How to Create Dividend Value in Your Business
There are two main types of value in your business, commodity value and dividend value. Commodity value rests on availability and convenience- you can go into any Walmart store and buy batteries, milk, or bread. These are the same batteries, milk, and bread that you could buy from Kmart, Target, or any of the big box stores. Commodities are valuable because they are necessary and convenient. They are not unique, which means that commodities are always extremely price sensitive. If you can buy the exact same product for less, with about the same amount of effort, most people will always go with the lower price.
As an expert in your industry, you want to avoid being seen as a commodity, in that your services or products are interchangeable with everyone else’s. Being viewed as a commodity is the death knell for being able to sell high priced programs.
The second type of value is dividend value, and this is the type of business value you want to create. Dividend value refers to creating an asset which grows over time, and you can apply this in multiple ways to your business. First, dividend value rests on differentiation and specificity- your clients can not get the same value products and services just anywhere.
As a result, they are willing to pay more to work with you. Dividend value also refers to increasing your lifetime client value- that is, the amount of money each client will spend with you over time. This means you must continue to offer higher and higher level programs to serve your clients well.
If you look at the most successful businesses, they always have a way to continually sell more to the same clients. Finally, the third aspect of dividend value is being able to create residual income, such as with creating continuity or subscription programs, or being able to license elements of your system or intellectual property to generate more income.
When you are looking to create dividend value in your business, focus first on differentiation, then on continuing to serve your clients again and again, and third on creating additional revenue sources from your methods and processes.
When you complete these three steps successfully, you will have a business that grows and prospers over time.
March 24th, 2009 at 2:03 pm
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
March 26th, 2009 at 10:52 pm
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
March 28th, 2009 at 7:03 pm
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
March 30th, 2009 at 3:37 am
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
March 30th, 2009 at 11:10 am
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
March 31st, 2009 at 8:41 am
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
April 1st, 2009 at 3:36 am
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
April 3rd, 2009 at 4:39 am
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
April 5th, 2009 at 7:16 pm
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
April 6th, 2009 at 11:58 am
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
April 11th, 2009 at 6:12 am
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
April 19th, 2009 at 12:40 am
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
April 30th, 2009 at 12:42 pm
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
May 2nd, 2009 at 6:06 am
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
May 3rd, 2009 at 6:38 am
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
May 5th, 2009 at 7:15 am
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
May 9th, 2009 at 1:38 pm
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
May 11th, 2009 at 11:35 am
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
May 20th, 2009 at 7:38 am
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]
May 20th, 2009 at 9:08 pm
[...] You must refrain from competing on price, because this turns your business into a commodity, rather than an asset. You want to create a relationship with your target audience that allows you to capture their interest and retain it for life. When your business relationship becomes more valuable over time, this is called creating dividend value. [...]