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What are unit economics?

Unit economics are the financial structure of each individual product: revenue - cost of goods - cost of sales = cash contribution toward fixed period costs.

The unit economics of your product will be represented by these components:

revenue

- cost of goods

- cost of sales

= cash contribution toward fixed period costs

Essentially, maximizing the revenue and minimizing the variable costs (cost of goods & cost of sales) will maximize the margin left to go toward covering your monthly overhead:

Amplify Methodology-4

The more efficient your unit economics are, the more quickly you will break even and generate profits within your business.