My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
“dream outcome times perceive elective achievement below that you have time delay and then effort and sacrifice”
What It Means
Mathematical formula for determining offer value based on four key customer perception variables
Why It Matters
Provides systematic approach to increasing prices and conversion rates simultaneously
When It's True
When customers make rational decisions based on perceived value vs effort tradeoffs
When It's Risky
When customers make purely emotional or price-only decisions, or when dealing with true commodities
How to Apply
Audit current offer against each component
Identify which variables are weakest
Create specific improvements for each component
Test pricing changes based on improvements
Example Scenario
“Personal trainer realizes they can charge more by offering meal prep service (reduces effort) and guarantee results (increases perceived likelihood)”
Related Knowledge
we can double the price or triple the price for offer and close at a higher percentage
Proper value equation optimization can dramatically increase both pricing and sales conversion rates
we just add value rather than taking away price
Instead of discounting to close sales, add bonuses that address specific customer concerns
Value Equation Framework
A mathematical framework for maximizing offer value: (Dream Outcome × Perceived Likelihood of Achievement) ÷ (Time Delay
Transform existing offers to command premium pricing while increasing conversion rates
Doubling or tripling offer prices while maintaining or increasing close rates, leading to step-function business growth
Close more sales at higher prices using strategic bonus delivery instead of discounting
Higher close rates without discounting, maintaining profit margins while increasing customer satisfaction
Value Equation Lens
Evaluate all business decisions through the lens of how they impact the four value equation variables: dream outcome, pe