October 14th, 2021 | Power laws
Why niche down and not just go into a big market? Why dominate a small market and then expand, instead of just starting in the initial market? Isn't 5% of a large market better than 90% of a smaller one? Sure. But don't forget of power laws. The Pareto distribution is found everywhere. And honestly, on the internet, it's even worse. Top 10% of the companies get 99% of the customers. You can easily be in the top 10% of a niche and make good money. And you can even be in the top 5% of a niche and break into the millions. But it's not easy to enter the top 10% of a large market. At least at first. I believe it's better to take your time and play with the power laws.