The Inverse Relationship Between Spend and Profitability

I'm convinced most ecommerce brands have a massive cost center that they have no idea exists. In fact, they probably think it's a profit-center.

In this episode, I explain how deeply understanding the value each dollar your ads are creating saves you from acquiring mass amounts of unprofitable customers–and how Meta Ads has a tool built perfectly to solve this problem without you ever having to think about it again.

IMPORTANT NOTE

The Andrew Faris Podcast is now available on YouTube. For episodes like this one that have a screenshare, that's the best place to listen & watch.

EPISODE HIGHLIGHTS

• [00:00:21] Hidden cost center in advertising.
• [00:05:30] Threshold ROAS determines profitability.
• [00:10:14] Incremental ROAS is crucial.
• [00:18:30] Use bid caps for profitability.
• [00:23:08] Is this the reason your bid caps don't work?

EPISODE SPONSOR

Virtual assistants can be helpful. Virtual professionals can transform your business. Get connected to incredible ecommerce talent from the Philippines with More Staffing by visiting ⁠⁠www.morenow.co⁠⁠.

FOLLOW UP WITH ANDREW

• Follow Andrew on Twitter: ⁠⁠⁠⁠⁠⁠⁠⁠⁠@andrewjfaris⁠⁠⁠⁠⁠⁠⁠⁠⁠
• Email Andrew: podcast@ajfgrowth.com
• Work with Andrew: ⁠⁠⁠⁠⁠⁠⁠⁠⁠www.ajfgrowth.com⁠⁠⁠⁠⁠⁠⁠⁠⁠

EPISODE MUSIC

• Music Intro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠Tell Me Mama⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means
• Music Outro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠Rusty Little Scissors⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means