There's a myth that, regardless of which niche you choose, the internet is big enough to make your business a success. But in reality, most successes come from targetting a big (or fast growing) market.
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One problem is that the bigger the market, the harder it is to get attention. The Law of Duality (Ries/Trout) means that the market is mostly taken up by #1 and #2, so if you don’t differentiate well, it’s almost impossible to find traction.
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It’s helpful to have a good angle and stand out in a big market, though you can also quickly gain traction by doing well in one of the channels for that market (without any differentiation). Another downside is the need to build a lot more features when many competitors exist
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