So far in this series, we've talked about why growth creates pressure, what yield actually means, and why profit and cash flow aren't the same thing.
Today, let's get practical.
Where does yield actually leak?
I'll share the most common ones I see. And fair warning ... some of these are going to feel personal. Not because you're doing anything wrong, but because these leaks are sneaky. They often look like smart moves on the surface.
Leak #1: Discounts that "work."
The promo hits. Revenue spikes. Everyone celebrates. Then two weeks later, refunds climb. The customers you attracted were deal-hunters, not believers. You didn't create demand. You borrowed it. And the interest shows up as churn.
Leak #2: Free shipping that quietly eats your margin.
Free shipping feels like table stakes. But if your threshold is too low (or nonexistent), shipping costs can silently destroy your contribution margin. That's the money left over after product costs, shipping, and fees. If that number is thin, nothing downstream works.
Leak #3: Pushing bigger carts too early.
Upsells and bundles can be great. But when you push a customer into a bigger purchase before they trust you, you get a spike in average order value ... followed by a spike in returns. Profit that creates regret isn't profit. It's delayed churn.
Leak #4: Subscriptions sold as discounts.
"Subscribe and save 15%!" sounds like a retention play. But if the only reason someone subscribes is the discount, they'll cancel the moment they feel like they have enough. Subscriptions should be about continuity, not coupons.
Leak #5: Scaling ad spend before you understand payback.
Payback is the time it takes to recoup the cost of acquiring a customer. If your payback window is 90 days but you're scaling spend like it's 30 ... cash gets crushed. Fast.
Every one of these looks like growth on the surface. That's what makes them dangerous.
Next, I want to talk about the one that trips up the most founders. It's the idea of "borrowing trust from the future." And it changes how you think about every offer you make.
See you tomorrow,
Jeremiah
P.S. Here's a question worth sitting with: which of those five leaks felt the most familiar? That's probably your starting point.
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