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Unit Economics of a Setup

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How to work out whether a setup makes money: every cost line people forget, and the formula they add up to.

Unit Economics of a Setup

Unit economics answers one question: does one acquired person make you money. If the answer is no, volume only accelerates the loss — which is the only reason to do this maths before scaling rather than after.

What goes into cost

  • Accounts. Not the purchase price but the price divided by lifespan. A $2 account that lives two weeks costs you $4 a month.
  • Proxies. Monthly, one per account.
  • Software. Divided across everything that passed through it.
  • AI requests. Pennies each, a visible sum monthly — the breakdown.
  • Your time. The line most often skipped. Give yourself a rate, or you are costing a hobby rather than a business.

The formula

Add up the monthly cost, divide by conversions that month, compare with the payout. The difference is your margin per unit. Multiply by volume last, not first — the urge to compute «what if a thousand» before knowing the per-unit margin kills more setups than bad offers do.

Three mistakes

Counting your best day. Take a two-week average.

Forgetting hold. Money arrives in two weeks; accounts must be paid for now.

Ignoring account attrition. The most expensive forgotten line.

Topic: Traffic

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