Do you wonder how many thousands of web sites there are? Does the world really need another one? What makes your site different – why would a reader come your way instead of mine? What’s your value proposition?
What’s a Value Proposition?
A while back Shaun from Smart Money Finance posted a question in the Yakezie Forum “Do you know why people read your blog?”. Not too many bloggers posted a reply and I believe I know why. It is very difficult to find and stick to your value proposition. In Shaun’s words “Simply put, a customer value proposition is a short statement explaining your product and why consumers will benefit from it. It’s used in business strategy to help identify how to position companies in the marketplace.”
In the business class I took (Fast Trac New Venture), one of the hardest things we had to do was to come up with a short (less than 75 word) description of what our business value differentiators were – our value proposition.
I ended up with “FamilyMoneyValues’ focus is on families using their values to keep their wealth and their family’s well being intact across multiple generations. It offers information on what to do with wealth after you have it, not how to get it. We collect, evaluate and publish information that is targeted to our customer’s wealth interests without intent to persuade them on a certain course of action”.
Later I shortened this to a mission statement of “Our mission at FamilyMoneyValues is to help families use their values to keep their wealth and well being for generations to come”.
Still later, I really shortened it to a tag line of “FamilyMoneyValues – helping families maintain and build wealth for generations”.
Although coming up with this was hard, sticking to it may be even more difficult. My blog’s message get’s diluted with marketing efforts such as round ups and giveaways. Finding relevant topics is sometimes difficult – sometimes causing me to post off topic or with another focus.
Why Bother with a Value Proposition?
Finding your value proposition is critical to your success, according to Marketing Experiments. They provide a scale to rate your value proposition and show a formula which indicates that your rating is twice as important to the success or failure of your business as things like your marketing channel and the amount of traffic it has or the presentation of your site or the product offer you make.
Their 1-5 scale is broken down as follows:
0 – No real value proposition (a full-price retail product that can be bought anywhere).
1 – Limited value to a small market. There is extensive competition and/or few barriers to entry.
2 – Substantial value to a medium-sized market. There is limited competition and/or significant barriers to entry.
3 – A product or service with strong product differentiation, but little competitive protection.
4 – A unique product or service that is highly valuable to a large market, and strong competitive protection and/or extensive barriers to entry. This may take the form of a registered patent or limited access to product components.
5 – A unique product or service that is highly valuable to a large market, and exclusive or near-exclusive control of essential product components. This may also include a registered patent.
Lets face it folks, there is extensive competition and very few barriers to starting a web site or developing an electronic product. There are a limited number of popular topics to cover with zero protection against our competitors covering them. So how do you differentiate your web site?
How to Differentiate Your Web Site or Product?
Entrepreneur Magazine’s article Three Ways to Find an Edge in a Crowded Market describes the following:
1. Personalize your customer service. Look for ways to offer a personalized experience and interactive features that make your product or service more user-friendly. “When you’re just a content site, users usually find you on Google,” he says. As a social-networking site, “there’s far more trust and credibility, as well as engagement.”
2. Be a trendsetter and redefine a common product or service. Don’t just keep up with trends in your industry, be the trendsetter and blaze your own trail.
3. Cater to an overlooked, under served slice of the market. Rather than trying to serve every customer, cater to the ones that have unique needs.
Other ideas he mentions are to:
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Use customer ideas.
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Buy competitors.
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Be more flexible than the competition.
Tom Treanor of the Business Blogging Telesummit posted these suggestions in Charles Darwins 12 Rules of Blogging Survival on Pro Blogger:
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Be the best teacher in your niche – explain things others don’t think need explaining.
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Be more personal than your competitors.
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Be funnier.
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Say what everyone thinks (helps you get agreement with your posts).
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Be an expert in a specific sub niche.
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Be more extremely different than others.
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Have a bigger vision – align your blog with a higher goal.
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Be more creative, write with different style, structure, use different media.
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Network with other bloggers, companies differently – go places others aren’t going. To put it in his words “Spread your tentacles where your competitors never dreamed of going by guest posting, blog commenting or connecting with other bloggers in those industries”.
