The Value Proposition

July 1, 2015


val·ue prop·o·si·tion



The Value Proposition is:


- a commonly used term in business to describe the win/win scenario all salespeople try to create to close deals

- a far deeper and more important thought process and philosophy than any salesperson ever dreamed

- a concept that if applied correctly, will enable you to have successful relationships in business, friendship and romance, beyond your wildest dreams

- literally the single most important thing you will ever learn in your life


Ok, I’ve built this up pretty big, so “what” exactly is The Value Proposition?

In order to properly answer this we must begin at the beginning.

Let’s look at how society currently defines the term Value Proposition.



The following are the various common definitions of Value Proposition:


Financial Dictionary:

In marketing, an advertisement or other tactic in which one is encouraged to buy a product because it will save time or money

or otherwise add value to one's business or personal life.


(in marketing) an innovation, service, or feature intended to make a company or product attractive to customers.

wiki dictionary:

A value proposition is a promise of value to be delivered and a belief from the customer of value that will be experienced. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services.

[1] Creating a value proposition is a part of business strategy. Kaplan and Norton say "Strategy is based on a differentiated customer value proposition. Satisfying customers is the source of sustainable value creation."

[2] Developing a value proposition is based on a review and analysis of the benefits, costs and value that an organization can deliver to its customers prospective customers, and other consultant groups within and outside the organization. It is also a positioning of value, where Value = Benefits - Cost (cost includes risk).




: the amount of money that something is worth : the price or cost of something

: something that can be bought for a low or fair price

: usefulness or importance


: something (such as a plan or offer) that is presented to a person or group of people to consider

: a statement to be proved, explained, or discussed

: something that someone intends to do or deal with


So to sum them all together: 

A Value Proposition is: defining the usefulness, importance and/or cost of something, then presenting it to someone else in exchange for something they provide to you that you believe has usefulness, importance and/or cost.



In essence this is a pretty accurate, however cold, definition.

The concept of the Value Proposition comes from business. It is how a person explains to another person why it is in both parties best interest to enter a business relationship and what each party contributes. But more importantly it describes the concept of getting the other party to “perceive” that what you are offering them is of equal or greater value than what they are giving you, or even better, that the relationship “improves the value” of something they already have.


So for example. If I am selling a sponsorship slot on a country music tour and you are the VP of Marketing for Pepsi, then my job is to convince you that your 1 Million Dollar sponsorship of our tour is more valuable to you than spending that money on some other tour. My job is to show you our tight relationship with our fans, to show you the number of people you will reach through us is greater than any other opportunity, that our celebrity artist will promote your product better than other artists etc… My job is to make you "feel" that your money is so well spent with us that we are actually doing you a favor by letting you sponsor us. 

That is the Value Proposition. 


If you think about it, you can apply this not just to business relationships, but ANY relationship. What is a friendship? It is a platonic relationship where two people each feel they are getting something (or multiple things) they consider valuable out of the friendship.

What is a romance? It is an intimate relationship where two people each feel they are getting something (or multiple things), they consider valuable from the other person.


So what is big deal here? What is so mysterious about the concept of The Value Proposition?

It sounds like I’m just talking about good sales tactics, convincing arguments, or the ability to connect with someone, right? Wrong.


The traditional story and other examples I just described, that take place millions of times each day in the business world and in our personal relationships are all based on “PERCEIVED” Value, not ACTUAL Value.


NOTE: ALL relationships begin based on PERCEIVED Value. 

They only last long-term is the Value is REAL Value.


So, if the tour I described does NOT perform as we sold it to, the sponsor will most likely not renew or do business with us again, but go with someone else.

If the friendship we had with someone falls out of balance and only one person feels they are receiving the value from it, then they will probably being to spend less time together. If in a romance, one party no longer feels the “warm fuzzy” feelings or the “magic” anymore, that is when a break up occurs right?


See the key here is that the Value Proposition MUST be “REAL” or “TRUE” value, in order to actually get the desired result. (this goes for both sides). Ok, so what am I trying to say to you, what is my message? Here it is.

Most people do not understand what a Value Proposition is, so they do not know how to create one or keep one, and this is why they do not have success. Success in business, success in friendships and success in romance.


If you can learn to master The Value Proposition, then you can master Life!

If you can create solid, stable Value Propositions at will, then you can create, control and own almost any situation in your life.


Have you ever met those people who just seem to have everything go their way, almost all the time? And even when something goes bad, they seem to get through it awesome on the other side? Those people who seem happier than everyone else. They seem to always be off doing something fun, with fun people and are always in love, or in a positive romantic situation? They have an abundance of money and seem to just have life going their way?


Well, every self help book, and get rich book, and business book will tell you all the “secrets” and “inside information” and “tactics” that these people use and many of them have in common. And I recommend you read all those popular books, I have. But one thing that they ALL have in common, whether they understand it or not, is they have ALL become MASTERS of The Value Proposition.


Think about this. If you can create positive Value to every single situation, with every single person you come into contact with, every single day…… how popular do you think you would be? If every time, every person who comes into contact with you, walks away happier, smarter, healthier, richer, or simply more positive, how many people would want to spend time with you? How many more positive opportunities would come your way? How could you use that power to create positive situations in your own life, thus making it even easier for you to continue creating this positive for others, in an amazing cycle that benefits you and everyone around you, over and over?


This is what The Value Proposition is all about. Truly understanding how each thing you do, every moment of every day, has the potential to be a positive or negative value to the world, and how to train yourself to only create the positive, avoid the negative and become both a sending and receiving force of positive Value.

When you accomplish this, simply spending time with you (let alone sharing business, relationship and love with you) will be a positive Value Proposition for all those around you and you will literally create goodness wherever you go. This is going to take study, work and practice, but i promise you it is worth it!


This is The Value Proposition. This is what I desire to share with you.



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