Agency Operations

How to track 50 competitors without losing your mind (you should not)

Tracking fifty competitors means tracking none of them. Tier them: three you watch, ten you skim, the rest get a tripwire that only fires when something big happens.

If you are tracking fifty competitors, you are tracking zero competitors.

Attention does not divide like that. Fifty competitors, split evenly, is about ninety seconds of thought each, which produces the feeling of coverage without any of the substance. It is the most dangerous state to be in, because you believe you are watching.

Tier them, brutally

Three tiers. That is the whole system.

Tier one: three competitors. These are the ones you have actually lost deals to. Not the ones who could theoretically hurt you. The ones who already took money out of your pocket. You watch these properly: pricing, hiring, features, reviews, marketing. Weekly. This is where all the real attention goes.

Tier two: about ten. Adjacent players, fast growers, the ones who might become tier one. You watch one thing about each: usually pricing, sometimes their positioning. Monthly, briefly. You are checking whether anything has changed enough to promote them.

Tier three: everyone else. You are not monitoring these. You have a tripwire.

What a tripwire actually is

The long tail is not there to be understood. It is there to catch a surprise.

So you do the minimum that would tell you if one of them suddenly mattered. A Google Alert on the name. Maybe a monitor on the pricing page, checked rarely. Nothing that costs you attention until it fires.

And it will almost never fire, which is correct. The forty-seventh competitor in a crowded category is not going to hurt you, and pretending otherwise is a very sophisticated way of avoiding your actual work.

If one of them raises a large round, gets acquired, or repositions directly at your buyer, the tripwire tells you and you promote them. That is the entire purpose.

The demotion rule

Here is the part that keeps the system honest.

Every quarter, look at your tier one list and ask: has this competitor changed a decision I made in the last three months?

If a company has been in your top tier for a year and has never once caused you to do anything differently, they are not a tier one competitor. They are a habit. Demote them and give the attention to someone who is actually costing you deals.

Most people never demote anyone, which is why the list grows to fifty in the first place. Every competitor gets added and none get removed, until the system collapses under its own weight and gets abandoned entirely.

The uncomfortable truth

A fifty-competitor tracking spreadsheet is usually not rigour. It is anxiety expressed as a filing system.

It feels responsible. It looks impressive. And it will be abandoned within four months, because nobody has the hours, and then you will have nothing at all.

Three competitors watched properly, forever, beats fifty watched properly for six weeks and then never again.

Frequently asked questions

Is it ever right to track fifty competitors?
To track their existence, yes, in a crowded category. To watch fifty properly, no. Attention is finite and dividing it fifty ways gives each competitor about ninety seconds of thought, which is worse than nothing because it feels like coverage.
What is a tripwire?
A minimal alert that only fires on a major event: a funding round, an acquisition, a total repositioning. You are not monitoring them, you are asking to be told if they suddenly matter.
How do I decide who goes in the top tier?
Who have you actually lost deals to? Not who could theoretically hurt you. Who has already taken money out of your pocket. That list is usually much shorter than the list you think you should be watching.
Elly
Founder, Earlist

Founder of Earlist. Writes about competitive intelligence for small agencies, founders, and freelancers.

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