10% Rule

TL;DR

In business, infrastructure providers (Level 1) capture the smallest percentage but largest absolute volume.

Ecosystem value is multiplicative, not additive. Infrastructure providers capture small percentages of massive flows. That's the business model - don't fight the 10% rule, design for it.

~90% of energy is lost at each trophic level. When herbivores eat plants, only ~10% of the plant's energy converts to herbivore biomass - the rest is lost to metabolism, heat, and waste. This explains why food chains rarely exceed 4-5 levels and why apex predators are rare.

Business Application of 10% Rule

In business, infrastructure providers (Level 1) capture the smallest percentage but largest absolute volume. AWS captures 20-30% margin on $90B revenue, but applications built on AWS generate $500B+. SAP's $30B enables $100B+ in partner revenue and trillions in enterprise value. Don't fight the 10% rule - design for it.

Related Mechanisms for 10% Rule

Related Organisations for 10% Rule

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