2024.11.25 - Click Button Profit & Scale With Paid Ads

In my personal online business world… there was a major step forward with the accounting CPE business. I began running paid ads for it, and they have showed great traction. Direct response advertising has became my forte over the last 5 years as I have mostly left home service businesses and operated (very successfully) a lead/call gen business. I was happy to see the success carry over to ecommerce.

This was a huge step.

Running paid ads with a digital product I believe is about as close to printing money as you can get. If you can spend $50,000 / month running ads to generate $100,000 of revenue... you have a nice 50k profit (remember digital product has no cogs). The reality of that 100% return on ad spend (ROAS) does vary by industry and product but it is realistic. I achieve that 100% roas (effectively 2x) in my lead/call business at larger number numbers. I’m not sure if it will be achievable with the accounting cpe business. Still, assume the ROAS is only 20%. You spend $50,000 for $60,000 revenue. If you’re ‘hands off’, that is still a much higher return than any other investment. Of course you have to have the capital to fund that advertising, but you can say hello to credit card rewards.

Now here’s the best part, the results are instant. The scale is fast. The scale is high — just keep turning up the budget. The results are measurable. The results are sustainable.

Compare that to the organic/content/seo stuff. With this stuff you basically have to dump money into the hope that maybe one day you’ll get the organic traffic, and that the organic traffic will buy, but even if you get it working out well, it’s only as good as the next Google algo update. Even if you do everything right Google can still send you to zero.

For those reasons, I only buy and operate businesses that can operate sustainably with paid customer acquisition.