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The best startups don’t sell products
The startup differentiation problem: most startups believe that innovation means adding more features – a faster app, a smarter algorithm, a better design. But customers don’t buy features.
They buy transformation.
Yet, many startups fall into the trap of competing on specs:
- Tech startups focus on AI and automation but struggle to explain why it matters to customers
- E-commerce brands push product quality but fail to differentiate from competitors
- B2B services compete on price, leading to a race to the bottom
So, how can your startup stand out without relying on features or price?
By tapping into consumer psychology – the science of understanding what truly drives decision-making, shapes perception, and creates emotional connections.
This is about meaningful impact, not empty words. It’s about ensuring that when people hear your startup’s name, they immediately understand why you matter.
What startups get wrong
Most startups assume that standing out means having the best product. They list features, hoping customers will be impressed.
But the most successful brands sell outcomes, experiences, and beliefs.
That’s why I created The Reverse Pyramid of Value, a framework that shows how startups can shift their positioning from competing on features to owning their space in the market.
Each level represents a different way of positioning your brand, from feature-led competition (low purchase intent, low differentiation) to market domination (owning the narrative).
Let’s break it down with real-world startup challenges.
The feature trap
When Tom launched his SaaS platform, he was convinced customers would care about the tech.
“We’ve added 10 new integrations!” he proudly announced.
But instead of excitement, he was met with indifference.
Features are easy to copy. No one buys a smartphone just because it has more megapixels.
Apple doesn’t sell iPhones based on RAM and processors – they sell an ecosystem and a status symbol. Customers aren’t just buying a device; they’re buying identity and belonging.
Tom realised he had to stop selling specs (where most startups begin) and start selling what his product enables.
From features to transformation
Emily, a fitness coach, needed a website. She found two services:
- One promised: "Customisable website templates"
- The other said: "Get more clients with a site that sells your coaching."
Which one sounds more valuable?
Samsung doesn’t just sell "4K resolution" – they sell "Watch films in stunning ultra HD".
People don’t buy technology; they buy the transformation it brings.
Emily didn’t need a website – she needed a way to grow her business.
She chose the service that spoke to results, not just features.
Case study: startup breaks free from features
Adele M., Founder of Wombshine, faced a similar challenge. Her product – a plant-based chocolate designed to relieve period pain – was entirely new to the market. However, due to the stigma surrounding menstrual health, marketing it proved difficult.
"I had a session with Alessandro last week, and he offered me so many valuable insights about my brand, Wombshine. We are a completely new product with stigma attached, so marketing is a challenge. Alessandro listened carefully and broke down his thoughts into three very clear, highly actionable insights that I would never have thought of myself."
Rather than focusing on features, Adele applied positioning techniques from our session – specifically, shifting from explaining the product to crafting an engaging message that emotionally resonated with her audience.
Here the result:
"The Saturday after I met with Alessandro, we had our highest-ever sales day at a pop-up after I applied some of his techniques to create a simple sales pitch. He is honestly a genius and incredibly generous with his time and energy."
Adele’s success proves that shifting the focus from features to transformation isn’t just theory – it’s a strategy that delivers results.
Selling an experience, not just a product
Jack, an avid music lover, wanted the best sound system for his flat. He looked at two speaker brands:
- One boasted "Crystal-clear 3D spatial audio."
- The other promised "Turn your living room into a concert."
Jack went with the second. Because people remember experiences, not specs.
Sony would position their televisions not just as ‘ultra-HD screens’ but as immersive entertainment hubs – "Feel the action come to life with cinematic visuals and surround sound".
The first phrase describes the product. The second makes you feel something.
Jack didn’t just want speakers – he wanted goosebumps.
The power of storytelling
When Sophie moved into her new flat, she wanted it to feel like home. She looked for home fragrance brands.
- One brand advertised "Premium hand-poured candles with essential oils."
- Another simply said, "Create a home that feels like you."
She picked the second. Because brands that tell stories, win.
Bose wouldn’t just sell high-fidelity audio systems – they would position their speakers as a way to transform any space: "Bring the cinema home with breath-taking sound that puts you at the heart of the action".
The shift from selling a product to selling a feeling is where loyalty happens.
Breaking false beliefs
James always thought electric cars were slow and boring – until he saw a Tesla.
Tesla didn’t just sell EVs; they changed the narrative. They made people believe an electric car could be fast, sleek, and desirable.
Airbnb did the same. Before them, people assumed hotels were the only “real” travel option. Instead of selling "budget accommodation," they rewired beliefs: "Why stay in a hotel when you can belong anywhere?"
This is the highest level of value – where market domination happens. It’s when your brand doesn’t just sell but reshapes how people think.
Where does your startup stand?
Selling features means getting ignored.
Competing on price means a race to the bottom.
The best startups don’t play either game.
If you feel confused and stuck at this stage, it’s normal.
It means you have room for improvement.
Below, I’ll guide you through the first steps to start refining your startup’s positioning.
How your startup can apply this
Step 1: audit your messaging
Are you talking about features, or are you showing real transformation?
Step 2: sell an experience, not a product
How does your product make customers feel? (Think Nike, not sportswear.)
Step 3: challenge a false belief
What common industry myth can your startup disrupt?
Final thoughts
The best startups don’t just build products – they build movements.
They reshape the way customers think, make decisions, and experience the world.
So, take a moment to reflect:
- Where does your startup sit on the Reverse Pyramid of Value?
- And what’s one shift you can make today to move higher?