You know what’s fascinating? Watching brilliant founders make the same positioning mistake that’s been happening since… well, since the first entrepreneur tried to sell a wheel as “like legs, but rounder.”

(Sorry, ancient wheel inventor. You could’ve owned “effortless movement” instead.)

Here’s what usually happens in my conversations with founders:

Them: “We’re crushing it! We just tell everyone we’re like [Big Competitor] but better!”
Me: internal cringe
Also, me: “Let’s talk about why you just put a ceiling on your company’s future.”

You see, positioning isn’t just some marketing exercise. It’s the invisible foundation that determines how high your company can grow. And right now, you might be accidentally building that foundation in someone else’s backyard.

Let’s break this down…

THE SEDUCTIVE TRAP
It’s so tempting, isn’t it? That quick explanation: “We’re like Salesforce but simpler” or “Think Airbnb for boats.”

I get it. It feels:

Clear
Clever
Quick
“Bold” even

But here’s the thing: You just traded your birthright for a bowl of positioning porridge.

(Yes, I just made a biblical reference about SaaS positioning. Stay with me.)

THE HISTORICAL PATTERN
This isn’t new. Look at how these played out:

Early Cars: “Horseless carriages”
Could have owned: “Personal freedom”
Result: Took decades to transcend the horse comparison

Early PCs: “Like typewriters but digital”
Could have owned: “Personal empowerment”
Result: Most early computer companies died

Early Phones: “Like telegrams but voice”
Could have owned: “Instant connection”
Result: Missed a bigger opportunity

See the pattern?

When you define yourself by the old thing, you stay trapped in its shadow.

THE THREE LAYERS OF CONFUSION
Here’s where most “experts” (and yes, those are skeptical quotation marks) get it wrong.

They confuse:

Positioning
What you own in the mind
Example: Volvo owns safety itself

Communication
How you explain that position
Example: “Our cars protect families”

Go-to-Market
How you sell it
Example: Safety test demonstrations, dealer strategies

Saying “We’re like [Competitor] but better” isn’t positioning. It’s a lazy communication shortcut that kneecaps your actual position.

At best, it’s a value prop.

THE PSYCHOLOGICAL RABBIT HOLE
Want to know why this matters so much?

Our brains are weird:

Anchoring Bias: First comparisons stick forever
(Like that ex you keep comparing everyone to. Not healthy, is it?)

Mental Real Estate: Once someone owns space in the mind, it’s harder to evict than a tenant in San Francisco

Pattern Recognition: Humans love shortcuts
(But sometimes shortcuts are actually longcuts in disguise.)

THE REAL COST
Short-term “benefits”:

• Quick understanding
• Easy sales conversations
• Clear competitor targeting

Long-term destruction:

• Permanent value ceiling
• Innovation handcuffs
• Brand equity limits
• Category ownership? Forget about it

It’s like renting an apartment and spending a fortune renovating it. Sure, it looks better, but you’re still paying rent to someone else.

THE UNLEARNING CHALLENGE
Try telling Apple users today that early Macs were once positioned as “like DOS but with pictures.”

Sounds ridiculous now, right?

That’s because Apple eventually owned “user-friendly computing.” But it took years—and millions of dollars—to shift that perception.

The human mind is like a whiteboard written in permanent marker. Good luck erasing those early impressions.

BUT WAIT—IS “LIKE X BUT BETTER” EVER OKAY?
You might be thinking: “Surely there are cases where referencing a competitor actually helps, right?”

You’d be correct—sometimes, it can help.

Here are the big exceptions:

Short-Term Clarity for Quick Adoption

If you’re racing against the clock (think limited runway or early funding goals), referencing a known competitor might get you quick wins or fast user onboarding.

Example: Lyft initially got traction with “We’re like Uber, but friendlier.” It helped people “get it” immediately. Over time, Lyft built its own identity, but that competitor anchor was a stepping stone.

“Better Enough” in a Huge Market

Sometimes, a market is so massive that simply being “a bit better” can yield a massive slice of the pie.

Example: Zoom didn’t claim to be a revolutionary category at first; it was “better, simpler video calls” in a giant market. They eventually became the go-to solution, but the initial “incremental improvement” pitch worked just fine to acquire customers fast.

Enterprise & B2B Realities (delulu terms, I know)

Corporate buyers often demand direct competitor comparisons in their RFP processes. “How are you different from Oracle/IBM?”

Example: Okta explained itself early on as “cloud-based identity, simpler than Oracle IAM.” That reference gave enterprise buyers clarity and comfort.

Exit or Acquisition Strategy

If your endgame is getting bought by the big incumbent, referencing them might actually help position you as the perfect bolt-on.

Example: A smaller SaaS tool branding itself as “the missing piece for Shopify” could become a prime acquisition target.

Startup Brand Ambiguity

If your product is radically new and prospects are clueless, a quick competitor mention can offer a mental foothold.

Example: “We do what Zapier does, but for on-prem enterprise workflows” can spark an immediate “Ah, got it!” in a sales conversation.

Timing & Sequencing

Some founders use competitor comparisons only in the earliest phase, then pivot to a bigger/deeper and resonate vision once they have customers and revenue.

Example: HubSpot was initially described as “simpler marketing automation” versus Marketo and Eloqua. Later, it owned “Inbound Marketing” as a broader category. They used the short-term comparison for traction, then upgraded their positioning.

Crucial Point: If you do lean on competitor references, have a clear plan—and timeline—for evolving beyond it. Otherwise, you risk shackling yourself to “we’re simpler than X” forever.

WHAT REAL POSITIONING LOOKS LIKE
Instead of: “Like Salesforce but simpler”
Own: “Customer Relationship Automation”

Instead of: “Airbnb for boats”
Own: “Water freedom”

Instead of: “Cheaper than AWS”
Own: “Development acceleration”

THE EXPERT PROBLEM
Why do “positioning experts” keep pushing the comparison approach?

• It’s easier to teach
• Shows quick results
• Feels more “practical”
• Can be templated
• Scales their consulting

But here’s the truth: Most have never actually built a category-leading company.

They’re teaching you to play checkers in a chess world.

THE WAY FORWARD
Want to do this right? Here’s your path:

Find Your Territory

• What concept can you own?
• What higher truth or aspiration are you serving?
• Create Your Category
  • Name it
  • Define it
  • Own it
  • Build Your Story

Not about competition

• About transformation
• About possibility

And if you do use a competitor reference? Treat it like training wheels. Ditch them once you can ride on your own.

FINALLY.
Look, you didn’t quit your job and risk everything just to be a cheaper knockoff of someone else.

You did it to create something new.
To shape the future.
To own your space.

So why are you positioning yourself as a tenant?

Remember: Tesla didn’t position itself as “better than Toyota.”
They owned “the future of transportation.”

Red Bull didn’t say “better than coffee.”
They owned “human performance.”

Netflix didn’t pitch “Blockbuster by mail.”
They owned “streaming entertainment.”

THE IMMEDIATE NEXT STEP
Go look at your website’s homepage right now.
Count the competitor references.
Each one is a ceiling you built over your own head.

Time to grab a sledgehammer?

(And yes, I just got astronomical with the metaphors. Because, unlike your positioning, mine isn’t constrained by competitors.)