The article emphasizes that for tech startups, profitability should be prioritized over merely building a large user base. It argues that focusing on monetization from the outset is crucial for sustainability. Many founders mistakenly believe that accumulating users is more important than converting them into paying customers. The author advocates for establishing both a robust user base and effective monetization strategies to ensure that the profit from each user exceeds acquisition costs, ultimately leading to a successful business model.
Instead of focusing solely on the number of users and quantitative ways to attract them, consider how you are specifically going to convert them qualitatively into paying customers.
The main question is: do they bring it in? Having many users doesn't automatically mean high profits.
The unit economics of your product has to be based on the fact that the profit from a single user should be higher than the costs of acquiring that user.
If we exclude revenue from direct sales of goods (services) through digital channels, then monetization becomes the only way to achieve this goal.
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