Something I’ve just run across has stopped me in my tracks and compelled me to write a quick post about it. If you work with marketing or branding in any way, this idea — it’s kind of a thought experiment, or in NLP terms a “re-frame” — may interest you, also.

First, two seconds of background…. I’m working this morning on my chapter on measuring and monitoring place brands for the upcoming third edition of Destination Branding. Doing some reading and research for it. I discovered that in the Q4 2005 edition of what was then called the Anholt-GMI Nation Brands Index (which was less than a year old at the time), a company called Brand Finance added “a new and very exciting dimension” to the NBI: a financial valuation of the 32 country brands in the index.

Now, I’m a huge sceptic of brand valuation — or, to put it more exactly, I’m a vociferous champion of the limits of brand valuation; brand valuation can be useful, but mostly by examining its delta, its change over time (the absolute figures brand valuation comes up with, in the context of place branding at least, I don’t trust [speaking of provenance] for a New York minute).

Having said that (as Larry David would say), I love the idea behind the “royalty relief” method Brand Finance uses to perform the valuations:

This approach assumes a country does not own its own brand and calculates how much it would need to pay to license it from a third party. The present value of that stream of (hypothetical) brand contribution payments represents the value of the brand.

Even if the figure arrived at by the valuers has little more validity than a finger in the breeze, “royalty relief” is still a great way to think about your brand — whether you’re a place, a company or an individual person: if somebody else owned your brand, your good name, how much would he or she charge you to rent it?

Or, to turn it around and add action implications, if you owned your brand (as you, in point of fact, probably do), and wanted to rent it out, will what your doing right now, today, this week, this month, mean you can charge higher rent for your brand in the future?

Follow up: As if to confirm my point about the delta being the thing, Simon Anholt’s just written a piece for Foreign Policy about how Obama raised America’s brand value by $2 trillion.