being followers of that page because of the enormous amount of social proof that it has.

With Facebook ads as a beginner, you don’t have the luxury of piggybacking off of the existing trust that influencers have built. Of course, you don’t need to let this stop you from running Facebook ads.

There are many tricks that you can use to overcome the issue of trust if you want to and store owners are doing this every single day like getting really good at using ad copy and images to make people want to impulse buy or by using trust symbols and words on your site.

But there’s no way around it, there’s definitely still a bit more of a learning curve when it comes to Facebook ads and so … And the winner is Instagram shoutouts. Instagram influencers have gone and cleanly knocked Facebook ads to the floor, but this fight is far from over.

Which is cheapest for beginners to get started? I’ve already explained on this channel that if you want to get started with Facebook ads, then you should be willing to set aside a minimum of $450 to $500 in startup money.

Why? Well, because you need to be prepared to test multiple products on Facebook to find a winner. And I recommend that most beginners be willing to test at least 20 different products, which means you need to be willing to test at least 20 different ads.

As a beginner, a good ad test length is four days with a $5 ad budget per day. So that means then that $20 for 20 different product ads is $400, with the other $50 to $100 of your startup money going towards setup costs.

Now, let’s compare that to the cost of getting started with Instagram shoutouts. With Instagram, you can negotiate shoutout prices for pages with within 50,000 to 150,000 followers for between $10 to $20 so immediately, they are cheaper.

And as I’m about to explain shortly, low-cost Instagram shoutouts usually have a much higher return on investment than low-cost Facebook ads which means you’re going to make more money back during the initial testing phase to help offset costs.

So given that and also that $10 is half the price of $20 … And the winner is Instagram shoutouts. Oh, Instagram influencers have pulled ahead with an early two-point lead. Can Facebook marketing catch up? What makes the most money? With Instagram influencers and dropshipping, if you see someone making $500 a day as in $500 of gross sales consistently, well, that is pretty good.

But with Facebook ads, you can make millions. In the beginning, Facebook ads are going to cost you more money to get set up and, yes, in the early stages, the return on investment is not great. A lot of people ask me the same question, “Can you really make money if you spend just $5 a day for Facebook ads?” And the answer is no, you really can’t.

Why? Well, because as I explained in a previous video on this channel, those $5 Facebook ads do not hit high-value users. The algorithm is incredibly smart. It knows which users are more likely to click on ads and buy products and, obviously, those users are in high demand with advertisers so advertising to them is a lot more expensive than advertising to disengaged users.

What this means is that when you run your low-cost Facebook ads, their Facebook are not going to put that ad in front of those people because if they did, you would blow through your daily ad budget very, very fast.

So these low-cost $5 a day ads that you run as tests, they’re going in front of low-value users which means your ROI is not going to be great. With Facebook, if you spend $20 for a four-day ad test and you break even or make a tiny profit, then that was a great ad, compare that to Instagram where you spend $20 and you make $40 back.

So on the surface, Instagram looks more profitable, right? But, hold on. Yes, those $5 a day ads are not making you much money but that’s not why you’re running them. You were running them with the goal of finding profitable products and ads that have the potential to scale up to huge profits.

And if that Facebook ad breaks even or makes a tiny profit, then you will invest more money and how much you spend each day for that ad. You go from $5 to $10, $10 to $20, $20 to $40 and so on. And once you scale to $40 a day, then you enter the budget range where Facebook starts showing your ad to more valuable users and that’s where the real money gets made.

It’s because of this ability to scale that dropshippers are able to earn millions of dollars, but that isn’t the only reason that with Facebook you can make far, far more money. With Instagram shoutouts, you have a huge limitation.

When you find a Instagram page that works with your ads, you can’t just go and post to it every day because if you did, you would saturate that audience. Consistency can be very tricky with Instagram shoutouts, so at most you can post to it two to three times a week and if you do this, you’re going to need to vary up the products that you’re seeling so that, again, you don’t oversaturate the page and kill it from over promotion.

