Value Proposition Development

Before I sold Quest for $1,000,000,000, I wasted millions trusting the wrong thing: My own ideas. Here's the AI validation framework I wish I had when building Quest Nutrition: Most entrepreneurs fail in the same boring way: 1. Have an idea 2. Fall in love with it 3. Build it for months 4. Launch 5. Discover nobody wants it 6. Repeat This is "build and pray" physics. It's suicide. But there's a better way. One that uses AI to kill bad ideas in 72 hours, not 12 months. My 5-step AI validation framework that has saved millions in wasted effort: 1. Problem Verification Your idea isn't special. Period. The only thing that matters is: are people actively suffering from the problem you claim to solve? Feed Perplexity and ChatGPT with Reddit threads, forum posts, and review sites. Let AI extract patterns of pain. No real pain = dead idea. 2. Market Size Analysis Even if the pain is real, is it widespread enough? Let AI analyze Google Trends, search volumes, and TAM data. Create detailed spreadsheets of potential users. Too small = dead idea. Goals make demands. If the goal is to build a substantial business, the market has to be big enough. 3. Competitor Assessment Feed AI your top 5 competitors' websites, pricing pages, and customer reviews. Have it identify gaps and oversaturation. Create a map of what's missing. No clear advantage = dead idea. Build from physics, not analogy. That's the only way to find a real competitive edge. 4. Zero-Cost MVP Design Most founders build full products before validation. That's the most expensive way to learn. With AI, create "fake door" tests instead: • Landing page that looks real • AI-generated mockups • $50 of ads to see if people try to buy No buyers = dead idea. The market doesn't care how hard you worked. It only cares if you solved a real problem. 5. Early Adopter Interviews For ideas that survive steps 1-4, use AI to: • Draft perfect outreach messages • Generate interview questions that reveal buying intent • Analyze interview transcripts for patterns No enthusiasm = dead idea. This is Physics of Progress in action. Test hypotheses. Follow the data. Kill your darlings fast. The hard truth about entrepreneurship is that 90% of ideas SHOULD die. Your job isn't to build - it's to kill bad ideas quickly. Most entrepreneurs think failure is the worst thing that can happen. It's not. The worst thing is wasting years on something nobody wants. Let AI be your reality check. It's ruthlessly honest in a way your friends, your team, and even you can't be. Ideas are worthless. Validation is everything. PS: I’ve trained an entire GPT to track down the root cause of your next revenue plateau - and help you break through it. It’s built based on 100,000s of data points from my group coaching sessions. Grab it for free here: https://buff.ly/nUri82k

Are you generating enough value for users net of the value to your company? Business value can only be created when you create so much value for users, that you can “tax” that value and take some for yourself as a business. If you don’t create any value for your users, then you can’t create value for your business. Ed Biden explains how to solve this in this week's guest post: Whilst there are many ways to understand what your users will value, two techniques in particular are incredibly valuable, especially if you’re working on a tight timeframe: 1. Jobs To Be Done 2. Customer Journey Mapping 𝟭. 𝗝𝗼𝗯𝘀 𝗧𝗼 𝗕𝗲 𝗗𝗼𝗻𝗲 (𝗝𝗧𝗕𝗗) “People don’t simply buy products or services, they ‘hire’ them to make progress in specific circumstances.”  – Clayton Christensen The core JTBD concept is that rather than buying a product for its features, customers “hire” a product to get a job done for them … and will ”fire” it for a better solution just as quickly. In practice, JTBD provides a series of lenses for understanding what your customers want, what progress looks like, and what they’ll pay for. This is a powerful way of understanding your users, because their needs are stable and it forces you to think from a user-centric point of view. This allows you to think about more radical solutions, and really focus on where you’re creating value. To use Jobs To Be Done to understand your customers, think through five key steps: 1. Use case – what is the outcome that people want? 2. Alternatives – what solutions are people using now? 3. Progress – where are people blocked? What does a better solution look like? 4. Value Proposition – why would they use your product over the alternatives? 5. Price – what would a customer pay for progress against this problem? 𝟮. 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗝𝗼𝘂𝗿𝗻𝗲𝘆 𝗠𝗮𝗽𝗽𝗶𝗻𝗴 Customer journey mapping is an effective way to visualize your customer’s experience as they try to reach one of their goals. In basic terms, a customer journey map breaks the user journey down into steps, and then for each step describes what touchpoints the customer has with your product, and how this makes them feel. The touch points are any interaction that the customer has with your company as they go through this flow: • Website and app screens • Notifications and emails • Customer service calls • Account management / sales touch points • Physically interacting with goods (e.g. Amazon), services (e.g. Airbnb) or hardware (e.g. Lime) Users’ feelings can be visualized by noting down: • What they like or feel good about at this step • What they dislike, find frustrating or confusing at this step • How they feel overall By mapping the customer’s subjective experience to the nuts and bolts of what’s going on, and then laying this out in a visual way, you can easily see where you can have the most impact, and align stakeholders on the critical problems to solve.

