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Issue 124: turn negative ads into gold 💰

Issue 124: turn negative ads into gold 💰

+ what to do when costs are behaving badly

Did y’all see it in the last issue?

NEW STAT ATTACK section down there. 👇️ Voting is STILL OPEN on whether or not we want to keep this here on repeat or if it sucks wastewater and contributes nothing to these precious minutes when we spend time together in your inbox.

Vote on the new section down below! 🗳️

| TWEET OF THE WEEK

Did you know you can profit from your negative reviews?
— Jakub Szunyogh (@JakubSzunyogh)
6:46 PM • Jul 6, 2024

This is the first part of a three-part series on unit economics.

Costs Behaving Badly

This July series will focus on unit economics. Long-time readers will know that we tackled this topic piecemeal earlier in the life of CFO Secrets (before we adopted the series format).

So, this month we will go deeper into unit economics and their practical applications.

This week though, we will recap unit economics 101.

Let’s get into it:

What does unit economics mean?

The technical definition is the measurement of profit on a per-unit basis.

But I prefer to think about it more broadly than that…

Unit economics is the science of how your business makes money.

Why are unit economics important?

The best CEOs and CFOs I have worked with all had an incredible feel for the unit economics of their business. They could quickly (mentally) calculate what a new store, product launch, discount, new hire, etc. would mean for their business in $ and cents.

They didn’t put the whole business on standby, drowning in weeks of analysis to make 95% of their everyday decisions. They saved that resource for the more complex decisions.

Think of it like Daniel Kahneman’s System 1 thinking vs System 2. By making more everyday decisions from System 1, it gave System 2 more capacity to process harder problems.

The result of that is faster decision-making and better execution.

And you have heard me stress the importance of speed of execution in business success. It’s everything.

Finance’s role in unit economics

| YOUTUBE UNIVERSITY

Instantly Improve Your Meta Ad Conversions With These Creative Elements

| TOGETHER WITH SARAL

What do GymShark, Pura Vida, Olipop, and Obvi have in common? 🤔

They’re all over social media? Yes.

They’re highly successful? Yes.

They’re all leveraging the power of influencers? You bet they are.

Honestly? If you’re an e-commerce brand without an influencer marketing strategy, you're falling behind. Top brands are building communities of nano and micro influencers to drive revenue through organic content.

Why?

Brands need new, high-ROI acquisition channels beyond ads
Ads are expensive 🤑
A marketing channel you control is better than renting space from Meta

Investing in influencers = consistent flow of high-performing organic content, reducing ad production costs. Scale this, and you get hundreds of influencers promoting your brand for free. 🤯

But how can you manage it all?

SARAL makes it simple. It’s the easiest ‘all-in-one’ influencer marketing tool. Find, reach out, and manage influencers (everything you need to build an influencer program) in one place.

Best part? You can try SARAL for free →

| QUICK SHOTS

@jspujji: Simple Modern is AMAZING. + Founded ~ 10 years ago + Uphill battle vs. established brands like YETI and Stanley + Only sold on Amazon at first … Now…
Jon Derkits: This Amazon halo exists because consumers are…lazy creatures of habit.
@SeanEcom: Podcast advertising still the Wild West. One time we sponsored a sports podcast…
@codyplof: The problem with DTC Twitter as well …»
Ashvin Melwani: This was the biggest tip I saw in email marketing that changed my whole perspective on how to handle retention marketing

| HERE FOR THE MEMES

| AND IN OTHER NEWS…

US jobs growth in June beats expectations

US markets remain optimistic the Fed could start cutting rates later this year.

Gen Z’s enthusiasm for all things touchable is resurrecting the analog economy—and costing parents

Gen Zers are fueling record sales of CDs, LPs, concert tickets, books, and print magazines.

What Funko changed to push DTC sales and combat bots

Funko began its DTC sales in 2017. Now, a quarter of Funko sales are DTC, and the current trend indicates that's only growing.

Elephants, Michelin stars and Mughal jewels: Indian weddings are a $130 billion business | CNN Business

In less than a week, Anant Ambani, son of Indian billionaire Mukesh Ambani, will marry his girlfriend Radhika Merchant.

Saks Fifth Avenue parent HBC to acquire Neiman Marcus Group in $2.65 billion deal

The deal will establish Saks Global, which will include Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus' namesake department store chain and Bergdorf Goodman.

| GET LINKED

Youssef B. on LinkedIn: 99% of e-com landing pages suck because they don't follow this simple…

99% of e-com landing pages suck because they don’t follow this simple system. I’ve audited hundreds of brands; landing pages. Most of them are killing their scaling potential on paid ads by:

❌ Copying competitors' landing pages or “winning templates”
❌ Focusing too much on aesthetics (button colors, icons)
❌ Not testing enough page formats (sales pages, listicles, advertorials)
❌ Not creating compelling offers and upsells to raise AOV

If you’re a brand or marketer and relate to any of the above,

Here’s a powerful 5-step system to fix it👇

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| STAT ATTACK 👊

Yo! New section right here. You like? Wanna see more? Let us know 👍️ or 👎️

What do you think about Stat Attack?

Should we keep this section in the newsletter?

| YOU’RE HIRED

Brand

🆕 Ecommerce Manager/Director (Farmers Defense)
Creative & Content Marketing Manager (Ash & Erie)
Email & Ecom Marketing Manager (Ash & Erie)
Front-End Engineer (Neurohacker Collective)
Direct-to-Consumer Demand Planner (Beekman 1802)
Brand Manager (ResBiotic)

SaaS

Outbound Sales Director (Hyros)
Content Marketing Manager (Talkable)

Got a job you want us to list? Let us know.

| THE OUTRO

We’ll be back next week with the stunning conclusion about whether or not we’ll be keeping Stat Attack as a recurring section in this here newsletter.

Adios, buckaroos. 🤠

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