But, it doesn’t work that way with Facebook ads. You don’t just get to run them two to three times a week, you get to run them every single day. So even though Instagram influencers can start out by making you more money, the profits do not scale and have an earning cap which means .

.. And the winner is Facebook ads. Facebook came from behind and gave a knockout punch to Instagram influencers. It just got interesting, folks. Time to move on to round four. Which traffic method is the most scalable? Well, we’ve kind of already answered this question because we’ve established that when you find a winning product and ad on Facebook that you can keep pouring more money into it and as you increase the ad budget for it, you reach more people and you make more money, and there is no equivalent here for Instagram influencers.

When you find a page that converts, you can’t just pour more money into it every day so Instagram just flat out loses here. But there is something else that you also need to know and that is compared to Facebook, with Instagram, you had a very limited audience.

With Instagram, you need to run targeted ads. If you want to go and sell this mug here, you can’t just run an ad to a general page. You will lose money. Instead, you need to run an ad to a page that is specifically related to this product, for example, a cat page.

Why? Well, let’s say that you go to a broad Instagram account that has hundreds of thousands of followers but isn’t specifically related to your niche. If you negotiate to buy an ad from them, you negotiate to buy it for their whole following.

And yes, there will be some people on that Instagram page that has 500,000 followers that like cats but most people are not going to be interested so they’re not going to buy your product and you’re going to lose money.

But with Facebook, it’s different. Now, yes, in the beginning when you’ve got a fresh Facebook ad account, you do need to run ads that are specifically targeted towards your niche. But each day that you run your ad, Facebook sees how it performs and its Pixel collects data on the types of users that click on your ad, engage with your ad and buy your products which means that the longer you run your ad, the more efficient that Facebook gets at picking who it should put it in front of.

And it can get so good at this that, eventually, you can run ads without niche targeting like millionaire dropshipper, Adrian Morrison, and still make tons of money. Why? Well, because even if you throw it out to a general audience, Facebook will do the work for you and it will figure out who it should be putting your ad in front of.

So not only are the ads by nature not scalable for Instagram, you’re always going to be limited in the types of audience that you can target which means … And the winner is Facebook ads. In the beginning, it looked like Facebook ads had no chance and that they were an absolute goner but then they managed to come back from behind and tie the score.

It’s time to move on to round five. Which is the easiest for newbies to use? When it comes to setting up a Facebook ad, it can be quite technical. You’ve got to install your Pixel, set up your account settings, set up your ad settings and then in addition to having to create the image for your ad, you also need to write the ad copy.

Now, there are several steps involved in setting up an Instagram shoutout campaign but in my personal opinion, they’re a lot more basic and a lot less technical. You go to Instagram and you search for some pages within your niche.

You browse through the comments, make sure that they’re real people posting. Check to see if the engagement score is good. You then email the influencer and ask them about the price to run a campaign on their page.

You then negotiate the price and you figure out the terms of how it’s going to be run like what day it’s going to be on. And once you’ve done that, you give them the ad image and the link to your website and pretty much, boom.

There are steps involved to get your ad out there but they require more soft skills, they’re not particularly technical. However, there is one major exception to this which is important to note. If you are a self-confessed digitally challenged person, then you might find Instagram shoutouts to be a bit harder.

Why? Well, because of the fact that the audience on Instagram is quite a bit younger and quite technically savvy, especially when compared to Facebook. To do well on Instagram, you really need to understand internet lingo and culture and if you don’t, you will not only struggle to connect with your audience but perhaps more importantly, you are going to struggle to personally connect with the influencers themselves.

A lot of people running these pages, they are literally teenagers, so you need to keep that in mind when you’re negotiating and talking to them. And so I suspect for some people out there that the culture shock of Instagram is going to be harder to overcome than the technicalities of setting up a Facebook ad.

But for everyone else … And the winner is Instagram shoutouts. You know what they say folks, what doesn’t kill you makes you stronger. Instagram took a bit of a beating but they fought back hard.

