When is the right time to run paid ads for the product?
Codie Sanchez suggested on X that founders should skip paid ads until they reach $5-10 million in revenue.
I like the idea of getting organic flow for the product, but this way, it can reach only a limited number of people.
+ I have been collaborating with companies that started running ads before hitting ~$50k in revenue.
And those ads were the most crucial part for getting paid users and growing above $100k.
(But the trick is that you need to collaborate with someone who knows how to:
– set up ads
– which type of creatives to use
– who to target, etc.)
Because many founders do not know how to set up ads and end up burning through their budget and reserves.
What is your opinion on running paid ads? Is there a revenue threshold at which you can run them?
Replies
Hi Nika!
Paid ad campaigns aren't my area of expertise, but I do remember that they're a quick way to achieve visibility, so it might be good to actually run them early and give the business that initial boost as the business finds its feet.
I think it can also have an indirect impact on SEO as paid ads drive traffic to your website as well.
minimalist phone: reduce your screentime
@peter_jenkins1 How much would you invest in ads as a first-time founder with very tight budget?
@busmark_w_nika Hmmm... paid ad campaigns aren't my area of expertise, but I'd say about £500 to £1,000. Or test the water with about £100 to £200 and say what results it generates
minimalist phone: reduce your screentime
@peter_jenkins1 I would rather start at lower numbers honestly :)
I did run Tiktok ads backdays for a Shop and well, i did lose around 1-2k in less than 14 days and Sells 40, not even that so my Mindset is to set all clean and have good ads videos or pics
and to have a right line where to set it because you can lose