Would you spend €200,000 per year on ads, if it made you €250,000 in revenue?
This largely depends on your margin.
But if it was big enough, most people would be willing to make that trade.
I know I was. It’s the standard playbook for one of my businesses. It sells digital products and the margins are close 95-99%.
Over the years I really became tired of it. And i’ve had problems putting my finger on exactly why this was happening.
All throughout your life, you have the choice to make things grow by giving it your energy (money, time, attention).
For example:
- Buying produce from a local regenerative farm
- Supporting that food brand the has amazing granola
But the same is true from a business perspective.
In the example above, I was left with €50,000, which you could say is nice.
But it also meant giving €200,000 to companies like Google and Meta, and with it the attention and power that comes along.
Then I realized that there are plenty of other options.
What if I started thinking about spending that €200,000 in a different way.
- What else could I do with this money that would also get me a similar return? Or even a lower but still acceptible return?
- Could I do something that would benetfit my customers?
- Or something that would help bring forward my company’s mission?
This also opened up some paralel about our current agricultural gridlock.
When farmers are paying ungodly sums to agribusinesses and banks, does this help bring forward the world they’d like to see tomorrow?
I realize that the margins are WAY different and I’m talking about this from a luxury position where I can afford to think about these questions and act upon it.
But still I think these are good questions!
I haven’t figured it out yet, but will let you know when I do 🙂
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