How valuable is a unicorn?
Apparently, if you live in Silicon Valley, you can buy a unicorn for a cool billion. Successful companies from “the valley” and beyond have convinced entire masses of people that their product is better, cheaper, faster… the list goes on.
What is it about the value proposition of a successful company that is so convincing to customers?
Value proposition examples from companies now valued at over one billion dollars are great lessons in how to convey what your company does to the general public. How do you explain what you do so well that a kindergartener will understand? This is the essence of a successful value proposition.
Continue reading Colombia Phone Numbers List or jump to our infographic to learn more about value propositions, see examples of successful strategies, and discover tips to write your own.
What is a Value Proposition?
Simply put, a value proposition explains what your company does.
It is the offer a person, entity, or company makes to deliver a helpful good or service that would otherwise cost more than the fair value being exchanged.
The basic value proposition of an auto mechanic, for example, is the provision of tools and expertise to fix your car at a relatively low cost. You could learn how to fix the car yourself and purchase the necessary tools, or spend a fraction of the time and money with a mechanic.
Universities, factories, and restaurants all have a similar value proposition. They provide the infrastructure and skilled labor necessary to deliver goods and services — in this case, degrees, devices, and dinner — at a lower price per unit than would otherwise be achieved.
Value propositions should explain what the problem is and how your product or service intends to solve it. As technology progresses, this typically comes in the form of an improvement upon how things have been done in the past.
Let’s consider food delivery as an example. In the past, food was only delivered by a select group of restaurants (mostly pizza joints) who employed their own fleet of delivery drivers. With the help of mobile devices, however, food delivery apps now dispatch their delivery fleets to accommodate more restaurants at a low cost.
Not only does this provide more low-cost options to more customers, it also unlocks more revenue for restaurants while simultaneously eliminating the need to employ drivers. How’s that for delivering value?
Value Proposition Lessons From Elevator Pitches
An elevator pitch is a prompt description of your product or service usually within the metaphorical 30-second window you would have to pitch an investor while riding in an elevator together.
The elevator pitch is a way to articulate your value proposition to make the most impact with the least amount of words. Since the average visitor to your website, app landing page, or app store listing stays for about a minute, this is your chance to perfect the value proposition.1
When writing a powerful value proposition, instead of impact per word, you must measure impact per syllable. The clearest and most concise ones are 10 syllables or less. All things considered, these could be some of the most profitable syllables for your business.
Let’s see how some of the most successful companies formulate their value propositions.
21 Value Proposition Examples From Billion Dollar Unicorns
A billion-dollar business is not built entirely on a value proposition, but it is a tool that allows them to convince people of the value in their products and services.
So what are some of the best examples we’ve seen?
Here is a list of 21 value propositions from companies who have reached a valuation of $1 billion or more.
01. Khan Academy
value proposition example from khan academy with "You can learn anything" on web and mission statement on twitter bio
“You can learn anything.”
Khan Academy is mission-driven. Their value proposition speaks to what they want to contribute to the world: Free education for all. They also take the flattery approach, giving users the self confidence necessary to embark on a class.
This methodology can be powerful when users act on this moment of high self-esteem and decide, “Yes, I can learn anything.”
Khan academy’s twitter bio is more of a mission statement but contributes to their value proposition: “free world-class education for anyone, anywhere.”
Use this within your strategy to appeal to what might motivate users to sign up for your product or service.
02. Airbnb
airbnb value proposition example for guests and host
Describing what your product or service does is one of the most important parts of the value proposition. It could be easy for large, popular companies like Airbnb to forget that there are still people unfamiliar with what their service does.
But they don’t. Instead, Airbnb explains their value proposition clearly to both previous users and to those who’ve never heard of the business.