10 kinds of paying customers times a dozen repeated functions times 4,000 niches times (at least) three providers per niche. That's almost 1,500,000 describable combinations of niche, function, region and customer type. No wonder our industry resists consolidation.

Each of the 25,000 people in each niche change jobs every four years. At a minimum of $10K per job change (which is very low), each niche represents a potential market of $60,000,000 per year in cash flow. Simply divided equally among the functions, there's an opportunity for 12 $5M/ year businesses in each niche. Obviously, the distribution would be weighted towards processes that require human assistance.

At it's simplest, a very conservative description of the value of our industry, rooted in these numbers, is $250 Billion per year. What the pundits seem to miss is that this sort of potential will resist the vending machine mentality of contemporary retail oriented Internet technology.

In a market that size, there's a lot of room to pay for and deliver a lot of value.

- John Sumser © TwoColorHat. All Rights Reserved.

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