How do I become profitable?
Hi everyone! This might be a dumb question, but I’m trying to understand how businesses become profitable while advertising on expensive platforms like Meta and Google Ads.
Is it mainly because they order inventory in much larger quantities, even though CPA are already high?
Right now, I’m only ordering 20–50 units at a time because I’m still testing product ideas. At those quantities, I’m operating at a loss, but I see it as part of the testing phase.
Once a product is validated, is ordering 200+ units what typically makes a business profitable because the cost per unit drops significantly? Or are there other factors I’m missing?