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Be the best organizer of meaningful content from others – giving credit where credit is due.
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Be a news site Niche for your industry – news blogs can do very well because they get lots of shares, links, SEO benefits and subscribers. Just have a plan for getting regular, high-quality updates onto your site.
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Work harder and grab more virtual land than the rest of them.
The Guardian ran a series of posts on how to build a profitable blog. To differentiate content, the student blogger in the series learned that the design of the blog; the personal voice used; the length of the post; the frequency of the post; the angle she takes on the topic and niche; and whether or not there is more than one writer for the blog are some of the ways to differentiate.
Examples of Value Propositions
eBay’s value proposition is making inefficient markets efficient.According to Meg Whitman in 2003 ”We do that by providing a forum that’s an efficient market for buyers and sellers to connect, for products that typically don’t have an efficient distribution system. Products have a life cycle — first they’re new and scarce, and then it goes into in-season retail, then it becomes overstocked or obsolete or returned merchandise, and ultimately it becomes used and vintage.The market for in-season retail is very efficient. There are many in-season retailers, all of whom battle each other every day for lowest price. With the tails of that product life cycle, the ability of buyers and sellers to connect is not nearly as efficient. That’s what eBay offers — an efficient market for buyers and sellers to connect on those product categories.”
Wise Breads value proposition: “Wise Bread is a community of bloggers here to help you live large on a small budget. Despite what you may have heard, you don’t have to sacrifice your financial independence to enjoy life.”
Financial Samurai’s value proposition: “Share your thoughts freely without fear of persecution on all things personal finance related. A personal finance site for those who already get the basics.”
Wall street Journal’s value proposition: “WSJ online coverage of breaking news and current headlines from the US and around the world. Top stories, photos, videos, detailed analysis and in-depth reporting.”
About the author: Marie blogs at Family Money Values. She wants to help families understand the potential consequences of wealth. She encourages visitors to take the long view and pull all family generations together to nourish the family legacy and wealth. Go check her out!
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I never thought I’d be able to quit my job in 2012 just three years after starting Financial Samurai. But by starting one financial crisis day in 2009, Financial Samurai actually makes more than my entire passive income total that took 15 years to build. If you enjoy writing, creating, connecting with people online, and enjoying more freedom, learn how you can set up a WordPress blog in 15 minutes like this one.
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Updated for 2017 and beyond.
Great article and topic. I keep refining my about page to really try and work out my own value proposition, but I still don’t feel like I am there yet. As an aside, that series in the Guardian was written by Glen at ViperChill, pretty clever guy and well worth reading.
I think that defining this is one of the hardest things to do!
ViperChill is outstanding and one of the few online marketing blogs I read.
Hmmm, I’ll have to check that one out!
This is an awesome article! The “12 commandments” list was a little intimidating. I definitely like it in terms of motivating myself to think big, but at the same time, those are some tough goals considering the quality of blogs out there! I’m glad I decided to focus on particular niche of PF instead of trying to compete “head-to-head” with some of the incredible writers on the Yakezie.
I agree, there are many, many general personal finance blogs out there – I think a blogger has a better chance of success when they address a specific financial audience
Hey Sam,
This is a great article. I first thought of my site’s value proposition about 2 years ago, right before I joined Yakezie. I knew my site was different (fewer posts, lengthy posts, etc.) from at least some other PF sites, but I stopped trying to adopt other styles and posting frequencies for reader’s sake and instead thought I would rather find readers who appreciate my site’s differences.
We all blog for a reason, staying true to yours is certainly more than valid!
What’s your reason(s) for blogging?
I just love to write! I blog at FamilyMoneyValues to pass along my thoughts, experiences and research to help folks keep their next generation from blowing all of the family assets.
A little contradiction in the 12 Rules list:
Say what everyone thinks (helps you get agreement with your posts).
and
Be more extremely different than others.
Tough to do both I think.
I did notice though that both Entrepreneur Mag and Tom Treanor rated connecting with customers very highly. I agree that in addition to creating useful content the biggest differentiators in many blogs is the connection the author makes with his/her readers. That is something you simply can’t get most places.
