Unit Economics
Unit Economics is the revenue and costs associated with a single customer or unit. If you spend $50 to acquire a customer who generates $200 in profit over their lifetime, your unit economics are healthy. If those numbers are inverted, you're burning money with every sale.
Definition
The revenue and costs associated with a single customer or unit. If you spend $50 to acquire a customer who generates $200 in profit over their lifetime, your unit economics are healthy. If those numbers are inverted, you're burning money with every sale.
Related Terms
More Business & Contracting Terms
MVP - Minimum Viable Product
The simplest version of your product that still solves the core problem. Ship fast, learn from real users, then improve. Don't build everything at once.
POC - Proof of Concept
A small test to prove an idea actually works before investing serious time or money. It's not a product—it's evidence that building the product makes sense.
Prototype
A working model of your product used for testing and feedback. It doesn't need to be pretty or complete—it needs to let people interact with your idea.
Wireframe
A basic sketch showing the layout and structure of a page without any design polish. Think blueprint, not finished building. It's about where things go, not how they look.
Mockup
A high-fidelity visual design showing exactly how the final product will look. Unlike wireframes, mockups include colors, typography, and real content.