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The one who does this usually wins. Just like a new restaurant packed with people digging into their grub in a sign of good food, a market or niche filled with competition is a great sign that it’s a hot market you want to be in. A market that’s full of hungry customers and massive demand.
Yet, for us to do well in these markets, we have to devise a way to stand out and grab our piece of the profit pie. The best way to break away from the pack is to offer a higher value service and as a result, you also get a huge leg up over the competition because with higher profit margins, you’re able to outspend the competition to get a new customer. This is huge if the lifetime customer value of your competition is $197 then you can’t spend more than that on their ads to turn out any profit.