Growth plan for Function of Beauty, 6 Oct 2026
Scale spend. Hold CAC.
Function of Beauty sells Custom Shampoo in 39 variants at $29.00, and entry shampoos at $9.99. This plan turns that range into many ad and creator experiments, kills losers early and protects one number: a target CAC of $8.16 on a proposed $100,000 budget.
- Target CAC
- $8.16
- New ads a week at peak
- 20
- Creators live by week six
- 10
- Test spend, six weeks
- $24,000
Contents
10 chapters, then the gates and every number’s source.
01 The number
One number to protect: a CAC of $8.16 on a $29.00 Custom Shampoo
The one number to protect is a target CAC of $8.16. It is 0.6 times a ceiling of $13.60, which comes from a $17 average order, a 40% margin and one repeat order. The inputs are my guesses until your real order data replaces them in week one.
Protect
Target CAC: $8.16 on a first purchase
Ceiling = average order × margin × (1 + repeat orders): $17 × 40% × (1 + 1) = $13.60. Guard line = 0.6 × $13.60 = $8.16. Across the ranges: $3.68 to $67.50.
Three moves
- Kill ads early: any concept running above a CAC of $8.16 gets cut before it earns more budget.
- Raise spend only on winners: a concept earns budget when it holds under the $13.60 ceiling.
- Push Function With Benefits in every offer: the 20% off first subscription order is the repeat-order lever behind the ceiling.
- variants of Custom Shampoo
- 39
- Published
- off your first subscription order
- 20%
- Published
- free standard shipping threshold on one-off orders
- $75
- Published
02 Variety
Variety: Coily, Curly, Wavy and Straight each need their own hook
Each concept has to carry one hair type, one product and one reason to act. Coily, Curly, Wavy and Straight each have a $9.99 shampoo and conditioner, and Custom Shampoo opens 39 variants. One variable per test, so we know what moved.
| Reason to buy | Proof you already have | Ads (proposed) |
|---|---|---|
| Two-minute quiz | You take a quick, two-minute quiz about your hair history, goals, damage and styling habits. | 5 |
| Clean, vegan, cruelty-free | Clean. Vegan. Cruelty-Free. | 3 |
| Repair backed by data | 2x stronger hair 90% less breakage | 3 |
| Heat protection | provitamin B5 that provides color, UV, and heat protection (up to 450°F) | 2 |
| Welcome offer | 20% off your first subscription order | 2 |
| Jumbo value sizes | now available in 22oz (double the size!) for an even better value! | 2 |
| National Hair Month offer | Take 25% off everything through October 23 | 1 |
| Total | The ad concepts tab | 18 |
Each row is a reason to buy that the brand already has proof for. The count is how many of the ads carry it: a reason with a single ad is a bet, not a pattern, and the next batch of concepts moves toward the reasons that win.
03 Disturbances
Risks: a $9.99 shampoo can drag the average order down
| Disturbance | Likelihood | Impact | Owner | Gate (proposed) |
|---|---|---|---|---|
| The $17 average order is my guess; real baskets may be smaller than that | Med | High | Your team | Week one: replace the $17 with your real average order and reset the $8.16 guard line. |
| A single $9.99 shampoo is under the $75 free-shipping line, so shipping may cut first-order margin | Med | Med | Your team | Week one: get shipping cost per first order; if the 40% margin drops, rebuild the ceiling. |
| One repeat order is in the ceiling; Function With Benefits sign-ups may not deliver it | High | High | Both | Day 30: if first-subscription cohorts show no second order, drop the repeat from the ceiling. |
| Creators may stretch claims such as "Reduce frizz by 70%" beyond the brand's own wording | Med | High | Me | No creator video goes live without a match to the claims sheet; each video is checked before posting. |
| Ten creators by week six is a proposal; onboarding can run late | Med | Med | Me | By week four, four creators are live; if not, hold new landing pages until they are. |
| Tracking gaps hide which ads drive orders, especially subscription starts | Med | High | Your team | Before spend, quiz completions and subscription starts fire as events; no events, no spend. |
| A sitewide discount like 25% off everything lowers margin below the 40% in the ceiling | Med | High | Your team | While any sitewide discount runs, recompute the ceiling with the lower margin before new tests go live. |
Scores are my read from outside the company, re-scored in week one with your data. Each risk has one owner and one gate that can be checked with a number, so nobody has to argue about whether it happened.
