But, I think you still need to look at the broader picture: what is the *total* addressable market? If you need to get 1,000 customers to make something viable, but the total market is only 10,000, it's going to be really difficult to convert enough people to customers.
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Sure, WTP = "Willingness to pay". That's a term I heard from
@Patticus about pricing, but it's really a metric of how strongly you solve that user's painful problem. Low WTP = vitamin or candy apps. High WTP = aspirin or morphine apps (lol). Also high WTP means ... 1/ -
..that your customers are willing to pay higher prices. High prices * fewer customers = similar revenue to large customers at lower prices. The difference is that you end up with lower support on the first example (fewer customers but they're more important 2/
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