Framework

Zone Of Genius Pruning

Knowing what to stop doing.

How it works

  1. 1Mode built two devices during the COVID cheap-money window, before the AI chip boom, and sold tens of thousands of units into major retail.
  2. 2The verdict: hardware is roughly a 1% gross margin business. "You spend a hundred bucks to make a dollar." Add shipping, add tariffs, add cost of capital.
  3. 3The pivot was not abandonment. It was licensing. Mode now works with carriers and OEMs on a Roku-style model, providing the software layer so partners can launch their own earn-enabled devices.
  4. 4The data justified keeping the thesis: EarnPhone users showed roughly 3x higher earnings and 3x higher retention than app-only users.

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