From: gregisenberg
A significant opportunity exists in identifying markets where supply and demand are mismatched, particularly within subgenres of the publishing industry [00:00:19]. This imbalance suggests an underserved audience eager for content, representing a prime area for new ventures [00:00:22].
The Case of Lit RPGs
Lit RPG (Role-Playing Game literature) is highlighted as a subgenre on Amazon’s Kindle Direct Publishing (KDP) where there are significantly more readers than creators [00:00:03]. This emerging genre, which describes reading a video game experience, has seen rapid growth [00:04:09].
Key characteristics and opportunities within Lit RPGs:
- High Demand, Low Supply: Many more people want to read Lit RPGs than are writing them [00:05:00].
- Monetary Potential: Some Lit RPG books are generating quarter-million dollars a month [00:00:15], with exploding titles reaching 300,000 a month [00:20:17]. An author’s full library can achieve $200,000 a month [00:20:41].
- Low Current Quality: The current quality of writing and cover design in this niche is often described as “very Indie” [00:05:19].
- Strategic Opportunity: Investing in elevated writing, stories, book covers, and branding can position a new entry to look like a major publisher taking over the category [00:05:32]. This is achievable without extensive capital, as most writers lack the funds to do so [00:39:41].
Targeting the Female Market in Lit RPGs
The gaming demographic is shifting, with women increasingly entering the category, moving from an 80/20 male/female split towards 50/50 [00:17:15]. Given that two-thirds of all book readers are female [00:13:14], a significant opportunity lies in creating female-oriented Lit RPGs with female main characters [00:17:48]. This contrasts with the current market where most covers depict male characters defeating dragons [00:17:55].
Kindle Unlimited subscribers are avid readers, often consuming 8-12+ books per month [00:18:20]. This consistent consumption, especially within the romance category, suggests a massive demand for new content [00:18:23].
Identifying Opportunities with Data and Tools
To find subgenres with high demand and low supply, specific data-driven approaches can be employed:
Utilizing Publishing Tools
Tools like “Publisher Rocket” allow users to type in any book or subcategory to view search volume, estimated sales, and keyword competition [00:09:05]. This can help identify categories where there’s a mismatch between search volume and the number of existing books [00:08:06].
Avoiding Common Mistakes
- Lack of Density: A common mistake is to write only one book per keyword or subcategory and then move on, rather than creating a high density of content within a single, exploding subcategory [00:09:59]. The strategy should be to “flood the density” of one niche [00:10:02].
- Low Quality: Entrepreneurial individuals often identify opportunities but publish low-quality books and covers [00:10:14]. Success comes from elevating quality to appear as a major publisher [00:10:34].
Strategic Execution and Value Creation
Capitalizing on these opportunities involves more than just writing books:
- Niche Publishing Houses: A viable strategy is to build a super-niche publishing house focused on a specific subgenre [00:05:57]. This involves hiring writers, investing in high-quality covers, and establishing a value ladder (e.g., newsletters, digital products) [00:05:48].
- Partnerships and Audience Leverage: Partnering with top Twitch streamers, for example, could allow creation of books that leverage their name and audience, offering them a revenue share [00:11:13]. This taps into existing communities and addresses the question of overlap between Twitch viewers and book readers [00:12:08].
- IP Value and Exit Potential: Beyond book sales, there’s significant long-term Intellectual Property (IP) value. Film studios may pay millions to adapt popular books into series, especially if there’s high download and page-read volume [00:25:04]. Niche publishing houses can also be acquired, with potential multiples of 5-10x revenue for IP [00:27:03].
- Leveraging AI: By building a niche library, AI can be trained to generate new book drafts up to 80% completion, significantly reducing labor for the final 20% [00:28:03]. This technology integration can drastically increase acquisition multiples [00:27:41].
The “Anti-Tech” Trend and Gen Z
A growing trend around “anti-tech” suggests a potential shift towards physical books, particularly among younger generations [00:15:53]. While video games are highly optimized for engagement, books may appeal to those seeking a counter-culture or a less stimulating experience [00:16:01]. This could lead to a significant increase in Gen Z reading habits in the coming years [00:16:47].
Internal Idea Labs and Competitive Analysis Tools
The concept extends to building “mini idea labs” [00:32:00] or internal teams that can quickly research and execute on promising ideas, especially those identified by using data. These teams could develop competitive analysis tools for emerging platforms, not for sale, but for internal advantage [00:32:37].
“The real value is knowing how to exploit the data, not necessarily the data itself” [00:33:10].
This approach creates an “unfair advantage” by giving the creators insights into lucrative niches before others [00:38:57]. By owning agencies (e.g., design, SEO, ad) that operate as internal idea labs, one can efficiently test and execute projects using existing resources, even if only at 40-50% productivity [00:39:32].