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← Glossary
Metrics & Unit Economics

Gross margin

Revenue left after the direct cost of delivering your product, as a percentage.

Why it matters

It's why investors love software (80%+) and scrutinise hardware and services — margin decides how much each dollar of growth is worth.

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Get the real-world version of "Gross margin" drawn from hundreds of conversations with founders and investors.

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Go deeper

Episodes on Growth & Scaling

The Buzzword That's Killing Your Pitch: Billy Chan on Alfred Travel

Pick My Brain with Alan Jones · 26 August 2026

The Buzzword That's Killing Your Pitch: Billy Chan on Alfred Travel
Why "The Number Is Never the Problem": Matt McFarlane, Founder of FNDN

Building Tech Teams with James MacDonald · 19 August 2026

Why "The Number Is Never the Problem": Matt McFarlane, Founder of FNDN
Why You Should Think Global From Day One: Ilana Elbaz on Deel

Pick My Brain with Alan Jones · 19 August 2026

Why You Should Think Global From Day One: Ilana Elbaz on Deel
All Growth & Scaling episodes →
Related terms

Rule of 40

A SaaS health check: growth rate plus profit margin should clear 40%.

CAC

The fully-loaded cost of acquiring one customer — sales and marketing spend divided by new customers won.

Burn rate

How much cash you lose each month. Net burn is spending minus revenue.

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