Why B2B Brands Are Creating ‘Fake’ Competitors to Generate Urgency (Ethically)?

Picture a sales pitch where an unseen rival—a “ghost competitor”—haunts the room. A client hesitates, and the seller hints, “Three others in your industry are reviewing this solution.” The buyer’s pulse quickens. FOMO kicks in. 

Welcome to the world of B2B urgency tactics, where brands invent invisible rivals to nudge decisions. But here’s the twist: these “fake” competitors aren’t outright lies. 

They’re carefully crafted illusions—vague threats of demand, whispers of scarcity—to ethically accelerate choices without crossing into deception. 

In this article, we explore how B2B companies create urgency to close deals faster—without lying. Learn how tactics like hinting at ‘secret competitors’ or fake deadlines work, why they’re risky, and how to use them ethically. True B2B lead generation isn’t about tricking clients—it’s about building trust that lasts.

The "Ghost Competitor" Tactic: How B2B Brands Manufacture FOMO

In the competitive world of B2B sales, hesitation can mean losing a deal. To combat this, brands are increasingly using the “ghost competitor” tactic—a fictional or exaggerated rival—to create urgency and fear of missing out (FOMO). Here’s how it works and why it’s effective:

How It Works

• Sales teams hint at “high demand” for a product or service. For example: “Three other companies in your sector are evaluating this solution.”
• They imply scarcity: “Our next available implementation slot is in six months.”
• They reference vague threats: “A major player is already in talks with us.”

These statements are rarely outright lies but are framed to push buyers toward quicker decisions. Data shows that urgency-driven messaging can increase conversion rates by 20-30%, as businesses prioritize avoiding loss over seeking gain.

The Ethical Gray Zone

While implying competition is common, inventing fake competitors crosses into risky territory. For instance, a salesperson might name a fictitious company to pressure a client. 

Though effective short-term, overuse can damage trust. Studies suggest that 40% of buyers distrust vendors who rely heavily on fabricated urgency.

Inventing Rivals to Win Deals: The Thin Line Between Strategy and Scam

Creating imaginary competitors is a controversial yet growing strategy in B2B sales. Here’s why brands use it—and how it can backfire:

The Strategy

• Positioning as the “Safe Choice”: Sales teams invent a “risky” competitor to position their solution as reliable. Example: “Startups like [fake name] offer lower prices, but their security standards are untested.”
• Accelerating Timelines: Claiming another client is “ready to sign” pressures indecisive buyers. Data indicates this can shorten sales cycles by 15-25%.

The Risks

• Reputation Damage: If buyers discover the competition is fake, trust evaporates. One survey found that 60% of B2B buyers would sever ties with a vendor caught lying.
• Legal Exposure: Fabricating competitors in writing (e.g., fake emails or proposals) could lead to lawsuits for fraud.

Walking the Line

Ethics depend on execution:
✅ Acceptable: “Others in your industry are exploring similar tools.” (Vague but truthful.)
❌ Unethical: “Company X is finalizing a contract tomorrow.” (Fabricated detail.)

Why Empty Chairs in Boardrooms Are Driving B2B Sales

Imagine walking into a sales meeting and seeing an empty chair labeled “Reserved for Competitor.” This theatrical tactic, known as the “empty chair strategy,” symbolizes unseen rivals and drives urgency. Here’s why it works—and its pitfalls:

The Psychology Behind It

• Scarcity Mindset: Buyers fear losing opportunities. A 2023 study found that implying competitor interest increases deal closure rates by 18%.
• Social Proof: Decision-makers assume, “If others want it, it must be valuable.”

Real-World Example

A SaaS company shortened its sales cycle by 30% after introducing “competitor reserved” labels in demo calendars. Clients feared delays would let rivals “steal” their spot.

Why It’s Effective (Even When Buyers Are Skeptical)

Most buyers know the tactic is staged, but the fear of “What if it’s true?” lingers. For instance:

“We don’t fully believe there’s another buyer, but we can’t afford to risk losing this solution.”
—Anonymous B2B Procurement Manager

The Pitfalls

• Overuse: If every meeting has an “empty chair,” the tactic loses impact.
• Cultural Missteps: In relationship-driven markets (e.g., Japan or the Middle East), aggressive urgency can alienate buyers.

Phantom Wars: When Brands Battle Competitors That Don’t Exist

In the world of B2B marketing, some companies go beyond hinting at competition—they invent entire rivalries. “Phantom wars” involve creating fictional competitors or exaggerating threats from real ones to position a brand as the hero in a narrative. 

This tactic taps into the human instinct to root for a side in a conflict, making the brand’s solution feel essential.

How It Works

• Storytelling: Brands craft narratives like, “We’re up against a new wave of unproven vendors cutting corners on safety.”
• Fake Benchmarks: They compare their product to a “generic competitor” with inferior features.
• Industry Reports: Some even reference unnamed “research” suggesting rising competition.

Data shows that 28% of B2B marketers use competitive storytelling to differentiate their offerings, claiming it boosts engagement by up to 40%. 

For example, a cybersecurity firm might warn clients about “shadow startups” lacking compliance certifications—even if no such startups exist.

Why It’s Risky

While phantom wars can make a brand seem proactive, they rely on buyers not fact-checking the claims. 

If exposed, the tactic can backfire spectacularly. A recent survey found that 52% of buyers would question a vendor’s credibility if they discovered fabricated competitors.

The Dark Side of Urgency: Can Fabricated Rivals Backfire?

Urgency drives action, but when built on lies, it can burn bridges. Fabricating competitors or demand might close deals faster, but the long-term costs often outweigh the benefits.

