Why Contribution Margins Matter for Your Business

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Are you calculating your contribution margins?

Most companies should be doing this anyways.

If you haven't done this exercise, it could be a problem.

Start by punching in your average order value and cost fulfillment.

This will help you determine your contribution margins.

Why is this important?

When you go into your ad platforms, you need these numbers.

Tell the machine, "I need to hit a 2.0 ROAS to be profitable."

Or, "I need a 2.3 ROAS to account for 10% profit margins."

It's all about the math.

Calculating your economics is the foundation of a scalable marketing campaign.

Need help with this? I can guide you through the process.
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