Imagine you’re a barista at a coffee shop. You may have no background in business, finance, or data analysis — but you still probably have a decent handle on how the company you work for makes money and what role you play in that process.
You know that each cup of coffee you sell costs the customer $2 or $3. The company makes that amount minus the cost of the coffee grounds and the cup, with some fixed overhead costs. If you sell more cups of coffee, or get customers to buy more expensive drinks, the company makes more money — and with even basic arithmetic skills, you can probably estimate in your head about how much more. If you waste supplies or work a slow shift, the company makes less money. Simple.
Read the full article from Nieman Lab: One subscriber or 48,000 pageviews: Why every journalist should know the “unit economics” of their content