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Is your ROAS target holding back growth?

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Most advertisers obsess over chasing sky-high ROAS—1000% or more—believing that anything less is a failure…

Of course, maximising returns is great for profitability, but it isn’t always the best approach for long-term growth. 

There are times when maintaining a slightly positive ROAS and ROI (100%+) is actually the smarter move, allowing you to reinvest revenue into acquiring more customers, building brand equity, and expanding your market share.

Instead of limiting your ad spend to only the highest-return campaigns, a strategic approach balances profitability with sustainable growth—ensuring your business scales without burning cash or stalling momentum.

The Key to Unlimited Ad Spend and Accelerated Long-Term Growth

Strategy 1: The Low-Cost Entry Funnel – Turning Small Sales into High-Ticket Customers

Allow us break break it down:

Suppose you’re selling high-end coffee machines, with an average sale price of $1,500. These aren’t impulse buys—customers research, compare and take time before committing. Given the cost of coffee these days – it’s no wonder they’re prepared to invest in a good at-home set-up!) But what the high price tag means, is that traditional online ads can get expensive, with a lot of budget spent on brand awareness rather than direct conversions.

Instead of relying solely on high-ticket sales, you introduce a low-cost, high-margin entry product—something under $100 that appeals to coffee enthusiasts. This could be premium coffee beans, a barista-style milk frother, or a high-end tamper. These are impulse buys that still attract the exact audience who would eventually buy a coffee machine. The coffee beans or the tamper are just a placeholder!

The Math Behind the Strategy

Let’s say you sell a premium coffee bean bundle for $50, and it costs $10 to source. If you run ads with a cost cap of $35 per conversion, you’re already making a small profit while acquiring an ideal customer.

Instead of spending money just for visibility, you’re getting paid to bring in potential customers. Over time, you nurture them through email and SMS marketing with coffee brewing tips, machine recommendations, and exclusive offers. When they’re ready to upgrade their setup, your brand is top of mind.

Strategy 2: Sustained Profitability – Maintaining 100%+ ROAS to Cover Ad Spend and Agency Fees

A key aspect of a self-funding ad strategy is consistently maintaining a positive ROAS, particularly during periods of growth. By ensuring your ads generate more revenue than they cost—even if just slightly above 100% ROI —you’re effectively gaining subscribers, leads, and a customer base at no net cost.

This approach works well during high-growth phases when scaling is a priority, but it’s also effective as an always-on strategy between sales cycles. For businesses using a high-low sales model (where larger purchases are less frequent), maintaining a self-sustaining ad budget keeps brand engagement high and ensures a steady stream of future buyers.

Additionally, factoring in agency fees within the ROAS target ensures long-term scalability without depleting marketing resources.

Why This Works

  1. Every ad dollar works twice – You acquire customers and get paid instead of just spending on exposure.
  2. It removes budget constraints – Since your ads pay for themselves, you can keep scaling indefinitely.
  3. It builds brand equity – Even those who don’t convert immediately now recognise and trust your brand.

Final Thought

This strategy isn’t just about squeezing the highest possible ROAS from every campaign—it’s about knowing when to prioritise growth over immediate returns.

By shifting focus from short-term profit to long-term scalability, businesses can build a self-sustaining marketing engine that consistently attracts new customers while paying for itself. 

Whether you’re selling high-ticket products, B2B services, or subscription-based offerings, leveraging a profitable entry-point product or lead magnet allows you to scale without exhausting ad budgets. The key is balance: maintaining a positive ROAS ensures sustainability while reinvesting in growth secures your business’s future.

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