Startups Should Do “Value Pool Sizing”, Not “Market Sizing”

Tim Darling
Feb 21, 2019 · 5 min read

Value pool sizing, as a mathematical exercise, can be simple. What’s the $ size of a pain that a buyer has? How much can we alleviate it? That’s it.

Your revenue is the percent of the value pool you can capture in price, while the rest goes back to the buyer as the value they get for using your product.