Sheth: Ad efficiency tapers off non-linearly as spend increases
Raj Sheth · 957 Why He's Moving from Self Serve to $3k/yr Plans in Recruiting Space · Mar 8, 2018 · at 10:25
RecruiterBox co-founder Raj Sheth explains why doubling ad spend does not yield double the demo volume for SaaS companies.
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“The efficiency of ads tapers off over time and over, over dollar amounts. So it's not like 30 plus 30 is 60 and 60 plus 60 is one point. It doesn't add up that way.”
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“In fact, the math is that only when we are consistently hitting One, 20, like consistently hitting over a hundred demos, we'll add that 30. Consistently hitting over a 140 demos, we'll add that 40. So we will let it break at the seams a little bit.”