Invest Like the Best with Patrick O'Shaughnessy cover image

David Sacks - How to Operate a SaaS Startup - [Invest Like the Best, EP. 234]

Invest Like the Best with Patrick O'Shaughnessy

NOTE

Invisible Labor Fuels Digital Products

The complexity of managing gross margin often goes unnoticed by customers, who perceive a seamless digital product. In reality, significant human labor underpins this experience, exemplified by the use of services like Mechanical Turk. Companies may outsource tasks traditionally handled by software, relying on human workers to manage backend processes, especially when integrating with legacy systems like insurance providers. This reliance on invisible labor highlights the disconnect between customer perception and operational reality.

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