The Vegas Money Formula teaches you how you can make small bets on yourselfto break through the noise and accelerate return on your efforts.
If you are ever listened to a professional in the online marketing or startup area,you’ve probably heard advice that sounds a little like this,”Figure out how to get an extra hour out of each day and use that time to work.” Or perhaps you’ve heard this one,”Live onas little money as you can until you’ve got a profitable startup”
I am here to tell you that this information isn’t just outdated,but it may very well be the reason you have not made much progress on your business idea.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 Today
Organic Reach online Has Declined Dramatically
Many of the gurus offering information online 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 have the ability 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 number was 130 trillion and 576,000 new websites 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. Plus,platforms such as 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 back,when a Facebook business page posted,16 percent of fans saw that post. That number has steadily diminished. Unless you specifically pay 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 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” 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 imagine a bigger,better world that exists beyond the now.
Most startup coaches who promise”internet freedom” state that if you can hold on and save your pennies for long enough,you will eventually hustle your way to success.
To request an entrepreneur to pull back from their vision and place their physical self in an embarrassing position is the most surefire method to detach them from their dream.
Instead,I recommend a mindset change. If you can place yourself in a position in which you aren’t worried about how you are going to pay next month’s rent,you can turn your startup endeavors to a hobby.
This lets you live comfortably,fuel up on real food and sleep,and thenspend your spare time on leveling up along with your business.
Mindset is critical to what we do. A mindset of play,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 extra budget from the close of each month and investing it in an experimentation framework that puts you in front of individuals who would potentially encourage your business.
I call the volume you should invest Vegas Money because it should be the amount of money you can afford to lose without negatively affecting your every day life.
The difference between this and real Vegas is that the house is actually just you (rather than some massive smoke-filled casino dinging with slot machines).
Rather than throwing your money at a set of aces,you are 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 real gambling,the odds aren’t inherently stacked against you. In actuality,when it comes to entrepreneurship or publishing on the internet,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 stated this to make a comfortable wage in the United States,you only need 100 people who care enough about what you are 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 models where these sorts of direct to cash 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 are 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 are increasing your odds of locating the supporters you need to succeed.
- When 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. Employees 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 times no longer exist and most people these days are made to work on an hourly basis without perks,bonuses,or an expense account. In today’s world,the most likely way to make 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 boost 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 discuss how to incorporate it into your everyday 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
Celebrate the Results
Start Over,Only Smarter This TimeFor a free tutorial on how to do this,go to