The Value Pyramid: How to Escape an Ordinary Life
Part 1: Introduction
If you're not solving problems, you're a problem. ~ Praise J.J.
In growth, there are two types of people:
Linear Growth Seekers: These individuals obey the system without question. They follow the rules and norms they were raised with, much like robots following a program.
Since they fit the system, they excel within it, working hard to achieve the results it assigns to them. However, deep down, they realize that going through the motions isn’t enough. So, they push themselves even harder. They memorize every rule and detail to rise to the top and prove their worth. They grow predictably, locked in a cycle of “Garbage In, Garbage Out.”
Their life is stagnant, robotic, and lacking real meaning. It has already been lived—there's no room for true individuality or fulfillment.
Rebels of the System: On the flip side, there are those who didn't fit into the system. Initially, this makes them feel incompetent and frustrated. They struggle to find their place within a structure they don’t resonate with. This group faces the lows of realization—they're not good at what the system demands. Within this category, there are two paths:
The Miserable: These people, after realizing they’re not good enough, spiral downward. They seek relief in cheap dopamine and distractions. They have fun in the short term but ultimately cause long-term self-destruction.
Some may snap out of it. Some may pivot to follow the system they despise. Some continue spiraling, letting the dangers take their toll.
The Seekers of Meaning: On the other hand, some refuse to accept misery. They begin the difficult journey of discovering new competencies outside of the system.
They strive to create their own path, building the meaningful life they desire, but this path isn’t easy.
Some may give up on finding relevance. Some may fall back into the system they loathe. Some may sink into deeper frustration and become like The Miserable.
The cycle of self-actualization today—what I call The Miserable Cycle—revolves around these paths of growth.
If you're reading this, you're most likely in the " Seekers of Meaning" category. Here's how you can escape an ordinary life:
BY CREATING VALUE
"The purpose of life is not to be happy. It is to be useful, to be honorable, to be compassionate, to have it make some difference that you have lived and lived well." — Ralph Waldo Emerson
There’s a formula that unlocks the secret sauce for creating value.
Straight out of Alex Hormozi’s book $100M Offers. Here’s the equation that simplifies value into something actionable:
Value = (Dream Outcome × Perceived Likelihood of Achievement) / (Time Delay × Effort and Sacrifice)
This formula is the fundamental blueprint for creating value. Mastering each variable can supercharge your ability to deliver—and charge for—tremendous value.
Let’s break it down.
1. Dream Outcome: The Big Promise
This is what your audience dreams about. Whether it’s the perfect body, financial freedom, or life-changing convenience. It’s the why behind their goals.
But there’s a catch: A dream outcome on its own isn’t enough.
Imagine someone promising, “Get $1 billion in 2 minutes.” Tempting, right? Except no one believes it.
When I launched the first version of Slakenet, offering “free internet,” I expected it to go viral. It didn’t. Why? People didn’t trust the promise until they understood how it worked.
Lesson: Your dream outcome needs credibility. It is one thing to create value, and another thing for someone to perceive the value. They must perceive it as valuable before they pull out their card.
2. Perceived Likelihood of Achievement: Can You Deliver?
Certainty is king.
Here’s a story: Someone once put out a newspaper ad saying they’d give away free money. Guess how many people showed up? Zero. The offer sounded too good to be true.
The same logic applies to pricing. A surgeon with 200 successful surgeries can charge more than one with 15. —not just because of skill, but because they inspire trust. People will pay extra to eliminate risk.
Action Step: Build proof. Share testimonials, case studies, and results that show you’re the real deal. Certainty = value.
3. Time Delay: Speed Wins
We live in a world where faster = better. People want results yesterday.
Fast food beats home cooking. Next-day delivery trumps free shipping that takes a week. The quicker you can deliver results, the more valuable you become.
Lesson: If you can reduce the time it takes to achieve the dream outcome, you’ve cranked up your value.
4. Effort and Sacrifice: Remove the Work
The less your audience has to do, the more valuable your solution.
Examples:
A gym membership is cheaper than surgery, but more people opt for surgery because it requires less effort.
Focus pills sell better than meditation courses, even though meditation is the superior tool.
Convenience is currency. If you can reduce effort or sacrifice, you win.
Strive to increase the variables at the top and decrease the variables at the bottom.
The Work Equation: Producing Value
Hormozi also dives into what work means. I've added my spin on it by including value and impact into the equation:
Work = [Value] Outputs
Your work isn’t about hustle for the sake of hustle. It’s about creating outputs that matter.
It is one thing to generate outputs, but what matters is how valuable it is.
