I want to classify business models into two types:

1. Immediate payback models

2. Delayed payback models

In immediate payback models, you recover your CAC quickly, and most probably on the first transaction itself. While delayed payback models are where you will require multiple transactions to get it back. Delayed payback models might be done with a long-term view that we will have retention. Delayed payback models require much more capital to scale because you’re essentially “lending” money to growth. Every new customer is a cash drain until they hit payback. Immediate payback models can grow more organically on their own cash flow.

Delayed payback might also be used in case the market is tough to convert. That we need to give them a bit of free trial so that they can start paying. But what is feasible for me? Which one can a solo guy do like immediate payback models that are high leverage? Look what exists out there in the real world.

Well, I asked this question to Claude, and it said, “Digital products and software tools on Gumroad can be one thing. Another can be exploring the service marketplaces or content creation and community building. Also, lead generation can be a place to explore.”