Master the Art of Business
A world-class business education in a single volume. Learn the universal principles behind every successful business, then use these ideas to make more money, get more done, and have more fun in your life and work.
What Are The '12 Standard Forms of Value'?
To provide value to another person, it must take on a form that they are willing to pay for. Economic Value usually takes one of the following 12 Standard Forms of Value:
- Product - Create a single tangible item or entity, then sell and deliver it for more than what it cost to make.
- Service - Provide help or assistance then charge a fee for the benefits rendered.
- Shared Resource - Create a durable asset that can be used by many people, then charge for access.
- Subscription - Offer a benefit on an ongoing basis, and charge a recurring fee.
- Resale - Acquire an asset from a wholesaler, then sell that asset to a retail buyer at a higher price.
- Lease - Acquire an asset, then allow another person to use that asset for a pre-defined amount of time in exchange for a fee.
- Agency - Market and sell an asset or service you don’t own on behalf of a third-party, then collect a percentage of the transaction price as a fee.
- Audience Aggregation - Get the attention of a group of people with certain characteristics, then sell access in the form of advertising to another business looking to reach that audience.
- Loan - Lend a certain amount of money, then collect payments over a pre-defined period of time equal to the original loan plus a pre-defined interest rate.
- Option - Offer the ability to take a pre-defined action for a fixed period of time in exchange for a fee.
- Insurance - Take on the risk of some specific bad thing happening to the policy holder in exchange for a pre-defined series of payments, then pay out claims only when the bad thing actually happens.
- Capital - Purchase an ownership stake in a business, then collect a corresponding portion of the profit as a one-time payout or ongoing dividend.
Josh Kaufman Explains The '12 Standard Forms of Value'
Questions About The '12 Standard Forms of Value'
- Which forms of value make the most sense for your market?
- Are there any forms of value you haven't yet considered for your market? What might those offers look like?
"Value is not intrinsic; it is not in things. It is within us; it is the way in which man reacts to the conditions of his environment."
Ludwig von Mises, Austrian economist
Value Creation
https://personalmba.com/12-standard-forms-of-value/
Master the Art of Business
A world-class business education in a single volume. Learn the universal principles behind every successful business, then use these ideas to make more money, get more done, and have more fun in your life and work.
About Josh Kaufman
Josh Kaufman is an acclaimed business, learning, and skill acquisition expert. He is the author of two international bestsellers: The Personal MBA and The First 20 Hours. Josh's research and writing have helped millions of people worldwide learn the fundamentals of modern business.
More about Josh Kaufman →