And…it is difficult to do (at least it is for me…).
Honestly I write for myself and have found that I contribute through my sense of knowledge, family values, and my humor. I have never been a run of the mill guy and have never been able to pinpoint my specific marketplace. However on the flip side… I have been able to grow financially with all of the wonderful things that I love to do. I guess that is my marketplace in the business… I make people forget about their problems for a time being through video and blogging.
So – is that what you consider to be your differentiator?
I am going to be reading that entire Guardian series. I really like the idea behind this, one that seems so simple but many, like myself, probably never thought of.
I thought I had a good value proposition of basing my advice and posts about how to help students use and grow their money the right way. That was before I joined Yakezie and saw how many other sites also cater to students and had been doing so for a lot longer. So this is a work in progress finding how to differentiate my blog from all the other great blogs in this niche.
I’ve read that for most entrepreneurs, their original idea changes over time to meet the needs of the market…
Couple Money shows families how live on one income and have fun with the second. Too many families spread themselves out and become burned out. It’s about redirecting your spending on what matters and sharing how others (including our family ) have been able to do it.
Sounds like you have your proposition nailed.
Good stuff!
I used to think it was a “if you build it they will come” type of thing. Well, we first built it in 2009 and we’re still not as well read as the WSJ (last time I checked…). Let me take a stab at it:
Don’t Quit Your Day Job: Below average humor, average writing, above average egos and spectacular charts!
Totally awesome charts that look like they require a bunch of time to research and create!
The value proposition is an area I could certainly improve upon. I think my blog will be forever evolving. I do think my blog is unique though.
First off, it is about trading and I haven’t found an overwhelming amount of quality blogs out there concerning it. Secondly, I don’t just bore my reader with quotes about different markets. Usually I dedicate a mid-week post specifically about trading to help educate others in the profession. Lastly, I think readers like my opinion because I trade out in the country instead of in a big city like NYC or Chicago. Due to the lack of influences in my surroundings the commentary is original and pure.
So, is trading outside the normal market areas something that your readers respond to?
No, the markets discussed are not outside the norm. They respond to the methods and insight, because it’s different.
My value proposition is “Making Sense of Money”. Through that basic statement I am helping people understand money in simple terms. I think I provide a unique perspective because I have achieved most people’s goals of financial independence.
Knowing what worked for you to achieve financial independence helps you pass along thoughts to folks who are still working on it.
Financia Samurai, this is an excellent post! Very detailed as well – LOL do you take weekends off?
Kidding aside, in business its pretty easy to create your value proposition and tag line – becuase one has a viable product to market. As a previous small business owner, I believe it is essential and neccessary.
For a blog which really is an information site, its a lot harder to do isn’t it? I’ve been grappling with that question since FinCon11. In the end I don’t think one can create a value proposition from an information blog – at least I haven’t figured it out ;)
A great logo, catchy name, and great content seems to have helped enourmously. Although I don’t have a value propostion for the Ninja, I respond to readers comments, respond to their comments, and engage them in my articles, as well as connecting with other bloggers. Its workign! That’s what I’m sticking with :)
Cheers
Yes, I morph into Marie at Money Family Values! Go check me out at her site!
I did, however, spend time editing the post. Unfortunately, I can’t figure out how to make the formatting stick like I see it in draft mode for some reason!
;)
You might have more luck if you keep the post in HTML mode. Unfortunately the visual editor mucks things up sometimes!
I want my readers to learn something about saving money and be able to take immediate action. Standing out from the crowd is not something I spend too much time worrying about. My focus is providing easy to read, concise personal finance advice. I like short and to the point so that is what I try to present to my readers, at least that is what I try to do.
So…you are saying you don’t think a value proposition is important to carve out?
Quite the contrary Marie, my value proposition is quite clear: provide readers with information they can act on without wasting their time. Google released a study of internet use and found the average time per page averaging around 1 minute, so if you can’t get your message across in that amount of time you are going to lose most readers.
Ah, so it is really not a straight forward matter than! Thanks for writing this article, Marie. I have been working on The Money Principle value proposition for sometime now and am finding it an exciting and frustrating task. Will keep going.
