12 Standard Forms of Value

“Where there’s a hassle, there’s a business opportunity.”

Just some quick notes on the 12 standard forms of value from the Personal MBA book that I am listening to right now. Which one are you offering to your clients?

1. Product – tangible, sell and deliver > cost

2. Service – fee for benefits rendered

3. Shared resource – charge for access, membership fee, bundling, amusement parks,

4. Subscription – ongoing fee, pre-defined benefits, ongoing, tangible or intangible, additional value in future, fees collected until cancelled, best due to predictable revenue, key is to keep everything you can to make customers happy – customer attrition

5. Resale – acquire and sell for higher, retailers, keep product in good condition until sold, find buyers asap, sell at high markup,

6. Lease – acquire and sell for fee at a time, home rentals,

7. Agency – don’t own and third party, someone else with value to offer, find a seller with valuable, establish buyers, negotiate agreement, fee or commission, agents, pre-existing connections, commission is high enough for it to be worth it,

8. Audience aggregation – access to form of advertising, collecting and selling the gathered list, create way of consistent attention, sell access to that audience, without alienating audience, conferences, advertising, advertiser will continue support,

9. Loan – collect payments = loan + %, interest rate, estimate possibility of load wont be paid, mortgages, loans, credit cards, an asset as collateral,

10. Option – pre-defined action over time, financial securities, coupon, tickets, licensing rights, buy before deadline, take an action, deposit that

11. Insurance – risk of bad thing happening exch. for payment,

12. Capital – purchase ownership stake, stocks, VC, angel funding, have a pool of resources, find business that can invest, estimate business worth,

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