Value Creation vs Value Extraction
Value creation vs value extraction is not about money. It is about the exchange you set up between your work and the people it serves. This video reframes economics as value exchange, then shows how to build loops that compound for your business and your customers.
What You Will Learn
- How to map your value exchange and avoid extraction traps.
- How to turn processes into growth loops that get stronger each run.
- How to set standards of excellence that compound trust and revenue.
Why Value Creation vs Value Extraction Matters
Extraction moves can spike cash, then erode trust. Creation moves planttrees. They set rules, raise standards, and feed loops that keep giving. Thegoal is a system where users get more value after every pass, and your businesscaptures a fair share because it earned it.
Steps to Build A Value-Creating System
- Define your value exchange — write a one sentence user gain and a one sentence business gain. Why: clarity keeps work aligned and exposes extraction moves that do not serve the user.
- Map the loop, not the silo — sketch first touch to repeat use, then mark inputs, actions, and returns. Why: loops reveal small improvements that spin a bigger flywheel.
- Set a standard of excellence — create a short checklist for product, content, and support quality. Why: shared standards raise the floor and the loop output over time.
- Design fair rules of exchange — use clear pricing, transparent data use, and helpful defaults. Why: fair rules reduce friction and increase repeat behavior.
- Ship one improvement per loop run — pick one lever, for example onboarding clarity or post purchase value. Why: steady gains compound and keep momentum.
- Measure creation and capture together — track user gain and business gain in the same view. Use Unified Reporting to see loop health across channels. Why: you avoid short term wins that drain long term value.
- Reinvest the fruit to plant more trees — dedicate a percent of returns to education, product quality, and community. Publish with Organic and guide strategy with Elysia. Why: reinvestment turns trust into durable growth.
Pro Tips
- Name your loop and write it at the top of briefs. Keep the promise visible so teams stay aligned.
- Pair lead indicators like activation rate with lag indicators like repeat purchase. Review both weekly in Reports.
- Test messages that promise a clear user gain using the Paid Intelligence Engine. Kill ads that do not deliver that gain on landing.
- Publish post use value like tutorials or templates with Organic so users exit better than they arrived.
On Page SEO Checklist
- Place the primary keyword in the H1, within the first 100 words, and in one subhead.
- Use supporting keywords naturally, for example value exchange, growth loops, value capture, business flywheel, standards of excellence.
- Link to at least two relevant internal pages such as Elysia, Organic, and this SEO strategy guide.
- Use a short, readable slug and a meta title under 60 characters.
- Add descriptive alt text and use the youtube-nocookie embed.
FAQ
What is value exchange in business?
It is the two way trade between what a user gains and what the business gains. When both sides win, loops strengthen and growth compounds.
Is value capture the same as value extraction?
No. Value capture is your fair share of value you created. Value extraction takes value without adding enough back. Capture is healthy when users still leave better off.
What is a business loop?
A loop is the set of steps a user repeats, from first touch to repeat use. Each pass should increase user value and make the next pass more likely.
Conclusion
Build a loop that gives more than it takes. Set standards, write fair rules, then ship one improvement each cycle. Next action, write your value exchange, map your loop, and draft a one page standard in Elysia. Publish helpful follow ups with Organic and track impact in Reports.
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