Something that I had never actually realized until this year was the fact that decision-making at scale has SIGNIFICANTLY larger benefits (and also consequences).

A lot of people like to complain about executive compensation and how exec teams get paid too much…

But I think these same people fail to realize just how much weight their decisions carry.

Consider this for a second…

Let’s say you’re a CMO for a small company that generates around $200K/mo:

(to keep numbers simple let’s assume you’re spending $50K/mo on ads, generating 20 units at a $10K a piece PIFS only, and therefore have a $2,500 CPA).

If you find a way to reduce your CPA from $2,500 to say $2,000 (I.E. 20% decrease)…

With that same amount of adspend, you would now generate 25 units per month and increase revenue from $200K to $250K.

That’s an extra $50K/mo in profit added to the bottom line or an extra $600,000/yr.

Pretty cool right?

Now let’s say your company makes $2M/mo and you accomplish the same thing.

Add a 0 behind each of these numbers.

You’ve just added $6M NET to a business.

If you’re selling your business at a 5x multiple…

That extra $6M is EXTREMELY valuable and could be a multiple 8 figure difference created.

Plus…

Reducing your CPA by 20% isn’t some MONUMENTAL change.

There’s a million different ways you could do this:

- You could improve your email automations to ramp email call volume

- You could add a new social media channel like IG or YT

- You could improve your ads/VSL

- You could get on your setters harder about show rate

- You could fire your two worst performing closers and replace them with better ones

- You could hire an "outbound only" closer who isn't in the paid ads rotation and only self-sources

This isn’t an easy change to make but it’s always not the hardest thing in the entire world to do either.

If someone put a gun to my head and said that I had to cut CPA by 20% in 60 days then I’m very confident that I’d make it happen.

You also have to look at the opposite direction if your CMO drops the ball and CPA goes UP by 20% to $3,000.

Now your company has just lost a TON of money on an annualized basis.

This is why it’s important that you have people who know what they’re doing running the ship in key positions.

Because at scale, leadership teams are making extremely high leverage decisions every single day.

Do you really want a broke CMO so that you can save $100,000 per year if they’re going to trainwreck your entire company?

Or do you want to have a baller CMO that generates millions for the company (and of course, gets paid well himself).

If you ask me…

I think it’s a lot smarter to just pay up and bring in someone good then trying to cut costs short term and use someone who sucks and is going to ruin everything.

• Damon

P.S. If you’re interested in working with me 1 on 1 to consult for your marketing team and help you scale your business…

Drop me a reply or throw a time on my calendar here.

I’m rolling out a new beta test where clients can have direct access to me on a weekly basis.

We’ll focus in surrounding one specific goal (for example: reducing your CPA).

We’ll aim to obliterate that problem in a set period of time.

If that sounds of interest to you, feel free to reach out.

I’m not cheap to work with…

But like I mentioned earlier, better to work with someone GOOD then something who is gonna ruin everything.