Essentials
Equation of value
Understand how to create deep value in prospect mind
Breaking down the equation:
- Dream: How compelling and significant your product’s impact is on your prospect’s goals.
- Your Sale Level: Your effectiveness in clearly and confidently communicating value.
- Time Invested: The perceived time your prospect believes is needed to achieve value.
- Efforts: The perceived difficulty your prospect anticipates in adopting your solution.
Example:
Imagine you’re selling a productivity software:
- Dream: Helps customer increase revenue by $100,000 / year
- Your Sale Level: 90 % effective (0.9)
- Time Invested: 2 weeks (0.5 months)
- Efforts: Low, easy integration, minimal training (Effort Score = 1.2)
Plugging this in:
This number ($150,000) represents the perceived immediate value for your prospect. A higher result means a higher likelihood of closing the deal quickly and effectively.
What Matters Most in Sales:
- Amplify the Dream: Clarify and quantify your product’s impact clearly (revenue growth, cost savings).
- Boost Your Sale Level: Practice clear, confident communication of your value proposition.
- Minimize Perceived Time and Effort: Clearly explain implementation simplicity and rapid time-to-value.
Mastering this equation directly translates into accelerated deal closures and hitting your $1M ARR target by Demo Day.
Was this page helpful?