"Product managers spend a lot of time validating problems, checking if solutions make sense, and figuring out whether anyone actually needs the thing we want to build. But when it comes to revenue, we often skip the hard questions. That ultimately creates problems because most products still need to earn money in order to survive. The good news is you don't need a complex model or a giant spreadsheet to get a sense of whether an idea has financial legs."
"Every product team has a long list of ideas. Some are exciting, some feel promising, and some are just "nice to have." Without a quick way to assess revenue potential, it becomes almost impossible to prioritize them well. Understanding revenue helps you compare ideas, get stakeholder buy-in, and build the business-focused mindset great PMs rely on. If you want a broader strategic foundation, I would also recommend quickly brushing up on product strategy basics."
Product managers often validate problems and solutions but commonly skip early revenue questions, which risks building products that cannot sustain themselves. A simple five-minute revenue-sizing exercise provides quick clarity to decide which ideas deserve further exploration and which should be discarded. Early revenue estimation enables comparison between ideas, supports stakeholder buy-in, and fosters a business-focused mindset. Teams avoid revenue validation because it feels difficult and data-heavy, but the aim is relative sizing rather than precision. A pragmatic formula multiplies percent users impacted, percent adoption, and percent revenue lift to estimate total revenue impact quickly.
Read at LogRocket Blog
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