The Vegas Money Formula teaches you how to make small bets on yourself to break through the noise and accelerate return on your efforts.
If you’re ever listened to a guru in the internet marketing or startup space, you’ve probably heard advice that sounds a little like this, “Figure out how to get an extra hour out of every day and use that time to work.” Or maybe you’ve heard this one, “Live on as little money as you can until you have a profitable startup.”
I’m here to tell you that this advice is not only outdated, but it may very well be the reason why you haven’t made much progress on your business idea.
The Vegas Money Formula may be the piece of the puzzle you’ve been missing. Your big break.
Why Most Startup Advice Out There Doesn’t Work Now
Organic Reach on the Web Has Declined Dramatically
Many of the gurus offering advice online have been around since the early days of the Internet, when getting views and fans was easier to hack than it is now. These “experts” expect you to be able to publish something and get an organic audience the same they did.
Because the Internet has grown so massively, it’s harder to break through the noise and get discovered. Plus, platforms like Facebook and Google rely on ads to make money so their incentive to surface content is closely tied to revenue.
Take this as an example. When I started marketing years ago, when a Facebook business page posted, 16% of fans saw that post. That number has steadily declined. Unless you specifically pay to “boost your post, today’s average organic reach sits well below 1%.
If you want feedback from someone other than your mom or your best friend, you have to figure out how to break through the noise and get through to your target audience.
Later in this post I’ll teach you some techniques for actually reaching your audience so you get the feedback you need. But first, let’s debunk the “save your pennies” advice that kills the progress of so many entrepreneurs.
Why A Scarcity Mindset Rarely Works, Especially for Entrepreneurs
Entrepreneurs tend to be dreamers. They solve problems because they are able to imagine a bigger, better world that exists beyond the now.Lauren Proctor
Most startup coaches who promise “internet freedom” say that if you can hold on and save your pennies for long enough, you will eventually hustle your way to success.
To ask an entrepreneur to pull back from their vision and put their physical self in an uncomfortable position is the most surefire way to disconnect them from their dream.
Instead, I recommend a mindset shift. If you can put yourself in a position where you aren’t worried about how you’re going to pay next month’s rent, you can turn your startup endeavors into a hobby.
This allows you to live comfortably, fuel up on real food and sleep, and then spend your spare time on leveling up with your business.
Mindset is critical to everything we do. A mindset of play, pursuit, and healthy gambling is central to the Vegas Money Formula.
What is The Vegas Money Formula?
The Vegas Formula for Entrepreneurship is the regular practice of taking a little extra budget from the end of every month and investing it in an experimentation framework that puts you in front of people who would potentially support your business.
I call the amount you should invest Vegas Money because it should be the amount of money you can afford to lose without negatively impacting your every day life.
The difference between this and actual Vegas is that the house is actually just you (and not some huge smoke-filled casino dinging with slot machines).
Instead of throwing your money at a pair of aces, you’re making small, incremental investments in your future.
Later in this article I’ll explain how to implement the Vegas Money Formula, but first let’s explore why it skyrockets your odds of success.
Why The Vegas Money Formula Works So Well
What I like most about the Vegas Money Formula is two things:
- Unlike actual gambling, the odds aren’t inherently stacked against you. In fact, when it comes to entrepreneurship or publishing on the internet, the more attempts you make, the more likely you are to get a hit or go viral. Publishing more and getting feedback from more people increases the odds that you’ll find your people and hit on something big.
Ji Lin of Andreessen Horowitz came out this year and said that to earn a comfortable wage in the United States, you just need 100 people who care enough about what you’re doing that they will support you. The more you get out there, the more likely you are to connect with those 100 people.
Examples and models where these kinds of direct to money support channels exist include Substack, Mighty Networks, Memberpress, Thinkific or other course platforms, and more.
If you monetize via e-commerce or something like BuyMeACoffee you’re still likely to need more than 100 fans, but the principle still stands.
The Vegas Money formula puts you in front of people consistently. If you’re willing to learn from the feedback that the formula gives you, you’re increasing your odds of finding the supporters you need to succeed.
- When you win big, the payouts offer an outsized return on your investment.
There was a window after World War II when loyal office workers were essentially guaranteed a job for a lifetime. Workers higher up on the corporate totem pole got company cars and expense accounts that allowed them to wine and dine without making a dent in their ever growing pool of wealth. For awhile, this was a set of the wealthy class who always knew they could rely on a growing savings account.
Those days no longer exist and most people these days are forced to work on an hourly basis without perks, bonuses, or an expense account. In today’s world, the most likely way to earn outsized returns for yourself is to either increase your hourly rate or break away from trap of trading your time for money.
The Vegas Formula serves to increase your value and/or help you experiment with new monetization models that disassociate your time from money.
Now that you have context for what the Vegas Formula is and how it works, let’s talk about how to integrate it into your daily life.
How to Implement the Vegas Money Formula For Your Idea
Start with an Experiment (or Series of Experiments)
Map the Parameters and Key Performance Indicators (KPIs)
Spend Your Money Wisely
Observe the Results
Start Over, Only Smarter This Time
Implement the Vegas Money Formula With Me
I’m about to start the Vegas Money Formula for the company I am founding, By Bartenders. If you’d like to see how it’s done and have help as you implement the Vegas Money Formula for yourself, enter your email below.
If you want help with more than the Vegas Formula, I’ve got something for you…
Are you a current or existing entrepreneur building or growing a business in fashion, hospitality, luxury, or lifestyle? Would you like to be part of a community and mastermind where you can meet up with likeminded people who are also growing their businesses?
Book a free strategy session with High Fidelity Artisans’ founder, Lauren Proctor below. We’ll talk about where you are and what you want to achieve. We’ll also give you a free roadmap for the next three months of your business.