The ROAS Reality Check
Most POD beginners burn their budget on Facebook Ads because they don't understand Break-Even ROAS.
The 3.0 Myth
Gurus say "Aim for 3.0 ROAS." But if your product margin is only 25% (very common in POD), your Break-Even ROAS is 4.0. At 3.0, you are actually losing money on every sale.
Break-Even CPA
This is simpler: "Cost Per Acquisition." If your profit is $10 per shirt, you CANNOT spend more than $10 in ads to sell one. If your CPA is $12, turn off the ad.
Sale Price: $30.00
COGS + Fees: -$22.50
Net Margin: $7.50 (25%)
Break-Even ROAS Needed: 4.0 ($30 / $7.50)
Your Dashboard shows a ROAS of 3.0. You celebrate?
No. At 3.0 ROAS, you spent $10 in ads to get that $30 sale.
Profit ($7.50) - Ad Spend ($10.00) = -$2.50 Loss per sale.
Ad Strategy FAQ
Etsy Ads are usually safer for beginners because they are "intent-based" (people are searching for the item). Facebook Ads are "interruption-based" and require higher margins to absorb the cost.
You need to increase your profit margin. Raise your prices, lower your COGS (switch providers), or increase Average Order Value (upsell a sticker with the shirt).