Facebook, google ads are going to get increasingly more expensive.
With acquisition costs increasing overtime, the costs to run a business increases and the margins thin out.
So how do small entrepreneurs like us dare to even come in the space and compete with the big dogs, since everybody is using the same marketing channels?
– Create better offers than everybody else
– Increase your AOV so you can extend your LTV and you’re resistant to ad costs
-Provide more value in order to be able to charge a higher price, better engineering creates superior products and thus higher prices
Costs are no way going to go down, so its time for you to adapt.
With the market being more sophisticated with more advertisers, the companies that will dominate will be the ones that know their lifetime value and be able to spend more than the rest of their competitors to grow faster.