A company making $180K-$200K monthly with $3K-$5K recurring clients per month can't scale because acquiring new customers loses money in month one. Eric Deeran breaks down why a profitable backend doesn't fix a broken front end.
We had someone ask us recently why their funnel wasn't working and why they weren't able to scale. So for reference, this company was doing about $180,000 to $200,000 a month. They had a lot of really good recurring revenue on the back end to where their client— I won't say any details about the business to give it away, but their client would basically pay them anywhere between $3,000 and $5,000 a month to work with them, essentially. But the problem was, is that any new acquisition they were trying to get on the front end was just not profitable in the first month. And so it was profitable on the payment plans on the back end, and that was fine. But they were asking, why aren't my ads not working? What was going on? And how can we diagnose it?
