August 04 0 1263

How The PowerFox Media Buying Team Scaled to $12 Million+ by Promoting Lead Generation Offers

Ruslan Fedchenko, from Ukraine, and Tim Shkarovskiy, with Rusian roots, came to America with dreams of startup success. But when their startup ideas didn’t work out, they turned to affiliate marketing and media buying. They ended up building an affiliate marketing team called PowerFox Media, which has done something amazing—growing from zero to over $12 million in annual revenue in just a few years, mostly by running lead generation campaigns on Facebook.

In this detailed case study, we’ll take a behind-the-scenes look at how they achieved this. From starting as a small two-person operation to becoming one of the top affiliate teams, we’ll explore the strategies, tactics, and mindset changes that led to their incredible success.

Whether you’re new to media buying and want to learn from the best, or you’re experienced and looking for new ideas and inspiration, this article is full of useful tips and insights. So sit back, grab a notepad, and get ready to dive into the PowerFox story.

Ruslan Fedchenko

The accidental affiliate marketers

Every great business has a story, and PowerFox is no different. But unlike many young prodigies in the affiliate space who seemed destined for this career, neither Rus nor Tim had big plans to dominate paid traffic when they started out.

Rus, originally from Ukraine, moved to the U.S. to work on a startup with an investor he met back home. His ambitious goal was to revolutionize a major industry and make millions. With a small team and a couple million dollars in funding.

After 7 tough months, it became clear things weren't going as planned. Despite their efforts, the startup wasn’t gaining traction. The investor, seeing the inevitable, decided to shut it down.

For Rus, it was devastating. He had uprooted his life and poured everything into the venture, only to see it collapse. But the investor, with a variety of businesses, saw potential in Rus’s skills for another one of his companies—an affiliate marketing firm specializing in lead generation.

Rus was doubtful at first. He knew almost nothing about media buying or affiliate marketing. But with few job options, he decided to take a chance.

Meanwhile, Tim was also at a turning point in his career. Fresh out of college with a degree in data analytics, he was working as a data analyst for the email marketing division of the same investor’s company. There, he discovered the huge potential of platforms like Facebook for driving cheap, scalable traffic.

Though the work was interesting, Tim felt he was meant for something more entrepreneurial. He dreamed of building his own business. So when the chance to partner with Rus and start a new media buying division came up, he jumped at it.

Looking back, it’s amazing how it all came together. Two guys from different parts of the world, with no experience in affiliate marketing, brought together by chance and a shared drive to succeed. As they soon discovered, sometimes the most unexpected partnerships lead to the most extraordinary results.

The grind

In the beginning, Rus and Tim had a tough road ahead. They were new to Facebook ads and affiliate marketing, starting from zero in every way.

But they made up for their lack of experience with sheer hard work and determination. They knew they had to outwork and outlearn everyone else to succeed.

They jumped in headfirst, consuming every blog post, video, and podcast about media buying and direct response marketing. They spent hours daily analyzing their campaigns in Facebook Ads Manager, looking for patterns and insights.

Knowledge alone wasn't enough, though. They needed to take risks and test their ideas in the real world.

And test they did. In those early months, they launched dozens of new ad sets each week, each one a small bet on a different angle, offer, or audience. Most of them failed, losing money and not converting well. But occasionally, they found a winner—a creative or targeting approach that hit the sweet spot of high click-through rates, low cost-per-click, and scalable volume.

It was a wild ride with highs and lows. Some days, they felt on top of the world, running profitable campaigns. Other days, they wondered if they had made a huge mistake, investing so much time and money into a challenging business.

Throughout it all, they leaned on the affiliate community for support and advice. They became active on forums and Facebook groups, connecting with experienced media buyers. They shared stories, celebrated successes, and commiserated over setbacks.

Their big turning point came when they discovered Marcus Campbell's affiliate marketing podcast and course. Marcus had made millions with lead gen campaigns on Facebook and became a mentor to Rus and Tim. His straightforward advice and willingness to share his knowledge were game-changing.

Through Marcus’s coaching, they learned the importance of angle creation, ad scent, and the AIDA copywriting formula. They began to see their campaigns as more than just numbers, crafting compelling stories and experiences for their audience.

Gradually, their results improved. They went from losing money most days to breaking even, and finally, to turning a profit. It wasn't much at first—just a few dollars a day—but it showed them the huge potential if they could scale their efforts.

