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It easy to estimate the revenue and hard to estimate the inefficiency. Revenue scales linearly while the inefficiency grows exponentially (even though it start
by JoshTko 7y ago
It easy to estimate the revenue and hard to estimate the inefficiency.
Revenue scales linearly while the inefficiency grows exponentially (even though it starts small). Inefficiencies such as Customer service rep training, brand dilution, shopping cart conversions rates, etc. all suffer a little when you add additional products. The "Wow look at the TAM of X!" is a powerful distraction that is hard to avoid without discipline.