Paid Advertising Is Not For Everyone

and, it's not your targeting that matters

Author

Avik Ghimire
March 28, 2024

Hey there,

Avik here from The Outbound Letter.

In today’s edition, you can expect to learn about:

  • Creating viral content

  • Why paid ads might not be for everyone

  • Why is cash flow a crucial metric

Insight Of The Week: Monthly Free Cash Flow (FCF) Is Crucial For Growth

Monthly Free Cash Flow(FCF) indicates the amount of cash generated by a company's operations after accounting for capital expenditures and other cash expenses.

For any B2B company, having a positive monthly FCF is very crucial. It shows the company's financial health and sustainability on a month-to-month basis.

This allows you to scale sustainably, handle more operations easily, re-invest back into growing faster, and, much, much more.

If you don’t already have a good FCF and you’re focused on other vanity metrics, stop what you’re doing and prioritize FCF.

So, you might have been planning to run ads straight from the get-go. Don’t get me wrong here, I am a huge advocate of using paid ads to validate anything faster in the market.

However, if the platforms deem you or what you are building not useful, you will suffocate.

A lot of people running ads don’t realize this and they lose all their money on ads without any return.

These platforms have introduced some regulations to make sure people are in check.

Outbound prospecting channels are being monitored. 

Google introduced strict rules against cold emails. LinkedIn and Meta are limiting and restricting the number of activities you can do on these platforms (for free).

Yet, people still consider advertising to be as easy as selecting a few interests, setting a higher budget, and clicking the buttons. Even, my 9-year-old nephew can do this.

The days of an unfair advantage for people with some media buying knowledge are gone. The competition today lies at the copywriting/content level.

Previously, you could easily buy ads and get impressions, and the ad platforms would keep serving ads as you spent money.

Today, you can’t just exist and outspend people to get your stuff out there.

So, how do you do this?

You have to create viral stuff to get reach and make a profit. When I say viral stuff, not a TikTok video dancing with your friends, that’s not what I mean here.

You focus on creating viral yet valuable stuff. This way you can reduce your CPMs and even get your CAC to zero in the long run.

You can become capital efficient, achieve explosive growth, find product market fit, and make a hilarious 50-100x ROI on your advertising using dynamic viral sales letters.

How Can I Help

If you like this read and are looking for additional help, there are a few ways we can do so:

  1. Subscribe to my YouTube

    • I’ll be posting a TON of valuable content on YouTube over the next few months. If you’re someone just getting started with outbound or an experienced one looking to level up, be sure to stay tuned.

  2. Connect with me on Linkedin for daily insights

  3. Book a discovery call - We’ll learn about your current situation and see if there’s a way we can partner.

or, so can just reply to this email.

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