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> If you have negative contribution margin, scale without an appropriate reduction in total cost only accelerates your demise. Which is the hallmark of a non-vi
by roymurdock 11y ago
> If you have negative contribution margin, scale without an appropriate reduction in total cost only accelerates your demise. Which is the hallmark of a non-viable business.
I agree that it's easier to scale software, but I'd be interested to hear whether or not you think software is a saturated space that has engendered a sense of entitlement in many would-be customers. If you can't convert/monetize your userbase, nothing else really matters.
- _sentient 11y agoI agree with the last premise, but we already have a way to get people to pay for products they are used to getting for free. It's advertising. And while I would personally avoid the model, it has spawned/supported many of the greatest tech companies over the last decade.