The power of skin in the game

Some of you may know that my wife Laura has been working on a skincare brand called Eden Beauty. 

During her first six months, she hardly made any sales…

But over the last month, she’s been making several sales a day. 

What’s the big difference been?

Skin in the game. 

You see at first, Laura wasn’t doing the marketing for her skincare company…

Instead, she was relying on a third-party agency…

And it just wasn’t working.

The guy responsible for her account was slow…

Constantly tweaking things for no reason…

And you kind of got the vibe that he thought her campaign wasn’t going to work anyways.  

When he left to go join a new company…

Laura decided to take media buying into her own hands… 

So she went through Justin Brooks’ Media Buying Course (I bought the whole bundle a while back)…

Used Google to supplement any knowledge gaps…

And started setting up her own Ad Campaigns on Facebook. 

Sure enough, within a few days, she made her first sale…

And now she’s making 3-5 sales per day on average…

Which may not sound like a huge deal…

But it is. 

Why?

Because now we know that she’ll be able to scale significantly once she’s ready.

You see, so far she’s been purposely keeping her ad spend low…

And letting Facebook’s AI optimize her ad campaigns. 

She’s also been split testing like crazy…

And playing with different price points, ad creatives, variants, etc.

Yesterday she added a subscription to one of her funnels (I wonder who gave her that idea??)…

And she’s already started making conversions there too…

Which could lead to a LOT of money for the ol’ Georgi household down the line.  

So the point is…

Now that Laura knows her funnel works and her campaigns work…

It’s only a matter of time until she scales to 20 sales a day…

Then 100 sales a day…

And then potentially a whole lot more. 


And this brings us back to the concept of skin in the game. 

In the six months of working with an agency, I don’t think they made a single sale.  

In the last two weeks, she’s made dozens.  

The reason why is because she took matters into her own hands…

And decided that instead of waiting for someone else to solve her traffic problems for her…

She was going to figure it out herself. 

Pretty sexy right?

—-

I also want to point out that Laura spent maybe 3 days doing the training on FB Ads before she was setting up campaigns and making sales. 

That’s a big eye-opener for me…

Because I’m always thinking “oh buying media on FB is complicated now, I wish I had the time, I don’t know what to do” etc. 

In reality, it’s not that complicated…

And this reminds me of an important lesson I learned a few years back…

Which is that we tend to exaggerate the “unknown”…

When in truth, the unknown is rarely actually all that complex. 

I made the same mistake with my health company HLH.

For the first year I was afraid and resistant to working with affiliates…

Because I didn’t know the space and thought it was complicated.

Finally, in May of 2016 I decided to try working with some affiliates…

And in the year that followed my revenue went from $1MM to $23MM…

Plus, in that same year, I started numerous other health offers that were all driven by affiliate traffic…

And many of which reached 8 figures as well. 

Affiliate marketing is NOT hard…

Honestly, it’s stupidly easy…

But I used my fear of the unknown as an excuse…

Something that held me back from reaching my goals…

Until one day I finally said “f**k it.” 

—-

So again, you need skin in the game. 

Especially at the beginning, when you’re first launching a new venture. 

It just makes so much sense to be involved…

Because when you’re trying to get a new business off the ground…

Nobody is going to care as much as you do…

Or try as hard as you will. 

Then, once you have momentum…

That’s when you can start to extricate yourself from the day-to-day… 

And that’s something that should be your goal…

Because that’s how businesses scale and become the most valuable. 

The key though…

Is to make sure that you extricate yourself in an intentional manner…

You can’t just wake up one day and arbitrarily decide you no longer want to show up to work…

Or immediately hand off all your responsibilities to some new person you just hired after two interviews.

That’s abdication, which almost ends in disaster…

We want to be strategic…

Because in the end…

Great Strategy + Well Coordinated Execution is how you win. 


I could write a whole book about this topic…

But fortunately, Nassim Taleb already wrote one…

And it’s titled…Skin in the Game (surprise surprise!)

So if you’re interested in going really deep on this concept…

It’s worth giving it a read or listen. 


– SPG 

P.S.This post originally came from an email I sent to my private list. If you want to see more stuff like this from me, you can apply to join my list using this link

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