24/12/2025
ROAS is a liar.
It tells you the ads are working. It doesn’t tell you if the business is working.
We see founders celebrating a 4.0 ROAS while their bank account bleeds out. Why? Because they’re ignoring the hierarchy of profit.
If you don’t know your numbers at every level of this house, you’re flying blind.
Let’s break down a $100 Order:
🧱 CM1 (Product Level) Revenue - COGS You sell for $100. It costs $25 to make. Left over: $75. (This looks great... so far.)
🚚 CM2 (Ops Level) CM1 - Shipping, Pick/Pack, Trans Fees That $75 gets hit by $12 shipping, $3 pack fees, and $3 merchant fees. Left over: $57. (The silent killer just took 18%.)
💰 CM3 (Profit Level) CM2 - Variable Ad Spend You spent $30 to acquire the customer (CPA). Left over: $27.
If you were only looking at ROAS, you saw a 3.3x return ($100/$30). You felt rich. But the bank only saw $27 to cover your rent, payroll, and salary.
Stop optimizing for the ad account. Start optimizing for the bank account.
Build a Profit House. Not a house of cards.