Copy First, Optimise Second
Start from a proven model, then improve it with controlled tests
- Difficulty
- Moderate
- Time to result
- ~weeks to results
- Steps
- 4
- Confidence
- 98%
Use a successful competitor as a compressed record of market learning. Study its current offer and, where possible, use website archives and traffic estimates to see how pricing, messaging, design, and channels changed over time. Begin with the parts that appear to work rather than assuming established operators are irrational. This reduces the number of unknowns in the first launch and exposes the reasons behind choices that initially look clumsy. Once the copied model produces a baseline, use a small share of budget—Chris Koerner suggests about 5% in one example—to test alternatives. The goal is not intellectual-property theft or brand imitation; it is to inherit validated operating logic before earning the right to improve it.
Origin
Extracted from The Diary of a CEO
Core principles
- 01Existing competitors validate demand
- 02Established choices often encode hard-won lessons
- 03Premature differentiation adds untested risk
- 04Small experiments preserve learning without derailing the model
How to run it
- 1
Find a proven analogue
Choose a business serving the same need with evidence that it has operated successfully over time.
Pro tip Treat the existence of competitors as demand evidence, not automatic saturation.
Watch out Do not copy trademarks, logos, copyrighted material, or other protected assets.
- 2
Reconstruct its evolution
Use archived pages and traffic tools to compare earlier and current versions of the offer, pricing, site, and acquisition model.
Pro tip Look for changes that coincide with stronger traffic or a more mature offer.
Watch out Traffic correlations do not prove that a website change caused growth.
- 3
Launch the functional baseline
Replicate the model's essential mechanics and proven channel before adding a personal spin.
Pro tip Ask why each awkward-looking feature may have survived years of market pressure.
Watch out Removing fees or constraints without understanding them can destroy unit economics.
- 4
Test bounded improvements
Keep the baseline running while allocating a small portion of resources to one-variable experiments.
Pro tip Compare each test against the copied baseline.
Watch out Changing several variables at once makes the result hard to interpret.
In the wild
Koerner copied a business model after learning that broken iPhone screens could be remanufactured in China. He initially reproduced the known process, then added acquisition methods from earlier businesses, including cold calling and Facebook ads.
→ He says the company generated $2 million in its first year, then $5 million and $9 million before an exit.
Koerner replaced competitors' storage and handling fees with one simple flat fee. Over time, his company encountered the same inventory, storage, and service risks those fees covered.
→ After two years, he says the pricing model came to resemble the established competitors he had tried to outsmart.
Common mistakes
Differentiating before learning
A novel twist can remove the very feature that makes the original model viable.
Assuming incumbents are foolish
A strange fee or process may be a response to risks that only appear at scale.
Copying protected identity
Copy operating mechanics, not another company's branding or intellectual property.
Is it for you?
Best for
Founders entering an established market with visible competitors and little operating experience.
Not ideal for
Novel markets where no comparable operating model or recent precedent exists.
From the transcript
“I'm going to start where he's at today.”
“I just want to start with Facebook ads and then I'll still take 5% of my budget and start testing other concepts.”
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