Software has been flattened. Features copy fast and price races to the bottom. After watching Marketing Against the Grain with Kipp Bodnar and Kieran Flanagan, I’m convinced the winners now win on one thing: distribution. Their take on what they call “elephant companies” crystallizes a hard truth I’ve seen across crypto, marketing, and online business.
My opinion is simple: if you’re building software, your product is not your moat. Your movement is. The team’s playbook—members not customers, a mission that fixes something broken, and building in public—is the new operating system for growth.
The Elephant Thesis, In Practice
Kipp and Kieran argue that software is so interchangeable that only exceptional distribution creates lasting advantage. I agree. Features are table stakes; attention and loyalty are scarce. As they put it:
“Software so commoditized distribution is the only moat.”
From there, they describe three traits of companies that break through.
- Members, not customers. Build obsessive, cult-like communities around a clear identity.
- Purpose driven. Fix something so broken that people rally to your cause.
- Build in public. Put a founder’s face on the brand and let the team share the journey.
Each point speaks to a different channel of distribution: identity, mission, and transparency. Together, they form a flywheel audiences can feel, not just buy.
Members Over Customers
The first principle hits hard. If you want staying power, you need a movement. The show captured it well:
“The customers refer to themselves as members… they treat the people that are part of it as a participant, an evangelist, a member not just a customer.”
I’ve seen this in crypto communities and creator-led brands. Membership changes behavior. People who identify with your mission show up, contribute, and recruit others. They forgive mistakes and cheer your wins because they see their own values reflected back.
That only works when the brand sets a clear boundary of who it’s for and who it’s not for. Most teams fear that. The brave few earn loyalty.
A Mission Worth Fighting For
The second trait demands courage. You can’t fake purpose. You need to attack a problem that feels broken and solve it in a new way. Their words:
“You have to build a real cult following… Something’s got to be so so wrong that you are tackling and you are doing it in a completely novel new way.”
That requires strong brand and design. Not fancy polish. Clarity. People must know in a glance what you stand against and what you stand for. In my work launching products and training, the hits always carried a flag. The misses tried to please everyone.
Build In Public Or Be Ignored
The third trait is the hardest for traditional operators: let people in. Put a human face on the story. Share the wins and the screwups. As they noted:
“One of the founders is often the face of the brand… employees building in public as well.”
That approach multiplies distribution. Founders earn trust. Teams earn reach. The algorithm rewards real people, not faceless logos. I’ve built audiences for decades by shipping in public. It takes consistent content and a thick skin. It also builds compounding leverage that code alone can’t.
But What About Product Quality?
The pushback is obvious: isn’t product quality what matters? Of course it matters. Bad software dies faster with more exposure. But in crowded markets, quality is expected. Differentiation comes from how you win hearts and attention. Distribution doesn’t replace product; it pulls it into the spotlight long enough to prove itself.
My Playbook For Builders
If I were launching a new app, I’d act on this today:
- Name the enemy. State the broken thing you’re fixing in ten words.
- Design membership. Give people a clear identity, rituals, and rewards.
- Put a face on it. Choose a founder or creator to lead the story.
- Ship your story daily. Short videos, posts, and progress logs from the team.
- Prioritize distribution partnerships first. Co-create with creators and niche communities.
This isn’t a nice-to-have. It’s survival. Markets with AI tools, vertical software, and wellness tech will not reward silent builders.
The Bottom Line
Software won’t save you. Distribution will. The companies that turn customers into members, fight a real battle, and build in public will separate from the pack. Start now: pick your mission, show your face, and give your community a name.
If you’re serious, make one move today—publish a founder video, open a community space, or rewrite your homepage to declare your cause. Then keep going. Attention compounds for those who earn it in public.
