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Feb 25, 2021

As of September 2020, Facebook has 2.74 billion active users monthly (Facebook). That’s about a third of the world’s population and Facebook advertising has exploded. 

Depesh Mandalia is one of the world's most prominent Facebook marketers and the best Facebook marketer that I know. He grew one venture from $800k to $26 million in revenue in just 18 months. He's invested well over thirty million dollars in profitable global ad spend over the last five years. He is responsible for driving more than $100 million in revenue for himself and his clients. He runs a Facebook ad agency that helps six-figure and seven-figure companies scale past ten million dollars and provides training courses that help entrepreneurs and marketers of all levels scale up faster in their Facebook advertising. In this episode, Depesh Madalia is going to share stories and secrets about Facebook advertising. 

$26 Million Case Study

While Depesh and his wife were both working other jobs, they started doing affiliate marketing on the side. They began making enough money doing affiliate marketing that they didn’t need their other jobs. But it was very fragile, although they didn’t realize that at the time. They came to realize their success depended on Google, so when Google changed their search algorithm, Depesh lost almost all of his traffic. His sites were getting millions of visitors a year, and that traffic was reduced to zero almost overnight. This is a great example of building skyscrapers on land we own. 

This pushed him to look into paid search advertising, but it was just so expensive. That was when he started looking into Facebook. He tested it and failed again and again. In 2014, a company that was looking for a digital marketer reached out to him. He was in between projects at the time so he joined them for six weeks. 

The company already had some advertising on Facebook, and Depesh was able to look at their data. He realized that their website could use some redesigning; it wasn't as free-flowing in terms of conversion as it should have been. He spent a couple of weeks working on their website, simplifying it and making it easier to use. After that was done, he went back to advertising through Facebook. Within two weeks, he saw that it was working, and they were able to spend more money and make more profit.

The first month they did this, they spent about five thousand dollars and made ten thousand dollars back. It was eye-opening for them, realizing that this channel could be profitable. The next month they spent ten thousand and made fifty thousand back. After that, they started to scale up from there. With every month they increased how much they were spending, and as a result, how much they were making. When he'd joined, they had been making $800,000, and they ended that year with $8 million in revenue. After that they went international, pushing their spending untilーa year and a half from when Depesh had startedーthey had reached $26 million in annual revenue.

Depesh’s Thoughts on Why Facebook Advertising is a Tectonic Shift

With Facebook ads, everything is faster and cheaper. We're able to turn on ads quickly. We're able to reach people at a point where they're more receptive. The CPM (cost per thousand views) is often a dollar or two, which is super inexpensive. The average price for an ad decreased by 9% in Q3 of 2020. We can bring customers into our funnels in a way we can't do as cheaply or at the same scale on any other platform.

One example of how easily Facebook advertising can speed up the advertising process is when Depesh was working for a company that wanted to go international but didn't know what countries to go into. Ten years before this, they would have had to do paid search, affiliate marketing, or physically go sell in that country's market. With Facebook marketing, they were able to turn ads on in the same day, run ads in multiple countries, and see what the reaction was like. So by the end of that day, they could tell which countries they should advertise in next and quickly make a plan for that.

Brand-driven Performance Marketing (BPM)

Back when Depesh had failed at Facebook advertising, he'd been trying to get a click at any cost. He saw the newsfeed as his opportunity to sell. He didn't understand that Facebook and Google were very different mediums. He had to think about buyer intent. When someone does a Google search for a TV, their intent is to find a TV to buy, and they have layers of intent; they can search the brand or the size, so we know exactly what their intent is.

With Facebook, we don't actually know what the potential customer's intent is. Users don't see Facebook as a place to find things to buy like on Google or Amazon. Facebook is actually closer to TV advertising. These ads come to potential customers when they're in a relaxed state. An ad break comes, and they're forced to watch it, even if they don't want to. The same thing happens on Facebook. When Depesh realized that, he changed his approach to Facebook advertising. He realized he should be building a relationship with the user so he can get the right click at the right time.

Facebook is a lead generator. That lead can be a click, a call, or an email, but it is just a lead, not a sale. It is our job to convert that lead into a sale using things like our landing pages, sales teams, or drip email marketing.

Success in Hard Times

Depesh had a client that was on the edge of profitability and sustainability for their business. They'd been working on ways to increase that profitability while growing at the same time. In 2019 they had a really good end of the year, but when COVID-19 hit, it really impacted their logistics. They were concerned about their profitability levels and online sales, and they weren't sure how COVID would affect that. Depesh helped transition them to making their founder the face of the brand because people buy from people. He got them to start doing Facebook Live events and to become a bigger part of their Facebook community, along with running their own podcast, YouTube channel, and more. Because of this, they were able to have their first million-dollar month in August 2020.

When we have these tectonic shifts that happen, they can be disasters or they can be these wonderful opportunities for growth. We just have to find that opportunity.

Connect With Depesh

To learn more about or connect with Depesh and his services, please visit

Key Takeaways

Thank you Depesh for sharing your stories and secrets. Here are some of the key takeaways from today’s episode that stood out to me.

  1. Facebook is the world’s third-most visited website, surpassed only by Google and YouTube. If we can utilize it for our marketing, we can reach huge numbers of our potential customers.
  2. Marketing on Facebook is often faster and less expensive than other platforms. At least it is today. Let’s take advantage of this while we can.
  3. Treat Facebook ads like TV ads. Build relationships with our customers and follow up on the leads Facebook provides.
  4. Focus on your product, audience, offer, and funnel to optimize sales and satisfaction from Facebook Ads.
  5. Find the opportunities to achieve growth during hard times. 
  6. The most fulfilling monetization streams are often the ones that help people the most.

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If we desire monetization we have never before achieved, we must leverage strategies we have never before implemented. I challenge each of us to pick one thing that resonated with us from today’s episode and schedule a time this week to implement it to help achieve our monetization goals.

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What has helped you be successful with Facebook advertising? Please join our private Monetization Nation Facebook group and share your insights with other digital monetizers.

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