Many small business owners take pride in saying they’ve never used ads, believing it proves their product is strong enough to succeed organically. Pat challenges this mindset, emphasizing that relying solely on organic social media growth is slow and limited.
Digital ads, when properly constructed and funded, can dramatically accelerate business growth by reaching thousands of ideal clients. Platforms like Facebook and Instagram are highly effective because they understand user behavior and can target ads precisely.
Pat recommends partnering with a skilled digital advertising expert and offers to provide referrals.
Cost Efficiency: Ads should be evaluated based on Customer Acquisition Cost (CAC). If the cost to acquire a customer is less than the profit or lifetime value of that customer, ads are worth running.
Example: If you profit $5 per product, spending $4.99 to acquire a customer is acceptable. Spending $8 for a $5 profit is not sustainable unless the customer makes repeat purchases.
Key Takeaways:
- Don’t be too proud to use ads—they’re a smart business tool.
- Know your CAC and customer lifetime value.
- Spend as much as you can affordably to grow your business.
- Partner with experts to run effective ad campaigns.