2026-07-09 · Highprime blog
We told a founder not to market online. Here's why.
Last year, a fruit juice brand approached us. Orange juice, priced at ₹99. The founder wanted online marketing: ads, Instagram, the whole engine. We said no.
Not because the product was bad. Because the math was impossible. At ₹99, after actual product cost, delivery, platform fees and marketing cost, there is nothing left. You cannot profitably sell a ₹99 juice online with paid acquisition. It's not a strategy question, it's arithmetic.
They went to another agency. That agency happily took the retainer. Six months later the product was discontinued, the Instagram was dead, and the business was shut.
Here's the rule we work by: if your profit margin is under 30%, don't put money into paid ads. Build content, yes, content costs effort more than cash and compounds over time. But paid acquisition on thin margins is a countdown timer, and every ad rupee makes it tick faster. Explore offline channels, distributors and marketplaces, where the economics of a low-ticket product actually work.
While we're here, let's talk about the pitches that make this worse. There's a classic one: "We'll deliver ₹30 lakh revenue in 90 days on a ₹2 lakh marketing budget." Let's do that math. Say your product is ₹400. Thirty lakh means selling 7,500 units. A ₹2 lakh quarterly budget means acquiring each customer at roughly ₹24. The skincare industry average CAC is ₹100 to ₹300. Twenty-four rupees is not ambitious, it's fiction. Any genuine agency will tell you ₹30 lakh isn't happening on that budget. If someone says it is, ask them to show you the ₹24 CAC in writing.
This is also why "no" is part of our service. We don't take on a brand we don't believe we can grow, because a wrong "yes" costs the founder far more than it costs the agency. The agency loses a client eventually. The founder loses capital, a year, and sometimes the whole business.
So if you're sitting on a low-margin product wondering why your ads don't work, the honest answer might be that ads were never the right tool for you. Fix the margin, or change the channel. And if an agency has never once told you no, that's not service. That's billing.