The Bottom Line: Ecommerce Tactics for Profitable Growth artwork

Ep #021: Optimizing Scale by using Cost Cap Bid Strategy on Facebook (with Dan McCormick)

The Bottom Line: Ecommerce Tactics for Profitable Growth · with Dan McCormick · April 6, 2023 · 43 min

Summary

This episode features Dan McCormick, founder of Create, a DTC creatine gummy brand. Dan shares his journey of launching a new brand in the supplement space, scaling growth with Meta (Facebook/Instagram) ads using cost caps, and leveraging influencer marketing despite initial hesitations. The discussion provides a transparent look into early-stage ad account performance and strategic decision-making for DTC founders.

Key takeaways

Themes

paid acquisitiondtc strategyinfluencer & creatorfounder & leadership

Topics covered

meta adsfacebook adsinstagram adscost cap biddingdirect response marketinginfluencer marketingugcdtc growth strategiesstartup marketingbuilding in public

Episode description

In this episode, Dan McCormick, the Founder, and CEO at Create Wellness, will be talking about how he’s been using cost cap bid strategy on Facebook (with the assistance of Kynship) to be their fastest rising D2C client. TIMESTAMPS [03:36]: Dan’s background. [08:20]: Create Wellness brand overview. [09:57]: The launch progress & projected goal of Create. [11:15]: Marketing channels. [13:45]: Utilizing relationships in pitching Create. [15:30]: Dan's philosophy. [19:13]: Feedback from Influencers. [24:00]: Facebook ban on Create's ad account [26:51]: Issue at the beginning of launching ads. [27:49]: Eye opener for launching creative pieces for Create [29:57]: Facebook ad performance. [32:03]: Lessons from product launch. [35:45]: Subscription model for acquiring more customers. [37:22]: Advice to brands. KEY LESSONS & QUOTES “Creative drives company brand, company brand then drives creative” – Dan McCormick “The top-down approach has its place in a company, but there's also a place for listening to who your product resonates with and then building from that

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Frequently asked about this episode

What does this episode say about paid acquisition?
Utilize cost caps and DCTs on Meta to efficiently scale ad spend and optimize for profitable growth, even with a new brand.
What does this episode say about dtc strategy?
Embrace influencer gifting and seeding as a long-term content strategy, recognizing that initial content may not be perfect but can evolve into valuable UGC and relationships.
What does this episode say about influencer & creator?
Adopt a "building in public" approach to foster transparency and authenticity, which can differentiate your brand and attract engaged customers.
What does this episode say about founder & leadership?
Be prepared for initial influencer content to be imperfect; focus on building relationships that can lead to stronger UGC contracts and valuable product feedback over time.
What does this episode say about paid acquisition?
Despite market noise, Meta remains a highly effective advertising channel for DTC brands when managed strategically.

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