On to round six. Which is the most passive? With Instagram shoutouts, once you find some pages that convert well with your ads, then you need to negotiate and organize ads for each week. But with Facebook, once you got a winning ad, there really isn’t much you need to do day-to-day unless you want to.

Is a good practice to be testing new products on Facebook? Absolutely, but the same goes for Instagram. Is it good practice to be testing different ad creators like images on Facebook? Absolutely, but again, the same goes for Instagram.

Testing is good but that goes for both platforms and actually testing on Facebook is far more easier, efficient and a lot simpler to track than it is with Instagram shoutouts. Facebook definitely requires more work upfront but if you’re willing to put in that time, you get rewarded with a traffic source that is more passive and requires less ongoing work to grow.

And the winner is Facebook ads. And so there you go folks, it turns out that it’s a tie. There’re advantages and disadvantages to both traffic methods. Who would have guessed? And if you happen to be someone that is more interested in Facebook ads, then due to extremely popular demand, we are running a second webinar with millionaire dropshipper, Adrian Morrison, and there he’s going to be revealing his Facebook and dropshipping strategy that he’s used to built million-dollar dropshipping stores.

And that webinar is going to held on Sunday, April 22 at 3:00 PM Eastern, USA time. Our last webinar maxed out on registrations which is why we are running a second webinar, so I do suggest that you go ahead and sign up ASAP.

You will find the link on how you can sign up in the video description below. Please note registration is essential as we are not streaming this on YouTube. And of course, we have our free ebook, How to Make $10,000 a Month Online With Dropshipping.

