# Practical Value: Making Information Worth Sharing

People share useful information to help others. If your product, content, or message saves people time, money, health, or effort, they will pass it along as a favor to the people they care about. Practical value is the altruistic engine of word-of-mouth — people share not to make themselves look good, but to help their friends and family.

## Why Practical Value Drives Sharing

Unlike Social Currency (which is about self-enhancement), Practical Value is driven by genuine altruism. People forward useful articles, share money-saving tips, and recommend helpful tools because they want to help the people in their network.

**The key insight:** Practical value content doesn't need to be exciting or remarkable. It just needs to be genuinely useful. A 65-year-old forwarding an article about "10 Ways to Reduce Your Electricity Bill" to their adult children isn't trying to look cool — they're trying to be helpful. This makes Practical Value the most democratic STEPPS principle. Anyone can share something useful.

**The paradox of narrowness:** Counterintuitively, content targeting a narrow audience often spreads more than broadly targeted content. Why? Because when something is specifically useful to a certain type of person, people actively forward it to "the person who needs this." "You're into gardening — you need to see this" is a more powerful sharing mechanism than "Everyone might find this interesting."

## Prospect Theory: The Psychology of Value Perception

Daniel Kahneman and Amos Tversky's Prospect Theory explains how people perceive gains and losses — and it has direct implications for how you frame deals, discounts, and practical value.

### Core Principles of Prospect Theory

**Principle 1: Reference Point Dependence.** People evaluate outcomes relative to a reference point, not in absolute terms. A $10 discount feels different depending on the context.

| Scenario | Absolute Savings | Perceived Value | Why |
|----------|-----------------|----------------|-----|
| $10 off a $20 item | $10 | Feels huge | 50% of the price saved |
| $10 off a $1,000 item | $10 | Feels trivial | 1% of the price saved |
| $10 off a $10 item | $10 | Feels incredible | It's free! |
| $10 off a $50 item | $10 | Feels good | 20% savings |

**The lesson:** Frame discounts relative to the smallest meaningful reference point. "Save $10 on your $20 purchase" beats "Save $10 on your $200 order."

**Principle 2: Loss Aversion.** Losses feel roughly twice as painful as equivalent gains feel good. Losing $100 hurts more than finding $100 feels good.

| Framing | Approach | Example | Perceived Impact |
|---------|----------|---------|-----------------|
| **Gain frame** | "Save $50" | "Get $50 off your next order" | Good |
| **Loss frame** | "Don't lose $50" | "You're leaving $50 on the table" | Stronger |
| **Endowment + loss** | "It's yours, don't lose it" | "Your $50 credit expires tomorrow" | Strongest |

**The lesson:** Frame practical value in terms of what people will lose by not acting, not just what they'll gain by acting.

**Principle 3: Diminishing Sensitivity.** The difference between $5 and $10 feels larger than the difference between $495 and $500, even though both differences are $5. Sensitivity to changes diminishes as the base amount increases.

**The lesson:** Small savings feel bigger when presented against a small reference point. If you can break a large purchase into smaller components, savings on each component feel more significant.

### Applying Prospect Theory to Content and Products

| Prospect Theory Principle | Content/Product Application | Example |
|--------------------------|---------------------------|---------|
| Reference point dependence | Frame value against smallest relevant reference | "That's less than your daily coffee" instead of "That's $4.50/day" |
| Loss aversion | Lead with what people lose by not acting | "You're losing $200/month by not..." |
| Diminishing sensitivity | Break large values into per-unit costs | "$1 per meal" instead of "$365/year" |
| Endowment effect | Give something first, then threaten removal | Free trial that expires, credits that vanish |

## The Rule of 100

The Rule of 100 is a practical heuristic for choosing between percentage and absolute discount framing.

### The Rule

- **For products under $100:** Use percentage discounts. "50% off" sounds better than "$15 off" on a $30 item.
- **For products over $100:** Use dollar-amount discounts. "$200 off" sounds better than "10% off" on a $2,000 item.

