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Wouldn't sales drop with time as the market is saturated with identical players?
by jsprogrammer 11y ago
Wouldn't sales drop with time as the market is saturated with identical players?
- has2k1 11y agoIf you have high earnings in a market that you think has a low barrier of entry, you can expect worthy competitors to show up. If you are the worthy competitor (No. 2) but maybe just cannot dethrone the number one, then you could decide to sell methods that make you a worthy competitor. When more worthy competitors join because the No. 2 guy decided sell his secrets, top guy makes even less as the each participant's winnings are drawn from the pool. In this case profit margin is proportional to the difference in skill. If you are the top guy, you could look on as the No. 2 guy establishes a solutions market (as your profits drop) or you could start the solutions market. It seems like if you are the top guy, the main consideration is How special/unique is my secret sauce? The answer to that and guides the second, When is the right time to become a solutions provider? There will be market saturation with either your product or that of another entity. With time the game approaches to pure gambling and the money paid for the solutions becomes a Vig of sorts! Along the way sales would drop according.