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Common Thread Collective

3 resources from Common Thread Collective we point founders to, and the questions each answers.

📄 Article
Free Intermediate

Why we picked it Taylor Holiday's agency is the most quoted voice in DTC for reframing ROAS around profit, useful pushback against chasing a vanity multiple.

Why ROAS Is a Terrible Ecommerce Metric + 3 That Actually Matter

From Common Thread Collective by Common Thread Collective

  • ROAS alone says nothing about profitability since it ignores margin, fixed costs and true incrementality.
  • Contribution margin, MER and CAC payback are the numbers that actually tell you if the business is making money.
  • Post iOS14, the industry stopped trusting platform-reported ROAS at face value, which is why blended metrics took over.
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🎧 Podcast
✓ Link checked Free Intermediate

Why we picked it Taylor Holiday's team built a forecasting framework across 1,000-plus brands; this podcast is where they think out loud about exactly this 'is my ROAS good enough' question.

Ecommerce Playbook Podcast

On Common Thread Collective by Common Thread Collective

  • Regularly unpacks why platform ROAS can't be trusted on its own and how to operationalize incrementality testing.
  • Frames growth problems around contribution margin and cash flow rather than top-line revenue.
  • Draws on real brand numbers from CTC's own portfolio, not hypothetical benchmarks.
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📄 Article
Free Intermediate

Why we picked it The best explanation available of why blended MER, not campaign level ROAS, should decide whether you scale, with the actual formula for finding your own breakeven point instead of chasing an arbitrary target.

Marketing Efficiency Ratio: How to Find Your Ideal Ad Spend

From Common Thread Collective

  • MER equals total revenue divided by total ad spend, a north star metric distinct from ROAS which is scoped to one campaign or channel.
  • Introduces marginal aMER: track the efficiency of your next increment of spend, not your account average.
  • A worked example puts breakeven marginal aMER around 1.5 on a 70% gross margin business, showing the target depends entirely on your own margin.
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