### Why It Works

People evaluate the number itself, not just what it represents. A bigger number feels like a bigger deal.

| Product Price | Percentage Frame | Dollar Frame | Which Sounds Bigger? | Winner |
|--------------|-----------------|-------------|---------------------|--------|
| $30 | 50% off ($15) | $15 off | "50% off" = bigger number | Percentage |
| $50 | 30% off ($15) | $15 off | "30% off" = bigger number | Percentage |
| $80 | 25% off ($20) | $20 off | "25% off" = bigger number | Percentage |
| $150 | 20% off ($30) | $30 off | "$30 off" = bigger number | Dollar |
| $500 | 10% off ($50) | $50 off | "$50 off" = bigger number | Dollar |
| $2,000 | 10% off ($200) | $200 off | "$200 off" = much bigger number | Dollar |

### Rule of 100 Quick Reference

| If Price Is... | Use This Frame | Because... |
|----------------|---------------|-----------|
| Under $100 | Percentage (% off) | The percentage number will be larger than the dollar number |
| Exactly $100 | Either (they're equal) | 10% off = $10 off (same number) |
| Over $100 | Dollar amount ($ off) | The dollar number will be larger than the percentage number |

### Applying the Rule of 100 Beyond Discounts

The Rule of 100 applies to any quantified value, not just discounts:

| Context | Under 100 (Use %) | Over 100 (Use Absolute) |
|---------|-------------------|------------------------|
| Speed improvement | "40% faster loading" | "Saves 3 hours per week" |
| Growth metrics | "25% more leads" | "500 additional leads per month" |
| Efficiency gains | "60% less manual work" | "Eliminates 200 hours of manual work" |
| Cost savings | "35% lower costs" | "Save $10,000 annually" |

## Knowledge Packaging: Making Useful Information Shareable

Having useful information is necessary but not sufficient. The information must be packaged in a format that is easy to consume, easy to remember, and easy to share.

### The Knowledge Packaging Hierarchy

Formats ranked by shareability (most shareable to least):

| Rank | Format | Why It's Shareable | Best For |
|------|--------|-------------------|----------|
| 1 | **Numbered lists** | Scannable, specific promise ("7 ways to..."), completeness | Tips, strategies, resources |
| 2 | **Infographics** | Visual, self-contained, platform-ready | Data, processes, comparisons |
| 3 | **How-to guides** | Immediately actionable, step-by-step | Tutorials, procedures |
| 4 | **Checklists** | Usable as-is, saves time creating own | Audits, quality checks, planning |
| 5 | **Calculators/tools** | Interactive, personalized output | ROI, savings, planning |
| 6 | **Comparison tables** | Quick decision-making | Product selection, evaluations |
| 7 | **Case studies** | Proof + methodology | B2B, complex products |
| 8 | **Long-form essays** | Deep understanding | Thought leadership |

### Why Numbered Lists Dominate

Lists are the most shared content format for several reasons:

1. **The number sets expectations.** "7 ways to..." tells you exactly what you'll get and how much time it'll take.
2. **Lists are scannable.** Even if you don't read the whole thing, you can get value from scanning.
3. **Lists feel complete.** "All the ways to..." satisfies the completeness need.
4. **Lists are easy to reference.** "Check out tip #3" is easier to share than "Read the paragraph about..."
5. **Lists have built-in structure.** Each item is a mini-unit of value.

### Designing High-Share Knowledge Content

**Step 1: Start with the audience need.** What specific problem does your target audience face regularly? "How do I save money on groceries?" is specific. "How do I live better?" is too vague.

**Step 2: Choose the right format.** Match the format to the content type:

| Content Type | Best Format | Example |
|-------------|------------|---------|
| Multiple tips on one topic | Numbered list | "9 Ways to Reduce Your Energy Bill" |
| Step-by-step process | How-to guide | "How to Set Up Your Home Office in 30 Minutes" |
| Data or statistics | Infographic | "The State of Remote Work in 2024" |
| Decision support | Comparison table | "Renting vs. Buying: A Side-by-Side Comparison" |
| Personalized output | Calculator/tool | "How Much Are You Spending on Subscriptions?" |
| Quality assurance | Checklist | "The Pre-Launch Checklist for Your Online Store" |

**Step 3: Optimize the title.** The title should communicate the specific value. Use this formula:

```
[Number] + [Adjective] + [Keyword] + [Promise of Value]
```

Examples:
- "7 Simple Changes That Cut Our Electricity Bill in Half"
- "The 5-Minute Morning Routine Backed by Neuroscience"
- "3 Free Tools That Replace $500/Month in Software"

**Step 4: Front-load the value.** Put the most useful information first. Many people share after reading just the headline and first few points. Don't bury the best tip at #7.

