Middle America Facebook Demographics
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A discussion about the most profitable and efficient demographic to target for Facebook ads, particularly for direct-to-consumer products.
Target Demographic Profile
- White women in middle America
- Age range: 35-65 years old
- Geographic focus: Middle America (e.g., Texas)
- Most profitable and easiest demographic to "fish for" on Facebook
Why This Market Works Better Than Coastal Cities
- Lower customer acquisition costs compared to urban millennials
- More stable lifestyle patterns
- Less competitive ad space compared to major cities
- Avoid saturated markets (LA, NYC, San Francisco)
Problems with Urban Millennial Market
- Expensive to acquire customers
- Highly competitive ad space
- Frequent lifestyle changes affect long-term value
- Saturated with competing services (Uber, Lyft, etc.)
- High ad spend makes profitability difficult
Business Strategy Considerations
- Break even target on first purchase
- Aim for 65-70% gross margins
- Factor in 15-20% fulfillment costs
- Customer acquisition cost around $40-45 (up from $20-25 previously)
- Focus on high repeat purchase rate products
- Build customer base through cash flow recycling
- Prioritize lifetime value through repeat purchases
Product Considerations
- Keep shipping weight under 1 pound for better margins
- Consider USPS shipping rate breakpoints
- Focus on products with high repeat purchase potential
- Multiple SKUs can work well (example: different scents)
- High margin products preferred (example: candles)
50:42 - 51:57
Full video: 01:30:33SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.