Conviction

Rage against malleability

Conviction is intoxicating.

When you encounter someone or something with high-conviction, it’s moving.

You notice it. Remember it. Are motivated by it.

It forces a decision. Am I onboard or not?

If conviction is lacking, it has the opposite effect. It’s forgettable and perceived to be a sign of weakness. Wish-washy.

In short: conviction creates customers.

But, what does conviction look like?

My archetype mental image for this is a Rage Against The Machine gig.

Not just any gig.

Specifically, a gig they played in an LA record store before they got famous:

For a band that is yet to make its mark — up against more skeptics than supporters — they play with pure intensity and certitude. Unapologetic.

There’s a sense of inevitably that they’re going to change the world to a version that conforms to their view. An unstoppable force.

If you look into frontman Zach de la Rocha’s eyes and listen to his voice and the words he uses, is there any part of you that doubts him?

At one point his mic breaks (shit goes wrong). This fuels him further.

It feels like they’re living a line from one of their songs… “all hell, can’t stop us now”.

How does this relate to startups?

In this context, Rage Against The Machine is the startup. The people in that record store are their earliest adopters.

When Zach’s mic breaks (as things always do with startups), they carry on singing the words and spreading the message. They got his back.

Demonstrating conviction doesn’t mean you have to go shout angrily at people (I would definitely not recommend that for a B2B sales call).

Shouting angrily is an articulation of the conviction, which should be adjusted to suit the given context accordingly. For example, by crafting a compelling sales narrative for a B2B sales call.

Demonstrating conviction also doesn’t just mean showing intensity, energy, and vehemence. It’s an important element. But, with this alone, founders will burn up going nowhere fast.

The single most powerful element of conviction is focus — a differentiated focus. Intensity, energy, and vehemence are the carriers of the differentiated focus. So too is the message. It hammers it home.

True conviction is having a narrow focus because you have to make huge sacrifices to have that focus. People know this and perceive it, consciously or subconsciously. That’s why it’s powerful.

The most productive B2B founder-led sales calls I jump on are focussed in their conviction: this is who we are, this is our PoV, this is who we serve and why.

They are deliberately divisive. They turn away prospects whose needs do not perfectly align with the capabilities and benefits of the proposition. And, deeply resonate with those that do.

Conversely, sales calls that are unfocussed in their conviction struggle: changes are made in the price, service, and deliverables that compromise the mission (focus) of the company.

This is usually driven by talking to prospects that are not an ideal fit and so they demand random stuff — “They say jump, you say how high?”

The same dynamic applies in B2C, too. Though, a lack of conviction manifests in different ways — e.g. through marketing, product, and, customer support.

It’s worth remembering that your proposition is an expression of your mission. It’s the primary device to which a prospect interprets the mission of your company. Changing one effects the perception of the other. They are symbiotic.

In this respect, proposition malleability represents a tension that many startups contend with.

How so?

Through the widespread preaching of the Lean Startup methodology, we have all been unconsciously conditioned to default to malleability, iteration, and adaptability as the backbone of commercial success — “let’s change to give the customer exactly what they want”. Particularly, in a scenario when a startup is desperate for revenue and “product-market fit”.

This mindset often goes too far and breaks key principles of the Lean Startup methodology, which by its nature employs the scientific method.

Experiments work (provide a high-confidence learned result) when the hypothesis and test is focussed. If a founder jumps on a call and starts promising pricing, features, and deliverables that fall outside the hypothesis to test a proposition, it invalidates the experiment.

It also generally reduces customer conversion rates. Malleability — the perception that a company will do anything to get business — can create a sense of weakness and confusion. Leaving an impression that “they’re desperate” or triggering indecision — “what do these folks do, exactly?”

For example, imagine if Rage Against The Machine had said in that gig “If you don’t like our music, we know a few New Kids On The Block songs".

Or, imagine if they had tried to please everybody with their songs — encompassing a full range of perspectives. They would’ve become ‘Rally Against Melancholy’ and appealed to no one because they had no specific message. This may sound absurd, but this is effectively what I see many startups doing.

