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Spend at Your Marginal Frontier, Not Just More

Your CFO wants more efficiency. Your CMO wants more volume. They're both right. And both wrong. The real question isn't "what should our target be?" It's "where are we at on our marginal frontier?" Spending power = the amount you can increase spend before CAC rises $1. Most brands are either: • 30% under their frontier (leaving money on the table) • 20% over it (burning cash for vanity revenue) The Bridge: contribution margin optimization isn't about spending less OR more. It's about spending exactly at the point where the next dollar nets you zero. Then deciding how far past zero your P&L can afford to go.