Case Study: What Happened When a Sub-$20K MRR Business Launched Paid Ads

The Starting Line: Small Base, Big Opportunity

We recently launched paid ads for a client that had never really leaned on digital advertising before. They’d done some smaller tests in the past, but nothing that stuck, and definitely nothing that contributed meaningfully to revenue. 

That changed in September.

We rolled out a full-funnel strategy designed not just to capture leads but to actually grow the business. Six months later, monthly recurring revenue is up 43%, and paid ads are now driving over 17% of total monthly revenue. And that’s a conservative figure as it doesn’t account for users we couldn’t track back to paid.

The Challenge: Running Before We Could See

The client came to us looking to scale their business effectively while staying mindful of cash flow. We were able to drive results quickly, but limited tracking made it harder to fully understand and optimize performance.

In hindsight, we should have laid more track before hitting the gas. For the first few months, we did not have proper user tracking in place. We could see conversions roll in but had no way to know how much revenue they were generating, which made it tough to judge performance against our six-month payback target.

It was like trying to decide whether to keep the train rolling or stop to finish laying the track. We were eager to have an impact, and we did, but flying blind on revenue limited our ability to fine-tune the machine.

The good news is that it has since changed. With a better tracking platform in place, we can now map customer value back to ad spend. That visibility has already helped us tighten targeting, optimize bids, and scale with confidence.

The Takeaway: It Works, But Visibility with Paid Ads Is Key

This experience highlights what’s possible with paid media, even for small businesses, when the fundamentals are strong. With the right offer, product, and site experience, paid channels can quickly become powerful growth drivers, as long as expectations stay grounded in reality. Sustainable scaling doesn’t happen overnight, but with a solid foundation, real momentum is within reach.

That said, tracking should never be an afterthought. Without clear visibility into what your marketing dollars are returning, even the best campaigns can only get you so far. The sooner you can connect conversions to actual revenue, the sooner you can invest smarter, optimize faster, and accelerate meaningful growth.

What’s Next: Scaling Smarter

Now that we’ve built a stronger data foundation, we’re entering the next phase: reinvesting in what’s working and dialing in efficiency. With clearer signals guiding us, we can move beyond just generating volume and focus on strategically compounding revenue for long-term, sustainable growth.