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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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
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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
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working on doing both of these things! started with the consulting business and building a SaaS product out of that consulting business with a reasonably high ARPU productized service tier as a bridge along the way—this is helping get feedback and fund more software development
Dziękujemy. Twitter skorzysta z tych informacji, aby Twoja oś czasu bardziej Ci odpowiadała. CofnijCofnij
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Wydaje się, że ładowanie zajmuje dużo czasu.
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building
Unit economics
Think about a musician. 
## 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
The market you serve
Let's say an artist has "1,000 true fans." To hit her revenue numbers:
Volume
Profit.
Those are your two levers.
How badly do people want it? That's volume.
What's your price and costs? That's profit.
If you want to make $10k / month...
your price is going to need to be $2,500
most SaaS is high-volume (~400 customers to earn $10k / month)
Most consulting/services businesses are low-volume/high-price
Most SaaS/digital products businesses are high-volume/low-price