10 Ways to Rethink Business Strategy From Seth Godin

Seth Godin is arguably the world's most influential marketer and creator. His books and daily blog have inspired my writing and approach to marketing and life.

He's published 21 best-selling books translated into 35 languages. You could say Seth is the GOAT of marketing and creative philosophy.

Purple Cow and The Practice are my favorites. I highly recommend reading them and checking out Seth's blog 👉 seths.blog.

Seth was recently on a Tim Ferriss podcast discussing how he defines and applies "strategy"—more importantly, strategy vs. tactics.

While tactics may generate quick wins, Seth insists it's strategy—a clear understanding of who it's for, what change you seek to make, and a commitment to the long game—that truly matters.

I've been working on an article called Strategy vs. Hacks for the last couple of weeks but felt I couldn't articulate the concept as well as Seth. So, I've summarized the podcast into "10 Lessons on Strategy from Seth Godin."

1. Strategy Is a Philosophy, Not a Laundry List of Tactics

Most people think of strategy as a step-by-step "how-to," but Seth emphasizes that strategy is bigger and more enduring. Tactics can and will often change quickly, but strategy is the guiding light.

"I think it's about being very clear about the change we seek to make and who we seek to change, understanding the systems and the games around us, and then committing to the long-term process of getting there." —Seth Godin.

Key takeaway

Start with clarity: What do you want to change about your market, customers, or the world? A consistent worldview allows you to shift tactics without drifting away from your larger vision.

2. Don't Say "I Just Need to Get the Word Out"

One of the biggest pitfalls Seth highlights is believing that "getting the word out" is the only job left. Often, if you say, "I just need to market it," it means the core product or idea might not be strong enough or relevant.

"If you find yourself saying, 'I just need to get the word out...I've done all the hard part,' you haven't done the hard part."—Seth Godin.

Key takeaway

Focus on resonance, not just reach: Does your offering solve a deep-seated need or desire? If people truly need it, they'll often spread the word for you. "Getting the word out" becomes far easier if you have the right solution for the right audience.

3. The Four Elements of Strategy

Seth breaks down strategy into four interwoven concepts:

1. Systems: Systems are mostly invisible forces defining "how things get done" in a culture or industry. Seth points out that when a system is under stress, you finally see its rules and guardrails—this is often where significant opportunities emerge.
2. Time: Strategic thinkers look beyond immediate gains. Seth says, "When we want a forest, we don't just buy a forest; we plant saplings and wait." The ability to defer gratification—to plan with a longer time horizon—is a distinct advantage.
3. Games: "Any situation with multiple people, variable outcomes, and scarcity is a game," Seth says. In a game, one move does not define you; you can always make another move tomorrow. Being willing to make a move that might not work in service of learning is key to innovation.
4. Empathy: The final (and arguably most crucial) ingredient. Empathy means understanding why customers want something, not just what they want. "All empathy is being clear about who it's for and why they want it," Seth says. Products spread when they tap into the audience's true motivations—status, affiliation, belonging.

Key takeaway

Remember these four lenses:

1. Which system are you working within or challenging? 
2. How long is your time horizon? 
3. What "game" are you playing with customers or competitors? 
4. And are you truly empathizing with the people you seek to serve?

4. Examples of Good Strategy

Seth highlights two real-world examples of good strategy in action:

Yahoo vs. Google

Yahoo's strategy was to "keep people on Yahoo as long as possible," while Google's was to "help people leave Google as fast as possible (but with great results)." That difference, though subtle at first, made Google unstoppable in search.

Starbucks

Starbucks is a "five-dollar luxury" that makes customers feel richer, more connected, and part of a "third place." The strategy here meant focusing on a consistent experience of comfort and status—tactics like new beverages came later.

Key takeaway

Strategy starts with knowing what you actually do for the customer's identity. Yahoo couldn't adopt Google's approach (or buy them effectively) because it contradicted their entire model. Starbucks built a community and lifestyle beyond coffee.

