Money, pricing & model
Business models explained
How the money actually flows.
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How do I make money from a free product or freemium model?
Freemium only works if free users become a growth engine and a clear slice of them hit a wall they'll pay to remove. Give away what's cheap to serv...
How does a marketplace actually make money and solve the chicken-and-egg problem?
Marketplaces earn a take rate (a % of each transaction), so your revenue is GMV times take rate, get both wrong and you have nothing. Solve the col...
What's the difference between gross margin and contribution margin, and which one should I obsess over?
Gross margin is revenue minus the direct cost of making the thing; contribution margin subtracts the variable cost of each additional sale, which f...
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