From: myfirstmillionpod
In the realm of business and personal endeavors, a key strategy for success lies not in trying to be the best within an existing, crowded space, but in forging a new path to become the only one in a unique category [00:39:10]. This approach emphasizes unique business ideas and strategic positioning over head-to-head competition.
The Law of Category
The “Law of Category,” drawn from the book The 22 Immutable Laws of Marketing, highlights the power of creating new categories [00:39:00]. Instead of striving to be “the best” in an already saturated market, the goal is to be “the only” in a novel one [00:39:15].
Examples include:
- Amstel Light, positioned as the first light imported beer [00:39:17].
- Southwest Airlines, known for its low-cost airline model [00:39:27].
Related Concepts
The Law of Category is closely related to other strategic frameworks:
- Blue Ocean Strategy: This concept, detailed in the book Blue Ocean Strategy, advocates for creating uncontested market space, making competition irrelevant. This contrasts with “red ocean strategy,” which involves competing fiercely in existing markets [00:39:41].
- 1,000 True Fans: Kevin Kelly’s essay, “1,000 True Fans,” discusses how creators can thrive by cultivating a relatively small but dedicated fanbase. This aligns with differentiation by focusing on a specific niche rather than mass appeal [00:40:11].
These concepts collectively emphasize positioning and differentiation, aiming to discover how to be the “first something” [00:40:27].
Practical Application: Branding and Positioning
Branding, rather than being a complex process, can be simplified to “what people consistently associate X with” [00:41:17]. To apply this, consider: “When a die-hard fan of your show is talking to someone who does not know the show, how would you ideally like them to describe the show?” [00:40:50]
The key is not to compete in the same way against others, but to find a unique angle [00:41:41].
Case Study: Podcast Strategy
When considering growth for a podcast, especially given the crowded nature of video-focused platforms like YouTube (described as a “red ocean”) [00:42:53], a different strategy might be necessary. While YouTube is the second-largest English-language search engine, its crowdedness makes growth challenging [00:42:33].
The Barbell Approach
The “barbell approach,” borrowed from Nassim Taleb’s investment philosophy [00:43:57], can be applied to podcasting. This involves focusing on two extremes, avoiding the middle ground:
- No Video Whatsoever: This could involve walk-and-talk audio recordings, allowing for enthusiasm, joy, and curiosity to compensate for the lack of visual content [00:44:30]. This also allows for higher frequency [00:45:11].
- Ultra-Premium Video Production: High-quality studio setups provide a cinematic or high-quality video experience, standing out from typical video podcasts [00:45:22].
This approach prevents half-hearted efforts, which consume resources without being particularly effective [00:43:33]. It’s about playing the long game, even if it means taking “recovery” episodes that are purely self-interested [00:31:20]. Often, what is personal can also be universal [00:31:36].
Broader Applications of the Barbell Principle
The barbell approach can be widely applied:
- Investing: Investing in both super-risky ventures (with capped downside and huge upside) and extremely boring, fixed-income options, avoiding the middle [00:44:02].
- Networking: Engaging in brief, informal communications (e.g., random texts) or committing to in-depth, focused interactions (e.g., spending a half or full day together), rather than numerous draining Zoom calls [00:46:07].
- Speaking Engagements: Either offering free appearances for highly interesting audiences/events or charging ultra-premium fees that set a new minimum [00:46:36]. This “Ultra Premium” strategy provides more margin for error and encourages experimentation [00:47:58].
“How do I make this event worth that amount of money? How do I exceed the cost of this event in the first two hours of the event and then the rest is just gravy?” [00:49:00]
This deliberate approach forces creative problem-solving and ensures that efforts are aligned with desired value and outcomes. By setting a price (e.g., $10,000 for a paid event) and then determining how to massively over-deliver on that value, one can create a “no-brainer transaction” for the customer [00:48:20], [00:49:00].
This focus on leveraging unique strengths and strategic differentiation allows for deeper engagement and long-term success, fostering deep knowledge in a niche while avoiding the pitfalls of generalized busyness [00:21:30]. The principle of not being afraid to not be busy is crucial for this strategic focus [00:20:56].