Market Share vs. Profit Share


Market Share vs. Profit Share?

As entrepreneurs we have to choose between the two.

Too often, we make the wrong choice and try to serve the general market.

And it ends up costing us.


What’s the difference?

I was having a coffee with a friend this morning,

And he shared a story of his UBER successful older brother and how he got his start.

At the time both his brother and his mother were real estate agents. His mother was a successful agent and built a brokerage. His brother came into the business later, but understood strategy.

Strategy is all about being different in a way that matters to your ideal client.

They made a friendly wager.

His brother told his mom he would make more money than her by focusing exclusively on waterfront property during the year, while she continued to serve the general market.

At the end of the year she had sold 38 properties, and he had only sold 8.


But he’d made 2x what she had.

He’d focused on the profit share – the home buyers who had the biggest budgets, and wanted the best possible value for their investment.

His mother had focused on market share, and even though she sold more properties, each one was worth far less overall.


The lesson in this story for business owners is: Stop going for market share, and start going for profit share.


A small percentage of your market represents a disproportionate amount of profit.

How can you pivot your business to serve the small percentage of your market

that values your focus on their exact problem.

So you can become the dominant business for that particular buyer persona?


If you do it right, you serve your ideal clients at a higher level, your business will be more fun, and you make more profit.


If you need help reimaging your business, or identifying the segment you should focus on, I’d be happy to have a virtual coffee with you and talk about this further. You can book a call here.