Earlier this year, we almost walked away from a sales funnel we had spent over 18 months trying to perfect, but we just couldn't make profitable.
It was selling a new supplement we had invented, and while the website was creating customers, it was doing it at a loss.
Yes, for every $1 we put into ads, we were getting back about $0.40.
Not a good way to run a business long term.
We had tested and tried a LOT of things
Yet for some reason, we couldn't turn the corner on this one.
Conversions were good... cashflow was bad.
About that time I had a chance to talk to a few guys I knew who were crushing it in a very similar market.
I showed them what we were doing, what our conversions were, and why I was frustrated.
They came back with two questions.
First- How much does it cost you to acquire a customer.
Ha ha... this one I knew. :)
After watching Shark Tank for years, I knew this was a core metric that EVERYONE had to master, or they couldn't run a business.