Persistence

Looking back, it might seem like Rus and Tim were always destined to become the powerhouse media buying team they are today. But their journey was far from smooth or straightforward.

For the first year or more, they were barely staying afloat. Despite working tirelessly and testing constantly, they struggled to find their rhythm.

A big part of the problem was the complexity of the Facebook ads platform. With so many different settings and metrics to manage, it was easy to get bogged down and lose sight of the overall strategy.

An even bigger challenge was the constantly changing affiliate industry. Hot offers and traffic sources shifted all the time, and what worked one month might not work the next.

For Rus and Tim, it often felt like a high-stakes game of whack-a-mole, scrambling to seize opportunities before they vanished.

There were plenty of times when they questioned their choices and felt tempted to quit. But giving up just wasn’t in their nature.

Instead, they pushed harder. They worked smarter, focused on small improvements, and didn’t let setbacks define them. They became obsessed with finding tiny tweaks and strategies that could give them an edge.

Gradually, their persistence paid off. They fine-tuned their targeting and ad creative methods to achieve top-notch CPAs. They built relationships with networks and advertisers, gaining access to exclusive offers and payouts. Their spending grew to five and even six figures a month, all while maintaining impressive profit margins.

Of course, scaling up to a nine-figure business had its challenges. As they expanded their team and moved into new areas, they realized that what worked for two people didn’t necessarily work for a larger group.

They had to learn how to hire and train new media buyers, create systems and processes to support growth, and navigate the ever-changing affiliate landscape as a team.

But through it all, they stuck to the core principles that got them this far: a willingness to take risks, a commitment to lifelong learning, and a belief that hard work and persistence could overcome any obstacle.

It was this mindset, more than any specific tactic, that ultimately led them to achieve the kind of success most people only dream about.

Cracking the ad creatives code

If you were to ask Rus or Tim what they believe is the biggest key to their success on Facebook and other paid platforms, they would undoubtedly say it’s their mastery of the creative side.

And it’s easy to understand why. In a world where media buyers are all competing for the same crowded newsfeed space, being able to create eye-catching, scroll-stopping ads that speak directly to your audience’s deepest desires and pain points is crucial.

For Rus and Tim, this realization came early in their journey. They understood that while things like bidding strategy and audience selection were important, they were easier to systemize and scale than the more elusive art of creating high-converting ads.

So, they made it their goal to become the best at this crucial skill. They hired talented designers and videographers to produce a steady stream of new ad variations, from static images to long-form videos.

But just creating more ads wasn’t enough. They also needed a system to efficiently test and refine their creative concepts, identifying the winners and cutting the losers before they could hurt their performance.

To do this, they developed a rigorous split-testing process, allowing them to quickly experiment with dozens of different ad variations. They analyzed each one’s performance across key metrics like click-through rate (CTR), conversion rate, and return on investment (ROI).

Over time, this approach helped them build a robust "control"—a set of proven ad templates and elements they could repurpose and remix for different offers and niches with confidence.

But perhaps even more powerful than their creative testing process was the mindset shift that came with it. By viewing each new ad as a learning opportunity rather than a win-or-lose scenario, they cultivated a growth mindset. This allowed them to see "failures" as valuable data points on the road to success.

This mindset gave them the confidence to take bigger creative risks and push the boundaries of what was possible with their ads.

Whether it was incorporating cutting-edge design trends like 3D animation and AR filters, or experimenting with bold angles and messages that their more cautious competitors avoided, Rus and Tim became known for being ahead of the curve in creating attention-grabbing ads.

Of course, this approach also came with risks. In a post-iOS14 world, where platforms like Facebook are increasingly strict, balancing between edgy and off-brand can be tricky.

That’s why having a team of experienced compliance experts has become a vital part of PowerFox’s creative strategy. These experts help them navigate the ever-changing policies and restrictions of their traffic sources.

By ensuring that their ads are not only effective but also compliant, they mitigate the risk of account shutdowns and maintain their reputation as a top-tier, highly professional media buying operation.

From client work to full-blown performance marketing

As PowerFox started seeing impressive returns from the lead generation offers they were promoting, Rus and Tim felt the urge to grow their business even further.

Running campaigns for other companies had helped them gain experience and build their funds, but they realized that true scale and long-term wealth lay in owning part of the offers and funnels they were promoting.

