My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
“perfectly rational for every single developer to pay at least $1000 a year”
What It Means
Productivity tools that create significant value can command high prices because the economic benefit justifies the cost
Why It Matters
Provides framework for pricing productivity software based on value created rather than competitive pricing
When It's True
When tool creates measurable productivity gains for high-income professionals
When It's Risky
When productivity gains are hard to measure or when users have good free alternatives
How to Apply
Calculate economic value of time saved by your product
Price at fraction of value created
Target high-income professionals who value time savings
Focus on measurable productivity improvements
Example Scenario
“AI coding assistant that doubles developer productivity justifies $1000+ annual cost because it saves $50,000+ in salary-equivalent time”