It probably doesn't matter whether you do customer research or not... ...if all you're going to use it for is to validate the obvious value prop The obvious value prop is the one most people can think of without talking to a single customer. And it's probably the one your competitor is using in their marketing material. You won't get a gold star next to your copy that says "validated by customer research" -- The only way your research moves the needle is if it actually shows up in your copy -- if your copy is actually different Here's two techniques you can use to take it to the next level and stand out: 1) Uncover a non-obvious value prop Here's an example from when I used to market fire protection equipment: The obvious value props were protecting machines and preventing downtime (safety + productivity = save money) After talking to customers, we spotted two less obvious value props: a) Downtime could cause a machine shop to lose a customer, which means we were actually helping them protect revenue (make money!) b) Because we often sold to very busy business owners, we also addressed a psychological pain point ("I have more important things to worry about than the remote possibility of a catastrophic fire") 2) Punch up the obvious value prop with a specific detail Sometimes the obvious value prop IS valid, so you don't have to ditch it entirely Weaving in specific details will build trust by signaling to the customer that you understand their pain points from experience (not just internet research) Here we used "back up and running in as little as 45 minutes" -- which is a specific figure from a customer interview Customer research is a TON of work Don't settle for surface level intel -- keep digging to make sure the time you spend on research really pays off #b2bmarketing #messaging #copywriting

One question turns failed PropTech pitches into closed deals. And most vendors never ask it. Here's the strategy alignment secret nobody's talking about. Last week, I watched another great product get rejected. Strong features. Clear value prop. But they pitched long-term efficiency to a merchant builder focused on exit value. Now they're wondering why the deal went nowhere. Here's how to align your pitch with their investment strategy: 1. Focus on strategy, not just asset type The secret isn't just knowing office from multifamily. It's understanding their investment timeline: Most vendors only see: • Office vs. retail • Multifamily vs. industrial • Class A vs. Class B Smart sellers also ask: • Hold period length • Exit strategy • Value creation timeline • Cash flow priorities Most fail because they stop at asset class. 2. Tailor your pitch to their timeline For long-term holders, focus on: • Operational efficiency • NOI improvement • Portfolio-wide impact • Solution stability • Compound ROI over time For short-term players, emphasize: • Repositioning acceleration • Lease-up support • Quick implementation • Flexible contract terms The timeline mismatch breaks more deals than price. 3. Ask the right questions first Start with: • "What's your typical hold period?" • "Are you looking to stabilize and hold or exit?" • "How do you handle property management?" • "What's your current solution stack?" Not: • "What types of properties do you own?" • "How many units do you have?" • "What systems are you using now?" • "When can we demo our product?" 4. Connect your value to their strategy Your pitch should show: • ROI within their ownership window • Value that matters to their strategy • Implementation that fits their timeline • Flexibility that matches their exit plans Never assume: • All owners want long-term savings • All GPs prioritize NOI • All buildings are forever holds • All operators think the same 5. Become a strategic partner Investment strategy changes everything: • It shapes their decision criteria • It determines their value metrics • It drives their timeline needs • It defines their success The difference between just another vendor and a strategic partner is understanding their investment strategy. Want to learn how the best PropTech companies align their pitches to investment strategies? Check out our free PropTech Pipeline Playbook email course in the comments.

You'll never convince me that describing your startup as an 'AI platform for X' is the best way to get your message across and yet so many of the startups I meet do just that. Vague, jargon-heavy phrases do little to set a business apart or make the value proposition clear. Instead of leading with buzzwords or generic categories, focus on communicating your company’s mission, who you serve, and the specific problems you solve. For example, rather than saying an “AI platform for X,” describe the tangible impact your product or service delivers: “We help logistics companies reduce shipping delays by predicting disruptions before they happen,” or “Our solution enables retailers to personalize every customer interaction, increasing loyalty and sales.” This approach clarifies the offering AND makes it relevant and memorable to your audience. Unless you are building AI infrastructure, we can assume that you are powering your solution with AI and also using it internally to be the most efficient and effective. So I'm not sure that you need to lead with the AI part - it's really not the most important element. Ultimately, the goal is to make your company’s value unmistakable, so that anyone reading your description immediately understands not just what you do, but why it matters to them. So let's get back to basics and just say what we do!

I have a hypothesis about why some salespeople sound like robots. They sell complex products, so they think they need a lot of specialized jargon to explain them. I also suspect salespeople believe they need to sound professional. The problem? Jargon and corporate-speak are counterproductive. They confuse your message. As Donald Miller says, “When you confuse, you lose.” How can we make the “sales voice” go away? Notice the difference between this sentence: “Our onboarding process ensures a comprehensive understanding of our product’s capabilities.” And this sentence: “We’ll walk you through everything to make sure you’re comfortable and ready to roll.” Before: “You may customize your dashboard settings to align with your specific preferences.” After: “Set up your dashboard just the way you like it.” Before: “Our platform provides a 360-degree view of customer interactions, enabling comprehensive insights and streamlined data access.” After: “See everything about your customers in one place.” Imagine explaining your product to a friend over coffee—not a room full of executives. Use short sentences, plain language, and words they’d actually say in real life. Instead of “optimize efficiencies,” try “make it easier.” Instead of “comprehensive insights,” say “see the big picture.” The goal is clarity, not complexity. When your message is easy to understand, people feel like you’re talking with them, not at them. And that’s when trust—and sales—happen.