They had seen others in the affiliate space use their media buying skills to launch their own e-commerce brands and info products, building eight- and even nine-figure businesses from their paid traffic expertise.

Rus and Tim wanted to join in. They knew that by taking control of the entire customer journey—from the first impression to conversion to fulfillment—they could achieve higher profitability and growth.

But this was easier said than done. Launching a physical product brand or digital course required new skills and resources beyond media buying, such as product development, website design, copywriting, and customer service. Plus, there was the significant upfront investment needed for inventory, warehousing, and fulfillment.

Luckily, an opportunity came their way that allowed them to try performance marketing without taking on all the risks and complexities at once.

A friend who owned a successful e-commerce brand offered them a deal they couldn’t refuse: instead of just promoting the brand’s products as affiliates, PowerFox would take on a true performance marketing role, working closely with the brand to scale their customer acquisition efforts. In return, they would receive a generous commission on each sale and a small equity stake in the company.

This was the perfect chance to learn e-commerce and performance marketing without building everything from scratch.

Over the next few months, Rus and Tim dove into the project with their usual intensity and strategy. They worked with the brand’s media buyer to revamp their campaigns, introducing new creative concepts and audience targeting strategies to improve their return on ad spend (ROAS).

They also examined the brand’s marketing funnel and customer journey, finding ways to boost conversion rates and customer lifetime value (LTV) through upsells, cross-sells, and subscription offerings.

The results were remarkable. Within 90 days of taking over the brand’s paid traffic efforts, PowerFox generated over $5 million in additional revenue, maintaining top efficiency and profitability metrics.

This experience was eye-opening for Rus and Tim. It showed them the potential of using their media buying expertise for their own direct-to-consumer (DTC) offers and funnels. It also gave them a taste of the satisfaction that came from being true partners in a brand’s success, rather than just hired help—a feeling they wanted to experience repeatedly.

With newfound confidence and a desire to create something of their own, they set out to build their own DTC performance marketing powerhouse under the PowerFox umbrella. This journey would lead them to even greater success and fulfillment than they had ever imagined when they first started.

Q and A with Ruslan Fedchenko

Q: How did you and Tim get started in internet marketing and affiliate marketing? What were the key milestones and challenges in growing your business to where it is today?

A: So, I moved from Ukraine to the U.S. about 4 years ago to work on a startup. We put a couple of million into it, but after 7 months, it just didn't pan out. The main investor told me he had an opportunity in online marketing, so I figured, why not? I was already here, so I decided to give it a shot. I started from scratch, and Tim was the second person to join me.

Man, that first year was brutal. We were losing money constantly and were in the red for over a year. We were almost ready to give up entirely. But then we found Tyler’s podcast and his course, and that was a game changer. We started making some profit and thought, okay, let’s scale this team up.

We went from 2 people to 7, and it completely failed. Back down to 2. Then up to 10, then back to 5. It was a freakin’ rollercoaster. But now we’ve got 13 people and did $12M last year. This year, the goal is $50M, and we’re off to a great start, but honestly, there’s no clear roadmap. We’re constantly hitting challenges and just taking it one step at a time.

Last year was our biggest year ever, and I’m not even totally sure how we got here. Every time you add someone new to the team, you wonder if you’re ready for it and if you can sustain it. If that person doesn’t work out, you realize you’re affecting their life too, which adds pressure.

But yeah, the key things were struggling hard that first year until we found some info that actually helped us start making money. Then it was a painful process of scaling up and down, making mistakes, and learning from them. The number one thing is just don’t give up. Take it day by day and know you’ll figure it out eventually. But it definitely ain’t easy.

Q: You originally reached out to Tyler about buying a bootleg version of his course for cheap. How did that initial interaction turn into the relationship you have today?

A: Yeah, so I straight up slid into Tyler’s DMs back in the day like, “Yo, why would I buy your course from you when I could just get it from some other guy for 20 bucks?” And Tyler, man, he just hits me back with, “I don’t care, bro, do what you want.”

But the way he said it, just real and nonchalant, made me think, huh, this dude keeps it real. I wanna build with him. So I ended up buying his actual course for a grand, which at the time was a huge amount for me.

What I didn’t know was that behind the scenes, Tyler was heated like, “I put my blood, sweat, and tears into this course and this dude Rus is out here just trying to jack it.” He was wondering why I even bothered asking him about it. But he told me he’s glad I ended up buying it for real because not only did he get the money, but more importantly, that’s the only reason we became actual friends. Otherwise, he would have just written me off as some random guy.

