The Vegas Money Formula teaches you how to make modest bets on to break through the noise and accelerate return on your efforts.
If you are ever listened to a guru in the online 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 opportunity to work.” Or maybe you’ve heard this one,”Live onas little money as you can until you’ve got a profitable startup.”
I’m here to tell you that this advice is not just outdated,but it may just be the reason whyyou haven’t made much progress on your business idea.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 on the Web Has Declined Dramatically
Many of the gurus offering advice online have been in existence since the early days of the Internet,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 said they were conscious of 30 trillion pages on the web. By 2016 that number was 130 trillion and 576,000 new sites are created every single day.
Because the Internet has grown so hugely,it is harder 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 earnings.
Take this for instance. When I started marketing years ago,when a Facebook company page posted,16% of fans saw that article. That number has steadily declined. Unless you specifically pay to”boost your article,today’s average organic reach sits well below 1 percent.
If you want feedback from someone besides your mother 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 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” advice 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 since they’re able to envision a bigger,better world that exists beyond the now.
– LaurenProctor32.com
Most startup coaches who promise”internet freedom” state that if you can continue and save your pennies for long enough,you will come to hustle your way to success.
I disagree.
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 in which you are not worried about how you are 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 spend your spare time on leveling up with your business.
Mindset is critical to what we do. A mindset of drama,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 additional budget from the close of each month and investing it in an experimentation framework that puts you in front of individuals who would potentially support your company.
I call the amount that should invest Vegas Money because it ought to be the quantity of money you can afford to lose without negatively affecting your everyday life.
The difference between this and real Vegas is that the house is truly just you (rather than some huge smoke-filled casino dinging with slot machines).
Rather than throwing your money at a pair of aces,you are 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 are not inherently stacked against you. In actuality,when it comes to entrepreneurship or publishing on the world wide web,the more attempts you make,the more likely you are to get a hit or go viral. Publishing more and receiving 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 make a comfortable wage in america,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 those 100 people.
Examples and models where these kinds of direct to cash support channels exist include Substack,Mighty Networks,Memberpress,Thinkific or alternative course platforms,and much 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 provides you,you are increasing your likelihood of finding the supporters you want to succeed.
- When you win big,the payouts supply an outsized return on your investment.
There was a window after World War II when faithful office workers were basically guaranteed a job for a very long time. Employees higher up on the corporate totem pole got company cars and expense accounts that allowed them to dine and wine 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 many people nowadays are made to work on an hourly basis with 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 functions to increase your value and/or help you experiment with new monetization models that disassociate your own time from money.
Now that you have context for what the Vegas Formula is and the way it works,let’s discuss how to incorporate it into your daily life.
How to Implement the Vegas Money Formula For Your Idea
Start with an Experiment (or Collection 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