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Tools

Tools

The sums worth doing before you spend money. Put your own numbers in and see what they actually say.

What you actually keep

Put in what a product costs you and what you would sell it for. This is the first thing to work out, before anything else.

Your numbers

$
$
$
$

What it costs in ads to get one order. Leave it empty until you have run ads and know.

$
100 units
15001000

What that means

You keep, per sale

$13.99

35% of the selling priceClears one rule of two

Where it goes, per sale

Product$12.00
Shipping$4.00
Advertising$8.00
Anything else$2.00
Costs you, per sale$26.00

At 100 sold

Money in$3,999
Money out-$2,600
Left over$1,399

Against Jordan's two rules

  • $30+ kept per sale
  • Sold for at least 3x what it costs

From the course: Jordan picks products he can keep $30+ on and sell for at least 3x what they cost him. Those are rules for choosing a product, not a promise about what you will make.

Score a product before you spend on it

Rate a product on the six things Jordan actually checks. Do it for three or four products and test the one that scores highest, rather than the one you like the look of.

Your numbers

Okay

Can you make $30+ per unit at a 3x markup?

Okay

Urgent and painful beats nice to have.

Okay

Saturated is hard. Empty usually means no demand.

Okay

Rising or steady. Not a fad on the way down.

Okay

Can somebody see the point in three seconds?

Okay

Small, light, hard to break, no batteries.

What that means

Score

60 / 100

Worth testing

Reasonable, but watch the weak factors above and be ready to drop it.

Where the points came from

Profit margin15 / 25
Solves a real problem12 / 20
Room in the market9 / 15
Demand and trend9 / 15
Shows well in an ad9 / 15
Easy to ship6 / 10

From the course: Score several and compare. Jordan's point is that picking the product is most of the work, and the time to be picky is before you have paid for ads.

Are your ads paying for themselves

ROAS is how many dollars come back for every dollar you put into ads. Take the numbers straight from your ads manager.

Your numbers

$
$
$

Everything you paid your supplier for the orders in that revenue, shipping included.

What that means

For every $1 into ads, back comes

$3.00

65% left after product costsMaking money
Money in$1,200
Ads-$400
Products-$420
Left over$380

The number you have to beat

$1.54 back per $1

Below that you lose money on every sale. Above it you make some.

From the course: Jordan's rule is that ad spend buys data before it buys profit. Judge a campaign on the numbers, not on how long you have wanted it to work.

How many sales before you are even

Your monthly bills against what you keep per sale. This is the number that tells you whether a month was actually good.

Your numbers

$

Shopify, apps, domain, subscriptions. Not ads and not products, those move with sales.

$
$

What that means

Sales to cover the month

15

$599.85 of sales0.5 sales a day
You keep, per sale$27.99
Which is, per day0.5 sales a day, over 30 days

And to actually take something home

$500 on top33 sales
$1,000 on top51 sales
$5,000 on top193 sales

From the course: Keep the fixed costs small while you are starting. Every subscription you add is more sales you have to make before any of it is yours.

What you can afford to spend on ads

Work backwards from what you want the month to do. Useful before you set a daily budget, so the number is a decision and not a guess.

Your numbers

$
$

Your selling price, or a bit more if people usually buy two.

$3.0 per $1
1x3x6x
40%
10%40%70%

What that means

A day of ads

$33.33

$1,000 across the month

What that has to buy

Orders you need72
Which is, per day2.4
Most you can pay per order$13.89
Kept before ads$1,200
Ads-$1,000
Left over$200

From the course: Jordan starts small and lets the data decide, rather than setting a big budget and hoping. All ad spend buys at the start is information.

Every number on this page is arithmetic on what you typed. None of it is a forecast, a typical result, or a promise about what your store will do.