In other words: don’t be apologetic or subservient. Turn those away that don’t care (yet). The result of doing this is a key learning, no matter the outcome.

I’m not suggesting being an obnoxious ass about it, but instead being clear and deliberate. Plant seeds for the future and move on. It’s also an opportunity to probe for new insights, to further strengthen how you think about designing your value proposition in the context of broader competitive alternative dynamics.

Demonstrating conviction

When I look back at the times I have worked in startups and go-to-market motions, there is a clear pattern of success that biases towards having a focussed conviction and articulating it precisely to an audience that cares.

Further, the focus of that conviction was (and should be) uncomfortably narrow. Particularly the closer to the beginning of the startup journey you go.

The same principle is true of the most successful companies in the world today. They started with a super narrow conviction and proportionally expanded from it.

Just look at Facebook Meta, which launched only in Harvard and then expanded to other Ivy League schools, then colleges, and so on.

Rule of thumb: if the sacrifices you made deciding what your value proposition provides and who it’s for didn’t hurt, it’s probably not focussed enough.

However, success requires more than just having a narrow focus. It also requires deciding what that focus is and communicating it to prospects compellingly with high-conviction.

A solid example of this is the software I am writing this newsletter with — Beehiiv. They are the Rage Against The Machine of newsletter platforms.

They had a focussed conviction to be the ‘newsletter platform built for growth’ and articulated this with such high-conviction that it seemed inevitable they would be a success (and are).

But, this is easier said than done. So, what can you do?

How can you demonstrate high-conviction and resonate with prospects?

Here’s 7 principles, illustrated through Rage Against The Machine songs:

Killing In The Name Of

“F**k you, I won’t do what you tell me”

Your established competitors want “you do what they told ya”.

They want you to conform to the rules of engagement of the category you operate in.

Huh? A “rule of engagement” is a tacit understanding and accepted principle of how players compete in a category.

For example, pricing, packaging, operations, service, customer orientation, T&Cs. It can be anything and is subjective to each category.

If you’re trying to build your own category, they will try to pull you into there’s through the perspective of prospects.

Why? The more you conform to the existing rules of the category, the more it works to their competitive advantage.

The rules unfairly support their business model. By keeping you in your place subscribing to their terms, they prosper.

It’s like joining a game of Monopoly late. How are you going to win, when your competition already owns the whole board?

You win by changing a rule of how the game is played. For example, turning owning property (hotels) into a weakness.

This may sound far-fetched, but it’s literally what Airbnb did.

The trick here is to find a rule of engagement (or multiple), that you have the power to change, that would work unfairly in your favour as a startup.

By doing this, you define your own rules of engagement.

Some classic examples:

  • Walt Disney said “F**k you, I won’t do what you tell me” to the live-action film category.

  • McDonald’s said “F**k you, I won’t do what you tell me” to the drive-in diner category.

  • Dyson said “F**k you, I won’t do what you tell me” to the vacuum cleaner category.

  • Salesforce said “F**k you, I won’t do what you tell me” to the CRM category.

  • Stripe said “F**k you, I won’t do what you tell me” to the payment gateway category.

The first step in developing a radically differentiated focus is to accept and acknowledge the premise that you need to strategically break a rule or two.

Wake Up

How long? Not long, cause what you reap is what you sow.

Before you break a rule, you first need to understand the rules. Moreover, you need to understand the effects of the rules. To find them surprising and puzzling, not innate unchangeable laws.

Why do the rules exist and how does this impact the experience, service, and value received by prospects in the category?

Where is there a power imbalance? Where is a need going ignored? Where is something being underserved?

To “wake up”, identify, and question the most fundamental factors in the category is a critical step. First you need to see them in order to act and challenge them.

Example: The BNPL (buy now, pay layer) category was crowded when Zilch launched in 2020. Many startups had previously failed, conforming to a tacit rule of engagement for the category: using a B2B business model.

Zilch identified that the B2B business model benefitted merchants and BNPL operators. But, an implication of this was that it tipped power disproportionately in their favour against the end-user (consumers).

