I'm in a performance art niche and have a video of me performing very well. My competitor has a similar video, but it's very obvious that the performance is not at the same level. If prospects compared us, it'd come out ahead more often than not.
Importantly, he's the incumbent and (with the exception of the video) has better marketing than I do. Also, he's got affiliates. I'm solely on PayPal right now. Both of us are established, but he's clearly still ahead in my niche.
Obviously, it's a risky strategy that'll need a lot of thinking through... but I wanted to make sure it's legal before nailing down the details and thinking through the complexities of the strategy (or potential war that might result).