Using non real world examples is a big problem.

So let's say you could convert $1 into $1.15 in revenue. You can't invest that money back into advertising because you forgot about costs and margin. Your product would need to have 100% margins for this to be true.

Now direct to consumer companies get no where close to that mythical margin and probably are well below 50% which means that you would need to finance a tremendous amount of inventory as a cost to get to revenue of $1MM.

So more like you need $25k ad budget and oh yeah we forgot to mention another $400k invested in inventory.

But saying you need $425k to get $1MM in revenue isn't as catchy as saying all you need is $25k.