Proof in the Numbers: Why Lower ROAS Wins

If you're skeptical that lowering your ROAS could actually grow your business, you're not alone.

Most ecommerce founders have been trained to believe that higher ROAS = better results. And on the surface, it seems logical: more return per dollar spent should be a win, right?

But what if your best-performing campaigns, the ones with sky-high ROAS, are actually limiting your growth?

Let’s break this down using real numbers, real strategy, and a simple shift in how you look at success.

The Traditional Playbook: High ROAS = Efficiency

Here’s what the traditional mindset looks like:

• You run a campaign at 8x ROAS.
• Everyone’s thrilled.
• You double down on what’s “working.”
• You avoid spending more, just in case it drags down performance.
  
  

You protect that 8x like it's gold. And it is, if you’re optimizing for short-term metrics.

But if your goal is growth, you're stuck.

The Growth Playbook: Same Profit, More Customers

What if you could make the same profit, but acquire more customers and generate more revenue by accepting a lower ROAS?

Here’s a real scenario from the book:

Same profit.
Up to 1,667 more customers.
More revenue.
More returning buyers.
More future profit.

You didn’t spend recklessly. You didn’t lose money. You just stopped letting ROAS control your decision-making.

Why This Works: ROAS Is a Ratio, Not a Result

Let’s say you earn:

• $76,000 in contribution margin at 8x ROAS with 2,133 customers
• Or that same $76,000 at 3x ROAS with 3,800 customers
  
  

Which business do you want?

One that’s efficient on paper… or one with:

• A bigger customer base
• More LTV potential
• More referrals
• More organic momentum
  
  

ROAS is just a ratio.
The business that wins is the one with more profit-producing customers. Not the prettiest spreadsheet.

The Compounding Advantage of More Customers

When you scale customer acquisition (even at lower ROAS), you also scale:

• Repeat revenue: More customers → more returning buyers
• Brand equity: Bigger audience, more market share
• Word-of-mouth: Every happy customer = new organic growth
• Future LTV: Each new customer contributes to long-term revenue
  
  

You’re not just buying this month’s sale. You’re buying future margin.

The ROI Curve: Finding Your Sweet Spot

Let’s be clear: we’re not saying to burn money.

You shouldn’t scale blindly. You should scale strategically, using contribution margin, and CAC to find your limits.

The key question becomes:

“How much can I scale before profit starts to suffer?”

That’s your growth zone.
Most brands never find it because they stop at the first “successful” ROAS campaign, and never push further.

When Lower ROAS Is Better

Let’s simplify:

Which one would you rather build your business on?

Don’t Just Look Good - Build Something Bigger

High ROAS campaigns are easy to celebrate.
They feel like wins. They’re easy to show investors or screenshot for your team.

But when you shift the goal from return per dollar to maximum growth per campaign, you unlock what most brands never figure out:

It’s not about the best ROAS.
It’s about the best return on your growth.

Explore Human’s Ecommerce Marketing Services

We help brands model their own ROAS tradeoffs, and build scalable acquisition strategies that don’t just look good but actually scale.

👉 Learn how Human builds growth machines

Read the Book: Why High ROAS Is Bad for Your Ecommerce Business

This is one of the core frameworks in the book.
We lay out how to model your scenarios, find your ceiling, and scale with confidence.

📘 Read the book → High ROAS Is Bad For Your Ecommerce Business