These D2C Founders...

Recently, things got a little heated up during my meeting with one of the founders.

During the meeting, he said, "CGI reels are really popular. We should do more of these reels. I'm ready to invest more money into this."

I was like, "Just because something is trending doesn't mean we should pour money into it. Instead of chasing views on Instagram, let's first focus on getting the basics right, shall we? For the last few months, I've been asking you to hire customer support reps to call customers a couple of weeks after they order to understand their experience...

Also, how about first investing in a custom AI chat-bot on the website to answer the queries of visitors on the website which could potentially lead to higher conversions?

If you can't find the money to invest in the core essentials of your business, but want to waste money on every new shiny object, then be my guest. But know that this is on you and I warned you.

Well, sadly, he did things his way. He wasted money on CGI videos over improving his customer support or ensuring a better website experience.

And as expected: We saw ZERO sales from the CGI videos nor did we get any major engagement or traction.

Here's the thing a lot of founders miss: They look at a bigger brand funded by investors doing something that gains traction... And they want to replicate the same, assuming it will work similarly in their business.

But most times, they forget that the bigger brand is leveraging their existing audience. They already have millions of followers. So, even a mediocre campaign they put out will look good on paper.

That's not the case with you.

So, when you are starting out... When you are in the first stage... focus on the fundamentals.

Deliver an amazing product.

Keep improving your product.

Deliver an experience your customers will get at no other place.

Keep improving your customer experience.

In the D2C world, you will only survive if you have a high CLV, if customers keep coming back.

Otherwise, only the front-end game, the game of customer acquisition, will kill you sooner or later... You can never make margins in the front-end game, or if you do, you can never grow and scale.

Have a great week ahead!

--> Karan Dharamsi

P.S. I sometimes end up having heated discussions with clients for their own good. Some take it in their stride and save their money. Some others, learn things the hard way.