1% vs. 2% by Visualize Value

1% vs. 2%

“The difference between 1% and 2% is not just 1%, it’s 100%.” — @YS

We're conditioned to think of a single percentage point as an almost non-consequential gain. In conventional wisdom investing, 1% would be laughed at.

But if you're running a business, the downstream effect of a 1% improvement can be enormous.

Let's say you have a website that converts traffic at 1%. For every 1,000 visitors, you get 10 customers.

Let's say each customer makes you $100. At 1%, you make $1,000.

Now imagine you improve your website copy, reshoot your product images, experiment with new traffic sources, and your rate of conversion increases to 2%.

You make $2,000.

Your 1% improvement drives a 100% improvement in outcome.

1% vs 2% by Visualize Value

If you are building something, it is far more useful to focus on the work you are doing to produce the result than the result itself.

Labor is generally a more interchangeable resource than vision.

To help understand this idea, consider the contrast between the two concepts ancient Greeks used to think about time.

It should be relatively simple to identify when we aren't accumulating net new experience, but in practice, it doesn't seem to be.

Language is an incredible tool. It makes it possible for us to externalize what we think and communicate it to others.

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." - Warren Buffett

The extent to which anything keeps working after you stop working is how much time you earn from making it.

To make progress, we must solve harder and harder problems in sequence.