I think it is a worthwhile exercise – and yes, a frustrating one – especially (for me) getting it down to just a few words in length.
Blogs lack tangible products so it’s harder for blogs to do branding. But, I agree that blog can succeed by finding a niche that’s been ignored and be good at that niche.
I think that there are lots of blogs about personal finance. So, I am trying to create value proposition through tag line, “Common sense personal finance with personal growth” as personal growth is essential for healthier personal finance.
So, you don’t think selection, and presentation of information can be a product?
This post is so timely as im working through this myself. Right now, im settling on “Maximizing wealth in on an extremely limited time budget”. Perfect example…I’m sitting in a hotel room on China posting this after having spent last 24 hours on planes. Can’t wait to get back to America.
China – wow – what a chance to get into the minds of a different culture to see how your proposed VP fits!
This is interesting. I have no idea what my value proposition is – I mean, I know what I bring to the table that others don’t, but I feel like it’s easily replicated. I’m trying to set myself apart, so reading this has sort of lit a fire under me to get going
That’s a problem for a lot of companies, not just blogs. Getting your edge and keeping ahead of the competition with it is no easy task.
I believe that my blog is slightly different. I have started blogging at an early age in my financial journey. There are plenty of blogs out there run by successful people who have already gone a substantial way along the journey. So my blog fills the gap for anyone that wants to start the journey now, joining me on the road to becoming a multimillionaire. We can share ideas and debate the best route along the way. People can go back and literally track my progress from the start (and hopefully to the finish) allowing them to copy what I do.
I checked it out and yes you do have a different angle. But what if another starter comes along and wants to build wealth using ISA – how would your blog be different than theirs – what’s your special personal angle.
Those 12 rules of blogging survival are going on my Sticky Notes, they are so simple and helpful. As bloggers we should have a value proposition and be able to refine it as we advance in our blogging. What is it for American Debt Project? So far it has been “A blog about figuring out why we get into debt without getting so serious as to depress ourselves. Learning how the world works to contribute to it as you want to, not how you’re supposed to.” I’m still working on it :)
Daisy, your blog is very readable. I would say you bring readers because you are personal and honest about problems as they come up in your life (I usually can only address problems once the storm has passed) and plenty of practical advice. I loved the debt payment plan excel sheet, for example.
I like it. I wouldn’t be able to keep from being depressed if I had to go back into debt – so I know where to turn now!
I believe I have value in “Personal Finance and Investing for Young Adults and College Students” – I focus a lot on paying for school, student loans, and getting started in the personal finance world.
I heart this post because it reminds me that I really need to think about my blog’s value. I tend to struggle with the purpose of my blog. Besides a catchy name, I have to think really hard about what my site offers that others don’t. I’m very eclectic and trying to focus that gets difficult at times. I try to be realistic and honest about who I am and what I bring (and don’t bring) to the table and I hope (and think) my readers appreciate that.
I believe that is one thing your competitors can’t mimic – your own experiences and approach to what you write. But, I’m not sure how I would state that in a value proposition.
I don’t agree with “Say what everyone thinks (helps you get agreement with your posts).” Really? It goes along with “try to please everyone.” It is impossible. First, you will lose your creative voice. Second, you will be simply boring. But most importantly, it is impossible because no one ever knows what everyone thinks. We are all different. Loved the post though!
I agree with Aloysa :)
Good points. Sometimes, though, if you are trying to convince someone, it helps to start out getting them to nod their head and then take them along your path. One way to do that is to write about ‘common’ financial advice that ‘everybody’ knows and then step by step, show them why you think it is wrong.
This is why we have Nelson Smith write on our site. While I have put up a few articles that may stir controversy (and often flop!) Nelson does a great job to get a point across.
While not all blogs that are huggy-feely bother me I do get drawn to sites that (respectfully) tow a different line.
Great post and thanks for the mention! I’ve seen many blogs that could really benefit from coming up with a value proposition. You can do well without one, but if you want to get to JD Roth levels of bloggerdom a value proposition will help you.
Glad you brought this one up in the forums Shaun.
