Regina Bellows, executive director of StarterPPC, reveals our secret strategy on how to grow the Google Ads algorithm like a pro. Plus, she shares a free calculator sheet with the same formula we use at StarterPPC and Solutions 8 so you don’t have to guess!
Our secret strategy is the Overpacing-Underpacing Spend Schedule. This allows you to force mini learning periods for the algorithm to help it grow more quickly compared to just setting a daily spend and keeping it that way monthly. This is one key step in optimizing success as you use Google Ads for your business.
Listen to this episode now to learn what this Google Ads strategy is, how it works, and how to apply it to scale your business!
FREE Ad Budget Overpacing Calculator sheet: https://docs.google.com/spreadsheets/...
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0:00 Intro
0:27 Grow The Google Ads Algorithm Like A Muscle
3:25 The rollercoaster results with the Overpacing-Underpacing Strategy
5:28 Need help starting with Google Ads? Let StarterPPC help you!
8:45 Optional strategy: applying tROAS or tCPA
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• The Ultimate Guide to Google Ads for ...
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Hey everyone, Regina here at Starter PPC.
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:Today I want to talk to you about the
overpacing, underpacing spend schedule
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:that we like to use here at Starter PPC.
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:You can too.
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:We find it to be very helpful when
you're trying to force the algorithm
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:through mini learning periods so
that it will gain some strength.
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:Over time, it seems to
help the algorithm to grow.
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:More subtly and more quickly than
if you were to just set a daily
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:spend and just keep it that way
month over month over month.
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:I will say this seems to be
more necessary in accounts with
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:smaller ad budgets, you know.
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:So at Certified PPC, we're always
working with people who have
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:ad budgets of 5, 000 or less.
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:But like at our sister agency Solutions
eight, for example, they don't use the
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:over pacing, under-pacing schedule as
often because when you have more budget,
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:you have more conversions and more
conversions means more power because
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:you have more frequency of data points.
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:And the algorithm can use that to
get a leg up over the competition.
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:And basically what that
means is it's gonna grow.
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:On its own, and you don't
really have to encourage it
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:and force it to do hard things.
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:So I'm going to talk about this
overpacing, underpacing, and the
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:philosophy behind why it works,
and also the technical management
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:of how to manage it day to day.
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:Or week to week, I should say, because
you really only have to do it once a week.
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:let's dive into it.
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:So, first of all, I just want to say,
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:the theory behind this is that,
let me see if my face can fit here.
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:That's good enough.
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:theory behind this is, the algorithm,
If you just give it a standard amount
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:of budget day over day over day, it
seems to kind of hone in on what works
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:and it stops trying after a while.
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:what we do is we kind of force
these mini learning periods and
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:we force it to do hard things.
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:What I mean by hard things is we give
it more budget than it's used to, right?
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:Maybe 20 percent more, 40 percent more.
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:just for a short period of time.
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:And that makes it try new things.
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:It's going to have to try some of these
products over here that it usually
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:doesn't show or some of these placements
over there that it doesn't usually test.
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:Sometimes it even tries new users,
like new pockets of the market.
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:And through this process, it can
kind of discover new things that
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:work that it wasn't using before.
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:So what happens is when you
lower the budget back down to
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:where you want it to be, right?
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:You just have to underpace then
to try to make up for all the
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:time when you were overpacing.
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:The algorithm goes, oh, that's
all I have to spend today.
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:Well, no problem because I just spent way
more than that for the past two weeks.
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:now it can just gobble up all the easy
low hanging fruit that it's discovered.
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:And you'll find that your return will
shoot up during this time period.
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:even though your conversions
have gone down because you're
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:now spending less every day.
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:So it's got some pros and cons.
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:It's a little bit like a roller
coaster, I feel at times.
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:And so we do warn our clients that it's
going to be a little bit like this.
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:we do the first half of
the month is over pacing.
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:The second half of the
month is under pacing.
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:what you find is that, the return goes
down during the first two weeks and
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:it shoots up in the last two weeks.
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:The.
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:Conversions go up and up and up
in the first two weeks and they
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:go down in the last two weeks.
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:but it all kind of evens out in the end.
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:I just think that when businesses
get a little bit bigger, they stop
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:doing this because it is a little bit
disruptive to your life as a human and
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:as a business owner, especially if you
have, people you have to report to with
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:numbers and you want some steadiness.
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:So.
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:We only do it because we're working with
small businesses, and we find that it
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:is pretty necessary when you're trying
to get the algorithm to grow over time,
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:over months, it seems to encourage growth
instead of just keeping things the same.
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:I'm going to actually give you
guys this spreadsheet, which
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:is what we use internally.
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:I'm going to show you how
it works and a lot of.
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:The people watching right now are probably
like, Oh, but I only own one ad account.
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:That's fine.
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:Just delete all the rows.
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:We have multiple ad accounts because
obviously each person on our team
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:is working with multiple clients.
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:If you're an agency, you might also use
all these rows, but if you're a business
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:owner, you might only just need one row.
