Why do DTC businesses only focus on EBITDA? - Conversion Rate Optimisation Expert

Why do DTC businesses only focus on EBITDA?

Written by Reed

When I look at the businesses I see with healthy growth and the ability to sell, I see an overwhelming majority based on a value that is tied to number of units sold.

Do most CEOs know that they are the head of marketing and does the CMO know they are the head of implementing marketing? Where the hell has the intellectual property discussion gone?

When you go to value business you’ll only get options around EBITDA. Though the greater sales across the board come from the outliers who focus on the ability to be well positioned with I.P. around a core competency which will flow into the future. Which I call ‘Future Value’.

I mentioned marketing before because the marketing looks quite different from the modern growth machine. And clearly delineates the valuation for a buyer. The marketing can look like not that much and the business can be extremely profitable.

Most of the unit selling, EBITDA focused businesses shouldn’t be interested in growth merely for the sake of growth—which value and pricing expert Ron Baker calls ‘the ideology of the cancer cell’.