04 The ceiling
The ceiling: a $17 average order at 40% margin allows $13.60
| Line | Value | Status |
|---|---|---|
| Average order | $17 (range $7.00–$50.00) | Assumption Range from the site product prices (Published); the midpoint is a guess |
| Gross margin | 40% (range 35–45%) | Assumption Replace in week one |
| Repeat orders after the first | 1 (range 0.5–2) | Assumption Replace with cohort data in week one |
| Margin per customer, all orders | $13.60 | Calculated Average order × margin × (1 + repeat orders) |
| Guard line for CAC | $8.16 | Calculated 0.6 × the margin per customer |
The math, with the assumed lines
Ceiling = average order × margin × (1 + repeat orders): $17 × 40% × (1 + 1) = $13.60. Guard line = 0.6 × $13.60 = $8.16. Across the ranges: $3.68 to $67.50.
Range across the assumptions: $4 to $68.
The ceiling of $13.60 mixes one fact and guesses: free shipping starts at $75, but the $17 order, 40% margin and one repeat order are mine. Week one replaces them with your data and moves the $8.16 guard line.
The ceiling is a range, not one number: the most a new customer can cost before shipping and packaging, which I do not have. Replace the guessed lines with yours and every figure below recalculates.
05 Test ramp
Test ramp: $24,000 over six weeks before any scaling
| Week | New ads × budget / ad (proposed) | Weekly test spend | Cumulative | Creators posting | CAC target (proposed) |
|---|---|---|---|---|---|
| 1 | 12 × $250 | $3,000 | $3,000 | 0 | $8 |
| 2 | 12 × $250 | $3,000 | $6,000 | 2 | $8 |
| 3 | 12–20 × $250 | $4,000 | $10,000 | 4 | $8 |
| 4 | 12–20 × $250 | $4,000 | $14,000 | 6 | $8 |
| 5 | 20 × $250 | $5,000 | $19,000 | 8 | $8 |
| 6 | 20 × $250 | $5,000 | $24,000 | 10 | $8 |
Six weeks, $24,000 of tests. Weeks one and two run 12 ads each for $3,000 a week. Weeks three and four run 12 to 20 ads, $4,000 a week. Weeks five and six run 20 ads, $5,000 a week. Losers die early; winners earn the next dollar.
The math. Week 1: 12 × $250 = $3,000; Week 2: 12 × $250 = $3,000; Week 3: 16 × $250 = $4,000; Week 4: 16 × $250 = $4,000; Week 5: 20 × $250 = $5,000; Week 6: 20 × $250 = $5,000. Total $24,000 (96 ads × $250). A range such as 12–20 counts as its midpoint.
Weeks one and two test what the brand already has, rewritten per reason to buy. From week three, creator videos enter paid only after they beat their own account median. A range of new ads counts as its midpoint in the spend column.
06 Volume
Volume: 80 concepts, 8 winners, if Custom Shampoo holds up
More concepts means more shots at a winner under $8.16. Assumption: 20 concepts give 2 winners and $18,000 added; 80 concepts give 8 winners and $72,000 added. Hit rate and spend per winner are guesses.
| Concepts tested / month | Hit rate (assumed) | New winners / month | Spend each winner holds (assumed) | Added spend at target CAC |
|---|---|---|---|---|
| 20 | 10% | 2 | $300 / day | $18,000 / month |
| 40 | 10% | 4 | $300 / day | $36,000 / month |
| 60 | 10% | 6 | $300 / day | $54,000 / month |
| 80 | 10% | 8 | $300 / day | $72,000 / month |
The math. 20 concepts × 10% = 2 winners × $300 × 30 days = $18,000 a month; 40 concepts × 10% = 4 winners × $300 × 30 days = $36,000 a month; 60 concepts × 10% = 6 winners × $300 × 30 days = $54,000 a month; 80 concepts × 10% = 8 winners × $300 × 30 days = $72,000 a month.
