When I was first starting out in business, I dove headfirst into what I now know as category creation. My first foray into business was with Invisible Fencing as a franchise, a product that, at the time, was a completely new concept. Unlike traditional fences, Invisible Fencing uses technology to keep dogs safely contained without a physical barrier. The idea was innovative and exciting, and I thought it would make me rich, but as I quickly learned, breaking into an entirely new market category comes with unique challenges.
Looking back, my experience with Invisible Fencing was a crash course in category creation. It taught me hard but valuable lessons that I still carry with me today that I share with clients. Let me share those insights, along with what I’ve learned since, so you can decide if creating a new category is right for you.
What Is Category Creation?
Category creation means launching something so unique it doesn’t fit neatly into an existing market. Instead of competing with other products or services, you position yours as the first and best solution to a problem that most people didn’t even know they had. This was precisely the case with Invisible Fencing and that is why I was so excited about becoming one of their first dealers.
When we introduced the product, potential customers were unfamiliar with the idea of an “invisible” way to keep pets safe. They were used to traditional wood stockade or chain-link fences. To them, the concept of training a dog with a boundary they couldn’t see seemed too futuristic—if not downright impossible or a gimmick. The task of educating and persuading the southern Colorado market fell squarely on our shoulders.
Why It’s Tempting to Create a New Category
It’s easy to see why category creation is so alluring. If you succeed, you don’t just become a player in the market—you become the market. Think about how Kleenex is synonymous with tissues or how Uber is the face of ridesharing. With Invisible Fencing, we weren’t just selling a product; we were introducing a whole new way of thinking about pet safety. The potential for market dominance was a huge motivator for me at the time.
But the reality is that the path to success is far from straightforward. For every Tesla or Airbnb, there are countless companies that fail to gain traction. I’ve been on both sides of that equation, and I can tell you firsthand that category creation is not for the faint of heart.
The Challenges I Faced with Invisible Fencing
1. Educating the Market
One of the first and biggest challenges I encountered was educating potential customers. People had never seen anything like Invisible Fencing before, so their first reaction was skepticism. They didn’t understand how it worked, whether it was safe for their pets, or if it would even be effective. I remember talking to an insurance company that denied me a general liability insurance policy, saying that they thought that it had the potential to electrocute the dog.
I spent countless hours demonstrating the product at trade shows and during human interest news stories, explaining the technology, and, most importantly, convincing people that it wasn’t some sort of science fiction. This was a slow, uphill battle. Even today, educating the market remains one of the steepest challenges for anyone trying to create a new category.
2. Changing Consumer Behavior
Convincing people to adopt a new product is one thing; getting them to change their habits is another. For customers, switching to Invisible Fencing meant learning how to train their dogs in a new way, which was not complicated and only took about an hour over the course of several days. Many prospects were hesitant, preferring the familiarity of traditional fences.
This taught me a critical lesson: people are creatures of habit. Even when presented with a better solution, they often resist change. Successful category creation requires not just selling a product but also selling a new behavior.
3. High Costs
Educating the market and changing behaviors don’t come cheap—trust me. When I started my Invisible Fencing business, I quickly realized how much effort (and money) it would take to make people aware of our innovative product. Overall, my margins were quite small since most of it went into advertising because Invisible Fencing was a completely new category. I had to spend heavily on advertising just to get potential customers to understand what it was and why they needed it. This wasn’t a one-and-done effort either; it required consistent repetition to make our message stick in people’s minds.
This ties directly to the Rule of 7, a marketing principle that states a prospect needs to see or hear your message at least seven times before they’ll take action. With Invisible Fencing, we had to keep hammering home the benefits of the product—through direct mail, local newspaper ads, human interest news segments, and live demonstrations—so that potential customers could overcome their skepticism and finally take the leap.
Advertising, partnerships, and sometimes lobbying (if your category disrupts regulated industries) can quickly drain your resources. According to a study by CB Insights, one of the top reasons startups fail is running out of cash, and businesses attempting category creation are particularly vulnerable to this pitfall. Creating a new market is an expensive endeavor, and without a solid financial plan, even the most innovative ideas can fall flat.
