[stevekemp]

$1k MRR means you get $1000/month revenue, but if your costs are $900/month you're not going to be living anywhere with that money!

(And that's obviously ignoring other costs, which might not be monthly. e.g. supplies, hardware, domain-name registration, etc.)

Of course the hope is that costs fall, and don't scale linearly with revenue. Allowing actual profit in the future.