Table 1From “What are unit economics?”
How do unit economics differ by operating model?
Table 1How do unit economics differ by operating model?
| Business Model Archetype | Atomic Economic Unit | Primary Direct Cost Drivers (CTS) | Healthy Contribution Margin % | Target Payback Horizon | Benchmark LTV:CAC Ratio |
|---|---|---|---|---|---|
| Enterprise B2B SaaS | Contracted Enterprise Account | Dedicated CSM, cloud compute, custom SLAs | 75% to 85% | 12 to 18 months | 4.0x to 6.0x |
| Product-Led Growth (PLG) | Active Workspace / Team | Self-serve onboarding, database storage, APIs | 80% to 90% | 6 to 12 months | 3.5x to 5.0x |
| Two-Sided Marketplace | Completed Order / Transaction | Payment processing, fraud losses, buyer support | 15% to 35% (Take Rate) | Instant to 3 months | 2.5x to 4.0x |
| Usage / Cloud Infrastructure | Metered Compute / Storage Unit | Raw cloud infrastructure, GPU hosting, data egress | 64% to 75% | 9 to 15 months | 4.5x to 7.0x |
| Tech-Enabled Services | Monthly Retainer / Client Pod | Direct professional labor, project management | 40% to 55% | 4 to 8 months | 2.5x to 3.5x |
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Source: Table from this essay. Sources and interpretation are given in the article.

From the essay
Growth that compounds
What are unit economics?
Unit economics evaluate direct revenue and variable costs per fundamental business unit. Define the unit, contribution margin, CAC and payback horizon.
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