You’ll find the link on how you can download this ebook and find other videos that have been referenced in this one in the video description below. hey guys and this video we’re going to be talking about what is the best way to generate money making traffic to your drop shipping store is it Instagram shoutouts or as a Facebook Ads my regular subscribers here hope so tips will already know quite a few bet about Facebook Ads because we talked about it a lot on this channel and inside a premium dropshipping course the dropship Club Facebook Ads are when you create an advertisement for early express products your drop shipping in your store that shows up and a Facebook uses timeline but something that we haven’t talked about much as Instagram influences and here is how that traffic source works let’s say that you’ve got this cute little mark here that when you drink out of it turns your face into a cat well what you do is you find a large high engagement Instagram page that is related to the product in this case here cats you then contact the influencer and you get them to make a post on your page which advertises the product and your store and of course the goal here is to get the followers and potentially people that even organically find the page to see your post and then to go to your store and purchase the product so which form of advertising is better Instagram shoutouts or Facebook ads it’s a super common question that we get asked here wholesale tiered and the honest answer is that each has their own pros and cons so let’s jump straight into the video [Music] which is the easiest for newbies to make money one of the challenges that we’ve been discussing on this channel recently for Facebook ads is the issue of trust think about it you just created your Shopify aliexpress drop shipping store and now you are running Facebook ads promoting products to users who have never seen you before who have never interacted with you before and now you’re asking them despite not knowing who you are to buy what you’re selling hand you over the money and trust you to send the products to them that is a huge ask and to be honest this is why I think I see people have success with Instagram shoutouts then struggle to make the shift to Facebook ads but not the other way around with Instagram the issue of trust is greatly mitigated why well because the followers of those pages already trust them and you can even potentially make money from people who find those posts organically despite not being of that page because of the enormous amount of social proof that it has with Facebook ads as a beginner you don’t have the luxury of piggybacking off of the existing trust that influences have built of course you don’t need to let the stop you from running Facebook Ads there are many tricks that you can use to overcome the issue of trust if you want to and store owners are doing this every single day like getting really good hey using ad copy and images to make people want to impulse buy or by using trust symbols and words on your site but there’s no way around it it’s definitely still bit more of a learning curve when it comes to Facebook ads and so and though we’re know is in severe shock our Instagram influences have gone and cleanly not Facebook ads to the floor but this fight is far from over which is cheapest for beginners to get started I’ve already explained on this channel that if you want to get started with Facebook ads then you should be willing to set aside a minimum of four hundred and fifty to five hundred dollars in start-up money why well because you need to be prepared to test multiple products on Facebook to find a winner and I recommend that most beginners be willing to test at least twenty different products which means you need to be willing to test at least twenty different ads as a beginner a good ad test length is four days with a five dollar ad budget per day so that means in that twenty dollars for twenty different product ads is four hundred dollars with the other fifty to a hundred dollars of your startup money going towards setup costs now let’s compare that to the costs of getting started with Instagram shoutouts with Instagram you can negotiate shout out prices for pages with between fifty thousand to a hundred and fifty thousand followers for between ten to twenty dollars so immediately they are cheaper and as I’m about to explain shortly low cost Instagram shoutouts usually have a much higher return of investment than low cost Facebook ads which means you’re gonna make more money back during the initial testing phase to help offset costs so given that and also that ten dollars is half the price of twenty dollars and the winner is in severe shock influences have pulled ahead with an early two-point lead can Facebook marketing catch up what makes the most money you know with Instagram influences and drop shipping if you see someone making $500 a day as a $500 of gross sales consistently well that is pretty good but with Facebook Ads you can make millions in the beginning Facebook ads are going to cost you more money to get set up and yes in the early stages the return on investment is not great a lot of people ask me the same question can you really make money if you spend just five dollars a day for Facebook Ads and the answer is no you really can’t why well because as I explained in a previous video on this channel those $5 Facebook ads do not hit high value users the algorithm is incredibly smart in those which users are more likely to click on ads and buy products and obviously those users are in high demand with advertisers so advertising to them is a lot more expensive than advertising to less engaged users what this means is that when you run your low cost Facebook ads their Facebook are not going to put that ad in front of those people because if they did you would blow through your daily ad budget very very fast so these low cost $5 a day ads that you run as tests that going in front of low value users which means your ROI is not going to be great with Facebook if you spend $20 for a four-day ad test and you break even or make a tiny profit then that was a great ad compare that to Instagram where you spend $20 and you make $40 back so on the surface Instagram looks more profitable right but hold on yes those $5 a day ads are not making you much money but that’s not why you’re running then you were running them with the goal of finding profitable products and ads that have the potential to scale up to huge profits and if that Facebook ad breaks even or makes a tiny profit then you will invest more money and how much you spend each day for their ad you go from $5 to $10 $10 $20 $20 to $4 and so on and once you scale to $40 a day then you enter the budget range where Facebook starts showing your ads to more valuable users and that’s where the real money gets made it’s because of this ability to scale that dropshippers are able to earn millions of dollars but that isn’t the only reason there was Facebook you can make far far more money with Instagram