Because 99% of drop-shippers refuse to build a legit brand and give up when they can’t be first order profitable
Wait till they find out that AG1 is scaling at a near .8 ROAS
Crazy how many fashion brands are scared to run front end acquisition offers
The most common objection I've heard is "i dont want to lose margin"
But once you actually DO THE MATH, the upside of an irresistible acquisition offer massively outweighs the margin hit
So let’s do the mf math
Buy 1 Get 1 Free on Rings
No Offer:
Retail: $45
COGS: $5
Pick & Pack: $2.50
Transaction Fees (2.9% + $0.30): $1.61
Shipping: $5 (customer pays)
Total COGS: $9.11
Gross Profit: $35.89
Gross Margin: 79.76%
Now for the IAO.
We double COGS (free ring), slightly increase pick & pack (2 items), transaction fees stay the same (same retail), and shipping is covered by the customer.
BOGO Offer:
Retail: $45
COGS: $10
Pick & Pack: $3
Transaction Fees (2.9% + $0.30): $1.61
Shipping: $5.50 (customer pays)
Total COGS: $14.61
Gross Profit: $30.39
Gross Margin: 67.53%
That’s a 12.23% margin decrease while the customer is getting 2x the product....
Literally insane once you do the math lmaoo
ads is a game of making data driven decisions
organize data properly, track data properly, read data properly... make decisions properly
here's a screenshot of a sheet we made that we use for all of our clients to keep track of pretty much everything, aswell as track our MER and day to day profitability
why is this important?
1. media buying/customer acquisition needs to be aligned with your P&L
2. seeing your day to day profitibility in front of you let's you see exactly how your marketing efforts are performing
3. tracking with meta has dropped tremendously since 2021 so instead, tracking your overall MER allows for more sound decisions in the ad account
4. this helps you become even more of a necessity for your clients as your damn near doing their finances now lol
Changing the structure of our agency from mill house to a boutique style has literally been the best thing we could've ever done
6 months ago I was stressing about client acquisition at scale, trying to bring in as many clients as possible
Since the change, all that energy has been converted into only service delivery and how can we make as much money possible for our clients
Now we got clients breaking records, profiting 6 figures with healthy margin, and getting messages like the one below
2026 is about to be insane the agency but most importantly our clients
obviously 71k in a month isn’t anything to brag about BUT
A few months ago they applied to work with us… they were doing 5k/month at the time
we would pretty much never take on a client doing that low of volume but after looking at the brand we saw the long term potential so we decided to onboard them
from 5k/month to 71k/month, in just a couple months. Also, no special BFCM offers. Just brute force scaling
Our goal now, after looking at day over day profitability, MER and acquiring about 1200 new purchasing customers this month is to launch a new variant of the product which can easily be blasted towards email & sms subscribers (mostly already existing customers) for increase in LTV and again…. A new record high next month
All roads lead back to skill issue.
If you aren't where you want to be in business, it is 100% your fault and no one else's.
Your decisions got you to where you are today.
Be better.
Stop coping.
Skill issue.
super cool to see everything come into fruition and have the whole agency team come out to Miami
Everything I’ve built wouldn’t be doable without these boys. Especially @ashby_mayson
just some young kids hustling, providing the best service delivery you’ve ever seen and most importantly building a real company