What is value hacking?

Value hacking, as discussed by Shane Parrish and Mike Maples, involves focusing on the truth of a value proposition before considering growth. This approach is used primarily in startup environments. The process begins with identifying and validating a unique, compelling product that a specific group of people needs desperately. Only after this "value hypothesis" is validated—confirming that the product genuinely offers value—should a business start experimenting with growth strategies, referred to as the "growth hypothesis."

The critical emphasis is on creating a product that customers are not just willing to buy, but are eager to because it addresses their needs significantly better than alternatives. In this way, "value hacking" is about selling the truth of a product to people who need and believe in it rather than merely convincing them through aggressive marketing. This approach helps ensure that the growth is sustainable and not just fueled by external funding without real profit or value creation, often referred to as "fake growth" by Maples 1 2.