**Step 5: Include a clear "who to share with" trigger.** Either explicitly ("Share this with someone who...") or implicitly by making the target audience so specific that readers naturally think of the right person to forward it to.

## Making Deals Feel Like Deals

Even genuinely good deals need to feel like deals. Perception of value often matters more than actual value.

### Deal Perception Levers

| Lever | How It Works | Example |
|-------|-------------|---------|
| **Anchor price** | Show the original price prominently | ~~$99~~ Now $49 |
| **Limited time** | Create urgency with a deadline | "Offer expires Friday" |
| **Limited quantity** | Create scarcity | "Only 12 left at this price" |
| **Unexpected discount** | Surprise with savings they didn't expect | "We noticed you were looking at this — here's 20% off" |
| **Stacking** | Show multiple savings combined | "30% off + free shipping + bonus gift" |
| **Per-unit breakdown** | Make cost feel trivial | "Less than $1 per day" |
| **Comparison frame** | Compare to more expensive alternative | "Half the cost of [competitor]" |

### Making Discounts Shareable

A deal that's good enough to share follows this pattern:

1. **It feels exceptional** — not just good, but surprisingly good
2. **It's easy to communicate** — "50% off everything" is shareable; "Up to 50% off select items from participating categories" is not
3. **It's time-bound** — urgency makes people share faster ("Tell your friends before Friday!")
4. **It helps a specific person** — "Your sister who loves cooking would love this"

### Deal Framing Checklist

- [ ] Is the original price clearly visible as an anchor?
- [ ] Are you using the Rule of 100 correctly (% for under $100, $ for over)?
- [ ] Is there a deadline or scarcity element creating urgency?
- [ ] Is the deal simple enough to explain in one sentence?
- [ ] Would someone forward this deal to a specific person they know?
- [ ] Does the deal feel exceptional compared to typical offers?

## Practical Value Audit

Evaluate any content or offer for practical value sharing potential.

| Dimension | Question | Score (0-10) |
|-----------|----------|-------------|
| **Usefulness** | Does this genuinely save time, money, or effort? | |
| **Specificity** | Is it targeted to a specific need or audience? | |
| **Actionability** | Can someone act on this immediately? | |
| **Packaging** | Is it in a shareable format (list, tool, infographic)? | |
| **Forwardability** | Would someone send this to a specific person? | |
| **Framing** | Is the value framed using Prospect Theory principles? | |

**Scoring:**
- **0-20:** Low practical value. Content informs but doesn't compel sharing.
- **21-40:** Moderate practical value. Occasional shares to close contacts.
- **41-50:** High practical value. Regular forwards and saves.
- **51-60:** Exceptional practical value. Widely shared as a "must-read" resource.

## Exercises

### Exercise 1: The Rule of 100 Audit

List your current pricing/discount offers. For each, check whether you're using the Rule of 100 correctly. Reframe any misaligned offers. A/B test the original vs. reframed versions and measure sharing and conversion.

### Exercise 2: Knowledge Packaging Redesign

Take your best-performing long-form content. Repackage it as a numbered list, a checklist, and an infographic. Publish all three and compare sharing rates. Which format generates the most forwards and saves?

### Exercise 3: The Forward Test

For your next piece of content, before publishing, show it to 5 people and ask: "Would you forward this to someone? Who specifically?" If they can name a specific person, your practical value is strong. If they say "maybe" or "I guess anyone," it's too vague.

### Exercise 4: Deal Perception Audit

Take your current best offer. Apply all seven deal perception levers. Create an improved version that feels like a dramatically better deal (even if the actual value hasn't changed). Test both versions and measure sharing rate and conversion.
