Value Creation: The Single Skill That Built My $1M Solo Business

Failed Business: Digital Art Creation

• The speaker talks about their failed business of creating digital art with Photoshop. They mention that they have many pieces of digital art on their Instagram.

"One of my favorite failed businesses was creating digital art with Photoshop."

"And you can see here that this is one of my favorite pieces."

Power of Social Media in Building a Business

• The speaker shares that when they were creating digital art, they realized the power of social media in building a business. They emulated larger accounts' growth strategies, such as tagging community pages, creating great content, and remixing photographers' images.

"This was the first time I realized the power of social media in building a business."

"And I emulated how larger accounts grew their following."

"That's one of many social media growth strategies."

Transition to Learning a Profitable Skill

• The speaker shares that even though they loved creating digital art, they realized it wasn't valuable enough to demand payment. They felt the need to learn a profitable skill in order to monetize their passion.

"But I didn't realize that I was building a business at that time."

"And my art was valuable, but it wasn't valuable enough to demand payment."

"I had to learn a more profitable skill in order to start freelancing."

Regret and Realization

• The speaker expresses that looking back, they regret not continuing to grow their digital art business. They mention that if they knew what they know now, they would have continued with Photoshop art, but they ended up loving writing more.

"But of course, I was an idiot, and if I could go back and change things, I would."

"I do love writing a bit more now."

Importance of Value Creation Skill

• The speaker introduces the concept of value creation as the skill responsible for 95% of their business success. They highlight its contribution to brand sales, content, and revenue growth in the past 3 to 4 years.

"There is one skill that is responsible for 95% of the results of my business success."

"Value creation has contributed the most to my brand sales, content, and just revenue growth."

"And that's what we're going to talk about today."

Importance of providing clarity on overcoming problems

• When making people aware of a problem, it is crucial to also provide clarity on how to overcome it.

• Without clarity, people may not know how to address the problem or may not view it as important.

• Lack of clarity can lead to chaos, overwhelm, overthinking, and anxiety.

• Creating a path that bridges the gap between the problem and the desired transformation is essential.

"We create a path that we can illustrate in our content or our products in order to bridge the gap between the problem they're facing and the transformation that they're trying to acquire."

The importance of understanding the perspective and priorities of the target audience

• Problems are perceived differently based on individual importance.

• It is crucial to frame the content or product from the right perspective to ensure it resonates with the target audience.

• If a problem does not register or appear important to an individual, it won't catch their attention or lead to sales.

• Targeting a specific customer avatar or marketing to one's past self helps understand the customer's perspective better.

"You have to position the product in a very specific way to speak to that person. You have to understand your customer, is what I'm saying here."

The role of identity and perspective in value creation

• Humans perceive problems through the lens of their identity.

• Understanding one's own perspective and forming a shared perspective with the audience is crucial.

• Perspective forms the foundation of content, writing, products, and attracts like-minded individuals.

• Leading people towards a goal or vision through content helps market products better.

"Your perspective on things that forms a foundation of your content, your writing, your products, whatever you create, and the people you attract to create a shared perspective."

Examples of targeting specific audiences for effective messaging

• Positioning a product or message for a specific audience requires understanding their beliefs and identity.

• Identifying the language and mindset of the target audience helps create effective marketing.

• Turning oneself into the customer avatar and marketing towards one's past self can be easier and more fulfilling.

"You have to position the product in a very specific way to speak to that person. You have to understand your customer, is what I'm saying here."

The importance of capturing attention and delivering value in marketing

• Marketing requires capturing, holding, and delivering value on the attention received.

• Marketing firepower or "Legos" can be used in various marketing materials and platforms.

• Perception is key in marketing, where the perceived value of a product matters more than its actual quality.

"Treat all of these as marketing firepower or marketing Legos."

Levels of awareness in value creation

• The first step in value creation is understanding the different levels of awareness.

• Level one is unawareness of a problem, while level two is awareness without understanding or action.

• Level three is being aware of a solution.

• Short-form content usually targets levels one to three to capture a wider audience, as most are beginners.

"So the first thing that you need to understand is levels of awareness."

Providing solutions and encouraging action in content

• Short-form content aims to provide solution awareness and encourage action.

• Long-form content allows for a more comprehensive presentation of the problem, solution, and call to action.

• Multiple levels of awareness can be addressed in long-form content.

"You can walk through multiple levels of awareness here, but with short-form content, like a tweet or a short or a real or just an Instagram post or something like that, you're usually going to be targeting level one through three."

Illustrating the perceived value of a product

• Perceived value is crucial in marketing, irrespective of the actual quality of the product.

• Eight steps can help illustrate the perceived value:

  • Problem identification

  • Solution presentation

  • Unique mechanism explanation

  • Bullet spraying benefits

  • Proof of concept

  • Big idea communication

  • Risk reversal and end result demonstration

  • Marketing Legos application

"These eight steps are what is going to help you illustrate that perceived value."

