Glossary
Margin
The share of revenue left after costs, expressed as a percentage.
Gross margin is revenue minus the direct cost of what you sold. Net margin is what survives after every other expense. A $1m e-commerce business at 8% net margin takes home less than a $200k consultancy at 60%.
Margin is why the same revenue number means wildly different things across business models. Software has famously high gross margins; anything involving physical inventory rarely does. Compare businesses on margin, never on revenue.
Where this matters
E-commerce Brand
Online Business
Own the product, the customer and the list — not just the storefront
- Capital
- $500 – $10k
- First income
- Months
- Risk
- Ceiling
- Seven figures
Freelance Consulting
High-Income Skills
Sell a specific expertise directly to businesses at professional rates
- Capital
- $0
- First income
- Weeks
- Risk
- Ceiling
- Six figures