Funded, but Estimating a net LOSS
Posted: Fri May 26, 2023 2:48 am
We hired an ad agency to 1) test our product amongst the public through marketing and 2) build a lead list once we met the metrics that warranted giving our product a pass on the test phase. The numbers we saw from the ads were very promising compared to industry standards, and we were convinced we were onto something here.
Between the money shelled out to the marketing agency (name omitted intentionally) and the money spent on advertising, we knew we had to reach roughly 40k to break even (the rest being COGS).
Well, fast forward, and the email list that we had acquired has been dramatically underperforming. The only way (that we see it) to try and get to the breakeven number we need to be at is to invest in more ad spend, which we aren't seeing an ROI high enough right now to justify. The organic help we were getting from the platform seems to have tapered off a cliff.
The part that stings the most is not being certain WHY this has happened. Is it the assets we have created? The luck of the draw and lack of the algorithm swinging our way? The quality of the campaign layout? Reward tiers? We've sent our email list of 2k a survey and gotten a bleak response rate.
All in all, the whole experience has us questioning a lot of things about where we went wrong. What could we have done better? Do we give up hope and focus time elsewhere, or continue to push in other (free or very low spend) ways?
Open to any thoughts. Check out the campaign and let us know your thoughts.
https://www.kickstarter.com/projects/hi ... -hydration
Between the money shelled out to the marketing agency (name omitted intentionally) and the money spent on advertising, we knew we had to reach roughly 40k to break even (the rest being COGS).
Well, fast forward, and the email list that we had acquired has been dramatically underperforming. The only way (that we see it) to try and get to the breakeven number we need to be at is to invest in more ad spend, which we aren't seeing an ROI high enough right now to justify. The organic help we were getting from the platform seems to have tapered off a cliff.
The part that stings the most is not being certain WHY this has happened. Is it the assets we have created? The luck of the draw and lack of the algorithm swinging our way? The quality of the campaign layout? Reward tiers? We've sent our email list of 2k a survey and gotten a bleak response rate.
All in all, the whole experience has us questioning a lot of things about where we went wrong. What could we have done better? Do we give up hope and focus time elsewhere, or continue to push in other (free or very low spend) ways?
Open to any thoughts. Check out the campaign and let us know your thoughts.
https://www.kickstarter.com/projects/hi ... -hydration