Al escalar publicidad, el beneficio neto absoluto importa más que el ROAS o el margen porcentual

rorowaz and actually focus on volume of profit. Or would you like your four or five to go to a two or three but get three to five times as many sales? If you go from a two, if you go from a 4x rowaz to a two and you triple the sales volume, you make more money. Margins don't pay bills. you can't pay bills with margin. Um do I

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You can't pay your overhead with ROAS. Would you rather spend five grand a month at a five ROAS? Or would you rather spend $50,000 per month at a 3.5 ROAS? The only thing that matters is how much net cash that you have at the end of the month. They'll be like, yeah, my cost per book call is $180. And if I increase it any more, my ad spend, you know, the cost per call goes to about $210. But, you know, I don't want to go over $200 as a cost per call. It's an arbitrary limitation that you are planting on yourself that is actually holding you back. Even if some of your vanity metrics, your CPLs…

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um if you're getting a 3x ROAS on your Google Ads, if you could spend twice as much and your three goes to a two, you're not spending enough. 2x return on $2 on twice as much spend. 2x return on $2 is more money than a 3x return on $1. You need to be less efficient. You need to be more aggressive. You need to push for volume.

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That's how we're figuring this math. But your profit volume is purchase conversion value minus spend. Simple. If you don't know this number, how do you have any idea what's profitable or not? Well, you're looking at the row as of an ad. What's the scale of that? A percentage doesn't tell you an absolute value. Do you want the highest row as ads or do you want to make more money?

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And then it's just, well, crank wherever the allowable cost is higher. Because that's what's going to crank your ad spend as high as it can go. And you're generating volume of profit, not margin. Margins don't pay bills. Like you need actual money. So let's optimize for the most money. Which is also another reason why ROAS is a shit metric.

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want to get more profit what if we can transactions let's say we go from 100 to 150 what if what if in this example we're willing to get a 3.5 margin we went from 6,000 profit to 8,500 our allowable CPA went from $20 to what if we don't even need to get to a 3.5 anymore what if three is okay wow we're now making over 10 and a half th000 now our Blended CPA went from a 20 to a 26 oh my God the world's ending but we're making way more money I want you to start to really understand that profit margin and profit volume of very different things this is objectively worse on a contribution basis and…

300% Growth in 3 Months: The Math that Makes Money · 2024 · comprobar

as you scale your return on ad spend will decrease if my overall profit number not as a percentage as a number is significantly better. Much better to generate a 4x return on ad spend spending a million dollars a month than a 10x return on ad spend spending $10,000 a month. You make a lot more money at the lower return on ad spend number because you've achieved scale.

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is a bat is a lower profit margin result a bad thing you would you rather make would you rather get a 50 profit on a hundred Euro or a like 10 profit on a thousand Euro yeah like there's a volume game to be done here and if that 10 profited a thousand Euro also helped you get more data into the system so you got better at understanding how to get some of those customers to come back and you're improving the actual volume of customers to come back second

Ad Account Structure, KPIs and more · 2023 · comprobar

profit margin result a bad thing you would you rather make would you rather get a 50 profit on a hundred Euro or a like 10 profit on a thousand Euro yeah like there's a volume game to be done here and if that 10 profited a thousand Euro also helped you get more data into the system so you got better at understanding how to get some of those customers to come back and

Ad Account Structure, KPIs and more · 2023 · comprobar

lower profit margin result a bad thing you rather make would you rather get a 50% profit on A1 Euro or a like 10% profit on a, Euro yeah like there's a volume game to be done here and if that 10% profit at ,000 also helped you really it's a 10% profit on ,000 but actual volume of customers to come back a second and third time yeah and you're

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And the first one of these things that I really want to focus on is called profitable scaling margin. You focus on ROAS and MER. And you live in the daily results. First order profitability, profit margin and attribution. The honest truth is optimizing for the fun was only 50% of the gain. The other 50% is optimizing for the customer journey. You need to focus on profit volume so that you can grow the business. We need to get you from performance marketer to growth marketer. And the first part of this is you lack a customer acquisition flywheel. You've been told that you need to be first…

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Instead of making 25% profit on 2K a day, what if I can make 5% profit on like 20? Well, I'd much rather have a more profit volume. Like MER, ROAS, contribution margin, all look worse. Except my bank account looks phenomenally better.

