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There is a lot of advice given in this business which was either wrong in the first place or out-of-date by the time it went public.
I would guess that whoever originally offered this wisdom assumed that if you like a niche, you will also understand it. However, that isn't necessarily true, nor is it necessary to like a market in order to understand it.
But I don't think it is bad advice, particularly on the 'net where even the most off-the-wall tastes are likely to find enough takers. Certainly when you are starting out, it is easier to cater for tastes similar to your own.
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