Breaking even on customer acquisition costs within 30 days is insufficient. The real goal is to generate at least double your CAC in gross profit. This surplus cash allows each new customer to finance the acquisition of two more, creating a self-sustaining and rapid growth engine without external capital.

With AI enabling precise control over media spend, key performance indicators are changing. Brands now move beyond simple Return on Ad Spend (ROAS) to more sophisticated metrics like incremental ROAS and contribution margin, reflecting a new emphasis on profitable growth rather than just volume.

ROAS (Return on Ad Spend) is a vanity metric that can mask unprofitable customer acquisition. By focusing on POAS (Profit on Ad Spend), brands are forced to measure the actual profit generated from advertising, linking marketing directly to bottom-line health and avoiding the trap of 'growing broke'.

During the initial 14-21 day learning phase on an ad platform, marketers must resist the urge to constantly adjust bidding, budget, or targeting. "Fiddling with the knobs" resets the algorithm's learning process, dooming the test before it can gather sufficient data to optimize effectively.

A low Customer Acquisition Cost (CAC) might seem successful, but it could be hiding inefficient creative. Optimizing creative strategy could dramatically lower CAC further (e.g., from $39 to $16), unlocking greater profitability and scale, especially as you increase ad spend.

A sophisticated paid acquisition strategy involves spending enough to acquire a customer at a cost equal to their first month's payment. Profitability is achieved in subsequent months and through referrals, enabling aggressive, uncapped scaling by focusing on lifetime value (LTV) over immediate ROI.

A blended CAC across all channels hides crucial information. By calculating CAC for each individual platform or method (e.g., paid ads, content, outreach), businesses can identify their most efficient channels. This allows them to reallocate budget and effort to the highest-performing areas for more profitable growth.

Stop planning creative and media buys simultaneously. Instead, post creative organically first. Then, exclusively allocate media spend to amplify the content that has already demonstrated strong consumer engagement, forcing creative to be effective on its own merit before receiving paid support.

Resident's team doesn't set fixed goals (e.g., "Meta must hit 200% ROAS"). Instead, they constantly evaluate channels relative to each other in real-time. This flexible approach allows them to dynamically shift budget to the most efficient platforms as market conditions change, maximizing overall yield.