Keywords · Finance · Monetization

Unit Economics

The direct revenues and costs associated with a single customer or transaction, used to judge whether the business model is fundamentally profitable.

Why it matters

Healthy unit economics at a small scale is a precondition for a business becoming profitable at a large scale; broken unit economics only get worse with growth.

Example

A founder discovers that even ignoring fixed costs, each delivery order loses money once fuel and driver pay are included, exposing broken unit economics.

Unit Economics — Growth keyword · Cofounderbase