Your Burning DTC Questions, Answered
Running a DTC brand (or an agency) sometimes feels like you’re juggling fire. You’re scaling ad spend one minute, negotiating debt the next, and trying to figure out if that 12X ROAS screenshot you saw on Twitter is legit (spoiler: it’s probably not).
In a recent episode of Scalability School, Zach Stuck, Brad Redding, and Andrew Foxwell tackled your most burning listener questions from when agencies should launch brands, to what percentage of revenue should go into marketing, to the financial realities nobody talks about. Let’s break it down into practical, no BS takeaways.
Should an Agency Start a DTC Brand?
The question: When is the right time for an agency to become a brand?
The reality: It depends on your energy, finances, and risk tolerance. Running a brand is not just “doing the fun marketing stuff.” You’re suddenly deep in product development, operations, finance, and cashflow management.
Pro tips:
Don’t underestimate the time suck: If you’re not ready to free up 10–15 hours a week, wait.
Start small: Don’t sink $150K into your first product launch.
Ask yourself honestly: Do you want a brand because it’s “cool,” or because you’ve got a product you truly believe in?
Scaling from $1K → $100K Spend (Without Losing Your Shirt)
Scaling isn’t about reinventing campaign structures every week. It’s about having the right variables in place: creative, offer, and landing pages.
How to think about it:
Zero to one ($0–$1K/day): Go wide. Test lots of messaging with simple static ads.
One to five ($1K–$5K/day): Double down on what’s working. Repurpose winning statics into video.
Big spend ($50K–$100K/day): Stop overcomplicating. Kill underperforming landing pages, roll budgets into winners, and push spend when new customer ROAS looks strong.
👉 Try the “double-up method”: when performance is solid, literally double your budget and monitor. Scaling doesn’t need to be sexy to work.
Breaking Through Bottlenecks
Why can’t you scale? Nine times out of ten, it’s because you’re running the same play on repeat.
What to try when you’re stuck:
Test a new offer (this alone can unlock scale overnight).
Build landing pages that mirror your top ads.
Diversify creative — don’t let one ad carry 80% of spend.
Whitelist with partners to extend reach.
Should You Use Debt to Grow?
Like it or not, most brands rely on debt at some point. Platforms like Wayflyer or Shopify Capital can bridge cashflow gaps caused by inventory cycles and ad spend surges.
Rules of thumb:
Only borrow if you’re profitable (lenders won’t touch unprofitable businesses today).
Have a finance-savvy partner or advisor who can model repayment.
Be brutally honest about risk tolerance — if losing that loan would kill your business, pause.
Financial Realities Nobody Tells You
This one hit home: a lot of entrepreneurs look “rich” on Twitter, but the reality is most brand owners don’t take home big salaries until they exit.
What to know:
Spending 30–40% of revenue on marketing (ads, salaries, influencers, software) is normal.
Net profit targets:
$1M/year brand → 10% (if you’re lucky)
$10M/year brand → 10–20% is solid
$50M/year brand → OpEx discipline matters more than ad efficiency
Even at $20M/year in revenue, many founders take home ~$300K. Sounds good — but after taxes, it’s not Ferrari money.
👉 Tip: Don’t just reinvest everything. Take distributions when you can. Growth is sexy, but personal financial health matters too.
Myths (and Bullsh*t) in DTC
The guys didn’t hold back here:
“10X ROAS screenshots” → Almost always fake or tiny spend.
“There’s one playbook” → Nope. Meta ads work, but so do TikTok Shops, Amazon, affiliates, or retail. Build around your strengths.
“Everyone’s crushing it” → If a founder is only posting wins, be skeptical. Real operators share their L’s too.
Final Thought: Stack Wins, Brick by Brick
The unsexy truth? The brands that last aren’t chasing hacks. They’re stacking small wins, listening to their customers, and consistently putting one foot in front of the other.
Whether you’re deciding if your agency should launch a brand, wrestling with scaling spend, or figuring out if you should take on debt, remember: momentum is powerful, but intentionality keeps you from burning out.
🔥 Action step for you: Audit your business this week. Where’s your bottleneck offer, creative, landing pages, or cashflow? Pick one area, experiment, and track results. Small moves, done consistently, are how you scale.
If you’ve made it this far, you obviously care about digital marketing and are working every day to improve your skills and provide the best ad buying and creative strategy services possible. We’d love to have you in the Foxwell Founders Community. Not sure if it’s the right fit for you? Email us so we can chat through your needs right now and how we might be able to help! Maybe it’s a course instead of our full-fledged community? Email me at andrew@foxwelldigital.com