From $50K to $1M with Facebook Ads: Why ROAS is Holding You Back, The Power of PSM to Scale Business

👉 Apply for the Meta MBA - https://www.disrupterschool.com/MBA?website=Legacy%20YT%20Video --- The Real Blueprint for Scaling Your Business: Forget ROAS, Focus on PSM Hello, savvy entrepreneurs! Today, we're diving into the nitty-gritty of scaling your business. Forget about ROAS (Return on Ad Spend) and all the other buzzwords that make you feel like you're in a never-ending episode of "Shark Tank." We're talking about Profitable Scaling Margin (PSM), the metric that will revolutionize how you think about growth. ► Education Resources - The Facebook Ads MBA Program: https://bit.ly/MBASignUpLink - Predictable Profits Scaling Blueprint - www.disrupterschool.com/PredictableProfitScalingBlueprint ► Connect With Me On Other Platforms - Twitter: https://twitter.com/CTtheDisrupter - Instagram: https://instagram.com/CTtheDisrupter - LinkedIn: https://www.linkedin.com/in/charleytichenoriv The Problem with ROAS First, let's debunk the myth of ROAS. Many people think it's the end-all-be-all of advertising metrics. But here's the kicker: ROAS is just a fraction. The numerator is revenue, and the denominator is today's ad spend. It doesn't account for repeat purchases, multiple channels, or future revenue. It's a snapshot, not a movie. And let's be honest, who wants to watch a movie that's just one frame? Introducing Profitable Scaling Margin (PSM) Now, let's talk about the game-changer: PSM. Simply put, PSM is the Lifetime Value (LTV) of a customer divided by the sum of the Cost Per Acquisition (CPA) and Cost of Goods Sold (COGS), multiplied by the average number of purchases. It's a holistic view of your business, taking into account not just the initial sale but the entire customer journey. Real-World Examples To make this more tangible, let's look at some real-world examples. Company A focused on ROAS and grew from $15 million to $100 million in 18 months. Impressive, right? But Company B, which focused on PSM, went from $50,000 a month to over a million a week in