So yeah, it started from me almost bootlegging his stuff to us being real deal homies because of how he came back at me just being straight up. That made me wanna rock with him for real. And he’s said he appreciates that because that’s what led to the relationship we have now.

Q: What are some of the key things you've learned about scaling a media buying team? What challenges have you faced and what's working well now?

A: One of the biggest challenges for us was trying to pass off hot campaigns to new media buyers and scale up quickly. We’d find a structure, a vertical, some angles that worked, and just assume we could hand that to a new buyer and they’d take the ball and run with it.

But nah, like 90% of the time, the campaign would just die overnight. Me and Tim would be back to square one, in the red, with these media buyers who couldn’t figure it out. And this happened over and over again. We’d build up, think we had the cheat codes, hire some people, then the numbers would just fall off a cliff.

After a while, we learned that even if we’re seeing crazy numbers, we can’t just scale up overnight. Now we make sure things are dialed in before we start trying to bring new people on. We’ve diversified too; we’re in way more verticals instead of going all-in on one thing.

Right now, we’ve got 8 media buyers, a developer, a TikTok guy, someone to work with actors for content, and some operations people. One dope thing we have is this in-house dashboard our developer made. It lets us see everyone’s stats, all the accounts, traffic sources, profitability—everything in real-time.

I’m still the one running the most traffic on the squad. It's a process trying to teach other people to do what's working. What we do now is try to crack open new verticals and angles first ourselves, then pass that off to the media buying team to expand on.

So if I had to sum it up, the key lessons were don’t scale too fast, make sure you can duplicate your success before hiring, diversify, and build out tools to make operations smoother. But trying to train other people to perform at the level I can on my own... man, that’s still an everyday struggle. We’re working on it though.

Q: What trends are you seeing in terms of profitable verticals and traffic sources? What new areas are you exploring?

A:  We’re still pushing affiliate offers heavy, and the numbers are still good, but I can’t lie, we’re starting to pivot more to the ecommerce side lately. We just locked in a deal with a $20M ecom brand to run their media buying. The way the deal is set up, if we really blow this company up, me and Tim are gonna get a piece of the pie, you feel me? So that’s one big new move we’re making.

We’re also trying to create our own ecom brands and products. I’ve seen some media buyers do wild numbers with their own products, even in some niches you wouldn’t expect. So we’re definitely trying to test that route too.

On the traffic side, we’ve built out a big TikTok operation to go with our main Facebook ads business.

Vertical-wise, I see the gambling space being big, especially outside the U.S. But stateside, you can only run gambling offers in a couple of states, and you need all these approvals, so the opportunity seems kinda limited.

The money verticals like debt consolidation and refi loans are interesting too, especially with how much debt people have right now and the housing market doing what it’s doing. Pharma is another industry I know has stupid money to spend on ads.

But real talk, I believe almost any vertical can make money if you have the right approach and you’re consistent with it. In affiliate marketing, people always try to chase the new hot offer. But I think the real play is building more direct, long-term partnerships with brands and monetizing traffic that way instead of just hopping from offer to offer.

So yeah, ecom, TikTok, gambling, financial services, pharma, building our own brands... those are all areas we’re looking at. But I really think there’s opportunity almost anywhere if you have the right model. The keys are being consistent, building real partnerships, and getting money off your traffic directly instead of just relying on affiliate offers.

Conclusion

As we’ve seen in this deep dive into their story, Rus and Tim’s journey to the top of affiliate marketing has been anything but typical or predictable.

From their accidental start as media buyers to their relentless quest for creative excellence and their bold move into e-commerce and performance marketing, they’ve consistently defied expectations and carved their own path to success.

But beyond the tactical insights and strategies we can learn from their experiences, the most powerful lesson is the importance of having the right mindset and habits for long-term success in this industry.

At the end of the day, what really sets PowerFox apart isn’t just their media buying skills or their talent for creating irresistible ads (though those are definitely important).

It’s their unwavering commitment to growth, their willingness to take calculated risks and learn from failures, and their deep love for the game itself—a passion that shines through in everything they do.

Now, if you’ll excuse me, I’ve got some campaigns to optimize and creative to split test. Until next time, keep crushing it out there, and remember: in this game, the rewards always go to the most persistent and adaptable among us.

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