The Ecom Skill Tree: What to Master (and Buy) at $10k, $100k, and $1M per Month

You can usually tell what level a brand is on within about ninety seconds of the ad account loading, and it's rarely the level the founder thinks they're on.

The tell isn't the revenue number. It's where the money's going. A brand doing A$60k a month with a beautiful brand campaign running, soft lifestyle creative, a "manifesto" video, a font they paid an agency to pick, while the actual sales ads are an afterthought. They've skipped a level. They're spending like a brand four times their size and wondering why the maths won't close.

So here's a way to think about it that I keep coming back to, because it makes the "what should I even be working on" question answerable instead of overwhelming.

Treat it like a skill tree

Think of growing an ecommerce business the way you'd think about levelling up a character in a game. Each level has a specific skill you need to acquire to reach the next one. You don't get to pick the order. You can't max out the level-four skill while you're still stuck on the level-two one, and trying to is how founders waste money.

The trap is that the glamorous skills, brand, design, the big campaign, sit at the top of the tree. So people reach for them early because they're the fun part, while the unglamorous skill that would actually move them up a level goes ignored.

Here's my take on what each level actually demands. I'm going to map three revenue bands to the skill you need to master at each, and just as importantly, what you should buy rather than build. Because part of levelling up is knowing what not to do yourself yet.

Stage one: A$10k a month - master selling, buy proven demand

At this level there is one skill, and it's selling. Not branding. Selling.

Here's the line I wish more sub-six-figure founders heard: if you're under A$100k a month, you don't really have a brand yet, so stop spending like you do. Think about how much noise there is in the world. Nobody is forming a deep emotional relationship with your logo at A$8k a month. What they're doing is deciding, in about two seconds, whether your product solves a problem they have. That's it. That's the whole game right now.

So the skill to master is direct-response selling: a clear offer, a sharp hook, an honest reason to buy today. And the thing to buy is proven demand, not invented demand.

This is the part people get backwards. At this stage you do not want to be the brave pioneer educating a market on a product they've never heard of. You want to sell something people are already looking for, into a pocket where the demand already concentrates, and just be the obvious choice in that pocket.

There's a story that makes this concrete. A protein bar brand, early on, sold the same product into two places: a convenience store near a gym, and the gym itself. The convenience store moved about one bar a week, sitting on a shelf next to every competitor. The gym moved a hundred and fifty, because the gym was full of exactly the people the bar was made for, and there was no competing product in the room. Same bar. Same week. The difference was entirely about selling where the demand already lived.

That's what "buy proven demand" means at A$10k a month. Find the gym, not the convenience store. Sell to the people already raising their hand.

The trap at this level: spending on branding. Every dollar you put into a brand campaign at A$10k a month is a dollar not spent finding product-market fit or generating cash. Focus on sales, cash flow, and proving the thing actually sells. You'll know you've cleared this level when the product is moving and the unit economics hold up without you holding your breath.

Stage two: A$100k a month - master the system, buy trial

Cross into the low six figures and the constraint changes shape. Selling still matters, it always matters, but it's no longer the thing that breaks. What breaks now is the machine around the selling.

The skill to master at A$100k a month is the system: fulfilment that doesn't fall over, the operational glue that keeps inventory and demand roughly in sync, and a repeatable way of turning out content and offers without it all living in your head. A brand can have a 100k month off a lucky run of drop-shipped product, but it falls off a cliff unless the fulfilment and the systems are real. This is the level where "make the product genuinely good and get it to people reliably" becomes a survival skill, not a nice-to-have.

And the thing to buy at this level is trial. This is the most underused move I see in the whole stage.

The maths on trial is simpler than people make it. Work out your LTV. Work out how many units you'd have to give away before one new customer who keeps buying pays for all of them. For a lot of products that number is small and the answer is "be far more generous than feels comfortable". One brand built a launch almost entirely on it: thousands of free units to the right people, the content and word-of-mouth that came back, and a funnel that was really just a very aggressive sampling campaign. It wasn't even that much money once you ran the LTV-to-cost maths. It just looked reckless to anyone not doing the maths.

