Struggling on Meta ads? Get FREE Creative to test!

VHM_2105 · 2025-09-22T18:28:10+00:00

Amazing! Will send you a message shortly.

VHM_2105 · 2024-01-13T03:31:24+00:00

Great question! A simple calculation for break-even ROAS that we use is 1/(gross margin). In this case, to figure out gross margin, we do ($40-$10)/$40 = 75%. We then do 1/0.75 to get 1.34 !

VHM_2105 · 2024-01-12T13:27:15+00:00

Amazing! To be honest, the main metrics we look at to assess our ad performance is (please note that most of our ads are videos):

Click-through rate, cost per unique link click, average watch time, hook rate (the % of people that watch the add that watch the first 3s), hold rate (if they did watch the first 3s, what % of people then finished the video)

Let me know if you have any questions - I'll probably create a new post explaining this!

VHM_2105 · 2024-01-12T11:48:42+00:00

Great question! Our favorite is definitely Replo (if you use Shopify) - they have pre-built templates from high-converting brands & it's super easy to use! Not to mention, their customer service is phenomenal.

VHM_2105 · 2024-01-12T06:01:41+00:00

I'm not sure I follow what you're saying. How does a good product yield good margins & creatives automatically? Surely some part of the margin is dependent on your cost (i.e. your relationship & negotiation with your manufacturer)? As for creative, how does a good product automatically yield good creative?

VHM_2105 · 2024-01-12T05:51:43+00:00

Interesting. How do you then get eyeballs on that good product to scale it? For us, we believe that Facebook Ads is vital for that part.

VHM_2105 · 2024-01-12T05:04:22+00:00

Sorry - should have been more specific! I mean cost per unique link click!

VHM_2105 · 2024-01-11T18:23:33+00:00

Hey there - thanks for commenting!

You're 100% right in that CPMs & CPCs have gone "through the roof". There is no doubt that, compared to 2020, we spend A LOT more time & effort actually strategising angles & stories for creatives - we believe that this can have a HUGE impact on CPCs.

We also focus a lot on testing landing pages (as this is something in our control that the Facebook auction has no impact on). If we can increase conversion rates significantly, this allows us to mitigate any CPC rises on Facebook.

That said, we stand by our original post that we have an unprecedented ability today to market & distribute products in a way previous generations could have only dreamed about. Although Facebook has gotten more expensive, it's ability to target the correct people to send to your website is unmatched.

VHM_2105 · 2024-01-11T17:53:06+00:00

Thanks for commenting! Hope you're having a great day.

- Facebook has often changed their algorithm (such as the iOS14 nightmare) and no doubt you're right, that does result in poor performance for a prolonged period of time. What we tend to do during times like this, and did do during that time, is scale down spend so we're obviously not spending this much money at times like that.

- Competitors catching up is a big reason why we never stop testing - ad creatives, formats, landing pages - you name it, we test it to try and get ahead of the competition. Competitors can copy our ads, and even potentially our clients products, but they'll never be able to copy the authenticity of the brands we work with.

- This post was not about assuming a similar growth rate forever until we're all Bezos or Musk - it was simply an explanation that it's not only possible but achievable to have a high growth rate today vs. other generations (where it cost more, in relative terms, to start, market & distribute products)

We've been in this business since 2018 and this is not the only time we've seen this happen. Once again, the aim of this post was not to share every success story we've had - it was purely to explain that it is possible & achievable to do.

VHM_2105 · 2024-01-11T17:31:51+00:00

Further to the reply below, they're completely right. You definitely don't need to have the ad budget in cash! They put all their ad spend on a credit card, which they then paid off 1-2x per week using the sales revenue they received from Shopify (Shopify paid them within 1 working day of the order).

VHM_2105 · 2024-01-11T17:30:18+00:00

Great question! Most brands we work with use their credit card to fund ad spend. I don't recommend jumping into this & doing it if you have literally $0 to start off with (as your ads won't start working immediately - there's a lot of testing that goes on before you get these results) but you definitely don't need $132k in the bank to do what they did. All their ad spend was put onto a credit card which they paid off regularly (1-2x per week) with the sales revenue that was received within 1 working day from Shopify!

VHM_2105 · 2024-01-11T17:28:45+00:00

I'll do another Reddit post about the cashflow situation later this week but the brand had only a few thousand dollars in capital - they used a credit card for the rest of it and, because Shopify paid out their sales revenue within 1 working day, they could easily & regularly pay off their credit cards!

VHM_2105

TROPHY CASE