Value proposition basics

Before you can anchor your price to the value of your course, you need to define what that value is. After all, if it's not clear and concise in your own mind, it won't be clear for potential students either. So in this lesson, we'll walk through what a value proposition is, why it's important, and how to define yours before setting your course price.

Lesson aim

By the end of this lesson, you'll write a value proposition for your course that clearly communicates what you do and who you do it for.

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What is a value proposition?

A value proposition is a simple statement that explains what you do, who you do it for, and why you’re different from the competition. It’s a promise of value to be delivered.

Remember, people buy based on perceived value—not cost. So if you can’t articulate your value, you can’t charge what your course is worth. That’s why defining your value proposition is a crucial step in setting your course price.

Value propositions can come in all shapes and sizes, so let’s look at a few examples so you can see how they work in the real world. Notice how each one makes the value clear.

Example #1: Marie Forleo’s Copy Cure

Marie Forleo’s Copy Cure is a course that teaches online entrepreneurs how to write copy to sell their products and services. Her value proposition is:

"The ultimate, step-by-step system to write words that SELL"

Example #2: Pat Flynn’s A-Z Webinars

Pat Flynn’s A-Z Webinars is a course that teaches entrepreneurs how to use webinars to grow their business. His value proposition for this specific course is:

"Grow your list. Increase trust. Make more money."

Example #3: Ramit Sethi’s Find Your Dream Job

Ramit Sethi’s Find Your Dream Job is a course that helps people figure out what they really want to do for a living and transition into a new career. His value proposition is:

"Find the job you’ve always wanted — and get paid everything you’re worth."

Elements of a good value proposition

A good value proposition has four key elements:

1. Audience - It speaks clearly to one specific group of people who share a common problem or need. That doesn’t mean everyone can tell who it’s for, but the right people can tell it’s definitely for them.

2. Benefit - It clearly states what’s in it for that specific audience, in a way that appeals to them. What problem does it solve? What need does it meet? What desire does it fulfill?

3. Differentiation - It explains (or implies) why you’re the best choice for that audience over their alternatives. What makes you unique? What makes you better than the competition?

4. Execution - It makes a clear promise that you can deliver on. Can you actually do what you say you can do? Can you deliver the results you promise? Will it be clear to your audience when they’ve achieved the benefit you’re promising?

If your value proposition can hit all four of these points, you’re on the right track.

Methods and frameworks

There are a few different methods and frameworks you can use to define your value proposition, ranging from simple to incredibly complex. Here are a few to consider (and my personal recommendation), but there are many more out there if you want to explore further.

Method #1: Steve Blank’s template

Steve Blank’s template is simple and effective. It’s the first one I usually try when I’m writing a value proposition for a client because it prevents overthinking and gets to the core of the message quickly. The template is:

"We help X do Y by Z."

And here’s how you might fill it in for various courses:

• Personal finance course
  ”We help young professionals to build wealth by teaching them how to invest in the stock market.”
• Fitness program
  ”We help busy moms to get in shape by providing quick, effective workouts they can do at home.”
• Gardening course
  ”We help people with small yards to grow their own food by teaching them how to create a container garden.”

Using these as a starting point, you can usually then edit to a slightly shorter version that still gets the point across. The idea is to distill it to its simplest form. For example:

• Personal finance course: “Earn young. Invest smart. Retire rich.”
• Fitness program: “Quick workouts for busy moms.”
• Gardening course: “Homegrown food in tiny spaces.”

Method #2: Geoff Moore’s template

Geoff Moore’s template is a bit more complex, but it’s still a good one to try out because it fits like a glove for some courses. The template is:

"For target customer who need or opportunity, our product/service name is product category that benefit."

And here’s how you might fill it in for various courses:

• Mountain biking course
  ”For beginner mountain bikers who want to ride drops and jumps, our Drops & Jumps 101 is a course that teaches the basics of downhill features.”
• Therapeutic parenting course
  ”For adopters who have children with trauma, our Connected Parenting is a course that teaches how to build trust and connection with your child.”
• AI copywriting course
  ”For freelance copywriters who want to write twice as fast, our Copy AI is a course that teaches how to use AI to generate high-quality copy.”

