My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

Value Equation Framework

Reusability

A mathematical framework for maximizing offer value: (Dream Outcome × Perceived Likelihood of Achievement) ÷ (Time Delay + Effort & Sacrifice)

How It Works

Works by systematically optimizing four variables that customers unconsciously evaluate when making purchase decisions, allowing businesses to charge premium prices while increasing conversion rates

Components

Define the ultimate dream outcome your customer wants

Build perceived likelihood through credibility, guarantees, and risk reversal

Minimize time between purchase and result delivery

Reduce or eliminate effort and sacrifice required from customer

Create solutions for each obstacle in every category

Test and iterate based on customer feedback

When to Use

When designing any offer, especially when struggling with pricing, low conversion rates, or competing on price rather than value

When Not to Use

When selling true commodities with no differentiation potential, or when targeting extremely price-sensitive markets with no willingness to pay for value

Anti-Patterns to Avoid

Focusing only on features instead of outcomesIgnoring the emotional weight of effort and sacrificeBuilding credibility through claims rather than proofCreating long delays between purchase and first value delivery

Example

“Personal training ($2000, 18-month timeline, high effort) vs liposuction ($50000, immediate results, no effort) - same dream outcome but dramatically different value equation components”