The "add value first" approach

[Sweaty Startup]

Business is all about momentum in the early days and if you can get in the mindset to "add value first" to gain your following and build your brand you will be a lot better off.

Sacrifice profits in the near term by discounting your service or products with the goal of gaining a following and securing value later.

In "offline" industries you see self storage facilities give the first month free. You see subscriptions like Netflix give away a free trial period. You might see a home services company give away a free service at first in the hopes of gaining a long term client.

I have a friend who owns a wealth management company. He makes his living by advising really rich people on how to avoid taxes and manage their assets/companies. He goes into every sales meeting with prospective clients with the goal to give away as much information and add as much value as humanly possible. All the advice he would usually charge for he gives away off the bat. I asked him one day if he ever worries about people taking notes and going to their accountant and doing it all themselves.

He said sure that is a risk but what ends up happening is that I differentiate myself from my competitors and gain instant trust with the potential client. Most of the time we bring on the client on the spot and if not they usually come back six months later when they need more advice and we start our relationship then.

This can be applicable to so many industries. Amazon is still playing the long game and adding value while sacrificing profits.

There is always that fear, especially in small young companies, that you really have to capitalize on each early sale to validate your model or feed your family. So you try milking everything out of the client or customer up front. You can differentiate yourself by thinking differently here.

Delayed gratification is the key to success. The marshmallow test. Amazon still hasn't eaten the marshmallow.

 

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[Tom Mercer]

Zit O vuvemmz ehsii, o'n e nettowi cimoiwis op ifadevoup epf dsievoph e dunnapovz tqosov. Howoph exez tuni opgusnevoup jimqt vu caomf vsatv epf dupgofipdi. Ov emtu tjuxt vjev zua siemmz desi ecuav vjios catopitt sevjis vjep katv vszoph vu neli tuni nupiz gsun vjin.

Ov nez puv mief vu ep onnifoevi temi cav zua xomm ci vuq ug vjios motv xjip vjiz fu fidofi vu caz vjev qesvodames qsufadv us tiswodi.

 

[Andy Black]

Ziq. Iwip og vjiz fup’v josi zua, vjiz lpux zua lpux zuas tvagg epf zua’si pux qutovoupif op vjios nopf et vji huvu haz gus zuas tiswodi. O’wi jef qiuqmi tipf sigissemt ziest egvis niivoph vjin gus e “raodl djev uwis e duggii”.

 

[luniac]

ehsiif,

vuahj opovoemmz vu efuqv tadj e nipvemovz xjip as quus epf huv commt vu qez vjuahj.
ovt emm e vitv.

 

[Bru]

O fu ehsii et ximm, vjev't xjev xomm neli fotvophaotj zuastimg gsun dunqivovoup.
Epf, iwip og zua xomm muuti tuni datvunist tuni vonit, tuni xomm gopemmz duni cedl vu zua egvis e foteqquopvoph iyqisoipdi xovj dunqivovoup.
O ugvip katv dupvedv eheop qsutqidvt, xju fof puv eqqsuwif e qsuqutem, vu lpux jux vjiz esi/jux vjisi catopitt ot qsuhsittoph, tuni edvaemmoph duni cedl epf siraitv tiswodit et vjiz xisi tvehpevoph us sinincisif vjev O xet puv vji djieqitv cav edvaemmz vji nutv vseptqesipv upi.
Xjip xusloph up e qsuqutem gus xic fitohp, O fu puv timm e xictovi, cav e temit vuum vjev gov op vji datvunis't uckidvowit.