isaiprofitable.com↗

Why is it that the companies with the highest gross margins and zero marginal costs are also, as a group, consistently unprofitable? It just seems odd to me. Over the past few years, one hypothesis I have can be summarized as follows: "Your marginal advantage is inversely corr…↗

1/ Addiction to paid ads is bad. The Paid Marketing Shark Fin happens when CAC goes up over time, causing unprofitability, which then drives budget cuts, slower growth, and more cuts. More here: x.com/andrewchen/sta…↗