By Steven Frank from Panic Software.
There are at least three positions of prominence in each segment — three ways to be number one, if you will: The First One, The Free One, and The Good One.
Also, a great little aside that I wish he would have gone further with:
Naturally, being the market leader is a comfortable place to be, but you don’t have to “kill” the market leader to make a decent living.
This is something most people forget. Sure, you won’t be the next Adobe with your one-man shop… but you can earn a great living even if a fraction of a percentage of their userbase decides to give you $30.