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The Biggest Mistakes Early Stage DTC founders make

Aug 20, 2024

2 min read

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Starting a DTC brand? Don’t fall into these common traps that could set your business back. Let’s break down the biggest mistakes new DTC founders make and how to do it right.


1.) Focusing too much on branding and not enough on sales.

 

Many founders spend $250,000 on branding agencies before they’ve even made a single sale.

 

But the truth is, you need to validate demand first—with simple ads, landing pages, and minimal packaging—before splurging on a fancy website or branding.


2.) Not having a repeatable Sales Channel


The key to early success is finding one repeatable sales channel to build predictability and reliability. Whether it’s paid ads on Meta, email, or influencers, your priority should be finding a channel that consistently drives revenue. You don’t need 10 different channels—just one that works.

 

And for most founders getting started, that is typically paid ads on Meta or Google.

 

3.) Overestimating your customer’s lifetime value (LTV).

 

Many founders price their products too low, assuming future repeat purchases will make up for it. But often, those projections are too optimistic. Instead, aim to make your first order as close to profitable as possible. Sometimes, this means raising prices to make your unit economics work.


4.) Spending too much on ads right away

 

Test your ads and landing pages with small budgets, and collect customer feedback before scaling up. You want to know your product and funnel work before burning through your ad budget. Once you’ve validated your product, slowly ramp up your ad spend to scale.


5.) Signing contracts with agencies or service providers.

 

Always ensure there’s an “out clause” in case things go wrong. Without it, you might be stuck in a costly, long-term contract that hurts your business.

Aug 20, 2024

2 min read

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10

0