Zilch inversed the BNPL value proposition by launching with a B2C business model (and became one of the fastest growing fintechs in history).

Know Your Enemy

Fight the war, fuck the norm.

You have the mind of a revolutionary. You got no patience and are sick of complacence. But, who or what is your enemy?

Defining an enemy gives a legitimate reason for your startup to exist in the minds of prospects. It anchors onto a potent perception in the mind.

An enemy can be a company, a category, or a context.

Famously, Salesforce defined Siebel as the enemy (Siebel were a 90s leader of the hard-install CRM category).

Salesforce became the “anti-Siebel” and communicated this notion, using the ‘Ying and Yang effect’ to establish a position in the minds of prospects as the opposite.

Airbnb defined a category (hotels) as the enemy. HelloFresh defined a context (meal planning) as the enemy.

To define an enemy you first have to know your enemy.

This sounds intuitive. However, many startups mistake their enemy. This leads to creating value propositions and messaging that falls flat.

Where do you look? The enemy of your prospect is your enemy.

But, who or what is the most formidable enemy of your prospect in the context of the category you serve?

Sometimes, prospects don’t even know themselves. So, asking them directly doesn’t provide instant clarity and can generate misleading conclusions. You have to figure it out by answering questions utilising first principles. Trace the steps back.

Example: during the 'Adblockalpyse era' of 2014-17 — a period in which ad blocking was perceived to be a critical threat to the ad supported web — most adtech vendors were unable develop a scaleable value proposition for publishers because they viewed ad blockers as the enemy.

Conversely, Blockthrough explored a different point-of-view (a bi-partisan position between publishers and ad blockers) and scaled sustainably. Ad blockers were not the true enemy, they were a symptom of the true enemy (interruptive and intrusive advertising practices).

Bullet In The Head

Believin' all the lies that they're tellin' ya

Buyin' all the products that they're sellin' ya

Your prospects have a bullet in the head. Many, actually.

Each bullet is a position in the mind that your competitors own.

A position is a perception. It’s a unique idea which is perceived as valuable and instils buying behaviour with a defined segment of prospects.

For example, if you operate in the car category Tesla may own the ‘electric’ position in your prospect’s mind. Volvo main own ‘safety’, BMW ‘driving’, Toyota ‘reliability’, and so on.

It is critical to recognise the mental positions and perceptions of competitive alternatives that are already are present in the minds of prospects.

Further, to accept that bullets are lodged in the mind. They cannot be pulled out cost-effectively. Companies with relatively uncapped resources — the Microsoft’s and Coca-Cola’s of the world — have tried this many times and failed. It’s a losers game.

You also should accept that you cannot change a mind. This is a reason why, though you perceive your competitors are spewing B.S. in the marketplace, they still grow and steal your sales. It’s confirmation bias. Getting in a war of facts to dislodge them will burn up your resources.

The solution to this is to mold a new perception that instils buying behaviour. This is your ability to shoot your own bullet into the mind of your prospect.

Salesforce chose ‘Cloud CRM’ as its bullet.

If you were entering the electric car category you could claim the ‘electric supercar’ or ‘electric coupe-utility’ position. Or, flank it entirely with a new category: the ‘hydrogen car’ position.

Famously, VW — with the help of advertising legend Bill Bernbach — flanked every car brand in the U.S. by introducing the Beetle in the 1960s and claiming the ‘small car’ position.

Take The Power Back

I'm inferior? Who's inferior? Yeah, we need to check the interior.

Your competitive alternatives are well-known, well-resourced, and strong.

The’ve indoctrinated stakeholders in the marketplace and your target prospects with their point of view. Probably, for many years.

By turning this strength into a weakness, you can take the power back.

How so? In order to be strong they have had to sacrifice something. You can use what they have sacrificed as your strength.

A hall of fame example of this is Coca-Cola. After they invented the cola category, Coca-Cola enjoyed a virtual monopoly of it for years.

