4 ms·
This is absurd. > According to the Pareto distribution, 80% of your revenue will come from 20% of your users. A distribution is something that is _observed_,
by Galanwe 3y ago
This is absurd.
> According to the Pareto distribution, 80% of your revenue will come from 20% of your users.
A distribution is something that is _observed_, it's not a law of nature that you can drop anywhere you want. At most you can normalize your sample according to an observed population distribution.
Otherwise I could state "according to the uniform distribution, you will get 10% of your revenue from 10% of your users".
- tgv 3y agoIt is of course an observation that holds almost always, like Zipf. But only for very large numbers. However, this bit > But the remaining 20% (200)will buy that $40 package instead of $10. Hasn't the author also heard about the Law That People Don't Pay For Nothing? You really need to offer something worthwhile for that 300% increase. If you take it away from your $10 tier, you may lose clients there. It's a balance, and for a starting business, a precarious one.