In the last installment of our Cash is King series, Tyler discusses two important pieces of financial data: Post Advertising Gross, or PAG, and overhead. Understanding which how each metric affects your profit margin is key to knowing whether or not you’ve made money.
Let’s dive in.
- Post Advertising Gross = Gross Profit – Ad Spending (i.e. how much did you make after you account for how much you spent marketing your product?)
- Overhead is everything below the Gross Profit line excluding ad spending.
- Increase PAG and reduce overhead to increase your take-home profit.
Watch the rest of this series:
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