Then, Pepsi-Cola came along. They took an opposite position to Coca-Cola, becoming the “younger person’s cola” and by inference repositioning Coca-Cola as an “older person’s cola”.

This was achieved by designing a product and supporting messaging that resonated more with kids and those that just wanted to feel younger.

In effect, Pepsi-Cola used Coca-Cola’s perception as the ‘original’ cola as a weapon against them to mean ‘old’ — a kind of relic. They took the power back.

Another example: then upstart Salesforce achieved something similar with CRM category leader Siebel just over 20 years ago.

By declaring the “End of Software” (hard-install software) across a series of PR stunts, they positioned Siebel as a relic of a soon-to-be bygone era.

Salesforce took the power back.

Testify

We found your weakness. And it's right outside your door. Now testify.

You’ve woken up and broken the rules. You know your enemy. You have a bullet-proof idea ready to shoot into the minds of your prospects.

But, what are you going to say? What’s your penetrating message?

It’s time to develop and communicate your point-of-view. To testify about how the world is broken in some way and your approach to fixing it.

Point-of-views that pack a punch divide the mind. They help build a perception of why you're different to everything else.

To find yours, dig beneath the surface of the problem you're solving to find your contrarian perspective.

  • Problem: identified pain

  • Point-of-view: contrarian perspective to solving the pain

Answer this question: how do you think about and approach the problem in a way that your competitive alternatives disagree with you? Particularly, for the use case of your best-fit prospects (your ideal customer profile).

Further, why do you think about it differently? What insight led you to this point-of-view? This should expose a perceived flaw in the approach of your competitive alternatives.

This contrarian perspective creates the need for your solution. It also provides you with a frame of reference to craft all of your messaging — why you exist, who you serve and why, who is your enemy, your sales narrative, how you contextualise industry changes, etc.

Example: Content recommendation pioneer Outbrain’s point-of-view was that its competitive alternatives (banner ad networks) put adtech and advertisers first in the value chain, which was not sustainable in the long-term since the outcome of this eroded end-user (consumer) trust.

Both Outbrain and its competitive alternatives were addressing the same pain point (monetising websites). The difference being their approach to achieving this was radically different. Outbrain existed to build a new advertising ecosystem, putting the consumer first.

Guerilla Radio

Lights out. Guerrilla Radio, turn that shit up.

You’ve developed your message, but how are you going to distribute it?

The medium is as much the message as the message itself.

There are three basic requirements for the medium:

  1. It must be cost-effective

  2. It must reach your best-fit prospects

  3. It must position you in the best possible light

To achieve this, you can channel the ethos of the song Guerilla Radio.

It evangelises utilising grassroots tactics to distribute your message as a unique alternative voice to the mainstream discourse and controlled flow of information that supports incumbent players.

This approach emphasises perceived authenticity in its delivery, cutting through market noise with a differentiated focus and energy that challenges the status quo.

If your competitors are spewing out corporate drivel, this is a perfect scenario. You can be real and talk like your prospects talk.

Effective guerilla tactics include:

  • PR

  • Email

  • Social media

  • Communities

  • Events and stunts

  • Content: podcasts, blogs, videos, etc.

The medium and style of delivery must leverage what your prospects pay attention to. What has the most weight?

As we move into the era of AI-generated content, it’s going to become increasingly important to prove you are human. Otherwise, it’s “lights out” — no one will pay attention or notice.

That means sharing more of your personality, your human perspective, and expertise which isn’t in the public domain (crawled by AI online).

Show your fire. Then, turn that shit up — be loud, present, and consistent.

Example: Tyler Denk, the CEO and co-founder of Beehiiv, built a social media following that allowed him to share his company’s mission and point-of-view by using an authentic voice that cut through the noise of competitive alternatives.

His social media distribution was a core factor that enabled Beehiiv to get off the ground and gain traction. To get a feel for it, here is Tyler’s X and LinkedIn profiles.

That’s it for today. I’ll be back in your inbox soon.

“It has to start somewhere, it has to start sometime. What better place than here, what better time than now?” 🤘

Martin

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