Every Software Business Has the Same Playbook

There are no secrets in software company strategy. Founders follow a well-established playbook that is freely available and universally implemented, while at the same time, the cost for competitors to make copy-cat products is getting ever smaller. In fact, a founder can assume that essentially nothing they make is long-term defensible. Yikes! Every economist would tell you that this situation should result in the destruction of value, and margins should be razor-thin. Yet the gross margin for an average software company is over 80%. Software is, in my opinion, the best business model ever devised by mankind. The cash flows are totally righteous. The margin is judicious. It is the pinnacle of 200 years of capitalism. In complete violation of what I learned in econ 101 (that, admittedly, I got a B- in), these companies can achieve outrageous levels of success and profitability. How can this be? Software is such an incredible business because it has close to zero marginal distribution co

takes an object of state variables to update or a function which returns an object of state variables. ). If you meant to render a collection of children, use an array instead. javascript:throw new Error('React has blocked a javascript: URL as a security precaution.') abort auxClick beforeToggle cancel canPlay canPlayThrough click close contextMenu copy cut drag dragEnd dragEnter dragExit dragLeave dragOver dragStart drop durationChange emptied encrypted ended error fullscreenChange fullscreenError gotPointerCapture input invalid keyDown keyPress keyUp load loadedData loadedMetadata loadStart

related reading

• The Four Strategiesevery.to
• Product-Led Growth’s Failureevery.to
• How I bought a business for $0every.to
• Build Places, Not Productsevery.to
• How I Bought a Business for $0every.to
• What Comes After SaaS?every.to
• 6 New Theories About AIevery.to
• How We Became Everyevery.to
• How Freemium Almost Killed My Business, If You Want to Build, You Have to Believe, and More!every.to
• The Impossibility of Being Charlieevery.to
• Falling Out of Love With Michael Lewisevery.to
• What Happened to the Creator Economy?every.to