Subscription Gross Profit (A): The annual subscription gross profit of a customer of The Farmer’s Dog is in the hundreds of dollars. While the company deserves an A grade at the Series A, the gross profit has increased substantially since the initial investment, particularly given improvements in product gross margins that have come through economi... See more

I realized I made an error to FB/IG total and that the Mktg Cost line item should have been allocated to FB/IG And added $100 AOV to the title to better ground the % variable costs The story is the same, but its important to use this illustration vs OP as the mental model

This chart also gets to the heart of the challenges of being a content publisher: publishing content is expensive, requiring a significant investment in people (journalists, videographers, artists, etc.) or a significant payout to content creators. This leads to lower margins for content publishers relative to content platforms. The New York Times ... See more