3 ms·
In a software business? Presumably the margins per additional customer is 90%+, although with fixed costs it could obviously be much lower overall. But the marg
by laser 6y ago
In a software business? Presumably the margins per additional customer is 90%+, although with fixed costs it could obviously be much lower overall. But the marginal profit per user is the primary concern here I think with regards to payment provider cuts? As the fixed costs of development are already relatively set whether they have one user or one million.
- laser 6y agoIt’s true, though, if they have a lot of manual support that could certainly hurt that, though. Or if they have a high customer acquisition cost. Excluding fixed costs if they are spending 50% per marginal user on marginal Dev/server costs, support, and customer acquisition, the numbers do start to get pretty uncomfortable. Would have to gain 50% more users to break even relative to the 3.3% cut.