Every eCommerce brand has a set of fundamental metrics that define what's actually possible. Your cost of goods, your repeat purchase rate, your margin structure. These numbers aren't aspirational. They're the non-negotiables that determine your ceiling, your floor, and every growth outcome in between.
The problem is that most founders set goals without ever understanding these fundamentals. They pick a revenue target, aim for a certain ROAS, and assume the business will bend to meet the ambition. It rarely works that way.
On a recent episode of the eCommerce Playbook podcast, CTC's VP of Go to Market Randall Thompson sat down with Richard Gaffin to break down what it actually means to "know your DNA" and why that understanding is the first step toward setting goals that hold up.
Randall speaks from lived experience. He started an eCommerce company in 2016, grew it to eight figures over the course of a decade, and eventually sold it. Early on, his goals were big: hit a massive revenue number, reach a target earnings multiple, sell the business, and retire.
"The reality is that none of that was really rooted in what the actual numbers were telling me." — Randall Thompson
The concept of business DNA comes down to the metrics that are baked into your brand's foundation. Your cost of goods is your cost of goods. If you're selling mugs, most customers don't need more than one. Your repeat purchase rate has a hard ceiling that no marketing campaign can change. These are structural realities, and the sooner you understand them, the sooner your goals start making sense.
According to Randall, every brand's growth ambition falls into one of three categories:
1. Building to sell. You're optimizing profitability over a specific window to make the business attractive for acquisition. The metrics that matter here are earnings consistency, margin stability, and a clean growth trajectory that buyers can underwrite.
2. Raising capital. You're maximizing the business to demonstrate scale and opportunity to investors. Revenue growth matters, but so does the story your data tells about future potential.
3. Optimizing for lifestyle. You're running the business to support the life you want. That means understanding exactly how much the business needs to generate in profit to meet your personal financial goals, then building execution around that number.
The through-line across all three? Every path leads to profit. Whether you're selling, raising, or sustaining, you need to optimize toward profitability. The difference is in the time horizon and the specific levers you pull to get there.
Randall's experience scaling from seven figures to eight figures taught him something that many founders learn the hard way: growing revenue and growing profit are two very different motions.
"It's much easier to grow top line than it is to grow bottom line. And there's a huge disconnect between the two." — Randall Thompson
At the early stages, spending more money generates more revenue, and the math feels simple. But as a brand scales into eight-figure territory, different tactics are needed. Understanding 90 to 120 day LTV, first-order profitability, the relationship between customer acquisition cost and long-term value, and optimal monthly ad spend all become critical. Without that depth, you're just doing more of the same activities at a larger scale and hoping the numbers hold.
One of the biggest gaps Randall identified is the disconnect between daily performance and long-term goals. Most brands operate with broad targets like "we need a 3x ROAS this quarter" without understanding what that requires on a daily, weekly, or monthly basis.
The Prophit System bridges that gap. It takes your brand's actual data, models what's possible over the next 6 to 12 months based on your real fundamentals, and maps those outcomes back to daily execution targets. Your optimal ad spend for each month isn't a guess. It's backed by your historical performance, your margin structure, and the specific goal you've set for the business.
That level of precision is what separates a plan from a pipe dream.
One thing Randall emphasized is that CTC's approach works precisely because it doesn't sugarcoat anything. After years of paying for consultants and agencies that overpromised, he recognized that the most valuable thing a partner can offer is honesty.
Sometimes the honest answer is that your business isn't built for the goal you've set. Maybe doubling revenue this year isn't realistic, but growing 15% profitably is. That 15% might not sound exciting, but it's real, and it's a better outcome than shrinking because you chased a number the business couldn't support.
That's the difference between a reality check and a sales pitch. CTC will tell you the good and the bad, and then build a plan from what's actually true about your brand.
Randall also pointed to an interesting trend: acquisition activity is picking up in eCommerce, particularly among brands with strong fundamentals. The businesses attracting investment have consumable products, healthy repeat purchase rates, and omnichannel distribution. The brands that weathered 2021 through 2024 and came out stable are now positioned to benefit.
Shifts in consumer search behavior are adding fuel. As consumers move beyond Google to new discovery platforms, early movers on emerging ad channels are acquiring customers at lower costs. If capital does flow back into eCommerce at scale, the brands that already understand their DNA will be the ones best positioned to capitalize.
If you're running a 7 or 8-figure eCommerce brand and you've never pressure-tested your growth plan against your real data, CTC's Prophit System can give you the clarity you need. Stop guessing and start building goals that your business can actually support.
Common Thread Collective is the leading source of strategy and insight serving DTC ecommerce businesses. From agency services to educational resources for eccomerce leaders and marketers, CTC is committed to helping you do your job better.
For more content like this, sign up for our newsletter, listen to our podcast, or follow us on YouTube or Twitter.