Unit (Commercial)
Definition
The defining commercial unit for which unit economics are calculated. The definition of a unit varies by company type: for a subscription software business it is one paying customer; for a marketplace it is one transaction; for a hardware business it is one device sold; for a project-based business it is one completed engagement. The unit definition must be documented and applied consistently. Unit economics calculated using different unit definitions across periods are not comparable.
Common Misapplication
The most common misapplication is changing the unit definition without disclosing the change, which makes period-over-period unit economics comparisons invalid. A company that calculates lifetime value per seat in one year and per account in the next year cannot compare the two figures directly.
FFI Standard Reference
This term is defined and applied in Book 2, Section 2.2: The Unit Economics Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Unit (Commercial). https://ffistandard.org/glossary/unit-commercial/. 2026.