In 1966, Eugene Schwartz mapped something called the 5 Levels of Market Sophistication.
It’s one of those things that, once you see it, you can't unsee it.
It’s the idea behind why Coca-Cola doesn't explain what soda is.
And why Apple stopped listing iPhone specs.
I spent the whole day applying this framework to NEO.
So I thought it’d be fun to pay tribute to this timeless classic, and share what direction I’m taking with NEO.
The idea of Market Sophistication is that markets evolve through predictable stages.
And you see the right ‘thing’ to the people at different stages.
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Level 1: The Virgin Market
Congratulations, you arrived first.
The market has never seen anything like your solution.
This is the golden moment where simply stating what you do is enough.
No proof or comparison required.
The mere existence of your category IS the message.
Think about the first car advertisements. They didn't compare horsepower or fuel efficiency. They simply said: "A carriage without horses."
Early Coca-Cola ads just explained: "A carbonated soft drink."
The first personal computer was marketed as exactly that: "A computer. Personal."
People don't need convincing at this stage. They need educating.
What is this new thing? What does it do?
For NEO at this level, I decided to simply say: "AI that actually gets you."
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Level 2: The Feature Wars
Now, competition arrives.
Multiple players now offer the same basic solution.
The market's question shifts from "What is it?" to "Which one should I choose?"
This is where the feature arms race begins.
People want bigger numbers. Better benefits. More for less.
Pepsi entered Coca-Cola's market claiming to be "more refreshing." The cola wars had begun.
When PCs proliferated, suddenly every ad screamed about processor speeds, RAM, hard drive space.
Car companies started listing horsepower, fuel efficiency, safety ratings.
Everyone's trying to prove superiority through specifications.
For NEO at Level 2, I'd list what ChatGPT can't do:
Credits not subscriptions - work as long as you need
No conversation interruptions
No arbitrary limits
Handles complex work others can't
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Level 3: The Mechanism Reveal
Eventually, everyone claims the same benefits.
The market grows skeptical because they've heard all the promises.
Seen all the features.
Now they need to know HOW you’re actually going to deliver on your promises.
Because if you don’t, they won’t take you seriously.
This is when you stop claiming results and start revealing your engine.
Coca-Cola couldn't just claim taste anymore. They revealed their "secret formula with natural flavors."
Apple stopped competing on specs and started explaining their "intuitive design process."
Domino's didn't just promise fast delivery...
They guaranteed "30 minutes or it's free" to show the mechanism that ensured speed.
The market wants to peek behind the curtain.
For NEO, this means revealing the AI Coach Method:
One precise question at a time
Analyzes your entire conversation history
Identifies and challenges limiting beliefs
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Level 4: The Unique Mechanism
But mechanisms eventually get copied too.
Now everyone has a "secret formula" or "proven process."
Boring.
You need a mechanism so unique, so proprietary, that competitors can't claim it even if they wanted to.
Coca-Cola evolved to "Share a Coke with..."
Apple created ecosystem lock-in. Not just a phone, but an entire universe of interconnected devices.
Amazon's "1-Click ordering" - patented, protected, impossible to copy.
These aren't just different ways of doing things. They're fundamentally different philosophies.
For NEO, I'm developing three unique mechanisms:
Ideal Self Connection: While ChatGPT polls billions of voices, NEO connects you to your highest potential
Construct Protocol: You actively build NEO's understanding through intentional actions
Compound Intelligence: Every breakthrough accelerates future breakthroughs
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Level 5: The Identity Play
The final evolution transcends the product entirely.
People have heard it all.
The big, unmet promises. The hollow claims of uniqueness.
They’re bored of the walls of certificates & industrial accolades.
So you stop selling what you make.
You start selling who people become.
Coca-Cola no longer sells soda. They sell "Open Happiness" - belonging, celebration, connection.
Apple stopped selling computers. They sell "Think Different" - creativity, rebellion, innovation.
Harley-Davidson doesn't sell motorcycles anymore. They sell membership in an outlaw brotherhood.
The product becomes a badge. A statement. A way of being.
At this level, features are irrelevant. Even mechanisms don't matter.
What matters is identity.
For NEO: That’s the Augmented Intelligence Movement - for those who refuse to outsource their thinking.
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The mistake most people make (that I almost make with NEO):
Positioning themselves at the wrong level.
Shouting features to a Level 4 market that needs identity.
Explaining mechanisms to Level 1 minds that just need to know what it is.
Building movements for Level 2 buyers who just want the best deal.
The market ignores them because they're speaking the wrong language.
Why this matters for NEO: I've built NEO to work at all five levels simultaneously.
Different doors for different people:
Never tried AI coaching? "AI that actually gets you" (Level 1)
Comparing tools? Specific advantages over ChatGPT (Level 2)
Want to understand? The AI Coach Method explained (Level 3)
Need uniqueness? Three mechanisms nobody else has (Level 4)
Seeking transformation? Join the movement (Level 5)
All paths lead to the same destination.
For a start, I am gonna go light on the movement, go heavy on the claims and the proof.
Because the AI market is mostly level 1 & 2 right now.
But with these things in place, I’ll be ready for when market sophistication grows, which I think will happen very soon very quickly.
What industry are you in and where's your market's sophistication level?
Hit reply and let me know.
FELIX