Levels of Awareness

• There are five levels of awareness: unaware, problem aware, solution aware, product aware, and most aware of their problems.

• Each level represents a different stage in a person's awareness of their problem and the potential solutions available.

• The goal is to understand the level of awareness of your audience and target your messaging accordingly.

• This applies to various online interactions, such as profile views, website clicks, email engagement, and content consumption.

"And so level four is product aware, where people are aware of your solution and other solutions on the market. And so your job in this level of awareness and understand that everyone is in a specific level of awareness at any time when they are interacting online, right, whether it be when they go to your profile."

Product Awareness

• Product awareness is about understanding the level of awareness your audience has about your solution.

• When someone visits your profile, clicks on your website, reads your emails, or engages with your content, you should consider their level of awareness.

• You need to ensure that the level of awareness you are targeting aligns with what you are presenting.

• Rich language is crucial in this stage to best communicate why your solution is better and its benefits.

"Is it too high level or is it too broad?"

Persuasive Messaging

• Once the levels of awareness are understood, you can craft a persuasive message.

• Crafting a persuasive message involves presenting a reason or argument for why your solution is better than others on the market.

• It is important to use rich language to effectively communicate the unique value and benefits of your solution.

• Providing examples in your messaging can help illustrate the advantages of your solution over others.

"So in this stage, your job is to present a reason or an argument for why your solution is better than those on the market and benefits. Rich language is key here."

Levels of Awareness Example

• An example post is provided as a demonstration of persuasive messaging targeting a specific level of awareness - product aware.

• The example post describes the benefits of intermittent fasting, highlighting its impact on energy levels and providing a novel solution for a specific lifestyle.

• The language used in the post is intended to capture the attention of those who are already aware of intermittent fasting as a solution.

"Here's a post I would write: 'Why you should start intermittent fasting. Morning focus is insane. You don't have to plan morning food. Lunch and dinner can be massive meals and I could finish this, but you get the point.'"

Most Aware of their Problems

• At the highest level of awareness, individuals are most aware of their problems and the solutions available, including your solution.

• They are already sold on the idea and just need the right incentive or promotion to take action.

• Limited-time sales or scarcity tactics can be effective in this stage, but must be used carefully.

"And so level five is that they are most aware of their problems and they're aware of the solutions on the market and they're aware of your solution. They're sold on it. All they need is some form of an incentive or to have a promotion placed in front of them."

Positioning

• Positioning is about framing your message around one of the eight human desires.

• There are eight human desires that are impossible to ignore: survival, life enjoyment, freedom from fear, sexual companionship, comfort and clarity, perceived status, safety of community, and social acceptance.

• By identifying the big problem your audience is facing within one of these desires, you can create an angle or position your product or service effectively in your marketing messaging.

"So this is how you start or frame what you are going to write or speak about. The eight human desires are survival, life enjoyment, freedom from fear, sexual companionship, comfort and clarity, perceived status, safety of community and social acceptance."

Solving Big Problems

• It is important to address the big problems that your audience is facing before diving into deeper topics.

• Superficial problems must be solved first to enable growth and depth in their lives.

• By providing solutions to these surface level problems, you can then guide your audience towards more meaningful topics such as mindfulness or existentialism.

"Depth comes after you solve the shallow problems in your life and others. You have to raise people beyond the surface level problems that they have, but you can't just let them skip that. They have to solve those things in order to reach that place of depth."

Purpose and Path

• Purpose and path refer to understanding the problem and finding a solution.

• A unique mechanism is crucial in order to stand out from competitors.

• Solving your own problems uniquely and going through trial and error makes you an expert on that problem.

• This expertise allows you to help others solve the problem in a unique way.

"We have the problem and now we need the path or the solution."

Figuring It Out for Yourself

• It is recommended to figure out solutions for yourself in order to make them unique.

• Taking exactly what someone else is doing and packaging it as your own won't allow you to teach it effectively or make it unique.

• Gain experience by taking information from multiple sources and solving your own problems.

• Reflect on your experience to create your own unique solution.

"This is why I always recommend figuring it out for yourself, right? Solving your own problems in a unique way and going through the trial and error that makes you an expert on that problem that you are solving so that you can help others solve it from a unique way."

Creating a Solution Based on Personal Experience

• Combining different sources of knowledge and personal experience allows for the creation of unique solutions.

• Greg Gallagher combined intermittent fasting and reverse pyramid training to create a training program that fit his lifestyle perfectly.

• Understanding the solution and how it impacts one's life is essential for successful marketing.

• The creator's experience and expertise add value and uniqueness to the solution.

"You take from multiple sources in order to solve your own problems. And then through experience, you can come back and reflect and create a solution on your own."

Bullet Spray Benefits

• Bullet points can effectively communicate the benefits of a product or service.

