B2B > B2C

You can make lots of money selling to businesses or consumers.

  • McDonald’s (1 billion burgers * $1 /each)
  • Lockheed Martin (1 missile * $1 billion /each)

It’s just harder to sell to consumers.

Businesses have money and are in the money business. They understand the ‘spend to make’ principle and are always purchasing great products to increase their bottom line. This yields stark contrast to consumers who just want entertainment and free sh*t.

The number of choices offered to businesses vs. consumers is also a factor. If a business wants to migrate email, there are ~5 options. If a consumer wants an afternoon snack, I don’t even want to calculate that.

Keep this in mind when you draft business plans. If the model is “everyone will sign up and pay a dollar…”

Give up.

(then email me what you have so far)