This also applies to building indie products/startups:
Only 1 out of maybe 30+ of your products will be successful (1-5%)
Once you have traction you must
1) make a heck of a lot of money
2) in only a short time
3) because products have finite life cycles (3-5y is optimistic)
- you need to pay your own salary, healthcare, insurance, save for pension etc
- you lose the opportunity cost of missing out on income from a regular career
- if everything fails, it may not be so easy to get back to your previous career
Once you grow older, you might not be as fresh and tapped into the current zeitgeist as you were when you were making products at 25.
The assumption that you keep coming up with new profitable businesses the rest of your life is optimistic at best.
Entrepreneurs have somewhat similar career prospects as pro sports athletes, the odds are stacked against them and once they hit success, they need to make a lot of money in a few years to make sure they're financially taken care of the rest of their lives.
So if you ask an entrepreneur "why are you so obsessed with your bank balance?", it's exactly this:
They're in an financially incredibly insecure state but with a high opportunity to get to a secure state if they manage to cash in within a few years or decade.
And that's again because they're missing out on a regular low-risk low-pay long-term career trajectory in favor of a high-risk high-pay short-term career trajectory.
So that's why makers/entrepreneurs/product people price their products relatively high. They need to make money fast, before it all comes falling down.
ESPECIALLY if you're not funded (like me).
VC-funded entrepreneurs can use their funding to keep their prices artificially low (like Uber). Then they sell their shares in the company, it IPOs, and prices go up.
If you're not on that VC trajectory, you need to make money now
You can follow @levelsio.
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