Your ad agency is likely losing you money if...


Hey Reader,

You're reading Behind the Curtain: what 7- and 8-figure owners are learning inside eComFuel, and my thoughts on building a rich life alongside your business.


Here's the most interesting thing I learned from 1,000 store owners this month:

Spend < $500K a Year on Ads? Agencies Struggle to Pay Off.

Want to start a spirited discussion in eComFuel? Ask whether ad agencies are worth it. This month a couple of owners brought receipts.

One noticed his agency's profit report left out one small cost: the agency. With their fees added back in, Amazon (a third of his business) was barely profitable.

That's before the weekly Zooms, Slack pings, and meetings to prep for the meetings.

So he turned off the ads and let the agency go. Sales held, and a year later his Amazon sales are up about 40%.

He did the same with Google and now runs it himself with Claude in about an hour a week. Spend is down 61% and sales are up 57%.

Another owner with a larger Amazon business took his account back and found 85% of his ad placements were breaking even or losing money.

Cutting them dropped spend from $135K to $38K a month. Revenue fell, but profit rose $40K a month.

A couple of caveats: two of the three examples were Amazon, and one owner runs a low 7-figure brand.

But it lines up with what paid traffic pro and friend of the community Andrew Faris has repeatedly told members:

Under ~$500K a year in spend? Bring ads in-house.

Thankfully, with platform MCPs and sharp AI design skills, doing it has never been easier.

Honorable Mention: AI's Not Replacing In-House Teams

Nearly 30 owners shared wins in this month's "Biggest AI Wins" thread. The biggest surprise? Almost no one mentioned cutting their in-house team.

Lots are building their own software and cancelling subscriptions, and plenty are replacing agencies and consultants.

If anything, their staff are getting more done, and a few have even caught the bug and are building tools of their own.

...

As always, company names, specific details and playbooks stay inside eComFuel.

Own an eCom store and interested in learning from 1,000 high-rev owners? Apply to join us today.โ€‹


๐Ÿ”ฅ Work Hard, Adventure Often - Copenhagen

First time in Copenhagen this summer and absolutely loved it.

City vibe is a blend of waterways, open green space and gorgeous design. Even their industrial buildings look chic.

If you're a bike nerd it's heaven. Incredible infrastructure and dedicated lanes everywhere. You can quickly get all around the city on two wheels.

Really, really good coffee. Lots of places claim good coffee. Copenhagen delivers.

Well done, Danes.


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