I track obvious rivals. I still lose. I feel confused.

I identify indirect competitors by finding substitutes that solve the same customer goal in a different way, including manual work, adjacent tools, and the “do nothing” option. These rivals steal budget and attention.

I used to ignore indirect competition because it felt less serious. Then I noticed something: many buyers do not choose between two similar products. They choose between solving the problem now or pushing it later. They also choose between software, services, and hacks. If I ignore that, I misunderstand why deals stall.

What Are Indirect Competitors?

Indirect competitors are alternatives that satisfy the same customer need, but through a different category, approach, or workflow. They are not “the same product.” They are “another way to get the job done.”

For example, if I sell a planning tool, my direct competitor might be another planning tool. My indirect competitor might be a spreadsheet template, a project manager in a messaging app, or a consultant who runs planning sessions. All of those can win the same budget. They can also block my sale even if no “direct competitor” shows up.

I also include the status quo as an indirect competitor. The status quo is powerful because it feels safe. Even if it is inefficient, it is familiar. So if I want to win, I must position against the status quo too. I must answer, “Why change?” not only “Why me?”

What Is the Difference Between Direct and Indirect Competitors?

Direct competitors replace my product with a similar product, while indirect competitors replace my outcome with a different method. Direct is “same category.” Indirect is “same goal.”

I keep it simple:

• Direct: Same audience, same job, same product type.

• Indirect: Same audience goal, different product type or method.

This matters because my strategy changes. Against direct competitors, I often win with differentiation and proof. Against indirect competitors, I often win by reducing friction, clarifying value, and lowering perceived risk of switching.

How Do I Identify Indirect Competitors Step by Step?

I identify indirect competitors by starting from the customer’s goal, then listing substitute paths, then confirming which ones buyers actually use. I treat it as a discovery exercise, not a guessing game.

Step 1: Name the customer goal in plain words.
I write the goal without naming my product. Example: “Turn messy notes into a clear decision.”

Step 2: List the substitute categories.
I brainstorm categories, not brands. I use these common buckets:

• Manual workaround (spreadsheets, docs, notebooks)

• Adjacent tools (project tools, analytics tools, CRM, wiki)

• Human service (consultant, agency, internal hire)

• Bundled solution (a platform that includes my function)

• Delay option (do nothing, postpone, accept pain)

Step 3: Name specific examples inside each bucket.
I do not overdo it. I list 2–5 per bucket.

Step 4: Validate with buyer evidence.
I ask prospects what they use today. I look at “current process” answers. I look at objections. If someone says “we already do this in Notion,” that is an indirect competitor signal.

Step 5: Rank by threat.
I rank by how often it appears and how “good enough” it is. Some substitutes are clunky but familiar. Familiarity can win.

If my notes are messy, I sometimes paste them into Astrodon’s Business Lens AI to get a structured view of “goal → substitutes → reasons they win.” That structure helps me focus on the real threats, not random ones.

What Questions Should I Ask to Find Indirect Competitors?

I find indirect competitors by asking about the current workflow, not about brands. Brand questions can make people defensive. Workflow questions feel safe and honest.

These are the questions I use:

• How do you solve this today?

• What do you do right before and right after this step?

• What tool do you open first when this problem shows up?

• If you couldn’t use any new tool, what would you do instead?

• What would make you keep the current way?

The answers often reveal hidden competitors. The competitor might be “a weekly meeting” or “a shared spreadsheet.” Those sound small, but they can be strong because they are already adopted.

How Do Indirect Competitors Change My Strategy?

Indirect competitors force me to win on switching ease, proof of value, and time-to-results. I cannot only say “we are better.” I must say “we are worth changing for.”

I focus on three strategic moves:

1. Reduce switching cost: import, templates, onboarding, migration help.

2. Prove value fast: show the outcome in minutes, not weeks.

3. Change the comparison: make the real comparison “time saved” or “risk reduced,” not “features.”

This is why many early products struggle. They compete with “good enough” hacks. Hacks are cheap and familiar. To win, I must make my new path feel safer than staying with the old path.

✅ Common ways substitutes win:

• They cost nothing extra

• They require no approval

• They fit current habits

• They feel “safe enough”

• They avoid learning time

So I counter by making my product easy, clear, and low-risk to try.

How Do I Track Indirect Competitors Without Drowning in Noise?

I track indirect competitors by grouping them into categories and watching patterns, not by chasing every brand name. I do not want a giant list. I want a clear map.

I maintain a simple tracker:

• Category (spreadsheet, consultant, platform bundle, etc.)

• Example names (top 2–3)

• When they show up (stage of journey)

• Why they win (reason)

• How I counter (message or feature)

This prevents me from overreacting. It also helps me write better positioning. If the main indirect competitor is “do nothing,” my best message is often about urgency and cost of delay. If the main indirect competitor is “Notion,” my best message is often about speed, structure, and less manual work.

Conclusion

Indirect competitors are substitute ways to reach the same goal, so I map workflows and status quo, not just brands.