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:Each row is an account.
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:here's how it works.
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:So this is week one.
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:It says fill on the first.
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:So on the first you come in and
you put in your monthly budget.
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:Let's actually just start another
row and let's call it business
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:a very creative business name.
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:Okay.
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:So business a has a
budget of about 3, 000.
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:Let's say.
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:it's going to tell you what to
spend every day for the first week.
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:And that's 120.
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:Why is it 120?
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:Because they're overpacing by 20%.
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:It says that right here.
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:Pretty straightforward.
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:Now you don't have to do anything
for a week except for make sure
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:it's kind of spending about 120.
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:Obviously Google's going to spend some
more some days and less other days,
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:but it should average at about 120.
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:week two, it says fill
this one around the 8th.
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:I say around the 8th because you can't
always get to it on the 8th, right?
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:Maybe you only want to
do this on a weekday.
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:It's really not that important
that it's done on the day.
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:But you should try to do it on the
7th or the 9th or something like that.
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:So you're going to come in and
just put the month to date spend.
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:Now, let's pretend you've spent
about 105 up to this point.
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:It didn't quite spend 120 per day.
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:It spent about 115.
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:That's okay.
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:We're going to make up for it.
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:And so now, in week two,
we want to overpace by 40%.
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:So we're really pushing the algorithm
to try new stuff and grow, grow
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:its abilities and its powers.
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:So this time we're spending 143
every day, this goes on for
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:a week, et cetera, et cetera.
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:So, at the beginning of each new week,
you're going to put in how much you spent.
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:Let's say we spent 806.
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:Now it starts to pull back, right?
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:And it's like, okay, we're just
going to start to pace to spend
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:whatever's remaining of the budget
for whatever's remaining of the month.
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:So now we're spending about 80 a day.
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:And in the last month.
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:let's say you've spent 2, 400
by now, and let's say there's
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:six days in the month left.
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:That's important.
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:You have to put how many
days are left in the month.
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:So let's say there's only six, because
maybe you're doing this on the 23rd or
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:the 24th, or maybe it's a February and
there's not that many days in the month.
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:So six, and now you're going
to spend a hundred dollars.
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:And that's because you want to spend
that as, as close to the perfect
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:amount as you can to try to spend the
full 3, 000 by the end of the month.
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:Right?
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:So that's how this is.
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:Okay.
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:So if you're wondering what are these
notes here, T ROAS, TCPA recommended
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:for this week, remove T ROAS and TCPA.
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:So T ROAS and TCPA are restrictions
that you can put on the bid strategy.
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:And this is a little bit more
advanced, but if you know what they
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:are and you want to use them, great.
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:I would say this is an optional
strategy, but I left it in here
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:to show you guys, because this is.
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:That's often what we do, not always.
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:So sometimes if we see an
opportunity to apply a target ROAS,
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:for example, on one or two of the
campaigns inside of the account.
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:We will do that, but we don't leave it on.
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:that's the important part.
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:If you're using TCPA or TROAS, do
not leave it on because what you
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:want to do is you want to force the
algorithm to learn how to hit that
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:goal, but if you keep it on, it's
going to lose all of its knowledge.
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:That it has about all the
other products, right?
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:Because it's just going to hone in
on what it can do to hit that goal.
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:it's a blessing and a curse because while
it's on the algorithm is losing power, but
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:it's gaining a really high return and it's
learning how to hit a really high return.
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:So it's good and bad.
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:feel free to use that.
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:There are exceptions to this rule.
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:For example, standard shopping, we found
sometimes we just apply like a low target
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:row as like 30 percent or 40%, which
we find helps, but it's not restricting
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:the algorithm because it's so low that
the algorithm kind of just ignores it.
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:So sometimes we.
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:have other reasons for using
TCPA that are less restrictive.
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:But in, in, if you see us applying a
TCPA or a tROAS that's, that's, you
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:know, actually at the goal that we
need it to get, we'll only do that
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:for short periods of time each month.
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:this is our secret sauce, you guys.
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:Well, one of our secret sauces.
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:Unfortunately, it's really hard
to prove that this is working.
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:I do think that over time, even if
you don't overpace or underpace,
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:Over time, the algorithm should gain
knowledge about your products and
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:your business and it will start to
gain some power and to grow over time.
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:But I do think that this,
when you're small, at least,
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:this type of learning phase.
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:you're going back and forth from
learning phase to goal phase,
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:learning phase to goal phase.
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:So I call it taking the
algorithm to the gym, right?
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:So I think that when you're small, this
type of thing really speeds things up.
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:And in some cases seems to be, sometimes
it just feels like it's the only thing
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:that's helping the algorithm to grow.
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:Which is a whole nother rabbit hole that
we could get into, but I hope this helps.
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:Play with it.
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:There's a link below where you can
make your own copy of this calculator.
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:Make sure you don't change any
of the fields that are in yellow
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:because these are calculations.
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:You only want to change
the fields in white.
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:Okay, Best of luck to you.
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:Don't forget to like and subscribe