I heard this concept from Victor Cho at Intuit a few years ago and just read about it again this morning in Small is the New Big by Seth Godin.  The basic concept can be described in this picture.

Let’s say you live on the little mound at the bottom (Island A).  This is, in reality, where more products and services exist.  It might seem meager and lame, but to it’s inhabitants, it’s home.  It is safe and warm.  The population is enormous on Island A, so their isn’t much room, but it also allows its inhabitants to feel a sense of normalcy.  (If everyone lives here, it must be good).

However, it is obvious that island B has alot more room, resources and has a better view.  There are always examples of people who move to the bigger island.  Apple moved their with it’s iPhone and iPod devices.  Creative Labs is one of the first innovators of the MP3 player, but still lives on the little puny island A.

The problem for people on Island A lies is very simple.  It is a step backwards to go towards the big island.  The reason is the water that seperates the two islands.  You can’t teleport there.  You have to leave the safe comfort of your home and venture into unknown territory.  You have to swim!  And get wet!  With sharks in the water!  You could drown!  Holy Cow!

It’s no wonder that people avoid leaving home despite the obvious benefit of the better island.  This is the tradgedy of the world.  We all see the bigger island.  We know it’s right there.  But we are terrified of the water and of taking a step backwards, so we wish to be onthe big island, but we don’t summon the courage to be different and leave the little island.

Your product is on an island.  The question is “which island”?  And also, is there a bigger island you could be on?  There are people out there who know how to swim.  Do they feel depressed or empowered?  This is the billion dollar question.  If you want to succeed beyond your wildest dreams, you need to move to a bigger island.

Maybe this is wishful thinking, but I think if this picture can help one person to leave their Local Max Island then I will feel pretty fullfilled.