Retention Edge E08: The $50M Growth Lesson Most Founders Overlook w/Devin Merklin

In this episode of the Retention Edge podcast, we hosted Devin Merklin, founder at X Scale.

X Scale is a growth agency helping 7 & 8 figure brands scale profitably, using the same proven systems Devin has used both working for brands and running his own.

That aligns perfectly with what the Retention Edge is all about, which is why we were stoked to have him on the pod, talking about how to choose the right agency, the importance of retention, and more war stories from his time before and after launching X Scale.

You can check out the full episode below — or jump over to YouTube or Spotify if that’s more convenient.

Remember, if you enjoy these conversations, like, rate, comment, subscribe, so we can keep bringing you free mini-masterclasses with top retention & CX experts.

Here’s a summary of what Eric & Devin talked about on the pod:

Devyn’s DTC Origin Story

• Devin cut his teeth building and scaling a college apparel brand, learning firsthand the thrill (and grind) of selling online.

• Landed a pivotal post-grad role with Dr. Blake Livingood, where he helped build a health business from zero to eight figures.

• Credits that experience with teaching him operational discipline, customer journey empathy, and the value of founder vision.

X Scale: Solving the $1–10M Growth Trap

• Co-founded X Scale to fix what he saw over and over: talented founders stuck between traction and scale.

• Not an agency or fund. X Scale is an operating partner that embeds directly to solve for offer construction, systems, and profitability.

• Their mission: help founders scale with leverage; through systems, not just headcount or capital.

Patterns Across DTC: Why Most Problems Are Predictable

• Whether it’s candles or supplements, the real issues tend to repeat: unclear offer, thin margin, poor cash flow planning, or misfit acquisition strategy.

• Many brands try to “media-buy” their way through deeper ops problems. Devyn sees this as a recipe for churn and burnout.

• X Scale helps teams identify where the mess is rooted and build a path forward.

The Founder Fit Framework

• Some founders thrive in the early-stage scrappy mode; others are great at managing teams and systems. Few excel at both.

• Devyn emphasizes radical self-awareness. Knowing whether you’re a builder, optimizer, or scaler.

• When founders misalign with the current stage of their business, decision-making degrades and ops start to crack.

When to Fire the Playbook

• Copy-pasting playbooks from brands with different economics often creates more harm than help.

• Devyn shares why success in one category, AOV, or LTV shape doesn’t always translate to another.

• Instead, focus on understanding your unit economics, customer behavior, and product constraints. Then reverse-engineer strategy from there.

Behavioral Breakpoints: Scaling Isn’t Linear

• Each revenue tier brings its own pain:

  • $0–$1M: prove you can sell.

  • $1–$3M: patch early leaks.

  • $3–$10M: build infrastructure.

  • $10M+: upgrade leadership and forecasting.

• The mistake? Thinking the same tools or playbooks will work across stages. X Scale helps founders adapt how they operate, not just what they do.

Tactical Wisdom: What Actually Moves the Needle

• Strong offers beat clever ads. X Scale often rebuilds product and pricing architecture before touching creative.

• Growth isn’t always “scalable.” Devyn encourages doing the “unscalable” early (founder DMs, hand-packed orders) to learn fast.

• On CX: the best retention strategy starts with a smooth, on-time delivery and clear messaging.

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