4. Resistance from Incumbents
Whenever you create a new category, you’re bound to ruffle feathers. With Invisible Fencing, we faced resistance from traditional fence manufacturers, veterinarians, and even some pet trainers who were skeptical of our product and methods. I quickly learned that when you’re disrupting an established market, pushback is inevitable.
For modern examples, think of how ridesharing apps like Uber faced opposition from taxi companies or how Tesla disrupted the automotive industry and the oil industry. If you’re considering category creation, prepare to fight for your place in the market.
5. Uncertain Demand
When we first started selling Invisible Fencing, the big question was: would people even buy it? At the time, there was no proven market for the product. We had to take a leap of faith, investing in marketing and customer education without any guarantee of success.
This is a common risk in category creation. What if no one wants what you’re offering? Even today, businesses that pioneer new categories often struggle with this uncertainty.
Lessons from Invisible Fencing and Other Category Creators
Despite the challenges, some businesses manage to navigate the rocky terrain of category creation successfully. Reflecting on my experience with Invisible Fencing, here are some key lessons that apply to anyone considering this path:
1. Solve a Real Problem
One reason Invisible Fencing eventually gained traction is that it solved a real, pressing problem: how to keep pets safely contained without the cost, aesthetic, and upkeep downsides of a physical fence.
The same holds true for successful category creators like Uber, which addressed the inefficiencies of taxis, or Airbnb, which offered a cheaper, more personalized alternative to hotels. If your product doesn’t address a genuine need, it will struggle to gain traction.
2. Start Small, Then Scale
When Invisible Fencing was first launched, we focused on a niche market: dog owners who were early adopters and open to trying new solutions. This approach allowed us to build a loyal customer base and refine our messaging before encountering competition before our patent expired and we could scale up.
Tesla followed a similar strategy, starting with high-end sports cars before moving into the mass market. If you’re creating a new category, it’s often better to focus on a niche market first and expand later.
3. Build Trust Over Time
Trust is critical when you’re introducing something new. With Invisible Fencing, customer testimonials and word-of-mouth recommendations played a huge role in overcoming skepticism.
Building trust takes time, but it’s essential for category creation. Testimonials, reviews, and endorsements from recognized experts, such as veterinarians in our case, can go a long way in convincing hesitant customers.
Competing vs. Creating: Finding the Right Path
While the rewards of category creation can be immense, my experience with Invisible Fencing taught me that it’s not the right path for everyone. Competing in an existing category—what’s known as a “red ocean” strategy—can be less risky and more predictable.
For many businesses, differentiation within an existing category, known as a “blue ocean” strategy, is a more sustainable approach. Can you offer better customer service? Lower prices? A more convenient experience? Sometimes, improving on what already exists is more effective than creating something entirely new.
The Role of Timing in Category Creation
Timing is everything. Invisible Fencing succeeded in part because the market was ready for a solution like ours. The technology was advanced enough to work effectively, and pet owners were becoming more open to innovative solutions.
Timing has been critical for other category creators, too. Electric vehicles existed long before Tesla, but it wasn’t until advancements in battery technology, growing environmental awareness, and favorable regulations aligned that Tesla could thrive. According to the Harvard Business Review, category creators often benefit from what’s called “category maturity” when consumer awareness and demand hit critical mass.
Is Category Creation Right for You?
Reflecting on my journey with Invisible Fencing, I can say that category creation is one of the most challenging yet rewarding paths in business. It requires resilience, deep pockets, and a willingness to face skepticism and resistance head-on. But it’s not for everyone. If you’re not ready for the uphill battle, there’s no shame in competing within an existing category with a slightly different value proposition.
Ultimately, whether you choose to create or compete, the key is understanding your market, your customers, and your unique value proposition. My experience with Invisible Fencing taught me that success doesn’t come easy, but with the right strategy and perseverance, it’s possible to turn even the most ambitious ideas into reality.
