The Reality of Scaling DTC in 2024

Hey everyone,

Happy holidays! We hope you’re enjoying your friends and family during Q5. Plus any time off you’ve earned after a pretty challenging year (you took some time off, right?). 

Let's get personal for a minute. 

If you've been following our journey, you know we just had our biggest Black Friday ever – we're talking 400% growth in November alone. 

But what's really interesting isn't the numbers themselves. It's how we got there.

Because here's the truth: The game has completely changed for DTC brands. The days of simply turning on Meta ads and watching the sales roll in are over. Especially if you’re an omnichannel brand.

Today we're going to break down exactly what we did in 2024 to scale in this new landscape.

Sit back, grab an eggnog, and we’ll share some of our biggest growth levers from the past 12 months.  

On the Menu:

• The new rules of brand building

• Why you can't win everything (And Shouldn't Try)

• Product innovation that actually moves the needle

BTW - we discuss all this and much more in a recent podcast. If you find this useful, we really recommend watching the whole thing. 

It’s one of our most popular podcasts ever!

The New Rules of Brand Building

If you’re in DTC or even if you’re a regular reader here, you know Meta media buying has become more… challenging over the years.

→ Customer acquisition costs keep climbing  

→ Margins are getting squeezed from every direction  

→ Meta's algorithm changes force constant evolution

But here's what's really happening: We're all fighting over the same 5% of in-market customers with most of our marketing dollars.

Think about your own supplement buying habits. 

When was the last time you switched your protein powder brand? Or tried a new vitamin? Most people aren't in "buying mode" for these products at any given moment. They only enter the market when they have a specific need or their current product runs out.

This realization changed everything for us. Since February, we've been actively building brand awareness outside of paid channels. Here's what that looked like:

1. Community Building 👨‍👩‍👧‍👦

• Built a Facebook community of over 100,000 engaged members

• Focus on sharing, liking, commenting – creating organic reach

• Let customers tell their stories and build trust for us

2. Retail Expansion 🏪

• Nationwide distribution in Walmart, Rite Aid, Vitamin Shop

• Each new store placement becomes a brand awareness touchpoint

• Physical presence adds legitimacy to digital efforts

3. Platform Diversification 🖥️

• Heavy investment in TikTok Shop

• Influencer marketing at scale

• Testing unconventional channels like Instagram meme pages

• Focus on getting the lowest possible CPM for awareness

The results surprised us.

When we checked our post-purchase surveys, almost half of our customers knew about us for more than a month – some for almost a year – before making their first purchase.

This changed how we approached Black Friday. Instead of just massive discounts, we structured November around weekly product launches. 

Why? Because we learned:

→ Getting one purchase during BFCM is table stakes  

→ The real win is getting customers to buy 2-3 times during the sale period  

→ New product drops keep people engaged and coming back

So we launched our four best-tasting products ever, back to back. This wasn't just about variety – it was about giving new customers an incredible first experience with our brand. 

The result? We surpassed last year's Black Friday revenue on a random Sunday in early November.

Why You Can't Win Everything (And Shouldn't Try)

Here's a tough question: Can you name a brand that truly dominates both retail and DTC? 

We spent a lot of time trying to crack this code, and here's what we learned… 

You have to pick a lane. 

The minute customers see your ads saying you're in Walmart, they're going to wait to buy in Walmart. They're going there every week for groceries anyway – why wait for shipping?

We tested this by spending six figures on ads in a single weekend. Want to know the retail lift? 1%. That's it. This forced us to rethink our entire approach. 

Here's the reality:

If you're pushing retail, everything changes. Your marketing has to pivot entirely to driving store visits – forget about your website, now you're telling people to "Shop at Walmart" or "Find us at Target." 

The moment you do this, your DTC conversion rates will plummet. Every piece of content becomes about store availability rather than product benefits. You're also entering a completely different battlefield, competing with impulse purchases and in-store discovery rather than considered online buying decisions.

The DTC path isn't any easier. 

The minute you mention retail availability in your marketing, you've killed the urgency of the online purchase. 

Why would someone pay for shipping when they can grab your product on their next Target run? Your marketing has to stay laser-focused on direct response, and you're constantly fighting against Amazon-level shipping expectations. 

It's a delicate balance that most brands get wrong.

Our solution? We created distinct product lines with clear channel strategies. 

Specialty retail → (think Sprouts Farmers Market)

• Premium, all-natural formulations 

• Higher price points. 

• Specifically formulated for the conscious consumer

Mass market retail → (think Walmart) 

• Standard formulations at competitive price points

• Packaging designed specifically for the environment. 

• Focus on taste and accessibility 

Our DTC channel → innovation lab 

• Push innovation & exclusive formulations

• Products you can't find anywhere else. 

• Premium positioning 

• Testing new concepts and gathering direct customer feedback

This is our laboratory for innovation, where we can quickly iterate and perfect new products before considering them for retail channels.

Think of it like running three separate brands under one umbrella. 

Each has its own strategy, its own customer base, and its own measure of success. It's more work, but it's the only way we've found to truly scale across channels without cannibalizing our own success.

Product Innovation That Actually Moves the Needle

A lesson we’ve learned over the years is don’t innovate just to have something new. Smart innovation needs to solve the following problems:

1. Customer retention

2. Channel conflicts

3. Market differentiation

Here's how we're approaching this in 2025:

New Product Development:

• Non-stim, non-caffeine burn powders with patented ingredients

• Collagen greens powder (riding the greens wave with our unique twist)

• Colostrum (we're betting big on this one)

But the real innovation lies in how we launch these products. For each new product line, we're creating a separate marketing infrastructure. 

→ New ad accounts (to avoid data contamination)

→ Fresh Facebook/Instagram pages (for targeting new audiences)

→ Custom landing pages for each product segment

→ Different influencer strategies per product

Why go to all this trouble? 

Because it’s become clear to us that the customer who wants a weight loss product is completely different from someone looking for gut health or immune support. Trying to use the same pixel, same audience, same messaging – it just doesn't work.

We're also innovating on our full brand experience:

• New tactile finish labels with raised elements

• Custom lids with debossed logos

• Consistent pill colors across product lines

• QR codes under safety seals for special offers

This might seem like overkill, but the thing is…people want cool stuff in their cabinets. 

🌈They notice when pill colors change between bottles. 

👏🏽They feel the difference in packaging quality. 

These small details impact retention in ways we never expected.

The real secret though? Testing everything methodically. 

For each new product:

1. Start with first-order profitability

2. Prove out the funnel

3. Build cash reserves

4. Test subscription models

5. Scale what works

Sum it up

The game has fundamentally changed for DTC brands. 

Success in 2025 will require:

→ Long-term brand building over short-term ROAS  

→ Clear channel strategy (retail OR DTC – not both)  

→ Methodical product innovation that drives retention  

→ Premium brand experience at every touchpoint

We think the brands that win won't be the ones with the biggest ad budgets. They'll be the ones who understand the long game of brand building and have the discipline to play it right.

All the best,

Ron & Ash