Standard Forms of Value

Something of value is what someone else thinks is worth paying for. There are twelve standard forms of value, being:

 

1. Product. Create a single tangible item or entity, then sell and deliver it for more than what it cost to make.

2. Service. Provide help or assistance, then charge a fee for the benefits rendered.

3. Shared Resource. Create a durable asset that can be used by many people, then charge for access.

4. Subscription. Offer a benefit on an ongoing basis, and charge a recurring fee.

5. Resale. Acquire an asset from a wholesaler, then sell that asset to a retail buyer at a higher price.

6. Lease. Acquire an asset, then allow another person to use that asset for a predefined amount of time in exchange for a fee.

7. 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.

8. 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.

9. Loan. Lend a certain amount of money, then collect payments over a predefined period of time equal to the original loan plus a predefined interest rate.

10. Option. Offer the ability to take a predefined action for a fi xed period of time in exchange for a fee.

11. Insurance. Take on the risk of some specific bad thing happening to the policy holder in exchange for a predefined series of payments,then pay out claims only when the bad thing actually happens.

12. Capital. Purchase an ownership stake in a business, then collect a corresponding portion of the profit as a one-time payout or ongoing dividend.

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