Startup Advice for Entrepreneurs – The Vegas Money Formula
The Vegas Money Formula teaches you how you can make small bets on to break through the noise and accelerate return on your efforts.
If you’re ever listened to a professional in the internet marketing or startup space,you have probably heard advice that seems somewhat like this,”Figure out how to get an extra hour out of every day and use that time to work.” Or perhaps you’ve heard this one,”Live onas little money as possible until you’ve got a profitable startup”
I am here to tell you that this information is not only outdated,but it may very well be the reason you haven’t made much progress on your business idea.
The Vegas Money Formula may be the piece of the puzzle you have been missing. Your big break.
Why Most Startup Advice Out There Does Not Work Now
Organic Reach online Has Declined Dramatically
Lots of the gurus offering information on the internet have been in existence since the early days of the world wide web,when getting fans and views was easier to hack than it is now. These”experts” expect you to be able to publish something and find an organic audience the same they did.
In March 2013 Google stated they were aware of 30 trillion pages on the web. By 2016 that amount was 130 trillion and 576,000 new sites are created each and every day.
Because the world wide web has grown so massively,it’s more difficult to break through the noise and get discovered. Additionally,platforms such as Facebook and Google rely on ads to make money so their incentive to surface content is closely tied to earnings.
Take this for instance. When I started marketing years ago,when a Facebook company page posted,16% of fans saw that post. That number has steadily declined. Unless you specifically cover to”boost your post,today’s average organic reach sits well below 1 percent.
If you would like feedback from someone besides your mom or your best friend,you must figure out how to break through the noise and get through to your target audience.
Later in this post I will teach you some techniques for actually reaching your audience so you get the feedback you require. But first,let’s debunk the”save your pennies” information that kills the progress of so many entrepreneurs.
Why A Scarcity Mindset Rarely Works,Particularly for Entrepreneurs
Entrepreneurs tend to be dreamers. They solve problems because they are able to envision a bigger,better world that exists beyond the now.
Most startup coaches who assert”internet freedom” state that if you can continue 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.
Rather,I recommend a mindset shift. If you can put yourself in a position where you aren’t worried about how you’re going to cover next month’s rent,you can turn your startup endeavors to a hobby.
This allows you to live comfortably,fuel up on real food and sleep,and thenspend your spare time on leveling up along with your small business.
Mindset is critical to everything we do. A mindset of drama,pursuit,and healthy gambling is central to the Vegas Money Formula.
What’s the Vegas Money Formula?
The Vegas Formula for Entrepreneurship is the normal practice of taking a small amount of additional budget from the close of each month and investing it in an experimentation framework that puts you in front of people who would potentially support your company.
I call the volume you should invest Vegas Money because it ought to be the amount of money you can afford to lose without negatively impacting your everyday life.
The difference between this and real Vegas is that the house is actually just you (rather than some huge smoke-filled casino dinging with slot machines).
Instead of throwing your money at a set of aces,you’re making small,incremental investments in your future.
Later in this article I’ll describe how to execute the Vegas Money Formula,but first let’s explore why it skyrockets your likelihood of success.
Why The Vegas Money Formula Works So Well
What I like most about the Vegas Money Formula is two things:
- Unlike real gambling,the odds aren’t inherently stacked against you. In actuality,when it comes to entrepreneurship or publishing on the world wide web,the more efforts you make,the more likely you are to get a hit or go viral. Publishing more and getting feedback from morepeople increases the odds that you will 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’ll support you. The more you get out there,the more likely you are to connect with these 100 people.
Examples and versions where these sorts of direct to cash support channels exist comprise Substack,Mighty Networks,Memberpress,Thinkific or alternative course platforms,and more.
If you monetize via e-commerce or something like BuyMeACoffee you’re still likely to need over 100 fans,but the principle still stands.
The Vegas Money formula puts you in front of people consistently. If you’re prepared to learn from the comments that the formula provides you,you’re increasing your likelihood of finding the supporters you need to succeed.
- If you win big,the payouts supply an outsized return on your investment.
There was a window after World War II when loyal office employees were essentially guaranteed a job for a lifetime. Workers higher up on the corporate totem pole got company cars and expense accounts that let them 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 times no longer exist and most people nowadays are forced to work on an hourly basis with perks,bonuses,or an expense account. In today’s world,the most likely way to earn outsized returns for yourself would be to either raise your hourly rate or break away from trap of trading your time for money.
The Vegas Formula serves to boost your value or assist 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 everyday life.
How to Implement the Vegas Money Formula For Your Thought
Start with an Experiment (or Series of Experiments)
Map the Parameters and Key Performance Indicators (KPIs)
Spend Your Money Wisely
Celebrate the Results
Start Over,Just Smarter This TimeFor a free tutorial on how to do this,go to