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You won't even make 1 penny, if you can't break even on your user acquisition costs. That's what usually breaks a business not the fact that it's not profitabl
by thorwasdfasdf 7y ago
You won't even make 1 penny, if you can't break even on your user acquisition costs. That's what usually breaks a business not the fact that it's not profitable enough, but that's it not profitable at all.
- shiftpgdn 7y agoBut music lessons are an ongoing (hopefully) expense. If your pockets are deep enough you can run out all the other players and capture the market.
- tacon 7y agoThe lessons are an ongoing expense, but the principals will rather quickly eliminate the middle man marketplace after meeting and being happy with the connection.
- patmorgan23 7y agoUnless you can provide other useful services to help the teacher to manage thier students. Maybe scheduling, accounting, payments.
- kristianc 7y agoIn that case it seems a lot easier to skip building a marketplace and just create booking software for music teachers. Though you'd probably find that most were happy with Google Calendar, Xero and PayPal / Square.
- jacobedawson 7y ago^ Exactly - this where 'commoditizing your complement' comes into play: https://www.gwern.net/Complement https://www.gwern.net/Complement
- samcheng 7y agoAs your niche gets smaller, you will be able to focus your marketing a bit better. This should result in lower user acquisition costs.