What Does D Stand For In Math latest 2023

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The Great Facebook Ads ROAS Promise Paradox

I’ve been on a rant about marketers with no integrity lately.

Specifically, I want to comment on the promising ROAS.

(And customers can be just as bad about it)

Let me clarify one thing:

No advertiser on the planet can accept a given offer and magically bring ‘X ROAS’ with it.

(Maybe there are, but I don’t know them. They’re probably too busy doing creepy banking, like they should be)

In case you are wondering what ROAS stands for, it stands for “Return on Ad Spend”. So if you spend $500 on advertising and earn $1000, that would be a 2:1 ROAS. Because you returned twice as much as you spent. Simple math. So what’s the problem ?

The deal is that there are marketers who promise 3x, 4x, 5x + ROAS to their prospects just to close a deal.

There are also customers who also require X amount of ROAS. And when I see it bouncing back faster than a New Year’s resolution gym member.

Let’s do a little thought experiment to show you why this “Bigfoot” media buyer doesn’t exist.

In fact… suppose they do!

And I’m going to show you why they would never, in their right mind, work for anyone other than themselves.

Here is. It won’t take long.

Right now I can go to any affiliate site and choose from thousands of products that I would like to sell and earn a commission.

Let’s choose Golf.

The golf niche is an $84 billion industry. It’s a rabid market full of hungry buyers with cash to spend. So plenty of room to grow.

I see a $37 product right now where I can earn 75% of every sale.

If someone could consistently get a 5:1 ROAS no matter what, they would have to acquire that $37 sale for every $7.40 in ad spend ($37 divided by 5).

Their cut would be $27.75.

So, minus ad spend, they would keep $20.35 from each sale ($27.75 – $7.40 = $20.35).

Pure profit with no overhead, no headaches, no dealing with whiny customers or anything like that.

That’s a 2.75:1 ROAS selling a product someone else built, hosts, manages and everything else.

Now, I don’t know about you, but if I could put $1 into something and get $2.75 back, and not have to worry about NOTHING else commercially, I’d do it all day, every day.

There’s no way on the planet that someone with that talent would give it up to do it for someone else for a few thousand dollars a month. That would be absolutely crazy.

Point is. The next time you hear a marketer say they can do it, ask them why aren’t they just doing it for themselves?

They’ll probably say “oh, I don’t want to deal with payment processing, customer management, support” and all that bullshit. In the scenario I just showed you, there is no liability other than sending traffic. The seller takes care of everything else.

Anyway, I stop bitching. Now I’m all pissed off.

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