As a single founder company, I’d think that would be mostly profit, say 90%? That leaves about $400,000 per annum to pay for an ec2 instance and salary if working from the kitch table.
Imagine having a company 90% profitable and burning it up on the dream of venture capital backed growth.
Depends on if logojoy would stay as lead gen for actual software play, a la canva, or if they were selling human-in-the-loop as pure AI. The former then margins might be fat but the latter his margins will be slim.
Additionally to continually stay ahead of the pack most of his revenue might have to get dumped right back into advertising.
Say it's a $5MM/annum business, after costs, paying out salaries it might be half a million in profits.
> Depends on if logojoy would stay as lead gen for actual software play, a la canva, or if they were selling human-in-the-loop as pure AI. The former then margins might be fat but the latter his margins will be slim.
They were selling monthly packages (which made little sense for just a logo), I guess that’s why they added all the new features.
Also, no humans are involved — it’s "AI" in the sense that the logos are machine generated, but they’re also pretty bad. It‘s basically icons from the noun project combined with text in set in free fonts.
Eh, if he had to pay for a lot of the traffic that generated sales, I wouldn't be surprised if it was closer to 50%. But still, this was almost certainly $100k+ profit per month.
As a single founder company, I’d think that would be mostly profit, say 90%? That leaves about $400,000 per annum to pay for an ec2 instance and salary if working from the kitch table.
Imagine having a company 90% profitable and burning it up on the dream of venture capital backed growth.