Revenue is an Opinion. Contribution Margin is a Fact.
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Revenue is an Opinion. Contribution Margin is a Fact.
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In this episode, we explain why revenue is a lagging indicator that can climb while the underlying business quietly deteriorates, and why contribution margin is the number that actually tells the truth about whether growth is working. He walks through how to define CM1 correctly, how to build it across three critical views — by cohort, by acquisition source, and by product — and what changes when you stop optimizing toward campaigns that look good in platform and start optimizing toward ones that produce profitable customers.
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