I’ve been raving about marketers with zero integrity lately.
In particular, I would like to comment on the promising ROAS.
(And customers can be just as bad at this)
Let me make one thing clear:
No advertiser on this planet can take any offer and magically bring in ‘X ROAS’ with it.
(There may be a few, but I don’t know them. They’re probably too busy making weird banks, as they should be)
If you’re wondering what ROAS means, it stands for ‘Return on Ad Spend’. So, if you spend $500 on advertising and earn $1,000, that will be a 2:1 ROAS. Because you return double what you spent. simple math. So, what’s the problem?
The deal is that there are marketers who will promise 3x, 4x, 5x+ ROAS to their prospects just to close the deal.
There are also customers who demand an X amount of ROAS as well. And when I saw it came out quicker than any gym member New Year’s resolution.
Let’s run a little thought experiment to show you why this media buying ‘Bigfoot’ doesn’t exist.
Actually… let’s assume they did!
And I’ll show you why they never, in their right mind, work for anyone but themselves.
Here he is. It won’t be long.
Currently I can visit any affiliate site and choose from thousands of products that I want to sell and earn commissions.
Let’s choose Golf.
Niche golf is an $84 billion industry. This is a rabid marketplace full of hungry shoppers with money to spend. So much room for scale.
I’m looking at a $37 product, right now, where I can make 75 percent of every sale.
If someone could always get a 5:1 ROAS, no matter what, they should be getting that $37 sale for every $7.40 ad spend ($37 divided by 5).
Their cut will be $27.75.
So, minus their advertising spend, they would save $20.35 for each sale ($27.75 – $7.40 = $20.35).
Pure profit without the overhead, headaches, dealing with whining clients, or anything like that.
That’s a 2.75:1 ROAS selling products that are created, hosted, maintained and more by others.
Now, I don’t know about you but, if I could just put $1 into something and get $2.75 back, and not have to worry about ANYTHING business-wise, I would do it all day, every day.
There is no way on this planet that someone with this talent would sacrifice it to do it for someone else for a few thousand dollars a month. That would be really crazy.
The point is. The next time you hear a marketer say they can do it, ask why they can’t do it for themselves?
They’ll probably say “oh I don’t want to deal with payment processing, managing customers, support” and all that bullshit. In the scenario I just showed you, there is absolutely no responsibility other than sending traffic. The vendor handles everything else.
Anyway, I’ll stop nagging. Now I’m all laughing.