the startups.com platform about startups.comCheck out the new Startups.com - A Comprehensive Startup University
Education
Planning
Mentors
Funding
Customers
Assistants
Clarity
Categories
Business
Sales & Marketing
Funding
Product & Design
Technology
Skills & Management
Industries
Other
Business
Career Advice
Branding
Financial Consulting
Customer Engagement
Strategy
Sectors
Getting Started
Human Resources
Business Development
Legal
Other
Sales & Marketing
Social Media Marketing
Search Engine Optimization
Public Relations
Branding
Publishing
Inbound Marketing
Email Marketing
Copywriting
Growth Strategy
Search Engine Marketing
Sales & Lead Generation
Advertising
Other
Funding
Crowdfunding
Kickstarter
Venture Capital
Finance
Bootstrapping
Nonprofit
Other
Product & Design
Identity
User Experience
Lean Startup
Product Management
Metrics & Analytics
Other
Technology
WordPress
Software Development
Mobile
Ruby
CRM
Innovation
Cloud
Other
Skills & Management
Productivity
Entrepreneurship
Public Speaking
Leadership
Coaching
Other
Industries
SaaS
E-commerce
Education
Real Estate
Restaurant & Retail
Marketplaces
Nonprofit
Other
Dashboard
Browse Search
Answers
Calls
Inbox
Sign Up Log In

Loading...

Share Answer

Menu
Paid Search: How do you project that paid campaigns will stay profitable when you scale them?
TW
TW
Tom Williams, Clarity's top expert on all things startup answered:

Couple of things:
Any good investor knows that a projection is just that. The exercise is more to help articulate what the investor needs to know is possible: That their infusion of capital can truly accelerate your growth. So it's your responsibility to help create that confidence.

The biggest concern I have for you is that you speak about not knowing what's working. Understanding the mechanics of each channel of spend, and segmenting the users' behavior (churn, upsell, etc) into those channels will give you a much better read into what's really working and IMO, are required before you can really answer the question credibly.

Also, I assume you're doing a Series A or beyond raise, in which case, a potential lead or significant investor asking for projections are entirely reasonable. But if you're raising initial seed and/or this ask is coming from a non potential lead investor, then I'd raise a flag of caution.

Happy to talk through this in more detail if you'd like. Best of luck with the funding round!

Talk to Tom Upvote • Share
•••
Share Report

Answer URL

Share Question

  • Share on Twitter
  • Share on LinkedIn
  • Share on Facebook
  • Share on Google+
  • Share by email
About
  • How it Works
  • Success Stories
Experts
  • Become an Expert
  • Find an Expert
Answers
  • Ask a Question
  • Recent Answers
Support
  • Help
  • Terms of Service
Follow

the startups.com platform

Startups Education
Startup Planning
Access Mentors
Secure Funding
Reach Customers
Virtual Assistants

Copyright © 2025 Startups.com. All rights reserved.