5. Create Conditions, Don't Just Command

A manager tries to control every step; a leader creates the conditions for people to self-organize and solve problems at a higher level. If you want exceptional results, build an environment that rewards initiative and keeps the team aligned on the broader vision.

"When we make a move in a game that doesn't work, we shouldn't say, 'We're a bad person.' We should say, 'I made a move that didn't work—let's try again.' You can't innovate if everything has to work." —Seth Godin

Key takeaway

Empower teams and communities: Instead of micromanaging, articulate the bigger goal, then let team members (or customers or fans) innovate on tactics. That "free pass" to try—and occasionally fail—sparks real creativity.

6. Start Small: The 'Minimum Viable Audience'

Seth's marketing mantra has always been: "Find the smallest viable audience, delight them, and forgive the rest." Whether running a Kickstarter or launching a software product, the more precisely you define who you serve, the stronger your initial traction.

Key takeaway

Your product isn't for everyone: Resist the urge to "please all." By narrowing your focus, you'll become indispensable to a tiny group—these fans or customers will spread the word better than any ad campaign.

7. Don't Confuse Good Decisions with Good Outcomes

Echoing ideas from investor Annie Duke, Seth highlights the difference between good decisions and good outcomes. You can make a great strategic decision and still get an "unlucky draw." Conversely, you might make a bad decision, resulting in a good outcome.

"If you buy a lottery ticket and you win, you made a bad decision. You just got lucky." —Seth Godin.

Key takeaway

Reward the right process, not just the results: If you only celebrate favorable outcomes, you'll reinforce random success—rather than genuine strategic thinking. Avoid false proxies for progress; measure what truly matters.

8. Pick Your Customers (and Competitors) Carefully

When you pick your customers, you decide your future. If you choose cheap, last-minute, high-maintenance clients, you'll spend your life putting out fires. 

Likewise, choosing your competitors shapes your standards and norms—compete in an unethical or low-margin space, and you'll likely adopt the same habits.

Key takeaway

Choose who you want to serve (and who you want to race against) deliberately. It determines your daily reality—and whether you'll love or hate your path.

9. Consciously Use Tension and Storytelling

Want people to value or share what you do? Create some tension. Scarcity, for instance, pulls people forward because they fear missing out. Shared stories—like telling friends about a great meal or a life-changing book—are how ideas spread. But if there's no tension and no story, there's no reason to talk.

"To make change happen, you must create tension on purpose, not stress. Tension is what happens if I pull a rubber band back and let go—it moves across the room." —Seth Godin.

Key takeaway

Build share-worthy moments: We discuss experiences that carry an emotional punch (the tension). Use that dynamic intentionally so people can't help but tell others about what you do.

10. Extend Your 'Circle of Now' and 'Circle of Us'

Two final concepts that guide long-term strategy:

• Circle of Now: How far into the future are you willing to plan or sacrifice for? If your circle is just the next month, you'll make different decisions than someone planning a decade out.
• Circle of Us: Who, besides yourself, do you care about helping or serving? A bigger circle fosters empathy and resilience.

Key takeaway

Aim for deeper impact, not instant return: Think farther ahead and think about more people. That combination sparks a bolder, more meaningful strategy.

Strategy is Long-Term

Seth Godin's view of strategy goes beyond spreadsheets and short-term hustle. Strategy is knowing who you want to change, what you want to change for them, and being ready to iterate.

"Do the work your future self will thank you for—make something that the 'you' of five years from now will look back on and say, 'Thanks for having the guts to do that.'" —Seth Godin

If there's one overarching theme, it's this: Strategy is not a rigid map. It's a point of view guiding all of your choices. So before chasing quick wins, ask the bigger questions—about systems, time, empathy, and the "games" being played.

Focus on building something people truly want, choose the right audience, and commit for the long haul. As Seth would say, People like us do things like this. That's how meaningful businesses—and lasting strategies—are born.