Reagan Pollack

ROAS (return on ad spend) is a misleading KPI, and it may be quietly hurting your business.

It (typically) measures the revenue from an ad compared to the cost.

Example: $4,000 revenue generated from a $1,000 ad campaign = $4,000/$1,000 = 4.0

A lot of marketers think 4:1 meaning for every $1 you spend you generate $4 in revenue is considered good.

But they may be mistaken.

Imagine you have a 30% gross margin on your product. For simplicity let’s call it a $100 sell price with COGS $70 and you clear $30 profit per unit.

Then you spend the $1k for ads and it generates $4k revenue (4:1).

What did you really make?

40 units sold X $30 unit profit = $1200 profit.

Minus your ad cost!! $1000

Equals (drumroll): $200 profit

Your true GROAS (gross margin return on ad spend) is really $1200/$1000 =1.2

1.2 vs 4.0 is a lot different

Then imagine if you offered new customers a 10% coupon on their first order.

$3,600 revenue (includes 10% off)

$1,000 ad cost

ROAS: 3.6

Units sold: 40

Revenue per unit: $90

COGS: $70

Gross profit per unit: $20 = 22.2% margin

Your margin dropped 7.8 percentage points by dropping your sell price just 10% for the coupon, but your gross profit per unit dropped 33% ($30 → $20) meaning just a 10% discount cut your profit per unit by a third!

Total gross profit: $20 × 40 = $800

GROAS: $800/$1000 = 0.8

So now by offering just 10% off for every new customer with the exact same ad spend, you’re actually losing $200 total!

While you think you’re making money, because the ROAS is 3.6 and industry standards say 3:1 or 4:1 is “good” …. It truly depends on your gross margins and incentives to acquire the customer.

Next time you review your ad spend, I suggest you run an analysis on both ROAS and GROAS to know what you’re really making (or losing).

For more details, grab a copy of my book No Startup Left Behind. Link in bio 📚👆🏽https://a.co/d/0ikGEJbU

Startup Tip of the Day:

Authenticity is what resonates beyond a logo, a website, or any transaction.

When you set out to define your company’s mission, I implore you to spend some (off the grid, unconnected, analog) time on how it feels to you and how it makes others feel in terms of authenticity.

Enduring companies emote. They don’t rely on a transaction to pass that feeling along.

From the moment you walk in to the store there should be a vibe. From the first touch point on the website it should feel different. From the first interaction with any materials, packaging, even the language that’s used across the experience should feel authentic to the story your brand is built around.

People will forget the item they bought from you years later and certainly the price they paid, but the feeling you imparted on them last forever.

👂 > 🗣️ = 💰 📈

Twenty years in sales and the most common rejection I get today isn't "no."

It's silence.

Most founders can build. Far fewer can sell. And most of them hear "no" as a verdict on the product, when it's usually about something you're just not seeing.

I broke down The 7 Deadly No's (what each one actually means and how to get past it):
The Knee-Jerker - "We're all set."
The Circle Backer - "Let me get back to you."
The Info Monster - "Send me more information."
The Budget King - "It's not in the budget."
The Catch Me If You Can - "Follow up in a few months."
The Ghoster - ...
The Balloon Popper - "But what about..."

Which one is killing your deals right now?

The 7 Deadly No’s The world loves saying “no”. Here’s what each one actually means - and how to get past it.

Two decades of running and advising companies, and the one variable no one names - you, the founder.

Not the product. Not the market. Not even the model.

In this article, I cover six popular Entrepreneurial Archetypes (EA) - the Pioneer, Inventor, Experimenter, Minimalist, Deal Maker, and Operationalist - each thriving under certain conditions and struggling under others.

Knowing which one you are helps to position your company and team for entrepreneurial greatness.

So, which one are you?

Founder-Startup Fit: the variable no one names. While PMF (Product-Market Fit) gets the headlines in the VC-world, the constant in the equation is you. Lessons on how to find the right role, how to meet the right partner, and when to move on.

