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99% Derisible | Yoni Rechtman | Substack

99d.substack.com · 369 words · saved by 2 readers

Software revenues and business models are capped and hard to bring to market, especially if there’s never been budget for your product/category before. Category creation requires a double sale; “we should buy something” has to happen before “we should buy THIS thing.” And ultimately you’ll only ever get paid so much so you need tons of (potential) customers. But if you sell a service bundled with software, you can fit into a very different (type of) budget by selling something your customers are used to buying and paying a lot for. Services can trade high gross profit dollars for high gross margin percentages with a smoother glide path to your customers. As a service provider, you can take versus create budget. And naturally you can charge much higher rates and in more variable ways - after all we value services more highly than products. They’re really hard and you have to be good at more things simultaneously. But for certain categories, customer types, market structures (unsophistic

99% Derisible Yoni Rechtman: making better mistakes. By Yoni Rechtman · Over 17,000 subscribers By subscribing, you agree Substack's Terms of Use, and acknowledge its Information Collection Notice and Privacy Policy. Home Notes Recommendations Archive About Be dumb. Waste Money. Win. That which is “best” is not that which is best for you right now Sep 11 • Yoni Rechtman Our 2Q letter to LPs We are looking for the planes and the cars (and the businesses relying on the planes and the cars) not the oil and steel Aug 21 • Yoni Rechtman What capital wants A growth VC summited it…

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