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Why Rising CAC Is Not Killing Your Brand

Welcome to the Ecom Scaling Show, brought to you by Free to Grow CFO and Aplo Group! Join hosts Jon Blair and Dylan Byers as they unpack the misunderstood role of CAC in scaling DTC brands (and why lowering it isn’t always the answer). In Episode 30, Jon and Dylan walk through how brands that scale the fastest and most profitably intentionally absorb a rising CAC. This episode unpacks why brands with strong 3–6 month LTV or high gross margin dollars per order can afford to push paid spend harder, when new product launches become more important than new creative, and how to prepare your inventory, ops, and finance teams for scaling beyond $10M+. 0:00 – Why Fast-Growing Brands Can Let CAC Rise and Still Win 0:24 – Episode Intro: The Truth About CAC and Scaling Profitably 0:58 – The Myth of “Lower CAC = Better” and Why It Limits Growth 1:42 – Understanding Why CAC Increases as You Scale Ad Spend 3:00 – Meta Ads Example: Cost Per Conversion and Volume Efficiency 4:50 – When Spending More Makes You More Profitable (ROAS Math) 6:10 – The Core Principle: Absorbing Higher CAC Through LTV & Margin 7:00 – How Mid-7-Figure Brands Can Unlock Growth Without Efficiency Gains 8:45 – Why Product Expansion Beats Endless Ad Testing 10:30 – Designing LTV and Gross Margin Into Products From Day One 12:05 – The Free to Grow Case Study: $1.8M to $35M in One Year 14:40 – When Scaling Too Fast Breaks the Business 16:10 – Why Low-LTV Brands Need Lean Opex and Strong Cash Flow 18:00 – The Role of Retail: Building Durability Beyond Facebook Ads 20:10 – Take Chips Off the Table: Founder Wealth Strategy in DTC 22:00 – The Facebook Arbitrage Business Model Explained 24:10 – How to Avoid Operational Breakdowns During Hypergrowth 26:15 – Understanding CAC Spikes: What Metrics Actually Matter 27:55 – Final Thoughts: Aligning Finance, Ops, and Growth for Scale Free To Grow CFO: https://freetogrowcfo.com/ Aplo Group: https://www.aplogroup.com/ Jon Blair on Linkedin:   / jonathon-albert-blair   Dylan Byers on Linkedin:   / dylan-byers-046010149   #ecommerce #dtc #finance #agency #podcast #shopify #ads #scalingyourbrand