Footprint’s Facebook Arbitrage Playbook: Turning $1 Into $3 From Zero to $10M ARR

Footprint’s Facebook Arbitrage Playbook: Turning $1 Into $3 From Zero to $10M ARR

In a recent episode of Category Visionaries, Eli Wachs, CEO of Footprint, shared how his company survived its near-death experience not through enterprise sales or product-led growth, but through ruthlessly exploiting a channel arbitrage opportunity that most B2B companies completely missed.

After pivoting their entire business model with six months of runway left, Footprint faced a problem every struggling startup knows: they needed pipeline fast. Really fast. Enterprise sales cycles take nine months. Conferences and outbound take forever to ramp. They didn’t have time for traditional B2B playbooks.

So they did something unconventional. “We basically said, we’re going to create a demand gen engine that is all about Facebook,” Eli explains. This was 2013-2014, when most B2B companies still viewed Facebook as a consumer platform. The unit economics were absurdly good: “We could put a dollar in and get $3 out consistently. That was the engine that helped us grow from zero to about 10 million in ARR.”

Why Facebook Ads Worked for B2B in 2013

The opportunity existed because of a massive market inefficiency. Facebook had built sophisticated targeting capabilities and was aggressively growing its ad business, but B2B companies hadn’t figured out how to use it yet. Most enterprise software companies were still stuck on Google AdWords, LinkedIn (which was expensive even then), and traditional demand gen through gated content and trade shows.

This created a perfect arbitrage window. Facebook’s algorithm could target retail marketers with precision—job titles, company size, interests, behaviors—but almost nobody in B2B was competing for that inventory. The CPMs were cheap. The click-through rates were high. And critically, the leads actually converted.

“Back in 2013-2014, Facebook ads were incredibly cheap and incredibly effective,” Eli says. The timing mattered enormously. Two years earlier, Facebook’s targeting wasn’t sophisticated enough. Two years later, every B2B company had figured it out and the costs had skyrocketed.

The Content Strategy That Made It Work

Channel arbitrage alone doesn’t build a business. Cheap traffic that doesn’t convert just burns money faster. What made Footprint’s Facebook strategy work was pairing the underpriced distribution channel with content that actually resonated with retail marketers.

The team created educational content around retail marketing challenges—email personalization, customer segmentation, campaign optimization. Not product pitches or feature comparisons. Just genuinely useful content that retail marketers wanted to consume. Then they put budget behind distributing it through Facebook’s ad platform.

The model was straightforward: create valuable content, promote it through Facebook ads, capture leads from marketers actively looking for solutions to problems Footprint solved. The content acted as both a qualification mechanism and a trust builder. By the time a marketer requested a demo, they’d already been educated on the problem space and understood why they needed a solution.

This isn’t novel in 2024, but in 2013 most B2B companies were still gating everything behind forms and blasting generic product messaging. Footprint’s approach of leading with education and using paid social for distribution was unconventional enough that it worked incredibly well.

The Unit Economics of Channel Arbitrage

The three-to-one return Eli mentions wasn’t just marketing math—it was real cash-in, cash-out economics that saved the company. Every dollar they spent on Facebook ads generated three dollars in bookings. For a startup burning through its runway, this kind of predictable, scalable customer acquisition was life-saving.

Compare this to traditional enterprise sales motions. Building an outbound team requires hiring SDRs, training them, giving them 3-6 months to ramp, then waiting for pipeline to convert. Conferences require booth fees, travel costs, and uncertain ROI. Content marketing takes months to generate organic traffic.

Footprint could deploy capital on Monday and see qualified leads by Friday. They could test messaging, iterate creative, and optimize targeting in real-time. Most importantly, they could scale spend linearly with results. If one dollar got three back, spending ten dollars got thirty back.

This created a compounding advantage. Revenue from early customers funded more Facebook spend, which generated more customers, which funded more spend. The flywheel spun fast enough to get Footprint from survival mode to sustainable growth before the channel window closed.

Why This Strategy Had a Shelf Life

Eli understood something critical: channel arbitrage windows always close. The advantages that made Facebook work in 2013—low competition, cheap inventory, naive algorithms—wouldn’t last forever. As more B2B companies figured out Facebook advertising, costs would rise and effectiveness would decline.

This is the fundamental nature of arbitrage opportunities. They exist because of temporary market inefficiencies. Once enough players recognize the inefficiency and exploit it, the advantage disappears. The companies that win are the ones who recognize the window early, exploit it aggressively, and build sustainable advantages before it closes.

Footprint used their Facebook arbitrage years to do exactly that. The predictable customer acquisition gave them time to develop their product, prove retention, expand accounts, and build the other parts of their GTM motion that would scale beyond paid acquisition. By the time Facebook got expensive and competitive, Footprint had the revenue and infrastructure to compete through other channels.

The Framework for Finding Channel Arbitrage Today

The specific tactic of using Facebook ads for B2B is no longer an arbitrage opportunity—everyone’s doing it and the costs reflect that. But the principle of finding underpriced distribution channels remains valuable. Here’s how to identify them.

Look for channels where your target buyer is present but your competitors aren’t advertising. This usually happens when a platform is new to B2B (like TikTok a few years ago) or when there’s a mismatch between where buyers spend time and where sellers think they are.

Calculate true unit economics, not vanity metrics. Footprint’s three-to-one return wasn’t about cost per lead or cost per click. It was dollars spent to dollars in bookings. Many channels look expensive on CPL but deliver high-intent buyers who convert and retain well.

Move fast when you find something that works. Arbitrage windows close quickly. Once you’ve validated the channel economics, pour capital in before competition drives up costs. Footprint didn’t slowly test Facebook—they went all-in on the channel that was working.

Build sustainable moats while exploiting temporary advantages. Use the time and cash that channel arbitrage buys you to develop real competitive advantages. For Footprint, that meant building their CPG partnership network and expanding their product. The Facebook strategy got them to ten million in ARR, but it wasn’t going to get them to one hundred million.

What Came After Facebook

As Footprint scaled past that initial ten million, their GTM motion necessarily evolved. “That was really the point at which we said, okay, we’ve figured out product market fit, we’ve figured out our initial go-to-market motion, now we need to scale everything,” Eli reflects on their Series B.

The company built out enterprise sales teams, developed partnerships with CPG brands, and moved upmarket to larger retailers. These strategies weren’t possible when they were a struggling startup with no revenue and six months of runway. The Facebook arbitrage bought them the time to build the business that could execute more sophisticated GTM motions.

Today, Footprint generates over one hundred million in ARR through a diversified GTM strategy that includes enterprise sales, partnerships, and yes, paid acquisition across multiple channels. But none of that would exist without the early bet on Facebook arbitrage that kept them alive long enough to build something sustainable.

The lesson isn’t “use Facebook ads.” It’s about recognizing when distribution channels are mispriced relative to customer value, exploiting them aggressively while the window is open, and using that advantage to build moats that outlast the arbitrage opportunity.