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Ask HN: Customers and Revenue
You read all of the time that 20% of your customers contribute 80% of your revenue (and the obvious corollary.)
Many distributions of revenue across your customer base can lead to this result.
My question is can anything be told about your growth based on a more specific look at this distribution?
For instance, you might be worried if you had one customer bringing in 75% of that revenue or if there was a "cliff" anywhere in that distribution (or if 20% brought in 20%.) Similarly if 20% of your customers bring in 40% of your revenue what is that indicative of?
Thanks for the thoughts...
- russell 17y agoIf you get in the position where one customer dominates your revenue, it can dictate your development plans and may lead you down a path that you dont want to go. If 20% of your customers bring in 40% of your revenue, I would call that balance. If 40% of your customers bring in 10% of your revenue, you may want to get rid of them, especially the high maintenance ones.