If you're selling anything online, pay attention to these two variables: 1. Unit economics: how profitable is one "unit" of your product or service? (one digital download, 1 month of MRR) 2. Sales volume: how many units can you sell every month?
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Low-volume example:

If you want to make $10k / month...
And your margins are 80%,
but you can only attract 5 sales,
your price is going to need to be $2,500Pokaż ten wątek -
High-volume example:

If you want to make $10k / month...
And your margins are 80%,
and your price is $25,
you'll need 400 sales/month
most SaaS is high-volume (~400 customers to earn $10k / month)Pokaż ten wątek -
Generally, you're either in a low-volume business (with a high price), or a high-volume business (with low prices). And (again, generally):
Most consulting/services businesses are low-volume/high-price
Most SaaS/digital products businesses are high-volume/low-pricePokaż ten wątek -
Just wrote this up for my upcoming Saturday newsletter. Anyone here want to give me some feedback? (Ways to improve, make it better/more clear)https://justinjackson.ca/units
Pokaż ten wątek -
Another funny example: Tony Hawk owns his own skateboard company (Birdhouse). My guess, based on market share, is he's sold 1-2 million decks in the past 10 years. But over the past decade, his video games have sold over 31 million copies. He's rich from
not
.Pokaż ten wątek
Koniec rozmowy
Nowa rozmowa -
Wydaje się, że ładowanie zajmuje dużo czasu.
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building

## She used to make:
On iTunes:
Retail price: $0.99 / track
Artist profit: $0.69 / track
## But now she makes:
On Spotify:
Artist profit: $0.007 / stream
Her profit per unit has gone WAY down.
Sales volume
Volume