Hey everyone, can't wait to share this Journey, and keep myself accountable and hopefully help the community a bit.
Background: I have worked on several eCommerce projects since starting 7-8 years ago, with varying levels of success. All in all through 3 projects I've pushed over $2m in gross sales, with countless failures along the way. This past year, I graduated college, and have decided to go all in on my dream, and reboot an old subscription box business idea I shelved two years back.
Long Term Goal: I am modeling my business after a company in an adjacent niche that has done 9 figures in lifetime revenue. I have started a company in this niche before, and have about 3000 units of branded inventory remaining, and solid digital assets/content built up over time, with a very high margin product. Acquisition channel will be paid ads on both Instagram Reels and TikTok. My conservative and highly attainable goal is $100k/m revenue by the end of 2024.
Initial Results: I have put most of March into this project about 3-4 days a week of work, and launched one Facebook ad with limited social proof, and only a single creative and audience. I am currently discounting month 1 of the subscription by 50% to increase initial sign ups, but will split test this at some point with no discount.
After this month I am incredibly happy with the results and the acquisition cost. Although month 1 is losing money, for example if I have a churn rate of 20% (ie. 20% of customers cancel/card declines each month) and gross margins on following months are 80% profit for this sample size of 11 the numbers would look as follows:
Month 1: $832 Loss
Month 2: $1,500 profit
Month 3: $1200 profit
Month 4: $960 profit
Month 5: $750 profit
Month 6: $600 profit.
6 Month Profit = $4,200 = $4,200/6 = $700/m average projected profit
Now, if we add a zero to the adspend number, and say we spend $20k/m down the line, and manage to scale perfectly and acquire 110 customers per month, then we would be adding about $20k/m in recurring subscriptions per month, and hit the $100k/m in revenue mark within 6 months of 10xing spending.
If anyone has any questions don't hesitate to ask, I'll answer everything I can.
Images:
Background: I have worked on several eCommerce projects since starting 7-8 years ago, with varying levels of success. All in all through 3 projects I've pushed over $2m in gross sales, with countless failures along the way. This past year, I graduated college, and have decided to go all in on my dream, and reboot an old subscription box business idea I shelved two years back.
Long Term Goal: I am modeling my business after a company in an adjacent niche that has done 9 figures in lifetime revenue. I have started a company in this niche before, and have about 3000 units of branded inventory remaining, and solid digital assets/content built up over time, with a very high margin product. Acquisition channel will be paid ads on both Instagram Reels and TikTok. My conservative and highly attainable goal is $100k/m revenue by the end of 2024.
Initial Results: I have put most of March into this project about 3-4 days a week of work, and launched one Facebook ad with limited social proof, and only a single creative and audience. I am currently discounting month 1 of the subscription by 50% to increase initial sign ups, but will split test this at some point with no discount.
- Adpsend: ~$2,000
- Leads Acquired(Email+Phone): 964
- Unique Users: ~3,000
- Conversions(Sales): 11
- CaC/CPA: $181
- Revenue: $1,168
- MRR Added: $1875
- This is the full renewal amount assuming all subscriptions rebill successful the following month.
- Cost of Goods Sold: ~$150 | $15/unit landed
- Free since I had inventory already
- Gross Profit = -$832
After this month I am incredibly happy with the results and the acquisition cost. Although month 1 is losing money, for example if I have a churn rate of 20% (ie. 20% of customers cancel/card declines each month) and gross margins on following months are 80% profit for this sample size of 11 the numbers would look as follows:
Month 1: $832 Loss
Month 2: $1,500 profit
Month 3: $1200 profit
Month 4: $960 profit
Month 5: $750 profit
Month 6: $600 profit.
6 Month Profit = $4,200 = $4,200/6 = $700/m average projected profit
Now, if we add a zero to the adspend number, and say we spend $20k/m down the line, and manage to scale perfectly and acquire 110 customers per month, then we would be adding about $20k/m in recurring subscriptions per month, and hit the $100k/m in revenue mark within 6 months of 10xing spending.
If anyone has any questions don't hesitate to ask, I'll answer everything I can.
Images:
