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Spending more on ads will increase revenues, but what about profits?

With scale, comes higher acquisition cost, operational cost, and unseen expenses

And, I’ve seen businesses crumble when they try to scale without healthy profits

With newer algorithm updates, advertisers are having lesser control

This means it’s only going to get tougher to reduce your customer acquisition cost with time

So, losing your sleep over increasing costs surely may benefit your chemist, but not you!

Instead, focus on these 2 variables, often less talked about

Which have impacted our client’s businesses massively

that is, Average Order Value (AOV) and Repeat Customer Rate

The above two variables impact your profits more than the entire businesses revenue

When you manage to increase the above two variables,

for the same cost per acquisition $X,

𝗬𝗼𝘂 𝗰𝗮𝗻 𝗺𝗮𝗸𝗲 𝘆𝗼𝘂𝗿 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝘀𝗽𝗲𝗻𝗱 𝗺𝗼𝗿𝗲, 𝗮𝗻𝗱 𝗺𝗼𝗿𝗲 𝗼𝗳𝘁𝗲𝗻 𝘄𝗶𝘁𝗵 𝘆𝗼𝘂

The best part is, these extra $$ you make, comes at a negligible cost

Making the ROI of your efforts incredibly high

on February 5, 2022
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    One experience I can share is that twitter ads did not work for me at all. I published a Udemy course & tried twitter promotion to bump up sales.

    Ended up spending $120 for a single day of marketing and got 3 people to sign up from there (~$27 in revenue).

    I feel like twitter is a great marketing platform if you build an audience and gain organic marketing there, but not if you have 0 followers and want to advertise there.

  2. 1

    These two variables results in customer lifetime value (cltv), which can be increased by others variables as well, so I think that just focusing on cltv is enough.

    Then you can judge any acquisition channel by calculating cltv/cac.