My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Light User vs Heavy User Funnel Strategy
Strategic positioning framework where businesses deliberately avoid heavy users who demand low margins and instead focus on light users who provide higher gross margins
How It Works
Heavy users have more negotiating power and pull businesses toward commodity pricing. Light users are more fragmented, less price-sensitive, and allow for higher margins and better positioning
Components
Map your customer funnel from light to heavy users
Understand that you'll always be pulled toward heavy users
Resist the pull to the right (heavy users)
Build systems to serve fragmented light user base efficiently
Maintain pricing discipline with heavy user requests
When to Use
When you have a choice between serving large enterprise customers versus smaller, more distributed customers
When Not to Use
When you're in a capital-intensive business that requires scale to be viable, or when light users don't provide sufficient volume
Anti-Patterns to Avoid
Example
“A-Swag gets calls from John Deere and ADM wanting them to store and ship all their merchandise annually, which would make them a low-margin logistics business instead of a high-margin creative services business”