Part III · Choosing a bet · Chapter 9 · 8 min read
Sweet spots: 12 moves
Don't search empty space. Start from a proven success and apply one move to it. Twelve moves, with real cases, and what the AI era broke.
In this chapter
- The master formula
- 1. Subtract: unbundle a big flexible tool
- 2. Narrow: same product, one segment's words
- 3. Move: same thing, new place
- 4. Cross: X + Y
- 5. Package: raw tech → one job
- 6. Invert: do what the leader can't
- 7. Rebuild on a shift
- 8. Own the query: audience first, product second
- 9. Sell shovels
- 10. Go boring or small
- 11. Productize a service: sell the outcome
- 12. Arbitrage: buy cheap here, sell dear there
- What the AI era broke
The master formula#
You're never the force that moves the market. You surf its waves. With 10–20 factors in play, choosing a sweet spot can make things 2–20× easier, and choosing wrong can make them impossible. What you're looking for is a market hole.
Master formula
Success ≈ Demand × Hole × Access × Edge × Durability
- Demand: people already want this, ideally already pay for it.
- Hole: the gap between what they want and what exists.
- Access: you can reach them cheaply (your query is affordable).
- Edge: why you: skill, audience, speed, or knowledge others lack.
- Durability: how long until the hole closes (competitors, the platform, AI).
The factors multiply. If any one is zero, the result is zero. Try it:
Preset to the WordPress publishing idea scored in Chapter 12. Because the scores multiply, the weakest factor matters most.
How to make the huge space searchable: start from a proven success (demand already proven) and apply one move. 50 successes you know × 12 moves = 600 candidates, and every one of them starts with proven demand.
In the tables, the AI era column means: born = started in the AI era, holds = still fine or growing, hurt, broken.
1. Subtract: unbundle a big flexible tool#
flexible tool − options + one segment's whole job = new product
| Case | Move | Result | AI era |
|---|---|---|---|
| Ghost | WordPress, minus theme/plugin chaos, plus publishing and paid memberships | publishers' default | holds |
| Shopify | website builder, minus everything except selling | public company | holds |
| Substack | Ghost, minus setup, plus payments and a reader network | writers' default | holds |
| Linear | Jira, minus settings, plus speed and strong opinions | startups' default | holds |
| Tally | Typeform, minus complexity, plus "type it like a doc" | $6M ARR, ~11 people, no VC | holds |
| Plausible | Google Analytics, minus 90% of features, plus privacy | ~$3M+ ARR, bootstrapped | holds |
The limits are the product. WordPress has too much flexibility; a good product needs constraints.
2. Narrow: same product, one segment's words#
product for everyone → same product for one segment (their words, their channels)
| Case | Move | Result | AI era |
|---|---|---|---|
| ConvertKit (Kit) | stuck at ~$1–2k MRR as "email for authors" → "email for professional bloggers"; founder moved customers' lists by hand | $5k → $97k MRR in 2015 | holds |
| WP Rocket | free caching plugins were complicated → "caching that just works", paid only | category leader | holds |
| Pedialyte | children's rehydration drink → repositioned for adult hangovers | big growth | holds |
No new code, only a new answer to "who is it for?" This is the "copy it, put it in the right place" hole.
3. Move: same thing, new place#
proven in place A → copied to place B (country, language, platform)
| Case | Move | Result | AI era |
|---|---|---|---|
| Zalando | Zappos for Germany | public company | holds |
| Grab | Uber for Southeast Asia, plus motorbikes and cash | public company | holds |
| Shopee | Taobao's model for Southeast Asia | regional #1 | holds |
| Haravan, Sapo, KiotViet | Shopify / POS for Vietnamese shops with local payments and support | local leaders | holds |
Local advantages (payments, laws, support, relationships) survive AI. Pure translation doesn't.
4. Cross: X + Y#
a segment needs X and Y; X-experts ignore Y, Y-experts ignore X
| Case | Move | Result | AI era |
|---|---|---|---|
| Klaviyo | email marketing × online-store data | IPO 2023 | holds |
| Figma | design tool × browser × real-time teamwork | IPO 2025 | holds |
| 3Blue1Brown | math × animation (built his own tool) | top math channel | holds |
| LearnDash, GiveWP, MemberPress, The Events Calendar | WordPress × courses / donations / memberships / events | real businesses, several acquired | holds |
WordPress × a niche survives because it lives inside the customer's site, with their data and daily work.
5. Package: raw tech → one job#
raw capability + one job + one segment = product; the user never sees the tech
| Case | Move | Result | AI era |
|---|---|---|---|
| remove.bg | image model → one "remove background" button | bought by Canva, 2021 | hurt |
| PhotoAI (solo) | fine-tuned image model → "photos of yourself" | ~$100–140k/month | born |
| HeadshotPro (solo) | same tech → "LinkedIn headshots" | reportedly six figures/month within a year | born |
| Cal AI (two teenagers) | vision model → "photograph food, get calories" | $30M+/year, acquired by MyFitnessPal | born |
| Jasper | GPT-3 → marketing copy | huge in 2022, then ChatGPT did it free | broken |
Wins on speed and distribution; dies when the platform ships the feature. Take the cash, or turn it into move 8 or 11.
6. Invert: do what the leader can't#
the leader earns from M; doing X would hurt M → X is safe for you
| Case | Move | Result | AI era |
|---|---|---|---|
| Rank Math | Yoast earns from Premium → give those features free | 4M+ installs | holds |
| Obsidian | Notion is cloud → local files you own | small team, profitable | holds |
| Plausible, DuckDuckGo, Proton | Google earns from tracking → privacy | all growing | holds |
| Granola | other note-takers send a bot into your call → no bot | $1.5B valuation (2026) | born |
| TypingMind (solo) | each lab wants you in its app → one app for all models | ~$130–150k/month | born |
| OpenRouter | a lab can't send customers to rivals → neutral router | growing fast | born |
| n8n | Zapier is cloud-only → open source, self-hosted, AI agents | $100M ARR (2026) | born (pivot) |
The best kind of hole: the leader chooses not to fill it. It stays open as long as their business model does.
