Yeah.

My brother Paul was one of them.

Paul worked for me for 15 years.

He's my younger brother.

And when we made this transition to blower doors and the house as a system, he was a salesperson for me and he was not about to carry a blower door around or go down that path.

I sent him to the BPI classes and he came back and told me it was a bunch of garbage.

So he went out and started his own contracting business.

Do you think it's gaining ground? Is it stalling out a bit? What do things look like right now from a weatherization and whole home performance business?

[chuckles]

So a couple of simple things.

You have to think, uh, about the business and, uh, the profitability as a business as a whole.

So the number one thing to think about i- as I first kinda answer this, is advertising is almost a silo in how it operates, and then you have the overall profitability of a business.

So if you only look at return on ad spend by itself, you're not looking about how it, how it affects a business holistically or how the business is doing from all its other channels, right? And so that's one thing to think about.

Return on ad spend is just what are you seeing as returns specifically from your paid advertising channels, okay? So that's one concept.

Another important concept to think about is, uh, what is the kind of revenue number you're looking at in terms of ROAS, okay? So typically, people are looking at the average order value per product they're advertising around, right? Um, the issue with that is that doesn't actually tell you how profitable it is to sell that product, right? So let's say, for example, you have an average order value of $100, okay? Um, if it's costing you, let's say 30 bucks, um, to, to sell something for $100, you know, that's a little bit over a three X ROAS.

Mm

Like you're, you're just creating a fictional story out of thin air, uh, and, and integrating your product into that story.

Well, yeah, I guess just a couple of quick thoughts on that.

So, you know, the most important thing you can do with advertising is get someone to stop scrolling and click, right? Like that's a whole intent behind an ad, right? And so the best driver of behavior in advertising is curiosity, right? So you get someone to be like, wait a second, I kind of want to see more.

I want to learn more about this.

And so to your point, I think...

Well, the novelty as well.

So novelty creates a scroll stop because it's just something they haven't seen.

You know, like what is the expectation for creating new content? Like how long are ads going to have traction before we got to expect for them to kind of peter out? Like how do we build a larger audience size so we can scale up? And like, how do we, from an infrastructure standpoint, what are the expectations that brand operators need to have as they want to 10X their ad spend?

When did you first start to feel like this is getting kind of complicated?

Yeah, it's funny.

You said 15 people, I think.

For me, it was 12.

That's when everything fell apart.

And what I mean by that is, you know, I was doing like I my kind of way of scaling was, yeah, first I was doing everything.

Then I had very specific kind of deliverables or tasks that were very easy to hand off to a freelancer and be like, OK, just do this one thing.

What would you tell yourself with what you know now when you were just starting out?