How can I use third-party funnels to scale ad spend successfully? This week we’re putting the “fun” into “third-party funnels.”

Venture Beyond CEO Shahbaz Khokhar scaled to a successful six-figure daily Meta Ads spend using third-party funnels, and he shared his secrets at a recent Affiliate World event, starting with…

Wait, What Are Third-Party Funnels? 🧐

Third-party funnels leverage positive brand reviews from third-party sites perceived by visitors as independent. Big brands have been using versions of third-party funnels in the form of listicles and product review articles for years.

Today, with the right processes and in the right verticals, ecommerce brands can take advantage of this tactic too — with impressive results.

Third-party funnels use three stages.

First, users click on an ad from a third-party page. That ad takes them to a landing page on a third-party domain that includes an author page with a perceived subject matter expert to provide authority. Third, that landing page leads to an offer page or product page where leads can convert.

How do they work?

Third-party funnels typically work best in categories with one of three characteristics.

The first is “intangible value” that must be tried in person, such as supplements or skincare. The second is “alternative to the norm” products — examples include natural deodorants, laundry sheets, or home hair removal devices. The third category is “high stakes” products, which can range from mattresses to financial services.

In these scenarios, third-party funnels work because:

  1. Consumers trust and believe an independent reviewer over what a brand claims.
  2. Reviews that are perceived as unbiased and independent increase credibility.
  3. The sales cycle is shorter because prospects are routed directly from the review to the offer.
  4. Cheaper traffic costs.
Why do 3rd-party funnels work?

Disclosure ℹ️

Marketers worried about compliance issues with third-party funnels can rest easy and launch campaigns confidently — as long as you include a disclosure.

Advertisements must disclose the interest between the review website and the brand to comply with advertising regulations. Without one, the ad and your brand may be penalized for misleading advertising.

Your disclosure language must be “clear and conspicuous” to prevent an FTC intervention, which means the text must be above the fold and in 10-point font or larger for accessibility. This is especially important if you start scaling your spend, and Shahbaz recommends hiring a compliance manager when your budgets grow to ensure smooth sailing for future campaigns.

Supercharging Third-Party Funnels ⚑️

Shahbaz recommends a few different tactics for supercharging third-party funnels, including:

  1. Agency Accounts: These special ad accounts are available to high-spend agencies with fewer compliance restrictions. This reduces the risk of ad account bans and, if your account has a high enough spend, Meta will give you a “FOX protection program” that will allow you to grow more quickly.
  2. Clickbait Creatives: Clickbait can generate high CTRs and low CPCs by driving comments, debates, and user engagement. Advertisers have been trained to think of clickbait as a dirty word, but because third-party funnels direct prospects to an independent page, you don’t have to be as concerned about brand safety.
  3. Authority Hijacking: Internal testing by Venture Beyond found that landing pages comparing top products to other well-known retail brands generated a higher click-through rate for their top product. And if you can add affiliate links to the well-known brands mentioned on the comparison page, you’ll generate revenue from every click on a product, not just the one you’re featuring.

Finally, larger brands looking to scale with these funnels will not want to run them internally, which will create opportunities for affiliates who can set up and operate independent publications that will recommend their products.

Establishing your third-party funnel processes before the competition can generate significant opportunities for scaling ad spend successfully, on Meta as well as other platforms.