Facebook, Google, and Pinterest are the primary places we spend money to grow traffic. One of my KPIs is marketing spend as a percentage of net revenue.
My income statement includes a weekly KPI sheet. You can include the cost of photos, email design, and similar in that 30 percent. A business’s margins and size come into play, but the goal should be to grow the company. If you make $1 million per year in revenue, you should spend $150,000 to $300,000 the next year on ads. BOOM! was perfect for that.īandholz: You’ve recommended spending up to 30 percent of ecommerce revenue on advertising.įirestone: Yes, between 15% and 30%. We were able to tell stories to those folks. But nobody was searching for “pro-age cosmetics” or “makeup for older women.” The reason the business took off in 2014 and beyond is because of mass availability via Facebook of contextual traffic, the ability to put messages in front of people based on the context that you have about them.
When we launched BOOM!, the main source of visibility for ecommerce brands was search traffic. In 2016, I made $20 million, and I’ve been rocking since then. Then 2015 I made a couple of million bucks. So for the first four years I barely made any money - a couple of hundred grand in revenue a year. It sells cosmetics for women of all ages. I really enjoy engaging with and relating to other ecommerce business owners.īandholz: You’ve done over $115 million in revenue with BOOM! in just five years. I’ve been fortunate to be recognized as one of the voices in the community that’s worth listening to. My first was a wig business back in 2007.įrom the drop-shipping days to the SEO days to the Google AdWords days, I’ve been in love with ecommerce and was lucky enough to grow up in it - before the iPhone, before it was cool. Eric Bandholz: You’re the founder of three active companies.Įzra Firestone: Yes.
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