The hit rate and the spend each winner holds are placeholders. The first thirty days of tests replace them with real numbers, and the table is recalculated the same day.
07 Allocation
Allocation: $100,000 split to protect the $29.00 Custom line
- Meta tests of new ads and hooks
- $45,000
- 45%
- Creator videos for Coily, Curly, Wavy and Straight
- $25,000
- 25%
- Scaling winners on Custom Shampoo and Conditioner
- $20,000
- 20%
- Reserve for retargeting and Function With Benefits offers
- $10,000
- 10%
Of the proposed $100,000, tests come first; winners such as Custom Shampoo get scaled only once they hold under the $8.16 guard line.
The math. 45% × $100,000 = $45,000; 25% × $100,000 = $25,000; 20% × $100,000 = $20,000; 10% × $100,000 = $10,000. Sum 100% = $100,000.
This split is a proposal. It moves toward scaling as winners prove out, and toward testing when fatigue shows.
08 Channels
Channels: Meta first, because the Hair Quiz is a visual story
| Channel | Open when (proposed) | Why wait |
|---|---|---|
| Meta | Week one, with the first 12 ads on the Hair Quiz and entry shampoos | Hair types and results read fast in short video, and the quiz fits a quick click. |
| TikTok | When the first two creators post their videos | Creator routines for coily, curly and wavy hair are native to the feed. |
| Google search | When Meta winners hold under the $8.16 guard line | Shoppers who search custom shampoo already have intent and a product to compare. |
| Email and subscription | When the first subscription orders exist | Perks like the 20% welcome offer and members-only pricing give the list a reason to open. |
| Affiliate | After week four, once creators have proven hooks that can be shared | Terms already credit orders for 7 days after a click, so creator links can be tracked. |
A channel opens when its condition is true, not when the calendar says so. Until then the budget stays where the CAC is earned.
09 Payback
Payback: a $10 CAC needs repeat orders, $15 never pays back
Payback is the real constraint. A CAC of $5 pays back on the first order with $8.60 left. A CAC of $10 needs repeat orders and leaves $3.60. A CAC of $15 or $20 never pays back: −$1.40 and −$6.40. That is why the 20% first-subscription offer matters.
Cumulative margin per customer, order by order, before CAC: $6.80, $13.60.
| CAC (scenario) | First-order margin | Year-one margin | Left after CAC | Payback |
|---|---|---|---|---|
| $5 | $6.80 | $13.60 | $8.60 | First order |
| $10 | $6.80 | $13.60 | $3.60 | After repeat orders |
| $15 | $6.80 | $13.60 | −$1.40 | Never: stop |
| $20 | $6.80 | $13.60 | −$6.40 | Never: stop |
The math. CAC $5: $13.60 − $5 = $8.60 left; pays back: First order; CAC $10: $13.60 − $10 = $3.60 left; pays back: After repeat orders; CAC $15: $13.60 − $15 = −$1.40 left; pays back: Never: stop; CAC $20: $13.60 − $20 = −$6.40 left; pays back: Never: stop.
Read each row left to right: the margin of the first purchase, the margin over the whole horizon, what is left after CAC, and the purchase on which the CAC is earned back. A scenario that never pays back is a stop, not a test.
10 Scope
Scope: ads, creators and landing pages, not your tracking or formulas
Covers
- Meta ad concepts and the test ramp for the Hair Quiz and entry shampoos
- Creator briefs and a hook library across Coily, Curly, Wavy and Straight
- Landing pages for each hair type and each ad winner
- Daily CAC, weekly learnings and monthly cohort payback
Doesn’t
- Event tracking build; I spec it, your team ships it
- Formulas, claims approval and product decisions
- Shipping, fulfillment and returns
- Hair-care category expertise; I have none, so your team checks every claim
What this plan covers is what I can change inside the ad account and the creator program. Everything outside it is named on the right so nobody assumes it is handled.