• Listing compelling benefits helps potential customers understand how the solution will benefit their lives.

• By providing a list of bullet points, you increase the chances of resonating with and convincing potential customers.

"My favorite way to do this is by bullet points, right? Just bullet point benefits. Bullet spray them with it, because when you give a bullet point list, rather than just like not making it very clear as to how it's going to benefit their life, it's like a list tweet, write a list."

Using Personal Experience and Proof

• Social proof and testimonials are important for establishing credibility, but they may not be available at the beginning.

• Personal experience can be a valuable form of proof, both for the creator and for others who have faced similar problems.

• Statistics and anecdotes found through research can also contribute to a compelling argument.

"A lot of people get afraid to sell something because they don't have social proof or testimonials. But what you do have is personal experience and you have the personal experience of others in the form of statistics and anecdotes that you can research and find online to form your compelling argument in your writing."

The Big Idea

• The big idea is a one-sentence summary that illustrates the value of the product or service being offered.

• It encapsulates all the previous points, such as the big problem, unique mechanism, and bullet spray benefits.

• Examples of big ideas include Bitcoin being the digital currency of the future and GPT revolutionizing everything.

"The big idea is pretty much like I like to think of it as a one sentence summary of everything else that we just listed."

Risk Reversal and End Result

• The risk reversal and end result are important for closing deals and making potential customers feel secure in their purchase.

• A compelling risk reversal can go beyond a simple money-back guarantee to increase sales.

• Clearly communicating the desirable end result helps customers understand what they can achieve by using the product or service.

"Because you have the problem that is positioned towards a specific level of awareness and then you have the unique mechanism or your solution for overcoming it. You have the benefits associated with that. But what's the clear outcome and what's on the line if they do not reach that clear outcome?"

"It's what's going to help you close the most deals at the beginning of your journey. And most people opt for like a money-back guarantee, which is cool, but you can spice it up quite a bit."

Creating Desirable Results

• Being creative and offering a variety of options to customers can lead to desirable outcomes.

"You can get creative with it and really do anything you want."

• By emphasizing both the desired result and the risk reversal, you can effectively sell products or services.

"If you play back and forth between like the desirable and result and the risk reversal associated with that."

• An example of this approach is selling a dating product with the promise of a refund if the customer doesn't achieve the desired outcome of five dates in 60 days.

"That's a desirable end result... Five dates and a risk reversal."

• The pressure to deliver on the promised results can motivate customers to take action, particularly for beginners.

"That puts pressure on you to deliver, especially if you're a beginner."

• Even if the customer hasn't achieved similar results in the past, the offer of a refund creates a sense of urgency for them to try and achieve the desired outcome.

"It doesn't matter if you haven't gotten those results before... That's what puts pressure, that's what makes you actually act."

Importance of Practice and Real-World Application

• Watching videos or reading materials alone is not enough to develop the necessary skills. Action and practice are crucial.

"Watching this video is not enough... You have to start a project, encounter real world problems and let reality teach you."

• Real-world experience allows for learning from the minor nuances and practical challenges that cannot be fully explained in courses or books.

"There are thousands, thousands and thousands of minor nuances that you will pick up consciously and subconsciously as you are making progress."

• Skills are developed by applying frameworks like Pastore, ADA, or PASS to structure the eight value creation steps.

"You get better with time by using those frameworks and structuring all of the eight things that we talked about here within those frameworks."

"Watching anything or reading anything is not enough... You have to start a project, encounter real world problems and let reality teach you."

Applying Value Creation in Different Contexts

• Social media posts can follow the format of illustrating a problem, agitating it, providing actionable steps, and incorporating benefits.

"In long form content, it usually follows the format of illustrating a problem, agitating the problem, giving context and raising them up the level of awareness... So making them aware of the problem in their life and how it's impacting their life."

• Landing pages or sales pages can summarize the eight value creation steps, particularly in the headline and subheadline.

"The very first part of the website is where you're trying to fit and summarize all eight of these value creation steps."

• Course curriculums can capture attention, provide steps to overcome problems, and encourage action in each module.

"In each module, you want to walk them through, giving them steps, overcoming the problem that is presented in each section, and that's how you get them to act."

• Everyday conversations can benefit from the use of value creation by starting with a problem and then elaborating on the solution.

"Start with a problem that you're facing and then let the conversation carry on from there."

"So in long form content, it usually follows the format of illustrating a problem, agitating the problem, giving context and raising them up the level of awareness... So making them aware of the problem in their life and how it's impacting their life."

Continuous Improvement and Feedback

• Practice and improvement are key to utilizing the power of value creation in marketing and communication.

"This is extremely powerful if you actually use what we talked about here and practice it."

• Seeking feedback and considering the value of the information shared will aid in self-improvement.

"Let me know what you thought of this. Let me know if you thought it was valuable in the comments."

"This is extremely fucking powerful...If you actually use what we talked about here and practice it."