Most entrepreneurs are terrified of going negative on Day 1 ROAS. Yet when you run the actual math, in most cases (unless you have a terrible LTV), it actually makes more sense decreasing your Day 1 ROAS by increasing your CAC to get more volume.

In this episode I walk you through the math and explain exactly how to model out what would happen in YOUR business if you decided to increase CAC to get more volume.

In This Episode:

• Why ROAS only tells you part of the story, and which metric to base decisions on instead

• How to run the CAC math on your own numbers so you know which approach actually wins for your business

• The one ratio that determines whether going negative on Day 1 is a profit multiplier or a cash crisis

• The three numbers you need to track weekly to make this decision without a spreadsheet every time

Timestamps

0:00 - Why ROAS is the wrong metric

2:15 - The baseline assumptions

5:30 - Conservative approach: the math

9:00 - Aggressive approach: the math

14:20 - The LTV:CAC ratio

18:45 - How to run this for your business

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