A pattern when catalyzing an ecosystem.

· Bits and Bobs 4/29/24

Start out offering an important, but ultimately low-margin component of the system.

Charge enough of a margin to make it worth your while.

If the ecosystem picks up, others will come in and compete with more efficiency (profitable at lower margin).

This is a great thing to happen; it shows the ecosystem has enough momentum to take off, and you can happily cede that business to others and focus on the more differentiated businesses.