DiscussionOpinion

Q&A: reality of selling in the US, how to lower CPMs, and building the right funnel

Mark Builds Brands

Mark conducts a live Q&A session addressing ecommerce challenges, focusing on scaling in the US market, reducing CPMs, funnel optimization, and mindset lessons from his entrepreneurial journey. He emphasizes that success requires mastery across all execution areas, not secret strategies, and shares practical advice on product pricing, ad account warm-up, and creative compliance.

Summary

Mark hosts an open Q&A format AMA (Ask Me Anything) live stream where he answers questions from viewers across various countries. The session covers multiple critical ecommerce topics:

On entering the US market: Mark explains that the US is significantly more competitive than European markets like Scandinavia. He uses a basketball analogy comparing selling in Europe to minor league basketball and the US to the NBA—success requires being exceptionally better at everything (creatives, funnel, execution) rather than knowing secret strategies. He notes that while US customers have the highest average order value globally, the market demands superior execution across all dimensions.

On CPM reduction: Mark addresses why high CPMs plague many advertisers, identifying three primary causes: (1) not warming up new ad accounts properly before scaling, (2) using overly aggressive or non-compliant creative and landing page copy that triggers Facebook's algorithm penalties, and (3) operating in inherently competitive niches (pain relief, beauty, skincare). He explains that aggressive language like "Are you struggling with..." creates negative user experiences and increases CPMs. He recommends testing with a simple bridge page to isolate whether the issue is the landing page or the ad itself.

On funnel selection: For beginners, Mark recommends keeping it simple with PDPs (product detail pages) on Shopify using the Shrine theme. More experienced sellers can experiment with quiz funnels, advertorial funnels, listicle pages, or VSL (video sales letters). The funnel type should match the product's level of market sophistication—commodities require simpler funnels, while less-educated markets require more elaborate sales mechanisms.

On product pricing: Mark establishes two rules: (1) price products at minimum 3x the cost of goods sold (including shipping), and (2) maintain a minimum $30 margin (though he personally uses $30+ as baseline). He warns against pricing too low to undercut competitors, noting that small daily ad budgets won't capture market share regardless of price.

On mindset and building businesses: Mark emphasizes reframing failures as XP accumulation rather than losses. He shares that he tested 50 products over 9 months before finding success, viewing each failure as rapid experience building. He credits consuming positive content (podcasts from Tom Bilyeu) and journaling learnings as critical to maintaining momentum through difficulty. He stresses that nothing is inherently good or bad—perception determines reality.

On relationships and lifestyle: Mark initially discouraged relationships while building businesses but now takes a more nuanced view. If you've identified long-term potential in a partner, he recommends setting clear boundaries around work priorities while still making time for the relationship. He dismisses the lifestyle influencer aesthetic as performative, explaining he works longer hours than typical but in service of building valuable assets for eventual exits, not for content optics.

Key Insights

  • Mark argues that the gap between European and US market success is not due to secret strategies but rather execution quality across all dimensions—Europeans trying to scale US-winning Scandinavian ads without improvement will fail because creatives and funnels simply aren't good enough for the more competitive US market.
  • Mark claims that high CPMs are primarily caused by three factors: inadequate ad account warm-up, non-compliant aggressive creatives/landing pages, and operating in inherently competitive niches—not by mysterious pixel or algorithm issues.
  • Mark asserts that using language like 'Are you struggling with...' in ads inherently increases CPMs because it assumes a negative identity about the user and triggers Facebook's algorithm penalties against negative user experience.
  • Mark states he tested 50 products without a single winner over 9 months, which he reframes as rapidly accumulating years of experience and character-building through concentrated failure rather than traditional multi-year learning timelines.
  • Mark establishes that product pricing must follow two rules: minimum 3x cost of goods sold AND minimum $20-30 margin—if a product can't meet both thresholds at reasonable price points, the product itself should be abandoned rather than pricing below these minimums.

Topics

US market competitiveness and scale requirementsCPM reduction strategiesFunnel architecture selection by product sophisticationProduct pricing rules and profitabilityAd account warm-up processesCreative and landing page complianceFailure reframing and XP accumulation mindsetCompetitive niches and market saturationE-commerce fundamentals for beginners

Transcript

[0:12] I want my empty. [Music] I want [Music] All my to [Music] [0:50] you. [Music] I want I want my TV. [Music] [1:31] [Applause] [Music] Heat. Heat. [Applause] [Music] [Applause] [Music] [2:06] Look at them yo-yos. That's the way you do it. You play the guitar on TV. What is up, legends? It's Mark here and we're [ __ ] live, baby. What is good on this lovely [ __ ] Monday night? We're here. It's good to see y'all, man. It's good to see y'all. I missed you. It's been a It's been a [2:37] little minute since we did a live, huh? All right. Let me know where you guys are listening in from today on this…

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