Have you ever admired a company even though you don’t transact any business with them? That, in a nutshell, is the difference between branding and positioning.

Branding is about emotion. Positioning is about action.

Here’s an example. I was recently in the market for a video hosting provider. I narrowed it down to two options: Wistia and Vimeo.

Wistia is a company I admire. I first became a paid customer around 2008, when there were probably five people working there. I then used them at two subsequent companies and recommended them to countless colleagues. I watch their product videos. I listen to their podcast. I admire their unconventional business decisions. I even attended one of their user conferences. I’m a superfan.

But a few weeks ago, I bought Vimeo.

Why? Positioning.

There are two ways to buy Wistia. There is an entry-level option for $300 per year that doesn’t do everything I need. There’s an enterprise option that costs around $1,200 per year (plus a variable cost after the first 10 videos). It includes many advanced features I don’t need.

I didn’t have any feelings – good or bad – about Vimeo. When I tried it, I liked it a little less than Wistia. But it offers the exact features that a solopreneur like me needs for $240 per year.

A great brand pulls you in and creates sales momentum. But the right positioning closes the deal. Be great at both if you can.

-Doug

Have you ever admired a company even though you don’t transact any business with them? That, in a nutshell, is the difference between branding and positioning.

Branding is about emotion. Positioning is about action.

Here’s an example. I was recently in the market for a video hosting provider. I narrowed it down to two options: Wistia and Vimeo.

Wistia is a company I admire. I first became a paid customer around 2008, when there were probably five people working there. I then used them at two subsequent companies and recommended them to countless colleagues. I watch their product videos. I listen to their podcast. I admire their unconventional business decisions. I even attended one of their user conferences. I’m a superfan.

But a few weeks ago, I bought Vimeo.

Why? Positioning.

There are two ways to buy Wistia. There is an entry-level option for $300 per year that doesn’t do everything I need. There’s an enterprise option that costs around $1,200 per year (plus a variable cost after the first 10 videos). It includes many advanced features I don’t need.

I didn’t have any feelings – good or bad – about Vimeo. When I tried it, I liked it a little less than Wistia. But it offers the exact features that a solopreneur like me needs for $240 per year.

A great brand pulls you in and creates sales momentum. But the right positioning closes the deal. Be great at both if you can.

-Doug