Pick a Business Model with Leverage - Deepstash
Pick a Business Model with Leverage

Pick a Business Model with Leverage

An ideal business model has network effects, low marginal costs, and scale economies.

Scale economies: the more you produce, the cheaper it gets. This builds up an automatic barrier to entry against competition and getting commoditized.

Technology products especially, and media products, have this great quality where they have zero marginal cost of reproduction.

Joe Rogan is working no harder on his current podcast than he was on Podcast number 1, but on Podcast number 1,100 he’s making a million dollars whereas for the first one he probably lost money.

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