I see people ask this question a lot and want to answer with a quick story. Keep in mind the point is to share what's possible while setting realistic expectations. Just make sure you read through the end to set proper expectations.

Here's what happened...

A client recently came to us after starting a t-shirt and hat brand. They weren't sure how to promote but heard from a friend that we knew how to run ads for lifestyle brands so they reached out.

We started running ads and sales took off within 7 days. They've been running ads now for less than a month, and they went from $163 per day to $1156 per day while only spending $150/day on ads. In case it's not obvious, that's a really good return. ROAS is currently at 5.44 the last 7 days, while keeping in mind the ad spend is still low which means ROAS will come down as spend goes up.

Is this what you can always expect? The answer is no.

We've also worked on campaigns where brands spent $20k and didn't make that much money. Sales didn't quickly take off, and they didn't get a 5.44 ROAS.

What's the difference?

The difference is how much people like your stuff. If people really like your stuff, ads can help your brand take off. If people don't like your stuff, ads will be a really expensive way to find out people aren't really excited about what you're selling.

So, how do you know if people like your stuff?

The biggest key is your conversion rate. If your conversion rate is above 2% (this can go lower if you're AOV is higher) and your conversion rate stays above 2% when you run ads, then get ready for some magic to happen. If your conversion rate is below the threshold of where it needs for you to be profitable, then you'll end up spinning your wheels with ads.

So, what should you do? Here's what I recommend:

1. Pay attention to your conversion rate to see if there is a strong enough demand for what you're selling.

2. Run a test campaign of around $100-$150 per day to see how ads perform.

3. If ads do well, get ready to ramp up.

The main takeaway from this post is that your store may be ready to scale and you just don't know it. Our client could have thought that $163 per day was the best he could do and would have never known without testing ads.

On the flip side, if your store isn't strong, there isn't a magic ad button that will save your store. You first need strong products, and can then pour gas on the fire with the right ad campaigns.

Just don't make the mistake of thinking you have to "pay your dues" and work really hard to grow your brand. The right ads can help strong brands grow faster than they thought possible if you've got really strong products in place.

Let me know if you have questions about this, and I hope this post helps to set the right expectations while also showing what's possible.

i was thinking about a new revenue stream ,so yeah nothing original a themed website with merch .

anyway had a quick look at advertising and it just does not seem to add up ,unless i've got it wrong

bing $0.90 per click in my sector conversion rate 2.8% so back of the envelope calculation lets say 3 sales from every 100 customers cost me $90.00 and from 3 sales id be lucky to do $20.00 profit .

i guess you could build an audience using mail chimp but whatever that is not a viable business model ?