This is the cold hard truth about value, or valuing your start-up or any type of commodity, is that its bullshit! At least from todays standards, from manipulating traffic to a site to create a quick buck all the way to buying a mortgage. Understanding Value is a perception of wealth can help you understand what’s physically tangible in front of you right now.
Now I understand that is pretty broad, but lets think about this for a minute. Let’s say you shop at a grocery store by your home, you come across a 10 dollar coupon that gives you say 10 dollars off your next purchase of 100 bucks. What is the coupon worth? If you think 10 bucks you have misunderstood the value here. The coupon’s real value is ZERO, yup a piece of paper than gives you the consumer the illusion that this great store is giving you money! The store realizes there is competition, and the theory is by offering you this coupon they will be garnered maybe 95% of the sale for a guarheened loyal customer. That coupon is just paper with ink , because maybe you only spend 85 dollars in the store and by now to use the coupon you have to pass a 100 bucks to get the deal, your in the same sale or margin rate the visit before the coupon. So while your saying thank you for there service and helping you out, they’re thinking they just thanked us for doing absolutely nothing! AND THATS THE COLD HARD TRUTH!