When launching into a competitive space, first build the table-stakes features to achieve parity. Then, develop at least one "binary differentiator"—a unique, compelling capability that solves a major pain point your competitors don't, making the choice clear for customers.

Startups often fail by making a slightly better version of an incumbent's product. This is a losing strategy because the incumbent can easily adapt. The key is to build something so fundamentally different in structure that competitors have a very hard time copying it, ensuring a durable advantage.

The fundamental goal is to become a "better competitive alternative" for a specific customer—being so superior that they bypass competitors to choose you. Achieving this state is the business equivalent of the house advantage in a casino (“the house vig”) and the only reliable way to build a lasting enterprise.

Your team's internal names for features often confuse customers. Systematically harvest the exact words customers use to describe outcomes during sales or support calls and use that language to rename features. This self-identifying language, used by Apple (e.g., "AirDrop," "Retina Display"), makes products instantly understandable.

The backlash against 'category creation' isn't about the concept itself, but its poor execution. Critics react negatively when marketers simply apply a new name to a product in an existing category without any fundamental product differentiation. This is seen as disingenuous marketing spin rather than true innovation.

For communities or companies like Dave Gerhardt's Exit 5, the founder's personal brand can become the primary differentiator. This creates a 'category of one' in the customer's mind (e.g., 'The Dave Gerhardt Community'), making direct comparisons difficult and establishing a powerful moat that transcends feature-based competition.

A "takeaway sale" replaces an existing competitor (their toilet paper vs. yours), while a "demand gen sale" introduces a new category (a bidet). This distinction is critical because in takeaway sales, prospects already have a solution, so a pitch about your product's features is not inherently valuable.

A brand's strength can be measured by its "durability"—the permission customers grant it to enter new categories. For example, a "Nike hotel" is conceivable, but a "Hilton shoe" is not. This mental model tests whether your brand is defined by a narrow function or a broad customer relationship.

When organizing your content library, add a specific category for the customer 'pain point' each asset addresses. This allows you to analyze performance based on the problems you're solving for your audience, revealing deeper insights than merely tracking topic popularity.