
Why Pay an Agency 15k When Your Customers Will Tell You for Free
A brand Cem Atik helped scale from $15m to $50m paid an outside firm $15,000 to be told what it was doing wrong. It already had 100,000 customers who would have said the same thing for nothing. Cem co-founded Harucon Ventures in Düsseldorf, in western Germany, and spends his days pulling apart the numbers behind ecommerce brands in the UK and the DACH region (Germany, Switzerland and Austria). He has been in the space for 13 years. He scaled his own first business to $7m, then burned more than $250,000 on a second one he started alongside it and went bankrupt in five or six months. That failure shapes most of what he says here. The two things holding brands back, he argues, are a loose grip on unit economics and the ego that arrives somewhere between $2m and $5m in revenue. He makes the case that ecommerce only really starts past $10m, that retention rather than paid marketing is where the profit is made, and that a rising customer acquisition cost is only a problem if the repurchase rate is low. He also walks through what happens inside a growth audit, including a packaging change that took 25% out of one client's costs before any extra ad spend. In this episode 02:57 - Who Cem is and what Harucon Ventures does 08:33 - The two mistakes he sees in almost every brand 11:11 - Why pay 15k when you already have 100,000 customers 13:45 - The $250,000 second business that went bankrupt in five months 16:54 - Why a rising CAC is not automatically bad 20:45 - What actually happens inside a growth audit 24:18 - Cut the feelings and call your customers 34:32 - How Cem uses AI to read data he has no time to read 43:02 - The five numbers every ecommerce founder should know The Two Mistakes He Sees in Almost Every Brand (08:33) Asked for the single biggest mistake ecommerce businesses make, Cem named two. The first is having no control over unit economics. His opening question on a first call is what the brand's customer acquisition cost to lifetime value ratio is, and he asks it less for the number than to find out whether the founder knows it at all. The second is ego, and it tends to show up between $2m and $5m in annual revenue. "The first call that I have with people is usually like roasting them for 30 minutes." - Cem Atik He is not dismissive of that milestone. Getting a business to $2m or $5m is difficult and most people never do it. His argument is that the game changes afterwards. "Ecommerce is actually, if you're just asking me, starting after you're passing the $10 million, because then you just really start to feel pressure, competition, and you also just need to play the game differently, or otherwise you die within like a 3-month period." - Cem Atik He has paid for the lesson himself. His first business reached $7m in revenue, at which point he assumed everything he touched would turn to gold. He started a second business alongside it, spent over $250,000 and went bankrupt inside five or six months. Matt offered the same story back from his own history, copying the code behind Jersey Beauty Company to launch Jersey Gift Company, which died in about three weeks. "People only learn with pain. You just need to feel this pain at least once or twice until you understand." - Cem Atik Your Customers Already Know What Is Wrong (11:11) A brand Harucon had helped take from $15m to $50m told Cem it had hired an outside firm for $15,000 to identify what it was doing wrong. Harucon has invested in that business, so Cem asked the founder why. "Marcel, you have 100,000 customers to ask for what you are doing wrong. Why are you just hiring a company?" - Cem Atik The founder's answer was that it felt like the next step. "Who say you that this is the next step? You're just only increasing your OpEx cost for no reason." - Cem Atik The objection Cem expected was credentials, so he dealt with it directly. "These guys have like huge reference. And your customers has no reference. They buy, they bought your product. So what kind of reference you need more, right?" - Cem Atik The catch is that free feedback still has to be accepted. Cem's view is that a sparring partner is only useful to a founder who can take criticism, provided the criticism comes with a reason and a fix rather than just a verdict. Matt tied that back to Jim Collins in Good to Great , and the idea that a great leader confronts the brutal facts while holding on to a belief that the future can be different. Retention Is Where the Profit Sits (16:54) A client complains that their customer acquisition cost is rising. Cem's first question is the repurchase rate. At 40%, a rising CAC is not a problem. At 10% or 15%, it is. "A raising cost number doesn't mean that something is going bad or good. It more shows you where your business is moving on." - Cem Atik Category matters here. Beauty products tend to bring in new customers, supplements should bring the same customers back, and a supplements brand without a repurchase rate of 30% to 40% is leaving money on the table. His wider point is that paid marketing has a ceiling. "You cannot stay always profitable with your marketing if you just reached 100, 150, 200 million. That is not working. Marketing is not made for that." - Cem Atik Retention, conversion rate on the shop and signup forms are the levers that turn unprofitable traffic into profit. "Retention is the only channel that is generating your pure profitability." - Cem Atik Scaling Usually Starts Before the Ad Spend (20:45) Harucon runs two due diligence workstreams before it touches anything, marketing with Cem's team and finance with his partner Tobias Münnich and his team. The scan covers rates, supply chain and process, and the fixes it surfaces are rarely about buying more traffic. One food and beverage client was producing in Poland and Bulgaria, shipping the product to Germany, unpacking it, repacking it, then selling it. Finishing the packaging at the point of production took roughly 25% off the packaging cost. A separate change to fulfilment on the same brand saved another 12%. The findings get delivered in what Cem calls the second roast meeting, where the brand hears exactly what is wrong, why it is wrong and how it gets fixed. He is firm that the last part is what makes the first two worth anything. Naming the problem is cheap. Handing over the method is the bit brands can act on, and it leaves them free to run the fix themselves or bring Harucon in to do it. Cut the Feelings and Follow the Data (24:18) "Your ecommerce brand is your baby. You just grow it up from the beginning and there is a lot of emotion into it. Cut it. It's hard to say, but cut it." - Cem Atik A 15% to 20% return rate does not need a dashboard or a consultant. It needs phone calls to the customers who sent the product back. The same instinct applies inside the data. One of Harucon's partner brands asked why repurchase rate fell away after the third order. The numbers showed no gifts, no welcome series and no contact of any kind after the first purchase. "It takes us 5 minutes to fix something that you just thinking about like 2, 3 weeks." - Cem Atik For founders with nobody to ask, his suggestion is LinkedIn. Message ten people who work in the area. If eight of them say the same thing, fix that. He answers his own messages, prompted by his team when one has been sitting there a day or two. The last piece is pace. One of the larger private equity operators Cem knows describes himself as not especially smart, but says he understands how pace and execution work together. He runs five things at once, cuts whatever is not working inside a month and rotates. He burns money doing it, roughly 5% or 6% of it, and that buys him the other 90%. "If you are not able to sacrifice 5, 6 or even 10% to generate another 90% which are insanely profitable, you are leaving money on the table and you are just wasting your time." - Cem Atik The Five Numbers He Names (43:02) Asked to close with the metrics every ecommerce founder should be able to state, Cem gave five. Customer acquisition cost Average order value New customer share, meaning the percentage of customers coming in who are new Lifetime value Repurchase rate His closing advice was borrowed, heard on another podcast and repeated because he thinks it is true. Work so hard and so much that it makes it unreasonable not to succeed, and do not let pace and execution be the last thing you care about. Cem's Question for Matt Every guest leaves Matt with a question, and he answers it on social rather than on the show. "If you compare your biggest success with your biggest failure, which one teaches you more? Failure, for sure, right? But are you sure about that?" - Cem Atik Matt's answer goes up on LinkedIn and Instagram. Today's Guest Cem Atik (pronounced "Jem") is Co-Founder of Harucon Ventures GmbH, based in Düsseldorf, Germany. Harucon is a growth partner for ecommerce brands in the UK and the DACH region, which covers Germany, Switzerland and Austria. Cem runs it with his partner Tobias Münnich, who leads the finance side. The firm works on a performance-based model, caps itself at 15 brands at a time and takes equity positions...




