Equation of value

\frac{\text{Dream} * \text{Your Sale Level}}{\text{Time invested} \times \text{Efforts}}

Breaking down the equation:

Dream: How compelling and significant your product’s impact is on your prospect’s goals.
Your Sale Level: Your effectiveness in clearly and confidently communicating value.
Time Invested: The perceived time your prospect believes is needed to achieve value.
Efforts: The perceived difficulty your prospect anticipates in adopting your solution.

Example:
Imagine you’re selling a productivity software:

Dream: Helps customer increase revenue by $100,000 / year
Your Sale Level: 90 % effective (0.9)
Time Invested: 2 weeks (0.5 months)
Efforts: Low, easy integration, minimal training (Effort Score = 1.2)

Plugging this in:

\frac{\$100,000 \times 0.9}{0.5 \times 1.2} = \frac{\$90,000}{0.6} = \$150,000

This number ($150,000) represents the perceived immediate value for your prospect. A higher result means a higher likelihood of closing the deal quickly and effectively.

What Matters Most in Sales:

Amplify the Dream: Clarify and quantify your product’s impact clearly (revenue growth, cost savings).
Boost Your Sale Level: Practice clear, confident communication of your value proposition.
Minimize Perceived Time and Effort: Clearly explain implementation simplicity and rapid time-to-value.

Mastering this equation directly translates into accelerated deal closures and hitting your $1M ARR target by Demo Day.

\frac{\text{Dream} * \text{Your Sale Level}}{\text{Time invested} \times \text{Efforts}}