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Episode description

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What is break-even ROAS and how do you use it with regular ROAS?

DTC POD: How The Best Brands Are Built

May 18, 2021•8 min•Ep 103•Transcript available on Metacast

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Episode description

“When we're talking about break-even ROAS, the real importance comes into mind when you're comparing it to your actual return on ad spend.” @JayAtSwpely #DTCPOD
“When the break-even ROAS number and the ROAS number are very close together, that means that you might have a better chance of profitability.” @JayAtSwpely #DTCPOD
“Discounts can be really helpful for achieving ROAS goals. But be careful because they can also increase what you need to break even.” @jadesai #DTCPOD
“Product customization or monogramming can help boost brand loyalty.” @jadesai94 #DTCPOD
“A lightly discounted bundle of complementary products can boost your average order value.” @jadesai94 #DTCPOD

We Speak About:

[00:57] Defining ROAS
[02:34] How to calculate your break-even ROAS
[04:34] The importance of discounts
[06:14] Tips to maximize your ROAS and reach your break-even

ROAS doesn’t always paint the full picture, so make sure you check break even ROAS too

When building a business, there are many strategies to measure success.

The strategy discussed in this episode is break-even ROAS, which gives a business an idea of what their margins are and return on dollars spent.

To make money you have to spend money, and it is important for businesses to measure costs against return value to examine how to maximize profits.

Stay tuned as we discuss how to calculate discounts into your break-even ROAS, and other techniques to increase returns on dollars spent.

If you’d like to learn more about Trend and our influencer marketing platform for influencers and brands visit trend.io. You can also follow us for tips on growing your following and running successful campaigns on Instagram and LinkedIn.

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