Is my model broken? · Adspend.com

Is my model broken?

I’m at profit sharer at a videography and photography company for real estate agents. $2mm/year - 20% net margins on the business. 80% of revenue is content production for listings and 20% is social media content for the agents themselves which has higher margins. I was hired to grow company to 8 figures and build sales team.

We’re currently selling a content package on the front end for $2500. Which costs $900 to fulfill. $500 CPA on average. 5x ROAS Very low scale at the moment.

My concern is that once we hire a sales team. They’re not going to close at as high of a percentage and we’re going to need to pay them 10% of top line revenue.

We will have a backend and lots of other products to sell on backend but I’m not sure if our prices are high enough for cold traffic acquisition at scale. Perhaps I should bundle in more value at a higher price on the front end. Any guidance would be very helpful.

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