That ROAS metric you love? It's garbage.

Hey there, it’s Patrick from TVG.

Let's talk about a metric that might be misleading you: ROAS.

It’s easy to fall in love with. It’s a simple number that feels good when it’s high.

But for a 7, 8, or 9-figure brand, it’s one of the most dangerous numbers you can focus on.

It tells you nothing about profit, nothing about new customers, and nothing about the actual health of your business.

It’s a vanity metric, and you’re too smart to be running your business on vanity.

We don’t do vanity metrics. We do profit.

The only number I want you to obsess over is your first-order contribution margin.

In plain English, it’s the cash you pocket from a brand new customer’s first purchase, after all the costs are paid.

If you don’t know that number, you don’t have a marketing plan. You have a very expensive hobby.

Your Actionable Insight:

This week, I want you to take ownership of your numbers. Stop asking about ROAS. Start asking about your Allowable CAC (Customer Acquisition Cost).

Here’s the simple math you need to have dialed in:

Average Order Value (AOV)

MINUS “Cost of Delivery” (COGS, shipping, fulfillment, payment fees, etc.)

= Your Contribution Margin

That final number is the absolute most you can spend to get a new customer without losing money. If you don’t know that number by heart, you’re flying blind.

Want us to run the numbers with you? It’s the first thing we do on a call. No fluff, no BS. Just the truth.

[Book a Call With Me Here]

Talk soon, Patrick O’Driscoll

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