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Money, pricing & model

Unit economics & modeling

Know what a customer costs and earns.

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What are unit economics and why do they matter? Unit economics is the profit or loss on a single customer or unit, strip away the noise and ask 'do I make money on one customer?' If the answer is... Beginner 3 resources → What is contribution margin and why do people say it matters more than gross margin for a startup? Gross margin is revenue minus the direct cost of delivering your product, while contribution margin also strips out the variable costs to serve and... Beginner 2 resources → At what point in my journey should I actually start caring about unit economics, versus just focusing on getting users? Before product-market fit, obsessing over unit economics is premature because you're still changing the product, the price, and the customer. But y... Beginner 2 resources →
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