I have a ready made baking mix company, launched 1yr ago. All sales have been through Meta ads Q4, 5-figures) but no profit as they’re so costly. Long term goal is email marketing through building community. What do I do in the meantime to be profitable, until I get a email community large enough? Because that may take years.
Topic summary
A ready-made baking mix company launched one year ago has achieved five-figure sales in Q4 exclusively through Meta ads, but remains unprofitable due to high advertising costs. The founder seeks strategies to achieve profitability while building an email marketing community, which they acknowledge may take years.
Suggested approaches:
- Optimize ad targeting and analyze back-end costs to identify savings opportunities
- Build email lists through both in-person events and digital channels
- Focus on developing a strong local customer base first to reduce shipping costs and create loyal core customers
- Expand gradually from local to regional, then national markets
The discussion acknowledges this as a common challenge where paid advertising often operates at a loss initially.
Tough position but common position that you’re in.
Ads are very expensive and usually take you into the red. You can be very focused with the type of ad you are running and then look at the back-end costs to see where you could possibly save money to build your profitability. I agree that building an email list is key. We’ve done well at building our email list through in-person events as well as in the digital realm. I’d explore some options there. Additionally, try to identify your core community and how to best reach them - locally - regionally and then nationally. If you can build a very strong local following you’ll save money on shipping etc. and build loyal core customers.