Just last night, I made the same mistake I have been teaching people to avoid because I was in a hurry to make money.
I needed to raise some amount of money to get an accommodation for my startup as well as some other things, so I decided to hold a masterclass to raise money. Then all of a sudden, I expected everyone to subscribe to the fee without offering any value in the first place.
I only realized that only those who knew me were ready to make the payment to be part of the class. Others who did not know me didn’t see a reason to make any payment because they have never received any value from me. So, it was hard convincing them to join the masterclass. Now, I have decided to give some value before charging any fees.
Here’s the point, there are people who are in a hurry to get clients and customers. I mean in a big hurry to get good deals and make money. Yet, there’s one big way to ruin your business or your company, and that is by totally skipping the value part.
In a business model, the value proposition is just so important that there’s no way you can generate revenue without having a value proposition. The value proposition is the bridge that helps consumers, clients to cross over to your product or business and make payment.
When trying to found a company or start an idea, it is wiser to focus on the value the idea will bring to your target audience more than how urgent you want to make a profit.
I made this same mistake early last year. I had an awesome idea and I was in a hurry to convert the idea to money but I had nothing in my value proposition, I just had a few tricks on how to force the money out of my customers pocket. I was going to fail on day 2 if I used that model.
Is it possible to make money without offering any value? Yes! Very possible. I mean it’s possible. However, that’s how you can set up our company to fail on day 2. Value is just like a bridge in which your customers cross; it is what they see. It is the channel they pass to cross over to you, it is what convinces them.
Once you don’t have any bridge, there’s practically no way more potential customers will be able to come over even if the early adopters can jump over the bridge. The early adopters can afford to jump over; they don’t mind. But others will find it so stressful and would rather go for a safer and more convenient option.
The number of bridges you build will determine the number of people that can pass through. The wider the bridge, the more the people that can pass through, the more the bridges the more the number of people as well.
The more attractive the bridge is, the more the people that will come around; and the durable the bridge is, the easier it is for any potential customer to trust you, and also eventually return to pay for your product or service a second time.
Don’t be in a haste to draw up revenue without first working on the value offer. The more the value channels, the lesser the risk of your business or company folding up.
Pay more attention to your value proposition and come up with ways that you can generate profit from them, but never make the mistake of making profit without value; you’d fail.
How Do You Come Up With A Good Value Proposition
- Make researches on the problems your target customers are facing and how your product or service can meet them: In this scenario, the more you pay attention to how you can solve their problems, you begin to get more options on different ways to generate profit. However, if you focus on getting profit alone, you might as well not be able to come up with different ways to make profit.
- Make a table of preference to show which ranks most in solving their immediate needs which they will pay for. That should be your priority.
- Make proper research on the channels available to reach your target customers; if those channels are not available or do not exist, create one. However, if those channels are saturated or not penetrable, then you need to rank it lower than the channels through which will reach your target customers.
- Know which value brings more paying customers; rank it top. Will 100 people purchase your sunglasses to protect themselves from the sun or 500 get it for fashion?
The value proposition to customers varies. It could be to offer a semi-free product for them to test. You are totally to figure it out yourself.