Hello Contrarians. We are squeezing out the last mile of Q3. I for one cannot believe Christmas is around the corner.

As most of us push Q3 and Q4 sales and benchmarks, it might be important to think about todays topic more thoughtfully.

Most of us are taught to chase the big hits. The best-selling book. The chart-topping song. The blockbuster product that sells millions.

But here’s the twist: in the digital economy, the small stuff adds up. That’s the essence of Long Tail Theory, a concept popularized by Chris Anderson.

In the old days, shelf space was limited. A record store could only stock so many albums. A bookstore could only display so many titles. That meant only the “hits” survived.

Enter the internet. Suddenly, shelf space is infinite. Spotify can hold millions of songs, Amazon can carry millions of books, and YouTube can host billions of videos.

Here’s where it gets interesting: while each niche product might only attract a few customers, together, all those “small sellers” make up a huge market. Often bigger than the hits themselves.

Think about it—your favorite podcast might never hit #1 on Apple charts, but multiply that by thousands of niche podcasts, and you’ve got an industry pulling in serious revenue.

So what’s the lesson here you ask?

If you’re building, flipping, or growing businesses, don’t underestimate the niches. The obscure product, the micro-community, the overlooked topic. They’re the long tail. And in the long tail, scale beats stardom.

The Long Tail Theory has made Rhommbus its fortunes. Over the years I have bet my businesses on this exact idea, even though back then I didn’t know what it was.

👉 Hits are great, but the money often hides in the margins.

Youtube is the king of streaming right now and growing. In fact, Youtube now gets more viewers than Netflix, Disney+, Amazon and Hulu combined. That is a lot of traffic. Those are a lot of eyeballs. Youtube is not going anywhere. So don’t miss the boat. Own the present and the future.

1) True crime YouTube channel, started late 2023-SOLD

Revenue: $220,000 yearly revenues (last 12 months)

Yearly net profit: $200,000 (last 12 months)

Monthly Profit average: $16,500 (90% margin)

Expenses: Team salaries

Asking Price: $600,000 with $480,000 down. Seller finance $120K over 3 years and only paid back based on certain KPIs being met. Nullify if otherwise.

2) Inspirational storytelling YouTube channel

Revenue: $420,000 yearly revenues (last 12 months)

Yearly net profit: $402,000 (last 12 months)

Monthly Profit: $33,500 (96% margin)

Expenses: Extremely low around $1,450 a month

Asking Price: $1,100,000 with $880,000 down. Seller finance $220K over 3 years and only paid back based on certain KPIs being met. Nullify if otherwise.

Full team in place for virtually 100% hands off operations.

3) True crime YouTube channel

Revenue: $650,000 yearly revenues (last 12 months)

Yearly net profit: $625,000 (last 12 months)

Monthly Profit average: $52,000 (97% margin)

Expenses: Team salaries

Asking Price: $1,875,000 with $1,500,000 down. Seller finance $375K over 3 years and only paid back based on certain KPIs being met. Nullify if otherwise.

Of course all deals go through our seasoned legal team, for a safe escrow transaction.

Till next time…

Onwards and upwards

Be great!