$120K a Month In Revenue BUT Super Unprofitable to Cold Traffic…. Sound Familiar?

We just brought on a new client this week that runs a supplement brand doing about $120K in monthly revenue. 

They have a phenomenal brand, a product their customers absolutely love, a website that is converting high, and a repeat customer rate of around 80% BUT they are not profitable to cold traffic.

Which puts a huge roadblock in front of them when it comes to scaling their brand. Furthermore explaining why they have never been able to break through to multi 6 figure revenue months.

Read More: Squeezing Revenue Out of Q2 eCom Holidays

Their retargeting ads are very profitable but they are nowhere near breakeven when it comes to prospecting or cold traffic ads. To the point, they had fully turned off ALL prospecting ads as they struggled to make any sales.

After a 2 hour call with myself, we identified the major reasons their cold traffic ads were struggling and we put together a clear action plan to get prospecting profitable that will allow them to really scale the brand up.

Here were the major problems:

  1. Their prospecting ad creatives did not speak to any problems or pain points their customers were experiencing that would make them want to buy their product
  2. Their prospecting ads did not highlight the key benefits the product would deliver to the customer
  3. Their top-of-funnel ads did not build any trust with these new potential customers – there were no elements of social proof, reviews, or authority.
  4. The messaging of the prospecting ads did not align with the people seeing the ads
  5. They are running the exact same ads to retargeting as their top cold traffic ads. 

When we had a close look at their ads library I said these exact words to them.

“You are literally ONLY showing your product to people and expecting them to buy. Have a look at this ad right here, would you buy from this ad if you came across it for the first time? There is nothing about it that gives someone a REASON TO BUY the product, hence why no one does buy from these cold traffic ads”

The extraordinary thing about this brand is that they have such good retention and loyalty from their customers that when they do bring on new customers they are very profitable because these customers buy from them again and again and they have a great lifetime value.

They are simply lacking an effective top of the funnel / prospecting / cold traffic strategy to bring on new customers profitability. This is an all too common problem I see with brands. 

I want you to remember this statement and engrave it in your brain.

“If you are unprofitable to cold traffic you cannot scale your Business” 

We are not starting with this client for a few more weeks as we currently have a waitlist to get started with us BUT once we fix their cold traffic issues… the sky’s the limit to how far we can scale their brand.

If you guys reading this have a great product, a great brand, very solid retention, and repeat business BUT cannot get profitable to cold traffic, let’s book in a chat and I will walk you through exactly how your brand can become profitable and scale to the moon.

You can book here: https://dimniko.com/msp-apply

Additional Resources

eCommerce Titans Podcast

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