Knowledge Marketplace
My First Million

My First Million

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

Back to Mental Models

High Standards as Market Signal

Setting expectations and requirements high enough that some people self-select out, which actually increases desire among those who remain

Decision Rule

If everyone can easily meet your standards, you're not creating enough distinction or value perception

How It Works

Exclusivity creates perceived value. When people see others working hard to meet your standards, they assume the reward must be worth it. Self-selection also improves your customer or participant quality.

Failure Modes

Making standards arbitrarily high without real value behind them

Creating barriers that exclude your actual target market

Not communicating why the standards matter

Standards that are high but not clearly defined

Example Decision

A fitness program requires participants to commit to 3 days per week with no exceptions, knowing some people will walk away, because those who stay will be more committed and successful.