Unit of Value: A Framework for Scaling - Deepstash
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Unit of value

Unit of value

Unit of value:

  • What your customers pay for.
  • The smallest measurable unit at which your product or service delivers value.
  • Examples: servers, user seats, TBs of storage, API calls.

Your unit of value determines how you price, scale and sell your product to customers.

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Unit of value examples

Unit of value examples

Single units of value

  • Dropbox / Office 365 - one user
  • VMWare - one server

Medium/Team units of value

  • GitHub - dev team
  • Salesforce - 3-4 sales reps

Big units of value

  • SAP - ERP for entire company
  • Oracle - Enterprise apps for entire company

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Create non-linear value

Create non-linear value

From the 80/20 rule you know a few customers will drive your sales. Your goal is to find that handful of customers and scale them up. The goal is to create non-linear value for them.

Build out your offerings so the more your customers consume, the more value they get. Sell additional products at scale, like management, monitoring, or security.

One way to increase value is through network effects: more users = more value. Examples: collaboration tools (GitHub) and communication platforms (Slack).

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Apply this to your startup

Apply this to your startup

  1. Define your unit of value: What is the smallest unit of your product that delivers value to your customers?
  2. Create a roadmap to increase that value as you scale. Identify ways to increase value as you and your customers grow. Figure out how to combine your services to create non-linear value over time.

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