The Comfort Line of Innovation: Why Innovation Distance Matters
I’ve been thinking a lot about innovation lately and if you can be too innovative as a company.
Here’s how I’ve thought about it…
There is a point where your product is too innovative.
Think of a vertical line in the centre of a page. This is the Comfort Line of Innovation and it represents the current state of innovation.
By default, this is where your customers are comfortable. It is the baseline where the market understands the problem and accepts the existing solutions.
The market is tied here. To move them, you need to understand where your product sits relative to that line.
The Far Left: Crowded Market
Building to the left of the line means entering a mature market. Because the market is intimately familiar with these solutions, they have high expectations. Companies have been refining their product/service for decades - to win here, your product must be ten times better than the incumbent to stand out or overcome the customer's switching costs.
Pros:
Proven Demand. You don't have to wonder if people want this; the market is already buying it.
Clear Value Prop. The problem is well-defined and easy to communicate.
Success Models. There are plenty of failed and successful examples to learn from.
Cons:
Fierce Competition. You are fighting massive incumbents with deep pockets and great products.
High Expectations. Customers won't tolerate "okay"; you have to be significantly better to be noticed.
Commodity Risk. Without a 10x improvement, you are forced to compete on price alone — a margin-destroying spiral.
Example: You start an SEO Agency, Law Firm, Mechanic, Web Design Agency, Clothing company. Anything that has existed for a long time and has minimal innovation.
* There is one exception worth noting.
If you enter the left with significant distribution leverage - an existing audience, a trusted brand, a captive customer base - the 10x bar lowers considerably. The product isn't the weapon; the relationship and audience is. But this is a distribution strategy, not an innovation one, and its ceiling is always limited by the size of the leverage you already possess.
Example: Logan Paul and KSI with Prime. Destroyed Gatorade’s market share with a sub-par sports drink, because they had built in distribution - over 100m followers across YouTube, Instagram, TikTok and X.
The Right Side: The Sweet Spot
The most successful products live just to the right of the centre line. This is the point of maximum tension. Customers clearly understand and feel the problem, and are actively looking for new solutions. You are far enough right to lead, but close enough that you still feel the pull from the market.
You are innovative without being too innovative.