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how much if you were spending $100 a day and getting a six row you're doing $600 a day in sales that's that ain't that much but if you were spending $10,000 a day and getting a two row ass and you're making $110,000 in sales a day that's a lot so would you rather a two row ass at $10,000 a day or a six at $100 a day you like the RO like it will go down when you spend more but you will make more way and it's just like a smaller piece of a much bigger pie tends to be way more valuable but yeah I think It

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scaling your budgets is very different than scaling your bank account getting better me is not the same thing as making more money having a higher contribution margin doesn't mean anything when it comes to the size of push down your CPA because remember last week we focused on why your cost cap is crushing your growth why focusing on the CPA or contribution margin or me is the reason you're not making nearly as much

I Tried Facebook Ads for 30 Days and Doubled My Profits · 2025 · comprobar

transaction now it's one thing to say well my row as is 10x awesome so you spend a dollar and you made 10 that that's a $9 profit fantastic is that scalable Is that real is 100% profit margin on $100 is 1% profit margin on a million margin isn't money okay we have to hear you say it with me margin isn't money 100% profit margin on 100 bucks is a $100 1% profit margin on a million is $10,000 a 100 bucks is 1% of 10,000 too you need to pay bills margin doesn't pay bills actual money pce bills so when you want to make a profit and scale your understanding how much profit you're actually making…

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into the breakdown effect and understand do you want the highest margin like no volume or do you want a 100% profit on $50 a day or do you want 10% profit on ,000 a day one of those is going to help you get people to buy a second time a lot faster and way more people to do it remember profit volume contribution margin cost caps are brand killer not

Can You REALLY Succeed with Facebook Ads in JUST 30 Days? · 2024 · comprobar

actually typically happens as you scale is your return on ad spend goes down because you go from advertising to those most keen people within your audience, the people that aren't quite as keen. should be, to sacrifice some return on ad spend for a better overall number. rather spend $1,000 a month on Google Ads and generate $10,000 in revenue? So, a 10x return on ad spend, or would you rather spend $100,000 a month on Google Ads and generate $500,000 in revenue? Right? With option two, that's a 5x return on ad spend. So, the return on ad spend is significantly worse. You've gone from a 10 to…

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ROAS is how much profit or credit for each sale can we give the marketer a channel? Profitable scaling margin is how much more money can we spend to acquire any transaction at a profit? In this case, the farmer can spend 17% more money to acquire each transaction in that customer journey and still make the same volume of profit. Margin isn't money. Volume of profit is money. 100% margin on $100 is $100 profit. 1% margin on $1,000,000 is $10,000 profit. Or do you want to make, do you want to have a 2x ROAS? Or do you want to make 100 times more money?

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Now, because we've 5X'd the volume of transactions, they're stoked if we can get them above a three. And they're making exponentially more money. The profit volume this month is greater than the revenue volume when we started. And when we started, they were making 10X their money back. Now, they're making about three and a quarter to four. And they're making so much more money. The profit volume. We are, he's looking at actual profit volume over expectation. And we are crushing profit margin, profit volume over expectation.

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300% now our Blended CPA are all in Omni Channel CPA went up by over 50% we went from a $20 CPA to a $31 CPA our contribution margin got 50% worse at the CPA level and we tripled our actual profit in the this if I'm allowed to get to a CPA of 31 instead of a 20 how much better will my bank account look instead of being scared that your CPM is rising or that your CPA is izing instead of being scared that your Facebook ad account vanity metrics look worse you could legitimately be excited that your bank account is getting doing we can have a CPA rise from $26 to 47 are me can go from a four to…

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So your argument was, listen, you actually need to scale in order to cover those costs instead of staying stagnant and contracting your ad spend. Exactly. And that's the counterintuitive approach because anyone who's run any kind of ads will think, oh, I need to scale back to get more profitable, to get a higher MER, to get a higher efficiency. But sometimes your efficiency can be too high. And now this is the explanation because you need margin dollars are more important than efficiency for the lifeblood of the business.

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But ultimately, I appreciate the fact that he's talking about volume and lower efficiency to get more money. I've never understood why people flex on their ROAS. I got a 5X ROAS. I'm like, homie, double your budget. If you can double your budget and come in at a three, you're just making more money.

If You Run Facebook Ads... ROAS Doesn't Matter in 2026. · 2026 · comprobar

that client spent over $100,000 at a 4x rorowaz. And they're like, well, you could do better. LIKE, WHY? WHY NOT DOUBLE THE SPEND AND TRY TO KEEP THE ROROWAZ over a three? If rorowaz is the goal, it sounds like you have way underlever the opportunity. Thanks for

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around aob what if we got 10% higher okay now we could spend 20% more and this is assuming a profit make it a two and then a 1.8 and then 1.6 and then let's call it a 1.5 here we still tripled the amount of profit in the business it's just lower number is your ceiling of how inefficient you can be because you've to fix it is by adding more budget but hey when you add more budget this number goes up so you

300% Growth in 3 Months: The Math that Makes Money · 2024 · comprobar

rate you're prioritizing a volume of transactions in the business volume of transactions is directly related to how much you can pay to get a sale and how much profit you get in actual money in your actual bank account me and volume of profit have sales on over 250% more ad spend my CPA could be over 200% worse my me could be half as much and the money in my bank account will be exponentially more what if the

300% Growth in 3 Months: The Math that Makes Money · 2024 · comprobar

what your volume of profit is what your bank account looks like I don't give a about your contribution margin I don't give a about your Raz your me none of that vanity metric nonsense stuff that performance marketers leverage to try to sound smart no what I care about is what does the bank account look like and if the volume of profit in the bank account has risen greater than the volume of spend you're making more money and if you have

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