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.


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