Trust Equation
Increase trust by raising transparency and reducing visible self-interest
- Difficulty
- Moderate
- Time to result
- ~months to results
- Steps
- 5
- Confidence
- 97%
Cuban expresses trust as transparency divided by self-interest. The equation is a diagnostic rather than a measured scientific law: make important economics easier for customers to inspect while limiting how much the business appears to put itself ahead of them. At Cost Plus Drugs, his example is to display acquisition cost, apply a stated 15 percent markup, publish prices, and show fixed fulfillment charges. Customers can then evaluate whether the arrangement feels fair. The broader mechanism applies anywhere opaque pricing and intermediaries weaken confidence. Increasing disclosure without changing extractive incentives may be insufficient, while reducing self-interest without communicating it leaves the alignment invisible. Work both sides, then observe customer trust and adoption.
Origin
Extracted from Aspire with Emma Grede, where Mark Cuban used Cost Plus Drugs' published costs and stated markup to explain a trust formula he said he had read previously.
Core principles
- 01Customers trust what they can inspect
- 02Hidden economics increase suspicion
- 03Visible customer alignment lowers perceived self-interest
- 04Fair margins can strengthen adoption
How to run it
- 1
Identify the Trust Gap
List the prices, incentives, fees, or intermediaries customers cannot understand. Prioritize the opacity most likely to affect their decision.
- 2
Raise Transparency
Expose the relevant cost basis, markup, fee, or decision rule in plain language. Make the information easy to find before purchase.
- 3
Reduce Self-Interest
Examine how much value the company captures relative to what customers receive. Remove avoidable extraction or misaligned incentives where possible.
- 4
Align the Operating Model
Change contracts, intermediaries, or payment flows so the disclosed promise matches operations. Transparency should reveal real alignment, not decorate the old model.
- 5
Observe Trust in Behavior
Track whether customers understand the offer, choose it, return, or recommend it. Revise both disclosure and incentives when behavior does not improve.
In the wild
Cuban said the service shows its medication cost, adds a 15 percent markup, and separately states mail-order pharmacy and shipping charges. He argued that publishing the full price list and showing the economics helps customers see the arrangement as fair.
→ The company uses inspectable pricing as a central mechanism for earning customer trust.
Common mistakes
Treating the Formula as Scientific
Cuban presented the equation as a useful idea, not a validated quantitative model with standardized measurements.
Disclosing Without Realigning
More information will not repair trust if incentives still put the company far ahead of the customer.
Claiming Impact From Anecdotes
Individual savings stories can illustrate the model but do not by themselves prove typical savings or system-wide effects.
Is it for you?
Best for
It is best for businesses where customers struggle to understand prices, markups, incentives, or intermediaries.
Not ideal for
It is not ideal as proof that transparency alone can overcome a poor product, legal constraints, or unsupported savings claims.
From the transcript
“our markup is only 15%”
From the episode
The Aspire Playbook: Mark Cuban’s Day-1 Blueprint for Startup Success and How AI is Changing Entrepreneurship Forever
The Aspire Playbook