Then, like before, you can usually edit it down to a shorter version (provided you don’t lose the essence of the message). For example:

• Mountain biking course: “Ride drops and jumps like a pro.”
• Therapeutic parenting course: “Building trust after trauma.”
• AI copywriting course: “Copy for clients in half the time.”

Method #3: Three-step framework

This framework is slightly more complex but not by much. It’s a good one to try if you’re struggling to refine your value proposition into a more concise statement. The framework is:

Immediate outcome. Knock-on effect. Ultimate goal.

And here’s how you might fill it in for various courses:

• Marriage counseling course
  ”Stop bickering. Start connecting. Get your marriage back on track.”
• Public speaking course
  ”Conquer your fear. Command the room. Speak like a pro.”
• Online dating course
  ”More matches. Better dates. Find your forever partner.”

Sometimes, you might find you can pare it down to just one or two of these steps and still get the point across, but often it’s not necessary to go much shorter if you’re using this framework.

Method #4: Value Proposition Canvas

This is a more complex framework that’s useful for established businesses or courses that have a lot of moving parts. It’s a good one to try if you’re struggling to get your value proposition to hit all four key elements, but the previous methods are usually sufficient for most course creators.

Tips for writing your value prop

Here are a few tips to keep in mind as you’re working on your value proposition:

1. Use a simple framework that feels right.
   Don’t overthink it. It’s easy to spend a lot of time agonizing over the perfect value proposition, but a simple one that’s in the right ballpark is plenty to get your course off the ground. You can always refine it later.
2. Your first instinct is probably a good one.
   As soon as you start “writing copy”, most people start overcomplicating things. Instead, when you first go to fill in a blank in one of the templates, trust that your first instinct is probably quite close to the mark.
3. Stagger your attempts.
   Whether it’s going well or not, after your first attempt, come back to it fresh a week later and start completely from scratch. See if your first instinct is the same or if it’s changed. If it’s the same, you’re probably on to a winner.
4. Test it in isolation.
   Rather than getting feedback on your whole sales message, just show your value proposition to one person in your audience at a time and ask them A) who they think it’s for and B) what it’s for. They don’t need to know every detail based on the value prop alone, but they should be able to tell you it’s for someone like them and the main benefit they’d get from whatever the product is.

Checklist for a good value proposition

Here’s a quick checklist to run your value proposition through before you finalize it:

• Would your audience feel like you’re talking to them?
  If your audience can’t tell that your value proposition is for them, it’s not specific enough. That doesn’t mean everyone should be able to tell who it’s for, but the right people should be able to tell it’s definitely for them.
• Would your audience want the benefit?
  If your audience doesn’t care about the benefit you’re offering, it’s not a good value proposition. Make sure they’d read it and think, “Yes, I want that!”
• Does it differentiate you from alternatives?
  If your audience can’t tell why you’re the best choice for them, it’s not a good value proposition. Make sure you’re clearly communicating what makes you unique or better than their other options. That means other approaches, not just competitors.
• Would your audience believe you can deliver on it?
  Make sure you’re making a believable promise you can keep and that your audience will know when they’ve achieved the benefit you’re promising.

Exercise: Define your value proposition

Now it’s your turn. Take some time to work through the methods and tips above to define your value proposition. Remember, it doesn’t have to be perfect right away. Just get something down on paper and you can refine it later.

Remember 💡

Once you’ve drafted your value proposition, show it to someone in your audience and check they can tell who it’s for and what that audience would get out of it. If they can’t, you might need to rethink.

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Key point → Clarity over cleverness

Your value proposition should be clear and make the value easy to understand for your target audience. It's more important to be clear than clever with your core message.

Summary

A value proposition is a simple statement that explains what you do, who you do it for, and why you're different from the competition. It's a promise of value to be delivered.

Next, we'll explore what to take into account when it comes to pricing for your very specific target audience—because who you're selling to matters just as much as what you're selling.