Marketers often mistake strategic positioning (finding a niche) for true category creation. A new category introduces a solution to a problem customers haven't yet articulated, requiring education on why they need a thing they've never bought before.

A more effective mental model than PLG vs. SLG is analyzing which activities create new demand versus which ones harvest existing demand. Both sales and product can serve either function. Creating demand is always the harder, more critical challenge for any revenue engine.

The most significant mindset shift for founders is realizing they can't force a customer to have demand. Demand is an objective state in the customer's world—a project they are already trying to accomplish. This transforms sales calls from high-pressure convincing into low-pressure discovery, liberating the founder from feeling responsible for the outcome.

When creating a new category like Drift's "conversational marketing," no search volume exists for the new term. Marketers must capture demand from high-volume, existing terms (e.g., "live chat") and use that traffic to educate the audience on the new category's unique value.

True product demand lies in the gap between what customers are currently doing (observable on their calendar) and their ultimate goals (their mental to-do list). A successful product closes this gap, better aligning a customer's actions with their underlying objectives. This mismatch is where "pull" is found.

Successful startups tap into organic customer needs that already exist—a 'pull' from the market. In contrast, 'conjuring demand' involves a founder trying to convince a market of a new worldview without prior evidence. This is a much harder and less reliable path to building a business.

Technical founders often mistakenly fall in love with product marketers first. However, at the early stage, the single most important function of marketing is generating leads. A new CMO who prioritizes a website redesign over demand gen is a major red flag; the focus must be on building pipeline.

Many marketers mistakenly start with the goal of creating a new category. However, a new category only emerges as a downstream consequence of a strong, existing demand that is poorly served by all current products. The demand must exist before a new category can be successfully established.

From the outside, a startup finding organic demand and one conjuring it can use identical tactics, like creating a new category or aggressive marketing. The key difference, invisible to observers, is whether these tactics respond to an existing customer pull or attempt to create one from nothing.