6 min listen
Pick a Business Model With Leverage
FromNaval
ratings:
Length:
6 minutes
Released:
Apr 22, 2019
Format:
Podcast episode
Description
Ideally, you should pick a business model with network effects, low marginal costs and scale economies. • Scale economies: the more you produce, the cheaper it gets 0:00 • Zero marginal cost of reproduction: producing more is free 0:51 • Network effects: value grows as the square of the customers 1:34 • Network effect businesses are natural monopolies 2:26 • In a network effect, each new user adds value to the existing users 3:06 • Zero marginal cost businesses can pivot into network effect businesses 5:01 Transcript: http://nav.al/business-models
Released:
Apr 22, 2019
Format:
Podcast episode
Titles in the series (100)
Pick a Business Model With Leverage: Ideally, you should pick a business model with network effects, low marginal costs and scale economies. by Naval