Why Your Paid Ads Stop Scaling

Hello, hello. >> Hey Liz, what's up? >> I'm good. How are you? >> Excellent. You're on Hermosi Hotline. So, you've got monthly revenue $600,000 a month. Congratulations. Badass. >> Thank you. >> You're welcome. Rich, you got to buy me some jewelry from from Junior. All right. Um okay, ad spend is 150,000 a month.

Okay, little high there. Got it. Um all right, what are your margins right now? They didn't ask that, but what are your margins? >> Well, before we started so I've been preparing for a million a month for the last 3 months. And so I started building the fulfillment team. Um and in the last 3 months, my margins

have been 25%. >> Okay. >> But before that, it was 45%. >> Yeah, got it. >> So, in the last 3 months, I've been trying to scale, build up the team, try to spend more on ads, have them managed. >> Mhm. Got it. >> So, that's it. >> Okay, industry is marketing automation.

Okay. So, who's the uh who's the target >> ManyChat funnels. >> Of ManyChat funnels. Okay, got it. So, thank you. Makes it easier for me. Okay. ManyChat funnels. Okay, great. Um and then your offer is it's for e-commerce brands. Okay, cool. And they got to be doing over 10,000 sorry, 25,000 dollars a month

um in spend. That's their requirements. Okay. >> Yes. >> 25K a month. Okay, what's your what's your price? >> 6K a month. >> 6K a month. Okay. 6K per month price. What's your churn right now? >> Between 5 to 10%. >> Mhm. Okay. Um okay, so 5 to 10% churn. Let's just use 10% to keep it simple. So, 60K. What

are what's gross profit on the on the service of 6K a month? >> Um well, we were breaking even in month one and then we started to profit in the middle of month two. >> No, but that that takes into cost of acquisition. I'm saying what are gross profits on the service? So, how much does it