The Importance of Having Skin In The Game

I’ve just finished reading a book by Nassim Nicholas Taleb. I’ve known about the books he wrote for quite awhile – like Antifragile and Black Swan.

His writing is accessible though I think he condenses some very basic principles about resilience in business, being highly aware and slightly paranoid to remain competitive and other important positive traits to achieve the life you want.

I’ve consider him like a academic author version of Tony Robbins. 😉 His books has plenty of applicable knowledge, stories and anecdotes for the modern entrepreneur BUT without the rah-rah super high energy of the big man himself.

Skin in the game is a phrase I like to use when talking to fellow entrepreneurs and those who are in business. Basically it means – having your own personal stake to ensure your commitment to your success.

Some examples:

• If you are launching a business – you put in your own hard-earned money, instead of depending on investors or grants.
• If you are a general going to war – you put your own son on the frontlines with the rest of the battalion.
• If you are market trader – you put in your own retirement money instead of other people’s funds.
• If you are running a marketing campaign – you put in your own advertising dollars instead of just using free marketing methods or free traffic.

Skin in the game means consequences when you are wrong as much as when you are right. – Nicholas Nassim Taleb

In my conversations with Gary or any other enlightened entrepreneur, they are highly aware that their success is highly dependent on how much they are willing to put in.

It is not just time and money. It is also the realization of what is at stake if they fail.

Would they disappoint their family if they failed?

Would their son/daughter/child who are always observing the parents – be receiving a lesson on becoming a good example or become a cautionary tale?

That is why I have the highest of respect for the self-employed and entrepreneurs who are:

• not afraid to get down and dirty when handling rejections
• fold up their sleeves to have the difficult conversations and
• willing to have that little vulnerability to show that they are just human as well

Do they have a choice if they fail? Perhaps yes. Perhaps no.

But the stakes are high enough that they will put in the highest possible efforts to ensure success.

On the other hand, I have zero tolerance for the employee who flies business class on the company’s dime and behaves like they own the airline and the plane. That is an example of someone who has no skin in the game but abuses that privilege.

Having skin in the game filters out all the excuses, justifications, BS – and brings the reality inside.

That is why I no longer offer free consultations

“You will never fully convince someone that he is wrong; only reality can.”

At this stage of my consulting business, I like to work with people who already have skin in the game. And the best way to filter out for truly genuine enquiries is to impose a consultation fee.

(I have been doing so for the almost 2 years.)

A little bit of money, a little bit of skin in the consultation – this ensures I will meet someone who doesn’t immediately discount my advice and knowledge that I’ve slowly built up.

Of course, on my end – I do my best to provide genuine and truly valuable marketing strategies that is valid from both my context and applicable to the one seeking it.

(And it is not a sales pitch under the guise of a free consultation)

Doesn’t this mean that I have severely limited the number of people I will meet? Yes of course.

Out of 10 enquiries, only 1 will proceed to make a booking for a paid consultation session. That’s a 10% conversion rate.

It is a lousy rate. But then again, I only have 24 hours per day. 🙂 This gives me time to provide my highest value service to my existing clients. That is MY own skin in the game.

To those who took the first step of booking a session with me, I acknowledge you.

You are literally one of the few (1 out of 10!) who are willing to put some skin in the game – to be genuinely accountable to your own success.

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