

Ask HN: Customers and Revenue - jpwagner

You read all of the time that 20% of your customers contribute 80% of your revenue (and the obvious corollary.)<p>Many distributions of revenue across your customer base can lead to this result.<p>My question is can anything be told about your growth based on a more specific look at this distribution?<p>For instance, you might be worried if you had one customer bringing in 75% of that revenue or if there was a "cliff" anywhere in that distribution (or if 20% brought in 20%.)  Similarly if 20% of your customers bring in 40% of your revenue what is that indicative of?<p>Thanks for the thoughts...
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russell
If you get in the position where one customer dominates your revenue, it can
dictate your development plans and may lead you down a path that you dont want
to go. If 20% of your customers bring in 40% of your revenue, I would call
that balance. If 40% of your customers bring in 10% of your revenue, you may
want to get rid of them, especially the high maintenance ones.

