Building a niche newsletter sounds smart but often fails because the market is too small. While niche B2B audiences pay 5-10 times more per ad, there's barely anyone to sell to, and venture capitalists won't fund it. Consider market size and competition before going ultra-niche.
One last thing I'm just curious about is if you were starting today, or like, just seeing the market now, where are these— where's the opportunity in newsletters, maybe media more broadly? Like, what do you see? Or how would you approach starting something now?
It's interesting, because it kind of helps me that it helps us that people say this. But there's like the— there's a big theme out there, which is like, you have to go like super, super, super niche. And I don't know if that's always right because I think one of the things that that fails to take into consideration is like the TAM, right? So the total addressable market. So if you're doing like a very specific like B2B niche, like there's a lot of competition over there and like those markets aren't that big. So I think one of the things like I read like all the market chatter about media companies and one of the things I think like maybe some people aren't totally thinking about is Yeah, you can. Yeah, the CPMs are 5 to 10 times higher, but the market's also like many, many orders of magnitude smaller. So one of the things like VCs always look for is like, you know, massive markets because like you can be wrong, but like still be like a big company. So I don't know. I hate to like negotiate against myself here because I kind of like that everyone's talking about like going niche, doing local news. Like that's a kind of the flavor of the month right now. But I don't know if sometimes those entrepreneurs are thinking through, like, how big is the market behind that, one, and then two, like, is there a lot of competition too?