shoutouts you have a huge limitation when you find an Instagram page that works with your ads well you can’t just go and post to it every day because if you did you would saturate that audience consistency can be very tricky with Instagram shoutouts so at most you can post to it perhaps two to three times a week and if you do this you’re going to need to vary up the products that you’re selling so that again you don’t over saturate the page and kill it from over promotion but it doesn’t work that way with Facebook Ads you don’t just get to run them two to three times a week you get to run them every single day so even though Instagram influencers can start out by making you more money the profits do not scale and have an earning cap which means and the winner is Facebook ad your Facebook came from behind and gave a knockout punch to Instagram influences it just got interesting folks time to move on to round four which traffic method is the most scalable well we’ve kind of already answered this question because we’ve established that when you find a winning product an ad on Facebook that you can keep pouring more money into it and as you increase the ad budget for it you reach more people and you make more money and there is no equivalent here for Instagram influences where you find a page that converts you can’t just pour more money into it every day so Instagram just flat-out losers here but there is something else that you also need to know and that is compared to Facebook with Instagram you have a very limited audience with Instagram you need to run targeted ads if you want to go and sell this mug here you can’t just run an ad to a general page you will lose money and instead you need to run an ad to a page that are specifically related to this product for example a cat page why well let’s say that you go to a broad Instagram account that has hundreds of thousands of followers but isn’t specifically related to your niche if you negotiate to buy add from them you negotiate to buy it for their whole following and yes there will be some people on that Instagram page that has 500,000 followers that like cats but most people are not going to be interested so they’re not going to buy your product and you’re going to lose money but with Facebook it’s different now yes in the beginning when you’ve got a fresh facebook ad account you do need to run ads that are specifically targeted towards your niche but each day that you run your ad Facebook sees how it performs and its pixel collects data on the types of users that click on your ad engage with your ad and buy your products which means the longer that you run your ad the more efficient that facebook gets and picking who it should put it in front of and it can get so good at this that eventually you can run ads without niche targeting like millionaire drop shipper Adrian Marcin and still make tons of money why well because even if you throw it out to a general audience Facebook will do the work for you and it will figure out who it should be putting your ad in front of so not only are the ads by nature not scalable for Instagram you’re always going to be limited in the types of audience that you can target which means and the winner is Facebook at the beginning of the Facebook ads had no chance and that they were an absolute Ghana but then they managed to come back from behind and tie the score it’s time to move on to round 5 which is the easiest for newbies to use when it comes to setting up a Facebook ad it can be quite technical you’ve got to install your pixel set up to your accounts evening set up your ad settings and then in addition to having to create the image for your ad you also need to write the ad copy now there are several steps involved in setting up an Instagram shoutout campaign but in my personal opinion there are a lot more basic and a lot least technical you go to Instagram and you search for some pages within your niche you browse through the comments make sure that they’re real people posting check to see if the engagement score is good you can email the influencer and ask them about the price to run a campaign on your page you then negotiate the price and you figure out the terms of how it’s gonna be run like what day it’s going to be on and once you’ve done that you give them the ad image and the link to your website and pretty much boom there are steps involved to get your ad out there but they require more soft skills they’re not particularly technical however there is one major exception to this which is important to note if you are a self-confessed digitally challenged person and you might find instagram shoutouts to be a bit harder why well because of the fact that the audience on instagram is quite a bit younger and quite technically savvy especially when compared to facebook to do well on Instagram you really need to understand internet lingo and culture and if you don’t you will not only struggle to connect with your audience but perhaps more importantly you were going to struggle to personally connect with the influencers themselves a lot of people running these pages they are literally teenagers so you need to keep that in mind when you’re negotiating and talking to them and so I suspect for some people out there that the cultural shock of Instagram is going to be harder to overcome than the technicalities of setting up a Facebook ad but for everyone else and the winner is the guy shout out you know what they say folks what doesn’t kill you makes you stronger Instagram took a bit of a beating but they fought back hard onto round 6 which is the most passive with Instagram shoutouts once you find some pages that convert well with your ads then you need to negotiate and organize ads for each week but with Facebook once you’ve got a winning ad there really isn’t much you need to do day to day unless you want to is it good practice to be testing new products on Facebook absolutely but the same goes for Instagram is it good practice to be testing different air creatives like images on Facebook absolutely but again the same goes for Instagram testing is good but that goes for both platforms and actually testing on Facebook is far more easier efficient and a lot simpler to track then it is with Instagram shoutouts Facebook definitely requires more work upfront but if you are willing to put in that time you’ll get rewarded with a try exhausts that is more passive and requires less ongoing work to grow and the winner Facebook ad and so there we go folks it turns out that it’s a tie there are advantages and disadvantages to both traffic methods who would have guessed and if you happen to be someone that is more interested in Facebook Ads the inducer of extremely popular demand we are running a second webinar with millionaire drop shipper Adrian Morrison and as he’s going to be revealing his Facebook and drop shipping strategy that he’s used to build million-dollar drop shipping stores and that webinar is going to be held on Sunday April 22 at 3 p.

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