There's a reason giving works better than it should. A free product arrives unexpected, it starts the relationship in the positive, and people talk about it. Word of mouth is still the most powerful thing in the business and trial is how you manufacture it. Instead of handing all your money to the ad platform, you put some of it into product and into the hands of customers and potential customers. Often a far better use of the same dollar.

The trap at this level: still acting like you're at stage one and treating performance ads as the only lever, or worse, jumping ahead and pouring money into brand-building before you've got the household awareness to justify it. At A$100k a month you're a teenager, still growing. The mix should be heavily weighted to the things that drive trial and direct response, with brand as a small slice, not the headline.

Stage three: A$1M a month - master brand, buy reach into your own demand

Now, finally, brand earns its place at the top of the tree.

At roughly A$1M a month and climbing, you've got something the earlier stages didn't: real penetration. People have seen you. You've got distribution points, an audience, a base of customers who already know the name. That changes which skill carries you up the tree. The skill to master here is brand marketing, the non-obvious, attention-getting, category-defining kind, the campaigns that make people feel something and remember you.

But here's the bit that matters, and it's a sequencing point most "do a big brand play" advice skips. Brand marketing pays off precisely because you've already got the penetration and the distribution to absorb it. When a well-known brand spends on awareness, that awareness has somewhere to land, a shelf, a website, a hundred points of sale, so it doesn't need tight attribution to be worth it. It seeps into demand you can already capture. Run that same campaign at A$60k a month with three SKUs and almost nowhere for the attention to land, and you've just paid premium prices for a feeling.

The framing I find useful: early on, your spend is something like ninety percent direct-response and ten percent brand. As you get distribution and household penetration, that ratio should migrate, more and more towards brand, until at real scale a lot of it is brand. Good brand marketing raises the tide for everything once there's enough business for the tide to lift.

There's also a recurring move worth stealing at this level: the recurring-revenue brands that win big use their predictable revenue to out-spend everyone on awareness, so by the time they hit retail shelves the demand is already there waiting. They built the brand into existing momentum. They didn't lead with it from a standing start.

The trap at this level: believing you're here when you're not, and believing brand spend is a free pass. A sharp version of this I keep in mind: a lot of companies that think they're brands are actually marketing companies, and the threshold where you've genuinely earned the brand title is far higher than most founders want to admit, well into nine figures for some categories. Reaching A$1M a month doesn't mean you stop selling. It means brand becomes an additional skill on top of the selling, not a replacement for it.

The real question: when do you shift from acquisition to brand

If there's one decision this whole skill tree is built to get right, it's this: when do you move budget out of buying customers and into building the brand?

Get it wrong early and you starve the business. Brand spend at A$10k a month is money set on fire, because there's no penetration for it to compound against. Get it wrong late and you leave growth on the table, because past a certain awareness level, more direct-response alone starts hitting diminishing returns and the brand work is what keeps the whole thing lifting.

So I'd anchor the shift to penetration, not to a revenue milestone or a calendar. The questions worth asking: how many of the people who should know about us actually do? Do we have enough places for new demand to land, enough distribution and enough product, that awareness wouldn't just leak away? Are our direct-response returns flattening despite good creative, a sign the easy demand is bought and the next gains come from raising the whole tide?

When those answers tip, you start migrating the ratio. Not flipping a switch, migrating, a few points of budget at a time, from acquisition towards brand, watching whether the base lifts. The brands that scale cleanly tend to treat that shift as a gradual, deliberate reweighting tied to how known they actually are, rather than a dramatic rebrand the moment they hit a round number.

The uncomfortable bit is honesty about which level you're actually on. It's very tempting at A$80k a month to spend like the A$1M brands you admire, because that's the version of the business you want to be running. But the skill that gets you to the next level is almost never the glamorous one. It's the one sitting right in front of you that you've been avoiding because it's less fun.

So before you brief the brand campaign or hire the creative director, it's worth sitting with the plainest possible question: what level am I genuinely on right now, and what's the one unglamorous skill that actually moves me up to the next one?

Ethan To
CEO @ Pigeon Digital