Maybe it’s a cop-out answer, but I think what makes my site different is that it’s my voice. Granted, I never think I’m saying something that’s mind blowing or world changing, but I also know that I’m the only ‘me’ and what I’m writing are my thoughts, emotions, beliefs, and experiences. If people enjoy reading them, I am honored and grateful.
Speaking in your own voice is certainly unique. I think it also matters what topics you chose to speak about and what perspective you bring to them.
Molly: When we built our blog we started with a value proposition statement. It really helped us focus (especially since there was two of us at the helm!)
Over the past week Mike and I have been deep in building a new niche website based on the subjects we write in our own website. It’s thrown us back to rethinking much of what Darren from Pro Blogger talks about. After reading Pro Blogger, Smart Passive Income and other related sites I realize that if you write it they will not necessarily come. You have to do all the work besides just writing good articles. You’ve got to have excellent SEO and backlinks.
Too true, and for me it is all the other stuff (besides writing) that takes up all my time!
Well said! I don’t like to say it, but promotion seems to be more valuable than quality content.
Hey Sam, I think that this one is especially crucial: “Be the best teacher in your niche – explain things others don’t think need explaining.” — people go on the web to learn about things, and if they can be entertained and find a personal connection with the writer, then all the better. This is also where I think you excel btw.
Or Marie I should say. The author says Financial Samurai. ;) Marie, your blog will gain wider reach if you move onto self-hosted WordPress. You have the content… now you just need the platform! :)
Yep I’ll be doing that – probably in April. I have to get up to speed on
Wordpress, or find a Joomla extension that works well for blogs.
Marie – great post. It actually got me to make some tweaks to my about page.
I guess what makes my site different is that it is focused not just on challenging the rules of conventional personal finance wisdom, but also on replacing them with more viable solutions.
That’s why you will probably not see a post anytime soon comparing Roth IRAs to Roth 401ks, and instead are more likely to see discussions on early retirement through self sustainability.
That is great – I love inspiring folks to action!
Marie,
Great article! I think it is so important to ask those questions and really find out what makes our site so different.
As for me my niche is personal finance andmy sub niche is income property. I think I give value because I don’t hold back any details. A beginner and expert can learn from what I write. I also definitely mention the good, the bad, and the ugly. I think as a writer, if you don’t there will be no honesty in your work.
Also, since I also have a law background in addition to finance and real estate degrees and career experience, I can provide a spin most personal finance bloggers cannot provide :)
You’ve got great credentials – I’m looking forward to reading your future articles as I am very interested in income property this year – keep ’em coming!
Those are great introspective questions to ask to help us identify what we are trying to accomplish to help us with our direction. It is so easy to get lost in the day to day minutia of what we are trying to do. Forest and trees and all that.
Happens to me every day – I have to force myself to go back to my higher goals to figure out what I should be working on!
I’ll have to work on my value preposition. It’s not easy.
Some great advice up there.
No it isn’t easy – good luck.
Thanks Marie, for inspiring a lot of people to think about this and as a result… update their About pages. I will be doing the same soon.
RamblingFever Money… got the fever to ramble on about all things related to money!
Nice tag!
We’ve been working on a number of projects here, and I think narrowing down exactly what we want to offer and focusing on making our stuff unique is going to help us going forward!
Focus is good, but I think you do have to offer new stuff periodically too – to keep interest up.
Marie, I’ve been thinking about just this topic recently. My tag line is educate, inspire, motivate for wealth in money and life. Does it differentiate my site a lot? I’m not sure, but in this crowded market, it’s so important to do so. I continue to ponder this question.
In my view, you are differentiated by your qualifications and your presentation.
Great post! I think once you figure out what your value proposition is and how you can help, you stay focused and achieve more.
Yours is pretty clear.
It’s pretty amazing how many websites there are out there. The sites I enjoy reading the most talk about personal stories and experiences which is what I try to bring into my site. There’s so much we can learn from each other which is why I love Yakezie!
[…] If you’re struggling to make any money with your blog, take a good look at your site and ask yourself a serious question: What exactly am I offering? […]