This week on Revenue Rehab, Brandi Starr is joined by Karthi Ratnam, a category design expert who believes that creating movements, not just products, is the key to market success—and she’s ready to prove it. In this episode, they challenge the notion that category creation is prohibitively expensive and slow, arguing instead that a bold vision and leadership can redefine industries and drive exponential growth. From debunking myths to offering strategic insights, Karthi lays out her case for why revenue leaders need to rethink their approach to category design before it’s too late. Do they have it right, or will you change their mind? 

Episode Type: Problem Solving 

Industry analysts, consultants, and founders take a bold stance on critical revenue challenges, offering insights you won’t hear anywhere else. These episodes explore common industry challenges and potential solutions through expert insights and varied perspectives. 

Bullet Points of Key Topics + Chapter Markers: 

Topic #1: Challenging the High Cost Myth of Category Design [04:24] 

Karthi Ratnam challenges the belief that it's prohibitively expensive to create a new category, labeling this a myth that holds companies back. She argues that the real barrier is not financial but rather a lack of vision and willingness to take risks, comparing it to wanting to go to heaven without the willingness to take necessary steps. Brandi Starr highlights the comfort companies feel with established practices, leading to a discussion on the necessity of disrupting the status quo to lead a market. 

Topic #2: Building a Movement vs. Building a Brand [09:24] 

Karthi Ratnam differentiates between building a movement and a brand, using historical movements as analogies for category creation. She suggests that movement builders prioritize the category and problem over the brand, highlighting Apple's journey as an example. This challenges traditional marketing practices, prompting Brandi to ask how this approach applies to companies that aren't inherently personal, especially in B2B markets. 

Topic #3: The Role of a Charismatic Founder in Movement Building [13:39] 

Karthi Ratnam emphasizes that successful category creation hinges on a dynamic and charismatic founder who can rally support beyond conventional marketing. The discussion challenges the notion that any company can build a movement, with Karthi arguing that not everyone should attempt category creation. Brandi questions how this applies in larger organizations where the personality of a single leader might not be the focal point, emphasizing the balance between idealism and operational effectiveness. 

The Wrong Approach vs. Smarter Alternative 

The Wrong Approach: “So the wrong way to do it right, is to be very myopic about it, to think extremely short term in that, to assume that A, because you're creating a category, you're going to win, like really, really fast, you're going to see wins, but that exponential growth takes a little bit of time.” – Karthi Ratnam 

Why It Fails: This approach fails because creating a category is not about quick wins; it involves longer-term vision and effort. Companies that expect immediate results may become discouraged when they don't materialize, which can lead to abandoning the initiative prematurely. It's about more than just investment—it's about having the vision and courage to disrupt existing norms. 

The Smarter Alternative: Companies should recognize that while they can see wins along the way, the journey to category dominance involves gradual exponential growth. Leaders must commit to a long-term vision, focusing on truly disruptive innovation rather than just financial considerations. Embrace the risk of the unknown and be prepared to weather the challenges along the path to establishing a new category. 

The Most Damaging Myth 

The Myth: “The biggest myth is that it's super expensive to create a category, and it's really hard to have it realize potential in the short and medium term.” – Karthi Ratnam 

Why It’s Wrong: Companies often hide behind the belief that financial constraints are their main barrier to category creation when, in fact, it is the lack of vision and willingness to take risks that truly hold them back. This myth causes organizations to remain static, instead of embracing disruptive opportunities that could redefine their market position. 

What Companies Should Do Instead: Focus on a strong vision and have the courage to disrupt the status quo. Companies should prioritize innovative thinking and be willing to navigate the uncertainties of creating new categories to lead movements that matter. 

The Rapid-Fire Round 

1. Finish this sentence: If your company is trying to create a category, the first thing you should do is _ 

"Have the founders start evangelizing your point of view." – Karthi Ratnam 

1. What’s one red flag that signals a company has a category problem—but might not realize it yet? 

"Lack of alignment on the point of view." 

1. What’s the most common mistake people make when trying to fix this? 

"Becoming emotional." 

1. What’s the fastest action someone can take today to make progress? 

"Take the first step." 

Buzzword Banishment 

Karthi's buzzword to banish is "revenue marketer." She dislikes this term because she believes all marketing should inherently be in service of revenue, making the distinction unnecessary. Karthi argues that separating "revenue marketers" from other marketers suggests a false divide, diminishing the contributions of brand marketers who also aim to drive revenue.  

Links: 

• LinkedIn: https://www.linkedin.com/in/karthiratnam/ 

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