Tell HN: I made $1000 with my app and now making $500/mo

Re:Tell HN: I made $1000 with my app and now making $500/mo by cinntaile on Wednesday May 25, 2022 @02:49PM (#31508838)

I want to push back against this a little. He gets $500/month now, there is no guarantee he will keep receiving that number when he stops maintaining and improving his app. I would assume the number will go up if he keeps improving it, but if he stops it will eventually become 0$/month.

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Re:Tell HN: I made $1000 with my app and now making $500/mo by jhgb on Wednesday May 25, 2022 @03:12PM (#31509152)

Doesn't time value of money decrease this effect? Assuming a fixed revenue over time, future revenue is much less relevant, so is its loss.

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Re:Tell HN: I made $1000 with my app and now making $500/mo by nonameiguess on Wednesday May 25, 2022 @04:03PM (#31509805)

That's what the 4% is. A perpetuity that pays out $6000 a year is valued at $150,000 assuming a 4% discount rate. Without a discount rate, the value of any perpetuity would be infinity.

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Re:Tell HN: I made $1000 with my app and now making $500/mo by jackblemming on Wednesday May 25, 2022 @03:04PM (#31509065)

There's no guarantee $150k invested will have 4% returns either.

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Re:Tell HN: I made $1000 with my app and now making $500/mo by p_j_w on Wednesday May 25, 2022 @03:09PM (#31509114)

No, but if I had to bet on one over the other, I'm going with 4% returns.

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Re:Tell HN: I made $1000 with my app and now making $500/mo by beambot on Wednesday May 25, 2022 @04:09PM (#31509864)

To be fair: It will probably be easier for him to go from $500/mo to $1000/mo much easier than it will be to go from 4% APY to 8% APY.

[ Parent | on HN ]