Essential advice to anyone who’s trying to start an ecom brand:

In the state of ecom right now you have 2 choices, high customer lifetime value, or high AOV.

You used to be able to sell 10 or 15 dollar products and get a 2 or 3 dollar CAC. Those days are gone.

As CAC continues to rise in order to be successful advertising a product the product needs to be high ticket or be something that lends itself to being purchased again. (Something that gets used up for example)

OR even better a combo of the two. This way you can spend a TON to acquire a customer and still be very profitable.

The best way to immediately increase your cltv? SUBSCRIPTIONS.

There is a reason why so much VC is being poured into subscription businesses right now. It’s because it changes the math on profitability entirely.

Say for example you get a 2x roas with paid ads. But now you launch a subscription where you automatically opt people into (Amazon and many other large companies do this)

Let’s say on average a customer stays for 3 months. Your roas is now 6x instead of 2x.

This is the best way to be extremely profitable.