For consumer brands
Paid spend, creative and retention, measured on the return, not the reach.
Breakdowns
Revenue up, cash down
Breakdown. How a direct-to-consumer brand built one economic model, from ad spend to repeat revenue, and moved its spend to where it made money.
Tools
What a campaign really earns
Tool. Seven numbers in: the ROAS your platform shows next to what the campaign earns after discounts, product cost, fulfilment and returns.
When do you run out?
Tool. Five numbers in: your days of cover, when to place the next order, and how many units to order.
Playbooks
Judge every campaign by what it earns, not what it books
Playbook. One economic model for marketing, finance and operations, and six weekly steps that move spend from ROAS to contribution. An owner for each. Start it on Monday.
Answers
Is a 4x ROAS good?
Answer. It depends on what each order leaves after discounts, fees, product cost, shipping and returns. ROAS cannot tell you that. Contribution can.
Why did a record revenue month leave less cash?
Answer. Because revenue is not cash. Stock paid for in advance, discounts, refunds and low-margin products can all grow faster than the money coming in.
How do you work out contribution margin per order?
Answer. Start with what the customer paid, then take away every cost the order brings with it. What is left is contribution.
When should you reorder inventory?
Answer. When the days of stock you have left reach your supplier's lead time plus a safety buffer, counted with the marketing you have planned, not just last month's sales.
Which products should you stop advertising?
Answer. The ones that lose money after every cost, come back too often, or are about to run out. Put each product on a profit card and the list writes itself.
Templates
SKU profit card
Template. One card per product: gross margin, contribution, return rate, the role it plays and what to do about it. Copy it and fill in your own numbers.
Weekly commercial review
Template. One meeting where marketing, finance, operations and support read the same numbers and decide together. The agenda, the sheet and the decisions log.
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