I’ve had enough.
I am sick and tired of all these screenshot posts without any context.
– 1-day click
– 7-day conversion
– top 5 countries
– 3 ad sets per campaign
– $12 per ad set
– video ads 90%
– WC purchase
– Scaling: manual bidding and my best LLA’s
– Profit margin around 20-30%
Let me tell you this.
Revenue doesn’t say SHIT!
Show me your profits & then we can talk!
Actually, show me what you take home after taxes & then we can talk.
Don’t let a big revenue number to fool you.
Cause revenue doesn’t say SHIT!
If you say your profit margin is AROUND 20-30%, you have NO idea what’s going on in your business.
You are clueless.
An eCom store has so many expenses!
– Shopify monthly subscription
– Shopify apps
– Other SaaS – Clickfunnels, Manychat, Kartra
– Stripe fees
– PayPal fees
– Cost of goods
– Cost of FB ads
– Fulfillment center
– IG influencers
– Social security
– Internet access
– Rent and so many more!
Of course not all of the above applies to everyone but you get the picture.
What about fucking taxes? No one ever talks about fucking taxes!
Do you say you made $1,000,000 this year?
Cost of Goods : 25% – 30%
Cost of FB ads : 25% – 35%
Costs of running the business : 15% – 25%
Other bullshit /hiccups : 3% – 5%
Best case scenario?
You have a 32% gross profit.
Worst case scenario?
You have made a 5% gross profit.
The above are just estimates.
I personally know multiple companies that break even or lose money in the long run.
So let’s say that you are somewhere in the middle and you have a gross profit of 18%.
If you live in the States and pay taxes there, that’s 45%!
If you live in the Netherlands, taxes are 52%!
If you are unlucky like some and you live in Greece, you end up paying 58%!
So what does that leave you with?
Best case scenario?
You made a profit of $99,000.
That’s awesome if you want my opinion.
90% of the people in this world would kill for a profit like this.
But stop pretending you are a “7 figure marketer” when you 5 figures in profit.
I am not even going to go with the worst-case scenario…
PS Do your due diligence people. Be really REALLY careful who you follow and who you trust online.
There are a LOT of legit people.
Depesh Mandalia, Maxwell Finn, Tim Burd, Mohamed Ali Aguel, Nick Shackelford, Ben Malol, Dee Deng, Phil Kyprianou, Travis Petelle, Donald Wilson, Nishant Bhardwaj, Ricky Mataka, Matt Schmitt, Devin Zander, Russell Brunson, Frank Kern, Ryan Deiss James Van Elswyk James Beattie Sebastian Gomez, Tim Burd, Nicholas Kusmich, Brandon Stewart, Damien Coughlan, Peter Chan Jr., Nick Peroni and so many more that it would take the whole wall to write.
Follow these guys. Learn from them. You can also join my group: https://www.facebook.com/groups/eCommercelife/