The Andrew Faris Podcast

This episode covers topics such as subscription e-commerce success, customer retention through product experience, strategic pricing, testing and adapting, data-driven decision making, maximizing platform usage for scaling a business, and the value of generosity and thoughtfulness in creating value.

If you think forecasting is primarily about inventory planning, think again. Taken seriously, forecasting forces you to stare your business's financials in the face so you can design your PNL for profit. That makes it a fundamental skill in operating an ecommerce brand. In today's episode I make the case for forecasting as a key step in designing your PNL for profit, then planning, executing, and tracking towards that profit design. SUBSCRIBE ON YOUTUBE The Andrew Faris Podcast is now available on ⁠⁠YouTube⁠⁠ at www.youtube.com/@andrewfarispodcast. EPISODE HIGHLIGHTS [00:00:51] Forecasting provides clarity for profit. [00:08:48] Forecasting helps understand business performance. [00:10:01] Forecasting helps control costs. [00:14:33] Forecast Opex for scalable growth. [00:18:44] Forecast your business for clarity. 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. RESOURCES REFERENCED IN THIS EPISODE The Lightspeed Cohort Forecasting Model Dave Rekuc's CXL Forecasting Course 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

Dave Rekuc is the current President & COO at Bambu Earth, the skincare brand that 4x400 contracted to focus on. He's one of the smartest guys in ecommerce, especially when it comes to thinking through the financial mechanics of running an ecom brand. In this wide-ranging episode, Dave and I talk about his recent bout with testicular cancer, why he was taking work calls during chemo sessions, what makes Bambu Earth such a good business, and how he and his team have engineered their supply chain for both scale and cash. This is one of those episode you're guaranteed to learn from. EPISODE HIGHLIGHTS [00:03:56] Life priorities & Dave's cancer [00:04:56] Work can be enjoyable and addictive. [00:10:09] High margin, stable e-commerce brand. [00:15:28] Lean in-house production improves cash flow. [00:19:36] Customer acquisition impacts LTV. [00:27:21] Maximize reach with varied offers. [00:29:30] Focus on margin extraction per thousand impressions. [00:35:52] Understanding customer spending habits. [00:39:21] LTV businesses require cash management. [00:43:11] Working capital is important for cash flow management. [00:48:28] Consider individual goals and abilities. 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 DAVE Work Dave on Twitter: @daverekuc 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

When Gregg Carey hired Lara Guevara to lead operations and supply chain for his ecommerce brand, Section 119, it changed the trajectories of both of their careers. That's because Lara is not only a killer ecom professional; it's also because she lives in the Philippines, and their partnership at Section 119 was a light bulb moment that led to the founding of More Staffing, a staffing agency that connects Filipino ecom talent like Lara with other ecom operators in the U.S. and elsewhere. In fact, saying that this partnership changed their careers might be putting it lightly. Lara is now the CEO of More Staffing and credits her work as a remote employee with a U.S. based company as getting her and her family through her cancer diagnosis and treatments. More Staffing is my current podcast sponsor, and this interview is sponsored. But don't let that stop you from listening: I only take sponsored interviews if I think the content can actually be good, and this did not disappoint. We spent most of our time talking about what remote employment in the Philippines is like from the perspective of actual Filipinos. It was enlightening for me, and it will be for you too. 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. EPISODE HIGHLIGHTS [00:02:46] Filipino employees have good English. [00:09:44] Outsourcing talent from the Philippines. [00:11:25] Higher pay attracts quality talent. [00:18:05] Remote work requires effective processes. [00:24:40] Outsourcing to Philippines for cost-effective growth. [00:28:05] Value in understanding client needs. [00:31:35] Expanding services to support clients. [00:36:49] Outsourcing e-commerce talent to the Philippines. PREVIOUS EPISODE MENTIONED: "Gregg Carey's Business Was Transformed By Employees In The Philippines" (⁠Apple⁠, ⁠Spotify⁠) 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

It's one of the most common questions I get: "I love the idea of Bid Caps, but every time I try to use them, they just don't spend as much as I want them to. How come?" There are a lot of potential answers, and today on the show, I've got 7 of them for you. SUBSCRIBE ON YOUTUBE The Andrew Faris Podcast is now available on ⁠YouTube⁠ at www.youtube.com/@andrewfarispodcast. EPISODE HIGHLIGHTS [00:02:40] Bid caps are spending just not as much as you'd want. [00:05:37] Your perfomance isnt good enough. [00:08:05] Bid caps set too low.  [00:12:10] Optimization & attribution settings wrong. [00:17:20] Not generating enough conversions relative to your spend. [00:19:52] Using your bid caps at the "bottom" of your auto bids. [00:22:46] Less available options at your price today. 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. PREVIOUS EPISODE MENTIONED: "The Hidden Place Your Business Is Losing TONS Of Money" (Apple, Spotify) 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