Common Backfires

1. Loss of Trust: If buyers uncover the deception, 67% say they’d stop working with the vendor entirely.
2. Reputation Damage: Word spreads quickly. Negative reviews or social media callouts can deter future clients.
3. Legal Risks: False claims about competitors (real or fake) may violate advertising laws, leading to fines or lawsuits.

A Cautionary Tale

A SaaS company once invented a “global competitor” to pressure clients into signing multi-year contracts. When clients discovered the lie, the company lost 30% of its customer base within six months and faced a class-action lawsuit for misleading sales practices.

When Does Urgency Work?

• Honest Scarcity: “Our team has the capacity for two more clients this quarter.”
• Time-bound offers: “Discount expires Friday.”
  These tactics create urgency without deceit.

Buyers Know It’s Fake—So Why Does This Tactic Still Work?

Most B2B buyers are savvy. They know vendors might exaggerate competition or demand. Yet, urgency tactics persist—and often succeed. Here’s why:

The Psychology at Play

• FOMO (Fear of Missing Out): Even skeptical buyers think, “What if it’s true?” The risk of losing an advantage outweighs the hassle of verifying claims.
• Social Proof: Decision-makers fear falling behind peers. If others are “interested,” they feel pressure to act.
• Decision Fatigue: B2B purchases are complex. Urgency simplifies choices by creating a “now or never” mindset.

Data Insight

Studies reveal that 45% of B2B buyers admit to signing contracts faster under time pressure—even if they suspect tactics are exaggerated. 

For example, a manufacturer might choose a software provider after hearing “three other plants are onboarding this month,” despite doubting the claim.

Why Honesty Still Wins

While fabricated urgency works temporarily, buyers reward transparency. Brands that use provable urgency (e.g., public customer wins, limited inventory alerts) see 50% higher repeat purchase rates than those relying on vague threats.

For brands like you who are committed to authenticity, our B2B Rocket’s AI Agents turn real-time market data into actionable insights—helping teams highlight true scarcity, validate trends, and build urgency on facts, not fiction. 

From Smoke to Fire: Will Synthetic Rivals Kill Authentic Marketing?

The rise of “synthetic rivals”—fake competitors invented to spark urgency—has marketers asking: Will these tactics undermine genuine, trust-driven marketing? 

As brands lean into fabricated competition, the line between clever strategy and eroded authenticity blurs. Here’s what’s at stake:

The Rise of Synthetic Rivals

Synthetic rivals are fictional competitors or exaggerated threats used to pressure buyers. Examples include:

• Fake “Limited-Time” Offers: “Our pricing model is being copied by new market entrants—lock in rates now.”
• Invented Trends: “85% of your peers are adopting AI tools [based on unnamed studies].”
• Phantom Partnerships: Claiming collaborations with non-existent firms to boost credibility.

Data suggests that 22% of B2B marketers now use synthetic elements in campaigns, arguing they cut through noise in crowded markets.

The Threat to Authentic Marketing

While synthetic tactics drive short-term wins, they risk long-term damage:

1. Erosion of Trust: 58% of buyers say they’d distrust a brand caught using fake competitors, per industry surveys.
2. Market Saturation: Overuse of fabricated urgency makes buyers numb. For instance, constant “limited slots” claims lose impact over time.
3. Brand Identity Crisis: Companies relying on synthetic narratives struggle to highlight real strengths, like customer success stories or innovation.

Case in Point: A fintech firm fabricated a “disruptive competitor” to push deals. When exposed, its customer churn rate spiked by 35% within a quarter.

Why Authentic Marketing Still Holds the Edge

Despite synthetic shortcuts, authentic marketing remains resilient. Here’s why:

• Buyers Crave Trust: 73% of B2B clients prioritize vendors with transparent communication (2023 data).
• Long-Term Loyalty: Brands using customer testimonials or verifiable data see 40% higher retention rates than those relying on urgency tactics.
• Regulatory Pressures: Stricter advertising laws (e.g., FTC guidelines) penalize false claims, pushing brands toward honesty.

Example: A SaaS company grew revenue by 60% in two years by showcasing real client ROI metrics instead of phantom rivals.

The Future: Coexistence or Collision?

The marketing landscape will likely see a split:

1. Short-Term Players: Brands using synthetic rivals for quick wins, risking burnout as buyers grow wary.
2. Authentic Leaders: Brands investing in transparency, leveraging real data and customer partnerships to build lasting credibility.

Prediction: While synthetic tactics won’t disappear, their dominance is unlikely. A 2024 industry report notes that 68% of marketers believe authenticity will outperform “fear-based” strategies within five years.

Conclusion

Imagine a sales pitch where unseen rivals haunt the room, nudging buyers to act before it’s “too late.” Many B2B brands flirt with this tactic—hinting at phantom competitors or scarce slots—to spark urgency. It works: fear of missing out can speed decisions. 

But tread carefully. Once buyers sense deceit, trust fades fast. While theatrical tactics like empty chairs or vague “high demand” warnings might seal short-term deals, they gamble with long-term loyalty. Savvy brands know that honesty outshines tricks. 

Clear deadlines, real scarcity (“We can onboard two clients this month”), or sharing genuine success stories builds credibility without the smoke and mirrors. 

In the end, urgency fades, but trust sticks. The lesson? Play the long game. Authenticity doesn’t just close sales—it keeps clients coming back.

In a world where trust outlasts tricks, B2B Rocket equips teams to drive urgency ethically. Our platform transforms real-time market data and proven demand signals into compelling, honest narratives—so you accelerate deals without fabricating rivals.