Outputs = Volume × Leverage × Impact
Volume: How much effort you put in—100 cold emails, 10,000 words, 500 reps.
Leverage: Tools, systems, or strategies that amplify your inputs.
Impact: How much your outputs move the needle.
How to Win:
Increase your volume: more emails, calls, products, or reps.
Leverage tools: automate, delegate, or streamline.
Maximize impact: Focus on what drives real results.
The Value Pyramid
On top of the value pyramid are the fundamental innovators creating something brand-new. Like Elon Musk with Neuralink, SpaceX, Tesla, etc.
He is the richest in the world because he is creating tremendous value.
On the bottom of the value chain are the Arbitrators
They Improve existing value, like wrapping complex AI tools into user-friendly software.
Tip: You don’t need to be a genius inventor. Many big winners start from making existing solutions faster, easier, or more convenient.
You can start by doing Value Arbitrage, and then moving up the pyramid of value.
Value Arbitrage
"A game changer is not always the one that started the game."
Enhancing existing solutions should not be underestimated. All advancements in technology rely upon foundations laid by predecessors.
Electric vehicle technology builds on the foundational principles introduced by Karl Benz.
Thomas Edison didn't invent the lightbulb from scratch. He perfected existing ideas.
Advantages of Value Arbitrage include:
Easier and Faster Marketing
Immediate Revenue
Customer Loyalty
Reduced Risk
Adaptibility
To build value by arbitrage, follow these key steps:
Identify an existing solution that serves a specific need.
Spot inefficiencies or problems within this existing solution.
Leverage new technologies or systems to improve on these gaps.
Combine many systems to create a superior solution that stands out in the market.
Iterate and optimize for better results and value delivery.
Unlocking Market Opportunities
The fastest way to find opportunities? Stop guessing—ask people.
Ask, “What’s a problem you’d pay to solve?” Then rank based on:
Massive Pain: Big frustrations = big money.
Purchasing Power: Can they afford your solution?
Ease of Targeting: Can you consistently reach them?
Growth: Is the market expanding?
You have to get most of the four variables right to win.
The Real Test of Value
The Market
No matter how much theory you master, the ultimate test is simple: Put it out there.
Even the pros can get it wrong. Perfection is a myth. Just launch, learn, and adapt.
99% of startups fail. That’s a staggering number, and if you think you’re going to avoid it by simply building the "perfect product," you’re in for a reality check. Here’s the truth: Build 1 startup and iterate 100 times. Sounds insane? Let me show you why it’s not only possible but incredibly efficient.
It’s not about trying to build everything you think will work. The secret lies in testing ideas, failing fast, and iterating.
Why Startups Fail (And How You Can Succeed Anyway)
Most startup advice encourages you to build your MVP first. Your "Minimum Viable Product." Because starting with the full product is not the best approach. You might end up wasting months or years on something that nobody wants. Because you skipped the most critical step: figuring out if the idea even works in the market.
Now, we're in an age where you don't even have to build a minimum viable product to validate your idea.
So, instead of diving into development, sell first. Test the waters, and if the idea doesn’t work, no sweat! You haven’t spent countless hours building something nobody will pay for. If it sells? Great! Now you have a market that’s waiting for your solution.
Some successful creators have made millions of dollars with a simple cycle:
Tweet: A short, attention-grabbing idea.
Thread: If the tweets does well, Expand on the idea and tease value.
Article: If the thread does well, Deep dive into the concept to clarify how it works.
YouTube Video: If the article does well, Put it into a visual format.
YouTube Shorts: If the video does well, Break it down into digestible content.
Micro-course: If the Youtube does well, Offer a low-barrier, high-value course.
Full course: If the Micro Course does well, Develop a more in-depth, premium offering.
Software: If all these steps go well, you can scale to building the final product.
It doesn't have to exactly work like that, but you get the idea.
To get to the top of the value pyramid:
• Obtain specific knowledge nobody else has. If it can be taught in schools, it's a cheap rat race because the knowledge is not scarce.
• Find leverage: Read my article on leverage.
• Make impact: I define impact as how much value your offer can be used to create. Think about it, directly or indirectly, valuable things create valuable things. This is why selling to businesses can make more money than selling to consumers.
• Be accountable and authentic with your personal brand.
Conclusion: Create, Scale, Win
Wealth creation isn’t reserved for the elite. It’s an open and positive sum game. The more value we create, the more easier for others to create even more value.
Value is infinite. Start creating today.
I'll be expanding and diving into practical value creation in my next emails.
Feel free to drop questions and thoughts on what you'd like me to highlight.
Stay Valuable,
~ Praise
Well articulated kindly thanks