Where your advantage comes from when everyone buys the same inputs

· 5 min read
AI-generated image: Where your advantage comes from when everyone buys the same inputs
AI-generated image

A pattern runs through Sunday's reporting from productivity-software publishers: the things everyone can buy no longer separate one business from the next. Whether the shared input is capital, software data, or a job description, the advantage now sits in what you have that your competitors do not.

When the data behind your tools is the same as everyone else's

Start with the most practical item for anyone choosing software. SaaStr reported that at its AI Day, Jason and Amelia named a weakness in most AI prospecting tools: they run almost entirely on third-party data [1]. That is worth sitting with, because it decides how useful a tool will be before you ever open it.

Here is the concept. A prospecting tool promises to tell you who to contact and what to say. To do that it needs facts about people and companies. If those facts come from the same vendors that sell to every other tool, then every tool is working from the same raw material. The output can only be as good as the input, and the input is shared. You pay for software that reaches the same conclusions a competitor's software reaches, because both read from the same place.

There is a second problem underneath the first. Third-party data describes the world as it was when someone last checked. People change jobs. Companies reorganise. A contact who was the right person in March may have left by October. We have written before about why data gets out of date, and the lesson applies here with force: a tool that leans on bought data inherits the staleness of that data.

The input you own is different. The record of what a customer actually said to you, when they said it, and what you promised in reply is yours alone. No vendor sells it. It does not drift, because you wrote it down at the moment it was true. When you compare tools, ask where the facts come from. A tool that puts your own first-party record at the centre is working from something a competitor cannot buy. This is one reason 360REV keeps the conversation and the customer record in one place rather than scattering them. For a view of what that record should hold, see what a customer record should contain.

What to ask a vendor

  • Does the tool act mainly on data you entered, or on data it bought?
  • When a fact changes, who is responsible for updating it, and how fast?
  • Can you export your own records on any ordinary day, without a negotiation?

Those three questions sort the tools that build on your knowledge from the ones that rent you a view everyone else is renting too.

Hiring for load, not just for work

The second item is about people, but it bears directly on how you choose and run tools. SaaStr argued for a particular kind of senior hire, writing that every B2B company at scale should have one to three ex-founder CEOs on the team [2]. The framing in the title is the useful part: hire someone who can take the load, not just do the work.

The distinction matters. Doing the work means completing tasks. Taking the load means owning an outcome, making the calls, and removing a whole class of decisions from your plate. The first scales linearly, one task at a time. The second compounds, because the person absorbs judgement you would otherwise have to supply yourself.

This is the same question a business faces when it decides between hiring and automation. A tool, like a hire, can either do a task or own an outcome. A tool that files, sends, and logs is doing work. A tool that lets a person own follow-up end to end, with the history in front of them, helps that person take load. We have set out how to think about that boundary in when to hire and when to automate, and the test is the same for both: does this reduce the number of decisions you personally have to make, or just the number of clicks?

For tool choice, the practical reading is this. Buy software that lets a capable person take load off you. Be wary of software that only speeds up tasks while leaving every judgement on your desk. The first kind of tool pays back as the business grows. The second kind keeps you in the loop forever.

Capital concentrated, and what that leaves founders

The third item sets the backdrop. SaaStr described a week where capital concentrated harder than the author had ever seen, and asked what founders should actually do about it [3]. For a business choosing tools, the relevance is indirect but real.

When capital concentrates, most companies cannot assume they will raise their way out of a problem. The money is pooling in fewer places. That changes the maths on every purchase. You are spending your own revenue, not someone else's bet, and you want each tool to earn its place.

Two habits follow. First, prefer tools you can leave. A concentrated market is an uncertain one, and software you cannot export from is a liability when plans change. Second, prefer tools that work on inputs you own, for the reason the first section gave: in a tight market, a copyable advantage is no advantage at all.

The three items line up. Capital everyone can chase is pooling away from you. Data everyone can buy produces answers everyone else has. Work a tool can do for anyone is work that does not set you apart. In each case the durable edge is the input your competitors do not have: your capital discipline, your own customer record, and people who take load rather than tasks.

What to take from the day

If you are choosing tools this week, carry one question into every demo. Ask what the tool runs on. If the answer is data and capabilities that every rival can also buy, you are paying to stand in the same place as everyone else. If the answer is your own records, your own history, and your own judgement made faster, you are paying for something a competitor cannot copy. In a market where the shared inputs are concentrating and ageing, that is the distinction that will still matter in a year.

Sources

  1. [1] Half Your CRM Data Is Wrong: AI Prospecting in a World of 49% Exec Turnover — SaaStr
  2. [2] Your Top Job For 2027: Hire 1-2 Execs Who Can Take the Load, Not Just Do the Work — SaaStr
  3. [3] Jason's Takes on This Week's 20VC: Meet 100 VCs, None-and-Done Beats One-and-Done, and Build-to-Prod Is Where I'd Make 10 Bets — SaaStr

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