Three Percent Sexy
Upgrade a familiar idea with one small difference customers can feel
- Difficulty
- Easy
- Time to result
- ~weeks to results
- Steps
- 4
- Confidence
- 98%
McFarlane argues that entrepreneurs do not need a wholly original invention. They can begin with something familiar, identify the small part incumbents have neglected, and make that part noticeably better. He calls the increment “three percent sexy.” His examples are tactile and visual: the iPhone retained familiar phone functions but replaced plastic keys with glass, while his sports figures used ordinary photo reference to achieve more realistic sculpts. The mechanism is not copying without contribution. It is preserving known utility, locating a narrow quality or experience gap, and executing that difference strongly enough that customers perceive the whole product as new or superior. This reduces invention pressure while keeping the standard for implementation high.
Origin
McFarlane derives the method from improving toys with reference photography and comparing that move with Apple's touchscreen phone.
Core principles
- 01Useful innovation does not require an unprecedented category
- 02A small perceptible improvement can redefine a familiar product
- 03Existing tools and references can expose neglected quality gaps
- 04Execution of the difference matters more than claiming originality
How to run it
- 1
Start with the familiar
Choose a product whose core job and customer behavior are already established.
Pro tip Use an existing category to remove uncertainty about basic demand.
- 2
Find the neglected three percent
Look for one aspect of experience, quality, or presentation that incumbents have left weak.
Pro tip Ask why existing producers have not used tools already available to them.
Watch out Do not confuse arbitrary novelty with a meaningful improvement.
- 3
Make the difference tangible
Execute the improvement until customers can see, touch, or otherwise experience it directly.
Watch out A difference that only appears in marketing copy will not carry the product.
- 4
Retain the core job
Ensure the upgraded product still performs the familiar function customers came for.
Pro tip Frame the innovation as a better way to do an understood job.
In the wild
McFarlane's team used photographs and kept manipulating clay until the sculpture resembled the athlete. The camera and clay were not new; the difference was insisting on realistic reference when established toy companies did not.
→ The figures earned recognition for detail and realism.
McFarlane uses the iPhone as an analogy: calling, texting, photos, downloads, and email already existed, but touching glass instead of plastic changed the experience.
→ A small experiential difference made a familiar set of functions feel transformed.
Common mistakes
Demanding total originality
Waiting for an unprecedented idea can stop useful improvement of products people already want.
Stopping before resemblance
The photo-reference example works because the team continued shaping the clay until it matched the reference.
Is it for you?
Best for
It is best for entrepreneurs entering established markets with visible room for improvement.
Not ideal for
It is not ideal when the proposed difference is cosmetic, imperceptible, or disconnected from customer value.
From the transcript
“I've never invented anything original. I've never done anything new. What I've done is taken everything that I've seen with my eyes and just made…”
“You just have to add three percent sexy to it, and you will now be the genius.”
From the episode
#643: Todd McFarlane, Iconic Comic Book Artist — Lessons from Stan Lee, How to Make Art that Outlives You, How to Compete with Corporate Giants and Win (While Having Fun), Dealmaking Strategies, War Stories from Wall Street and Lawyer Land, Taking Responsibility for Your Life, and Why Creators Need to Smash Limits
Stan Lee