Measuring the Weight of a Company

Here's an article on scalable business models. In a nutshell, scalable business models refer to companies that are able to produce increasing amounts of revenue without a significant increase in cost. For example, your phone company lays out lines all over the country. Once these lines are up, an almost unlimited amount of people can use them. The only cost involved with the phone company is maintenance on the lines, which they would have to do whether they are serving 10 people or 10,000- the cost doesn't increase. They may charge you $40 a month for you to use your phone. For the sake of the example, we'll say that the first 25 people cover the company's costs for the month. Every person beyond that increases the company's profit without involving extra cost. The article may be able to explain this a little clearer.