Explaining your "value proposition" is probably doing more harm than good with your prospects.  Value propositions are meaningless to prospects when they don't connect the dots between what your product does and what problems it eliminates. Here's an example: If I were selling cookware, pitching "titanium-plated non-stick pans" would not resonate with my prospects, especially if they liked their current cookware. In order for "titanium-plated non-stick pans" to mean anything of value to my prospect, I would need to remind them of the gnarly egg crust that they had scrub away when doing the dishes last week and then explain that the "features" of my product are what would eliminate their egg-scrubbing problem. ___ Expecting your prospect to infer what problems your "value proposition" solves for them dumps all the work on your prospect. Do the work for them and put 2 and 2 together so they don't have to. You make it far easier for them to understand why your "Automated Billing Workflows" or "Unified Data Platform" or "Titanium-Plated Pan" is valuable when you ALSO tell them what that means for them. It's YOUR responsibility to remind your prospect of the egg stuck to their pan. 

Narrow your value proposition down to a single, really good question that generates a visceral response. It's the fastest way to get to the heart of your customer's problem and build value from there. For example, I could talk for days about marketing orchestration and collaboration drag and show you case studies of the impact it has and offer a collaboration drag diagnostic to benchmark how your team operates vs others. I could share blog posts and best practice guides and tons of evidence proving we understand how to help your team improve speed to market, agility and internal efficiency. Do more with less! All of that has value, in time. But first, let me ask you a simple question: How many meetings does it take for your team to produce a webinar? I can hear the winces and groans from here. The more viscerally you respond to that question, without every saying a word, the more likely you have the problem. And THAT is a great starting point for a conversation that could more quickly lead to a solid win-win situation. Find a question that gets an immediate non-verbal response. That proves right away that you get it, that you understand the problem, that you've seen it before and know exactly how to get at the heart of it. Workshop up a few of these and try them out. Take them to your next trade show and round-robin them with attendees. A/B test them as subject lines. The biggest groans win.

Don't overcomplicate your offer. Make sure it meets the following 5 requirements: 1. Specific outcome Clients don’t buy growth marketing services. They buy 89% user growth. Or 82 qualified leads. Or halved churn. Articulate your value proposition accordingly. The more specific the outcome, the better. 2. Predictable Outcome When clients pay you, they're placing a bet. They’re betting your fee on your ability to deliver the promised outcome. The more predictable the outcome, the safer the client feels and the more they’re willing to pay you. If you can turn $10k into $100k reliably, you’ll never run out of clients. 3. Specific Time Frame Clients have to manage budgets, investors and payroll. Thus one key thing they’re looking for in a vendor is a predictable timeline. So that they know: - How much they’re going to spend - When they’re going to spend - How much results they should be getting - When they should get those results. Don’t be just good. Be predictable. 4. Specific Client You want to work for one specific client archetype: - Specific industry - Specific size - Specific problem Not only you’ll increase perceived value. You’ll also become proficient in working with them…enabling you to deliver specific outcomes, predictably, within a specific time frame. 5. Clear Delivery Process Most businesses struggle because of processes (or lack thereof). Especially service businesses. Yet processes are your lifeline, because the better your processes: - The faster you work - The more predictable your results. - The more clients you can take on. - The fewer team members you need. - The easier it is to train new team members. Don't just craft an offer and pray for clients. Tune it to meet the 5 core requirements. Not only does it become irresistible. It also guarantees you'll never run out of clients.

Good B2B messaging is all about TRANSLATION. Because in B2B, different teams speak different languages. And more importantly… They care about different things. Different teams, with different workflows (use cases), trying to achieve different goals (outcomes). That means you can’t use the same value prop for everyone — even inside the same company. ——— Take Vanta for example. (see image) Notice how the use cases and outcomes shift dramatically by role. The Security Director (champion) and the sales team (user) actually use the product. So your message to them should focus on: → What they’ll do with it (use case) → How the use case is addressed (capability) → What product-level outcome they’ll get In this case: • The security team spends less time on security questionnaires • The sales team gets faster responses to unblock deals Now contrast that with the CFO or CEO. They don’t touch the product. They don’t care about features. They don’t even have the use case the product addresses. So you have to translate those product-level outcomes the champions care about, into the business-level impact these executives might care about. “Faster questionnaire turnaround → deals move faster → more deals closed.” And then translate again for the CFO — because they prefer hard numbers, not qualitative abstractions. “1 extra deal per quarter = $500K ARR annually.” Different language. Same product. Different stakeholder. Different value story. If you don't understand and apply this principle, there is a good chance your "universal value proposition" won't actually resonate with any of the stakeholders in your target accounts. #valuepropositions #messaging #b2b