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

Panagiota Hatzis is an HR & team leadership professional, the founder of Kati Kalo consulting, and the former VP of Differentiation (a twist on HR) & partner at Common Thread Collective, where we used to be colleagues. I had Panagiota on a couple months ago to talk through how to scale a team with operational intelligence. Which got me thinking: as I start to add employees, what if I used Panagiota sooner than later to help me build out the operational infrastructure of AJF Growth? Things like how we use our tech stack, what my interview process should look like, what needs to be in my handbook, and how I should onboard. About two weeks into the month-long engagement, I was blown away. I quickly realized that hiring Panagiota as early in my process as I did was some of the best money I could possibly spend as I look towards the future of AJF Growth. So on this episode, I'm telling you why I came to that conclusion by bringing Panagiota back on the pod to show you everything she built for me. Want to understand what makes for great system-building for your team? Watch and learn from Panagiota. IMPORTANT NOTE There is a lot of screensharing in this episode. To get the best experience, watch it on YouTube. EPISODE HIGHLIGHTS [00:00:00] Building a foundation for scaling. [00:04:33] Take care of your people. [00:09:18] Clear expectations prevent misunderstandings. [00:13:34] Importance of clear system use. [00:18:38] Establish clear communication guidelines. [00:24:30] Using Asana for project management. [00:27:37] Onboarding is critical for retention. [00:31:53] Prioritize intentional onboarding for success. [00:36:48] Setting up a solid foundation. [00:41:00] Set clear expectations for success. [00:45:16] Structured hiring process is crucial. [00:52:48] Intent and impact must align. [00:55:21] Build infrastructure and seek coaching. 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. EPISODES REFERENCED IN THIS SHOW "Panagiota Hatzis Knows How To Scale" (Apple, Spotify) FOLLOW UP WITH PANAGIOTA Work With Kati Kalo Consulting: www.katikalo.co Follow Panagiota on LinkedIn: https://www.linkedin.com/in/panagiota-hatzis-ph/ Follow Panagiota on Twitter: www.twitter.com/katikaloco 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

Here's a conversation that everyone in DTC has had too many times: Agency: "What's your ROAS target?" Brand: "Well, what's a good ROAS on Meta?" That conversation is broken on both sides. Great agencies help brands determine that answer; great brands know it isn't as simple as that. In this episode, I'm helping you answer this question the only way you really can: with a hard look at your unit economics and customer lifetime value. IMPORTANT NEWS! The Andrew Faris Podcast is now available on YouTube! If you prefer to watch your podcasts, ⁠click here⁠ or head to www.youtube.com/@andrewfarispodcast to visit the AFP channel and subscribe. EPISODE HIGHLIGHTS [00:00:11] Determining target is crucial. [00:04:33] ROAS target depends on CAC. [00:10:09] Profitable ecommerce: first order profitability. [00:14:06] Focus on first purchase unit economics. [00:18:51] LTV affects target setting strategy. [00:23:51] Forecast LTV for business success. [00:28:04] No takeaway. 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. EPISODES REFERENCED IN THIS SHOW "With $10M In Revenue And $0 In Ad Spend, Isaac Medeiros Is In A Class Of His Own" (⁠Apple⁠, ⁠Spotify⁠) OTHER LINKS FROM THIS SHOW The Lightspeed Ecommerce Forecasting Model 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

There once was a time when being a great media buyer was all about the ability to allocate budget, target customers effectively, and analyze & optimize the performance of each ad in the account. Those days are behind us. Which raises a question: what do media buyers even do anymore? Well, they still do a lot, and Andrew maintains that media buying is actually harder now than it has ever been. In this episode, Andrew explains the foundation of great media buying today by highlighting the #1 skill from which all other skills flow. IMPORTANT NEWS! The Andrew Faris Podcast is now available on YouTube! If you prefer to watch your podcasts, click here or head to www.youtube.com/@andrewfarispodcast to visit the AFP channel and subscribe. EPISODES REFERENCED IN THIS SHOW "The Definitive Case For Cost Controls" (Apple, Spotify) "4 Media Buying Rules Most People Get Wrong On Meta" (Apple, Spotify) 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

Everything was going great for Bobbie Baby Co: the venture-backed startup disrupted a duopoly in the super-highly regulated category of baby formula and exploded to over $100m in revenue in two years, due in part to the leadership of this episode's super talented guest, Bobbie's VP of Growth (and former Director of Strategy at Common Thread Collective), Cherene Aubert. But then the baby formula shortage happened, and as she likes to joke, Cherene's job pivoted to being the VP of "Slowth." Customer acquisition had to cease. Existing subscribers were taken care of first. And everyone waited for the supply chain to recover. On today episode, Andrew and Cherene talk about what makes Bobbie such a great business, how to think about LTV and intelligent cohort forecasting, and why Bobbie should consider influencer deals with Elon Musk and Nick Cannon. EPISODE HIGHLIGHTS [00:02:35] Infant formula industry pivot.  [00:03:37] Supply chain challenges.  [00:08:03] Prioritizing existing customers.  [00:11:29] Marketing to communities with more babies.  [00:14:23] DTC growth strategies. [00:19:02] European vs US formula regulations. [00:21:26] Authenticity and differentiation in branding.  [00:24:36] Retention and product quality.  [00:29:25] LTV to CAC metric.  [00:30:39] Forecasting on a three-year timeline.  [00:34:49] Growth tactics for success.  [00:39:01] Customer journey and marketing.  [00:41:00] SEO beyond article writing.  [00:44:40] Testing pricing and shipping.  [00:47:58] Four P's of growth.  EPISODE SPONSOR Visit Settle at ⁠www.settle.com/andrewfaris⁠ for a complete platform to manage Bill Pay/AP with fast access to extended payment terms at competitive rates and no personal guarantee. PREVIOUS EPISODE MENTIONED IN THIS SHOW BFCM 5: Cherene Aubert From Bobbie Baby (Apple, Spotify) FOLLOW UP WITH CHERENE Book Cherene on MentorPass Follow Cherene On Twitter: @ChereneAubert 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