Gates, written before spend, so stopping isn’t a negotiation.
| Day | Keep going if (proposed) | Stop or change if |
|---|---|---|
| Day 14 | Two creators live, first test ads running under the $13.60 ceiling and tracking events firing | Tracking events still not firing, so spend can't be tied to orders |
| Day 30 | Several concepts under the $8.16 guard line and repeat orders seen in the first subscription cohort | Every concept above the $13.60 ceiling after the first tests |
| Day 60 | At least one winner scaling while CAC holds at or under $8.16, with creator videos feeding new ads | CAC above $13.60 for two straight weeks despite new concepts |
| Day 90 | Payback reached through repeat orders at your real average order, with Custom Shampoo winners still scaling | Payback never reached, as in the $15 scenario |
Each gate is checked on its day with the numbers in the daily and weekly reports. If the stop condition is true, the spend stops and nothing renews until we talk.
What exists, what’s missing, and the order that’s forced.
| Piece | Exists today | Missing | Forced order |
|---|---|---|---|
| creative | Custom Shampoo at $29.00 with 39 variants | Ad concepts and a hook library per hair type | 1st |
| creators | Shampoos at $9.99 for four hair types | A roster, briefs and pay terms | 2nd |
| claims sheet | Own wording: Reduce frizz by 70%, Improve detangling by 75% | A one-page approved list for creators | Week 1 |
| landing pages | Hair Quiz and shop-by-hair-type paths | One page per ad winner | 2nd |
| reporting | Offers to track: 20% first subscription, $75 free shipping | Event tracking and a daily CAC view | Week 1 |
The order is forced on purpose: creative and creators come first because they are what moves CAC, and everything else waits for that data.
Every number, and where it came from.
| Figure | Where it came from | Type |
|---|---|---|
| 39 variants of Custom Shampoo | https://functionofbeauty.com/products/shampoo | Fact |
| 20% off your first subscription order | https://functionofbeauty.com/pages/function-with-benefits | Fact |
| $75 free standard shipping threshold on one-off orders | https://functionofbeauty.com/ | Fact |
| Product prices $7.00–$50.00 | product prices in the site product data (38 products), read 2026-10-06 | Fact |
| $17 average order · 40% margin · 1 repeat order | Placeholders, replaced in week one | Assumed |
| $8.16 target CAC | 0.6 of the $13.60 margin per customer | Calculated |
| $13.60 margin per customer | Price × (margin − discount), summed over the orders | Calculated |
| $24,000 of tests (96 ads × $250) | Danilo’s plan, matches Month one | Calculated |
| 0→10 creators in 6 weeks · 7 videos per creator a week | Danilo’s plan, matches Month one and the Creator engine | Proposed |
| $100,000 first budget split 45% / 25% / 20% / 10% | Danilo’s plan, re-set with the team in week one | Calculated |
| 10% hit rate · $300 a day per winner | Placeholders, replaced by the first 30 days of tests | Assumed |
| 303 creator videos a month at 10 creators | 10 creators × 7 videos a week × 52 ÷ 12 | Calculated |
| $5.74 per 1,000 views against a $1 target | Creator cost over the views the assumptions give | Calculated |
| $1,000 base pay · $50 bonus past 100,000 views | Danilo’s plan | Proposed |
| 1,500 median views · 4% breakout (10×) · 0.5% viral (750,000) | Placeholders, replaced by the first month of posts | Assumed |
| Pay bands $300–$600, $500–$1,000, $800–$1,500 | Danilo’s plan | Proposed |
Every figure on this page is listed here with where it came from. Fact means read on the site. Assumed and Proposed are Danilo’s own numbers, to be replaced in week one. Calculated is plain arithmetic on those, with the formula shown next to it.
Month one is where it starts.
Week one: I read your real average order and shipping cost, reset the $8.16 guard line, write the claims sheet from your own wording, and launch the first 12 ads for Custom Shampoo and the $9.99 shampoos. Two creators come on, and tests start.
