> ## Documentation Index
> Fetch the complete documentation index at: https://ycombinatorx25-research.nomi.so/llms.txt
> Use this file to discover all available pages before exploring further.

# Equation of value

> Understand how to create deep value in prospect mind.

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

**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.