When I was 21, I sat in a 600 square foot office and watched my first company fall apart. $123,000 of investor money gone, a broken website, and ten people counting on me to figure it out.

I told myself that if I ever figured the startup game out, I'd pay it forward.

That became a book, and now it's a weekly newsletter for founders. Free, one lesson a week, no fluff.

First post is up. Would love it if you gave it a read or passed it to someone starting a business. 💙

reagantpollack.substack.com

https://open.substack.com/pub/reagantpollack/p/the-world-doesnt-care-about-your?r=4zdpoi&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true

The World Doesn’t Care About Your Startup. I Do. What this newsletter is, why I’m writing it, and the one thing I’ll ask from you in return.

🇬🇧 Exciting news!

I’m excited to share that the paperback edition of No Startup Left Behind is now available to readers in the United Kingdom through Bookshop.org.

What makes this especially meaningful is that Bookshop.org is on a mission to support independent bookshops, so every purchase helps strengthen local bookselling communities while bringing the book to new readers.

Whether you’re launching your first startup, growing a business, or simply have an idea you can’t stop thinking about, I hope this book gives you practical strategies and the confidence to take the next step.

Thank you to everyone who has supported this journey. Seeing No Startup Left Behind continue to reach entrepreneurs around the world is incredibly rewarding.

🇬🇧 Available now in the UK through Bookshop.org.

Most people assume something is not working because the idea is wrong.

Sometimes that is true.

More often, the idea is fine.
The structure around it is not.

Friction hides inside systems in ways that are easy to miss.

A process that requires one extra step.
A decision that needs special approval.
A purchase that cannot be made through the normal channel.
A product that does not fit the way people already buy.

None of these feel dramatic.
But they change behavior.

People rarely say, “This is too complicated.”
They simply move on to something easier.

This is why effort alone rarely fixes a problem.

Teams work harder.
They explain more.
They add new features.
They create new messaging.

But the friction stays, so the outcome stays.

The opposite approach is quieter.

Instead of asking how to make something more persuasive, ask how to make it easier.

Easier to understand.
Easier to buy.
Easier to use.
Easier to say yes to without thinking.

When the structure aligns with how decisions already happen, momentum appears without forcing it.

This applies to products.
It applies to organizations.
It applies to careers.

It also applies to strategy.

A good strategy does not require constant effort to maintain.
It reduces resistance so progress happens with less force.

When something feels harder than it should, the problem is often not motivation.

It is friction.

I had previously shared that my book No Startup Left Behind is now available at the Babson College bookstore, but today the bookstore manager sent me this photo from the shelf, and it honestly made it feel real in a whole new way.

Seeing your work sitting in the entrepreneurship section at Babson, surrounded by books from founders, operators, and alumni, is pretty special. Babson has always been known for producing people who actually build things, not just talk about them, so it means a lot to have the book there.

No Startup Left Behind is for:
• Founders trying to get their first real traction
• Entrepreneurs stuck between idea and ex*****on
• Small business owners who feel like they’re doing everything right but not growing
• Anyone who wants a practical, no-nonsense playbook instead of theory

I wrote it based on real experience building, failing, fixing, and scaling — not from a classroom, but from the field.

Big thanks to for the support and for sending the photo.

If you’re on campus, you can grab a copy at the bookstore. 🦫💚

Most businesses don’t struggle because of lack of effort or intelligence.

They struggle because attention drifts.

The wrong things become important.
The right things disappear under habit, story, and noise.
Over time, complexity replaces clarity.

My work is about removing what isn’t essential so the real business can emerge.

I help founders and operators see:

– where value actually accrues
– what differentiation survives reality
– how experience signals economics
– which decisions quietly shape leverage
– why simplicity wins

If something in your world feels tangled or unclear, I can help you see it from a better angle.

Book a 60 min strategic virtual session.

https://reaganpollack.com/product/consulting-session/ (Link also in bio)