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.

Key Takeaways

  • 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:

  1. Understanding the E-Commerce Cash Flow Cycle
  2. Working Capital and Debt

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