5 ms·
> ~90% profit Even though I understand the mechanics of the free market, in how many other fields do we consider this kind of profit margins to be honest? What
by sgu999 3y ago
> ~90% profit
Even though I understand the mechanics of the free market, in how many other fields do we consider this kind of profit margins to be honest? What about a farmer selling at a 90% profit? A pharmacist? A banker?
Good for him though, "why not if he can", after all. I'm just not sure how I feel about it...
- sothatsit 3y agoThis is why investors love software: the marginal cost of product is tiny. However, real money must be spent on R&D and marketing to keep those profit margins going, especially if you don't have a technology moat (e.g., AI wrappers).
- fy20 3y agoI like to look at it the other way: if a single person can make so much on their own, how much inefficiency must there be in big companies? Even at the medium size VC backed startup (~120 people) I work for, the amount of inefficiency I see on a day to day basis is sometimes unbelievable. Also I'm not sure banks are a good example. Over the course of my mortgage, I will end up paying more than I borrowed in interest.
- gumballindie 3y ago“so much”? This is 40k thats little. And it’s good that indies are able to achieve it.
- tpetry 3y agoThe 90% didn‘t account for his time working on the stuff. So you can reduce from the $500k/year his salary - and now the 90% margin is far away. Indie hackers never factor in their working time.