Many users, an empty till
Training 1515 minutesdotcom bubble
The audience graph rises while cash falls. Many internet-company valuations drop sharply in 2000. In the practice scene, you choose a plan for a small online service.
Training goal: Trace the path from audience to cash
▶ Play this trainingSituation
1. The service has 1000 visitors and 20 paying customers. The team calls every visitor a customer.
- Separate visitors from paying customers
- Multiply the price by all 1000
- Treat every visitor as worthless
2. Each of the 20 paying customers brings $10 monthly. Service costs are $500.
- Count $200 as profit
- Call the gap $500
- Record the $300 monthly gap
3. A separate operating reserve holds $900. No new funding is expected at the current gap.
- Treat the reserve as permanent income
- Plan at most 3 months under unchanged conditions
- Plan for 9 months
4. Advertising promises more visitors. A small payment test can run without increasing costs.
- Test payment and retention first
- Double advertising for a stronger graph
- Close solely because of the historical crash
What you will learn
- Visitors do not necessarily pay
- Reserves have a finite runway
- Test growth through its economics
Your real-life step
Separate audience, payments and the post-cost balance for one project.
Questions and answers
What happened in 2000?
Many internet-company valuations fell sharply. The technology itself did not disappear.
What is cash runway?
How many periods reserves cover at the current net burn rate. It is conditional, not a promise.
Is audience growth useless?
No. Understand how it connects to usefulness, payment and costs.
More trainings in this module
- A flower with no buyer
- Promises outrun ships
- Useful rails, uncertain returns
- New coins, waiting customers
- Closed doors, existing balances
- Bigger pay, a smaller basket
Numbers are illustrative. A game, not financial advice.