In partnership with

The most successful professionals aren't competing, they're creating entirely new games. While everyone else fights for market share in established categories, category creators capture something far more valuable: they own the entire conversation.

Here's what most professionals miss: in any new category, the creator typically captures 76% of the total market capitalization. Not 50%. Not 60%. Seventy-six percent. This isn't luck or first-mover advantage. It's physics. Category creation follows predictable laws as reliable as gravity, and once you understand these mechanics, you'll never compete in someone else's category again.

Make sure you keep receiving the emails by moving the email into primary folder!

Why Physics > Competition

The data is striking. When Al Ries and Jack Trout first identified this pattern, they thought it was an anomaly. But look at every major category creation in the last 30 years.

Salesforce didn't build a better CRM, they created "cloud computing" and captured unprecedented market value. Tony Robbins didn't become another motivational speaker, he created "peak performance coaching" and built an empire. The pattern repeats across every industry: category creators don't win, they dominate so completely it rewrites the rules of competition.

Most professionals believe success comes from being better. Better service, better credentials, better processes. This is the expertise trap. While you're perfecting your craft within existing boundaries, category creators are redrawing the map entirely. They understand something fundamental: markets reward different exponentially more than markets reward better.

Think about your own purchasing decisions. When you need cloud storage, do you Google "cloud storage providers" or do you go directly to Dropbox? When you want to hire a business strategist, do you search for "business strategy consultants" or do you look for someone who does what only they do?

Category creators don't compete on comparison charts because they've made comparison irrelevant.

HELP keeping the FREE content coming! Open and check out today’s sponsors offer!

Quick, hard-hitting business news.

Morning Brew was built on a simple idea: business news doesn’t have to be boring.

Today, it’s the fastest-growing newsletter in the country with over 4.2 million readers—thanks to a format that makes staying informed both easy and enjoyable.

Each morning, Morning Brew delivers the day’s biggest stories—from Wall Street to Silicon Valley and beyond—in bite-sized reads packed with facts, not fluff, and just enough wit to keep things interesting.

Try the newsletter for free and see why busy professionals are ditching jargon-heavy, traditional business media for a smarter, faster way to stay in the loop.

The 76% Market Effect

The physics of category creation operates on three fundamental forces:

First, cognitive economics. The human brain can only maintain about seven brands per category in active memory. But here's the critical insight: the category king doesn't get the largest share of those seven slots, they define what the category means. Every other player is positioned relative to them. They own the standard.

Second, network effects compound geometrically for category creators. When Uber created ridesharing, they didn't get more customers than taxis, they fundamentally changed how people think about transportation. Every competitor who followed, even with better features or lower prices, was forever labeled an "Uber for X." The category creator owns the comparison point, forcing everyone else to define themselves in relation to the original.

Third, and most powerful, is problem ownership. Category creators don't solve problems differently, they own the very definition of the problem. Before Salesforce, companies didn't have a "cloud CRM problem." Before CrossFit, people didn't have a "functional fitness problem." The category creator plants a flag on virgin territory and declares, "This is the problem, and coincidentally, we're the only ones built from the ground up to solve it."

Market Value Concentration in Action

Here's where the 76% figure becomes impossible to ignore. In mature categories, market share distributes somewhat evenly among top players. Coca-Cola and Pepsi split the cola market. BMW, Mercedes, and Audi share the luxury car segment.

But in new categories, distribution follows a power law so extreme it seems unfair:

  • Amazon Web Services owns 76% of cloud infrastructure profit pools

  • Google captured 78% of search advertising value

  • Facebook took 74% of social networking market cap at its peak

These aren't monopolies in the traditional sense, they're category monopolies. Competitors exist, but they're fighting for table scraps.

Why does this happen? Because category creators enjoy compound advantages. They set the standards, define the language, own the problem, and become the safe choice. Corporate buyers don't get fired for choosing the category king. Consumers don't have to explain their choice. The category creator becomes synonymous with the solution itself.

Ready to stop competing and start creating your own category? Get the complete Category Builder's AI Agent Toolkit, that show exactly how you can be one of the professionals that dominate newly-created markets.

🚨 Only 20 Founder Spots Left

The Human Edge Lab is your vault of career-growth playbooks, soft-skill deep dives, and AI-enhanced tools. Each new founder locks in access at today’s rate, forever. Once all spots are filled, enrollment closes for good and prices will go up.

🎯 Founders get in once. And never miss out again.
Claim your spot now

logo

Subscribe to Founder to read the rest.

Become a paying subscriber of Founder tier to get access to this post and other Founder subscriber-only content.

Upgrade

Reply

Avatar

or to participate

Keep Reading