Most of you are sitting on a $10k /day product right now
You just don't know it because you're too scared to scale.
Here's how this EB member went from $300/day to $10,000/day and nearly killed the product before she got there:
She had a "Q4 prod" doing $300/day in january & assumed it was gonna be dead until next Q4
She was about to kill it and move to skincare or supps
Same shiny object syndrome as most in the space right now...
"MRR BrOoO"
I knew the product was a banger, it came from my validated product drops in EB
But the Q4 gifting angle was dead, what was converting in Q4 died out
She wasn't running a dead product though, she just had to pivot messaging
She went back to the foundations on the research
Rebuilt the avatar
Found the desire cluster that was still alive underneath the same product
Went deep into everything, understood exactly who their customer was...
Something most people completely miss when selling through a gifting angle in Q4 months
Came back to me at $2k/day
But this is where most people get stuck and stay stagnant
She posted in EB looking for advice on next steps
Stats at the time:
Daily spend: $1,200
BEROAS: 1.5
Avg net margin: 26%
Crying out to be scaled but was blind to it
Here's the key unlock I got her to understand that got her hitting 10k/days:
Margin to scale threshold
Net margin above 20% at your current ROAS = you're underscaling
Here's where most go wrong:
MISTAKE 1: Optimising for margin % instead of margin $
"BuT My ROAS droPped when I scALed"
Here's what to understand:
26% net on $1,200/day = $312 profit
15% net on $10k/day = $1,500 profit
You're nearly 5x more profitable at a "worse" ROAS
The % is a vanity metric. The $ is the only number that matters
MISTAKE 2: Setting a floor ROAS based on gut feel, not data
She was pausing every time ROAS hit 2.1 - that number had nothing to do with her actual margin
Her real floor was closer to 1.4
She had 50% more room to push up spend and scale
Leaving so much $$$ on the table
MISTAKE 3: Treating testing and scaling as the same
You should always be testing new creatives, that never stops. But testing and scaling are two separate things running at the same time.
Testing finds new winners. Scaling squeezes all the juice from existing ones
People get stuck in the phase of "I need more winning ads" before they can scale & it slows growth. Scale your winners now... test in parallel
Implementing all of the above allowed her to push spend with conviction
But the spend was only half of it
She asked the right question: why did this product convert in Q4 & who is buying it now?
The Q4 gifting angle worked because it was riding a specific desire. That desire doesn't exist in Q1 which is where the messaging has to shift to revive the product
Research uncovered what desire was still alive underneath the same product, then building out her new avatar & building angles around that
New desire, new avatar, new angles
Product didn't change, offer didn't change
Just learning what the market wanted in that moment and having the conviction to push spend once the numbers were aligned
That's how she went from $300/days in january to $10,000/days in march
The product was never the problem, just always comes down to your own execution
9/10 it's just a skill issue