What does it look like to take a brand from scale up to exit
How does media buying change when your focus is no longer on the ego metrics of ROAS & MER…
And you start to focus on the business growth metrics of cash flow and incremental lift
Objectively speaking,
There is one product or offer or service that absolutely best meets your business objectives.
When we invest in places that are less productive for us…
We’re spending time and energy empowering liabilities to our success
What are you actually trying to do when spending money on Facebook ads?
Your job is almost never to spend X money & deliver Y ROAS
That might be the job description so that you don’t get fired
ROAS has almost nothing to do with the growth of any business
Even if every single, offer or service that you’re promoting comes in at a profit
That doesn’t mean that making less money in 1 place isn’t a liability…
when spending someplace else where the profit margin on that customer journey is a better fit for your business needs.
If you are running two or three offers…
Have you proven that your business is more successful when investing any money in the acquisition of customer journeys that are ultimately less desirable for your business?
The biggest value of the LTV, isn’t the profit margin that you get on a customer journey
It’s the additional cash flow that you are buying so that in the future you have more money every single day that doesn’t come from money you had to spend that day
It’s about farming for $
If the brand being promoted with Facebook ads claims to be bootstrapped & for that reason they have to be profitable at the front under their funnel
This means they haven’t been taught the finer points of cash flow and LTV
Future money is more important then profit margin today
Getting from start up to scale up and eventually exit requires the investment in, and development of, stable LTV acquisition.
Would you rather have more profit today or free money in a few days on every sale you make?
Are you sure you can get enough profit every single day?
Promoting multiple offers isn’t just a liability to the growth of your business, and the project ability of your cash flow…
Having a single offer also allows you to improve the customer journey with much higher speed and confidence.
Conversion rate
second purchase rate
& LTV
Even if you have to pay for a second or third purchase and some customer journey, all cash flow and profit is good
By no means is it unacceptable to pay for additional purchases in a customer journey…
It is extremely rare for any of these to cost as much as the first conversion
It should always be a priority of the acquisition and growth focused media buyer to prioritize future cash flow when choosing what to promote.
Brands that want to grow
Cannot rely purely on the efficiency of their salesman, when business model is infinitely more powerful
The bigger a brand gets, the less they are able to meet the needs of individual consumers.
This is the golden opportunity presented in the marketplace by establish the brands, that the best direct consumer businesses can take advantage of, especially in the upcoming recession!
There is a common saying that
“The riches are in the niches”
& that is not wrong
That niche based brand focus can easily deliver a 7 or 8 figure business…
Until you get to pushing 9figures, and often even we’ll past that, there is little need to try to appease a broader pool
Never forget why people buy from direct to consumer brands…
When you discount your product, when you try to compete on price, you are missing the point entirely…
In a way that will fundamentally cripple your unique selling proposition
You deserve to rely on value
Focus on it
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