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Copy or innovate? Differentiating in a "saturated" app category

Jake Castillo's view that saturation means proven demand (win with a novel, easier feature or a hyper-specific niche, and avoid social apps), Gleam's "copy Duolingo's defaults, add a twist", and Nami/Storemaven's warning against copying competitors' pricing and paywalls without knowing why.

Copy or innovate? Differentiating in a saturated category

TL;DR

  • “Saturated” = people are actively engaged. With a feature clearly better than incumbents’, the market is “ripe for the taking” (Cal AI vs typing every meal into MyFitnessPal).1
  • Innovation = make it easier or make it cheaper.2
  • Don’t ship a plain clone of a winner in the same market; if you can’t think of something different, pick another niche.3
  • Niche down hard: “the workout tracker for new moms” makes marketing, creator choice, ad style and even UI obvious — style it like the apps that audience already uses.45
  • Avoid social/network-effect apps (cold start) and anything you can’t improve; look for categories that haven’t changed in ~5 years.6
  • Copy proven UX defaults, innovate on the core: Gleam wasted time reinventing flows (voice onboarding was “catastrophic”) that Duolingo had already A/B-tested hundreds of times.78

Details

Jake Castillo’s sequence (Jake Castillo): niche → marketing angle → UI. Knowing the ICP tells you what influencers, UGC creators and paid ads should look like.4 Any feature can be made “sexy” by gamifying or a unique spin — calorie tracking wasn’t fun before Cal AI.9 A niche also lets you charge more (Setting your first subscription price).10

Gleam’s version (Kelvin Zhang). Take what works as your defaults and add your twist on top for the best baseline metrics. They tested a premium (Equinox/Seed-style) brand against a Duolingo-like mascot style and chose the functional Duolingo direction because gamification, chests and animations fit it without feeling gimmicky.811

Don’t copy what you don’t understand (2022, Dan Burcaw). A common mistake is copying competitors’ prices and paywalls: “a pretty good app doing a pretty good job” isn’t the optimum, and if you mimic 8fit without knowing how it reached its choices you can’t iterate from there.1213 Host Esther Schatz: mid-core games all copied Supercell’s screaming-man icon, which only worked because Supercell had developed characters; when developers stopped copying they found better results.14

Invent something (Stella). Sarah Pearl ("Hot High Priestess") says the app space is full of copy-paste and Stella succeeded because nothing like it existed; she sees under-served problems women face that male builders don’t think of.1516

Disagreements / caveats

See also

Footnotes

  1. Cal AI's $40M ARR | Jake Castillo on the Truth About Scaling Apps in 2026 @ 05:27 — Jake Castillo ↩

  2. Cal AI's $40M ARR | Jake Castillo on the Truth About Scaling Apps in 2026 @ 07:01 — Jake Castillo ↩

  3. Cal AI's $40M ARR | Jake Castillo on the Truth About Scaling Apps in 2026 @ 07:55 — Jake Castillo ↩

  4. Cal AI's $40M ARR | Jake Castillo on the Truth About Scaling Apps in 2026 @ 12:16 — Jake Castillo ↩ ↩2

  5. Cal AI's $40M ARR | Jake Castillo on the Truth About Scaling Apps in 2026 @ 13:46 — Jake Castillo ↩

  6. Cal AI's $40M ARR | Jake Castillo on the Truth About Scaling Apps in 2026 @ 09:07 — Jake Castillo ↩

  7. How two ex-engineers built a $140K/month social skills app | Gleam AI @ 07:42 — Kelvin Zhang ↩

  8. How two ex-engineers built a $140K/month social skills app | Gleam AI @ 08:32 — Kelvin Zhang ↩ ↩2

  9. Cal AI's $40M ARR | Jake Castillo on the Truth About Scaling Apps in 2026 @ 10:07 — Jake Castillo ↩

  10. Cal AI's $40M ARR | Jake Castillo on the Truth About Scaling Apps in 2026 @ 37:49 — Jake Castillo ↩

  11. How two ex-engineers built a $140K/month social skills app | Gleam AI @ 10:05 — Kelvin Zhang ↩

  12. Why and How to Develop Subscription-Based Apps with Dan Burcaw of Nami ML @ 30:42 — Dan Burcaw ↩

  13. Why and How to Develop Subscription-Based Apps with Dan Burcaw of Nami ML @ 31:55 — Dan Burcaw ↩

  14. Why and How to Develop Subscription-Based Apps with Dan Burcaw of Nami ML @ 32:57 — Esther Schatz ↩

  15. She Built This $340K/Month App in 60 Days @ 14:01 — Sarah Pearl ↩

  16. She Built This $340K/Month App in 60 Days @ 05:06 — Sarah Pearl ↩