The foundation of unit economics and the capacity to scale online businesses profitably are centered on marginal cost. Do not guess, put efforts to understand the relationships between revenue, fixed cost, user growth AND marginal cost. You can even break that marginal cost further, into distribution and transaction costs, so that you can see what you need to improve the capital utilization in the business. I explain here and in the video.
https://www.facebook.com/nekekwe/videos/533044431945125
The foundation of unit economics and the capacity to scale online businesses profitably are centered on marginal cost. Do not guess, put efforts to understand the relationships between revenue, fixed cost, user growth AND marginal cost. You can even break that marginal cost further, into distribution and transaction costs, so that you can see what you need to improve the capital utilization in the business. I explain here and in the video.