7. Rebuild on a shift#
proven market + a shift (new tech, ranking rule, behavior) → rebuild before the leaders move
| Case | Move | Result | AI era |
|---|---|---|---|
| Cursor | code editor, rebuilt around AI | $100M → $1B ARR in 2025 | born |
| Gamma | PowerPoint, rebuilt around AI | $100M ARR, ~50 people | born |
| Lovable | site/app builders, rebuilt around AI | $100M ARR in 8 months | born |
| Base44 (solo) | same idea | $3.5M ARR in 6 months → sold to Wix for $80M | born |
| Astra, GeneratePress | speed started to affect ranking → beat heavy multipurpose themes | lightweight-theme leaders | holds |
| Elementor, Bricks | users wanted visual editing; devs wanted speed | category leaders | holds |
The "third timing state" from Chapter 8: proven demand, a slow leader.
8. Own the query: audience first, product second#
free value to one niche → an audience you own → learn their pains → sell with almost no ad cost
| Case | Move | Result | AI era |
|---|---|---|---|
| WPBeginner → Awesome Motive | free tutorials → audience → WPForms, OptinMonster, AIOSEO… | one of the biggest WordPress companies | plugins hold, tutorial traffic hurt |
| Midjourney | Discord was the product and the community | ~$500M revenue (est.), no VC | born |
| Pieter Levels | builds in public, so every launch starts with an audience | several $M/year, no employees | holds |
| Lenny Rachitsky | newsletter for product managers → paid subs, podcast | top paid newsletter | holds |
| Tailwind UI | free framework → docs traffic → paid UI kits | revenue down ~80%, most engineers laid off (Jan 2026) | broken |
An audience that finds you through Google is rented, and AI cut that path. Tailwind's docs traffic fell 40% while the framework got more popular. An audience that knows your name, face or inbox is owned, and survives.
9. Sell shovels#
a wave creates many builders → sell what all of them need
| Case | Move | Result | AI era |
|---|---|---|---|
| ThemeForest, WP hosts | shovels for the WordPress wave | theme authors report big sales drops | hurt |
| Stripe | shovels for internet commerce | huge | holds |
| Surge AI | expert training data for AI labs | ~$1.2B revenue, bootstrapped | born |
| Supabase | default database for AI app builders | $30M → $170M ARR; most new DBs created by AI tools | born |
Sell to AI builders, not against AI.
10. Go boring or small#
unexciting but essential job + tech people ignore it → little competition, loyal customers
| Case | Move | Result | AI era |
|---|---|---|---|
| ServiceTitan | software for plumbers and HVAC | IPO 2024 | holds |
| Toast, Mindbody, Procore | restaurants / studios / construction | leaders | holds |
| Constellation Software | buys hundreds of tiny niche software firms | one of the best stocks of 20 years | holds |
"Too small for the big players" protects a solo person.
11. Productize a service: sell the outcome#
a service done by hand → fixed scope and price → then software/AI does most of the work
| Case | Move | Result | AI era |
|---|---|---|---|
| 37signals, Mailchimp | agency work → Basecamp / Mailchimp | both huge | holds |
| WordPress care plans | "fix my site" → monthly subscription | many profitable agencies | holds |
| Intercom Fin | support software → charge per question AI solves | fast-growing | born |
Customers want "done", not a tool. When AI does the work, AI is your cost, not your competitor.
12. Arbitrage: buy cheap here, sell dear there#
| Case | Move | Result | AI era |
|---|---|---|---|
| Dropshipping, private label | cheap goods + ads | margins gone | hurt |
| Affiliate / niche content sites | free Google traffic → commissions | wiped out by AI answers | broken |
| Offshore dev shops | cheaper developers | AI shrinks the gap | hurt |
The gap always closes. Fine for quick cash, bad for a 4,000-week plan.
What the AI era broke#
| Case | What happened | Formula that broke |
|---|---|---|
| Chegg | value fell from $14.7B to ~$0.1B; 45% of staff cut | selling answers and information |
| Tailwind UI | revenue down ~80% | selling code/templates to docs traffic |
| Multipurpose themes | big drops; leaders split into "Classic" + new products | flexible templates for DIY users |
| Jasper | ChatGPT did the same for free | thin layer on someone else's model |
| Affiliate sites | Google answers directly | depending on search traffic |
What broke: selling information, templates, generic content or thin wrappers, and relying on search traffic.
What survives:
- Trust, and an audience you own.
- Living inside the customer's daily work and data.
- Products that get better when AI models get better.
- Selling shovels to AI builders.
- Holes the leader structurally can't fill.
Exercise
Write down 30 successes you know well in your own field. Apply the 12 moves to each. Run the four kill filters from Chapter 8 on the results. Look deeply only at the survivors.
Takeaways
- Five factors, multiplied: a zero anywhere is a zero overall.
- Start from proven demand plus one move, never from empty space.
- The strongest holes are ones the leader chooses not to fill.
- Avoid anything shaped like templates, information or thin wrappers.
Sources: Tailwind layoffs · Base44 / Wix · Gamma · Cal AI · Surge AI · PhotoAI · Lovable · Midjourney · Chegg · Tally · n8n · Supabase · ConvertKit · HeadshotPro · ThemeForest sales drop