I always thought it is a good thing to do something niche – like having a set of skills/capabilities which few other people have. However, the problem with that, I have come to believe, is that it can be too niche. In which case, you tend to suffer from lack of liquidity in the market.

Lack of liquidity can mean one of two things – it can be good in a way that it ensures wide spreads, so you get to charge much more than the “fair mid price”. On the other hand (maybe in very extreme cases) it can also mean that there is no deal, and you don’t even make the fair price, leave alone a spread.

I think creating liquidity in the market that you want to place your product in is an art.

2 thoughts on “Niche”

  1. Agree. Which is why, for example, Google is what it is today. They’ve created unprecedented liquidity in what was a non existent market. Oh, and to your last line, it’s probably ironic that it is difficult to create liquidity in most forms of art.

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