Why ROAS Is the Wrong Metric for 90% of Brands

Let’s be honest: ROAS is mostly useless.

Why?

– It ignores margins
– It ignores LTV
– It punishes aggressive scaling
– It rewards under-spending

If you’re running a one-product store with tight attribution, fine. But most brands need more nuance.

Better metrics:

– Contribution margin per SKU
– Blended CAC
– Cash multiplier (revenue / cash out)
– 60-day LTV vs CAC

You don’t scale by chasing ROAS. You scale by buying customers profitably and turning them into margin over time.

Chasing ROAS is short-term thinking dressed up as efficiency.

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