Always Cost Out Your Ideas
If there’s an external service you’re using, always check their pricing. In detail.

I once spent some time building a SAAS app that would send text messages on a regular basis, up to 6 per day.

It was a consumer app, so I'd costed it at $10 a month.

Not great in terms of income, but it was in the weight-loss market, so the total revenue could have been interesting enough to work with.

So I spent a few weeks getting it built, then I realised something. I'd costed out using US customers (even though I'm in the UK).

US customers would run at 1.40 USD per subscriber per month. Not a bad mark-up.

But SMS messages in Belgium via Twilio are 0.10 USD per message.

0.1*6*30 = 18.00 USD.

Oops.

What about here in the UK? I'd be running at just over 7 USD.

So I canned that idea for now.

Subscribe for Updates

Enter your email to get updates by email.

Don't worry, your privacy is respected, and you can unsubscribe at any time.