What is Your Value Proposition?

With my services the client will get a 5X to 10X return on their investment. If the client does what we agree on and does not reach the key performance indicators agreed upon, I will return the unearned fees.

That's not a value proposition.

And returning unearned fees? First you can't return unearned fees because you haven't technically done any work to earn them. Second, there's no intelligent basis for returning any fees if the KPI's aren't reached. You cannot guarantee outputs, you can only guarantee inputs. You do not have control over all of the variables.

A few more thoughts.

1. The correct term is UVP = Unique Value Proposition. The "U" was left out of the definition and is distiguishable from your competition.

2. Stating a return amount is not a UVP. You also cannot state an unequivocal return amount. At some point it will be a lie or at best, considered false advertising. You can state a comparative range garnered by past clients who used similar services or products.

3. Repeat. Returning "unearned" fees cannot be done simply because you have completed no work to earn them - hence the term unearned.

4. You don't leave KPI measurement for last. You agree on them up front as well as the techniques to be used in measuring them. You also monitor and communicate them as you work through the project to ensure the work is on track. Leaving it as a surprise to be discovered only after the work is completed is just amateurish and could be grounds for a negligence claim against you.

5. You don't control all of the variables for success on any project - ever. So returning any fees on that basis is just plain silly also. The only reason to return fees is when an event occurs that physically prohibits the completion of the project or severely impairs the ability of one party to complete their responsibilities and the parties cannot agree on a time for the projects resumption.

6. Repeat. You cannot guarantee outputs, you can only guarantee inputs. See #5 above.

7. This could have been a great discussion - probably still could - if it had not been abandoned. Hopefully it wasn't meant to be just another billboard on the information super highway.

Appreciate the opportunity for discussion with you and anyone else interested. 1. First a couple of definitions of value proposition:

A business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings.

Companies use this statement to target customers who will benefit most from using the company's products, and this helps maintain an economic moat. The ideal value proposition is concise and appeals to the customer's strongest decision-making drivers. Companies pay a high price when customers lose sight of the company's value proposition.

1. My use of the word unearned was inappropriate. Perhaps better would have been fees ascribed to the preparation and presentation of a discrete milstone the success of which would be measured by performance indicators agreed upon.

2. “there's no intelligent basis for returning any fees if the KPI's aren't reached. You cannot guarantee outputs, you can only guarantee inputs. You do not have control over all of the variables.”

An input to one stage is an output from a previous stage. If I follow you correctly then inputs also cannot be guaranteed. I agree that variables are not controllable but they can be influenced in my mind anyway. A few more thoughts.

1. "The correct term is UVP = Unique Value Proposition. The "U" was left out of the definition and is distiguishable from your competition."

Agreed – I get a lot of skepticism over my use of guarantee concept.

1. "Stating a return amount is not a UVP. You also cannot state an unequivocal return amount. At some point it will be a lie or at best, considered false advertising. You can state a comparative range garnered by past clients who used similar services or products."

My time/effort metric is milestone specific.

1. "Repeat. Returning "unearned" fees cannot be done simply because you have completed no work to earn them - hence the term unearned."

No argument.

1. "You don't leave KPI measurement for last. You agree on them up front as well as the techniques to be used in measuring them. You also monitor and communicate them as you work through the project to ensure the work is on track. Leaving it as a surprise to be discovered only after the work is completed is just amateurish and could be grounds for a negligence claim against you."

The term I used was “met” and had neglected to mention that KPIs are constantly measured throughout. If a red flag is necessary the sooner the better.

1. "You don't control all of the variables for success on any project - ever. So returning any fees on that basis is just plain silly also. The only reason to return fees is when an event occurs that physically prohibits the completion of the project or severely impairs the ability of one party to complete their responsibilities and the parties cannot agree on a time for the projects resumption."

Agree in essence about control and I understand your holding to the rest of your points. The use of the term guarantee was meant to promote uniqueness as a means of differentiation with my competition. Another aspect of the process is that the performing group has to perform its processes as agreed upon. Lacking specific performance would negate the guarantee.

1. "Repeat. You cannot guarantee outputs, you can only guarantee inputs. See #5 above."

I still take exception to the point that you can guarantee inputs. One of the reasons for business being broken is that the handoffs are often not subjected to specific metrics of acceptability.

1. "This could have been a great discussion - probably still could - if it had not been abandoned. Hopefully it wasn't meant to be just another billboard on the information super highway."

I look forward to continuing this discussion with you.