Monetization Playbook #14: Aim to create 10X-20X more customer value than you capture.

Create 10X-20X more customer value than you capture

Aim to create 10X-20X more customer value than you capture…Sounds simple enough–create $10-$20 of value for every $1 value captured. 

But what does that mean? To perform the monetization calculation, you first have to establish how much value your client will derive. The typical assumption is that work = value. Therefore by doing work, you've created value.

However, in physics terms, work relates to a measure of energy transfer by an external force.

Therefore, in monetization, work relates to the extent of revenue transfer, cost displacement, or time transformation that the external force [you] have enabled/can affect. 

Spend time estimating the work and the customer value it creates.