The “Unicorn Strategy” in the Brow Business

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2. Who are "Unicorns"

Identifying the “Unicorns” in the Beauty Industry

In the world of Permanent Makeup (PMU) and the beauty industry in general, "unicorns" are those local service providers and salon owners who command a significant client base but do not offer services that directly compete with emerging powder brows or microblading artists.

Typical examples of these valuable "unicorns" are nail technicians, eyelash service specialists, hairdressers, and salon owners who provide such services. In the semi-permanent makeup business, they might not be as scarce as "unicorns" in other industries, but they are often considered invaluable finds. The reason is the common misconception among many PMU artists who view these service providers as operating in a completely different or unrelated sphere. These professionals represent a rich source of potential collaboration and client referrals, making them highly sought-after partners in the PMU industry. Recognizing and engaging with these “unicorns” can open doors to mutually beneficial relationships, expanding the client network for both parties.

3. Why this strategy is underused

Despite the apparent logic and potential benefits of collaborating with “unicorns,” many artists in the permanent makeup industry have yet to embrace this strategy. The primary reasons for its limited use are often rooted in misconceptions and lack of awareness.

Misconception about Marketing Strategies

The most significant reason for the strategy's underutilization is its relative obscurity and the misconception that only online marketing strategies are effective. Such partnerships often operate quietly, without much public visibility, leading many artists to overlook them as a viable sales and marketing avenue. Many artists today focus solely on digital marketing, disregarding the potential of effective offline strategies like this.

Fear of Appearing Aggressive or Desperate

Another barrier is the concern among artists about appearing too aggressive or desperate in seeking collaborations. This fear is largely unfounded, as no evidence suggests that such outreach negatively impacts an artist's reputation. In fact, approaching potential “unicorns” for collaboration can often be seen as a sign of confidence and professionalism, indicating the artist's belief in the quality of their service.

Skepticism About the Effectiveness

The third reason is skepticism about such collaborations' productivity and mutual benefit. Contrary to this belief, empirical evidence has repeatedly shown that partnerships with “unicorns” benefit PMU artists and add value to the services offered by these “unicorns.” The collaboration can create a symbiotic relationship, enhancing both parties' client base and service quality.

The "unicorn strategy" holds significant potential for PMU artists, yet it remains underutilized due to misconceptions about marketing effectiveness, fears of negative perception, and skepticism about its benefits. Recognizing and overcoming these barriers can open up new avenues for business growth and client acquisition in the field of semi-permanent makeup.

4. The mechanics explained

Research results: Remarkable Impact

What truly justifies the fantastical name "unicorns" is their extraordinary impact on a brow business. To substantiate this, let's consider some concrete research data. A study involving 413 PMU artists, conducted during and after the pandemic era of 2021-2022, revealed a striking phenomenon: within 12 months, collaborations with "unicorns" led to a more significant increase in inbound business than any other source. This underscores the invaluable role that these service providers play in accelerating business growth, making them a must-consider strategy for any severe brow artist.

Study Setup to Evaluate the "Unicorn Strategy”

The primary objective of this study was to assess the direct impact of referrals from “unicorns” on customer acquisition for brow procedures. The approach involved a meticulously planned strategy using professionally designed, numbered gift cards.

Implementation of Gift Cards

Each gift card bearing the brow artist's brand or relevant imagery was specifically numbered for tracking purposes. A distinct batch of these cards was provided to a "unicorn" partner, typically a nail artist, lash artist, or hairdresser. Crucially, these “unicorns” did not offer brow pigmentation services themselves, nor were they based in salons that provided such services on the same premises.

Customer Incentive: A 25% Discount

Each card featured a 25% discount applicable to any brow service. The rationale was straightforward: if a client used the card for a brow procedure, they received the discount, and the brow artist could immediately identify which “unicorn” had referred the client. Additionally, most brow artists offered a complimentary powder brows procedure to the “unicorn,” enhancing the likelihood of their clients inquiring about the brow services after noticing the transformation.

Incentive for the Unicorns: Earning a Commission

The "unicorns" were incentivized with a variable commission, ranging from 0% to 25% of the business generated from their referrals. This percentage was influenced by factors such as the duration of the collaboration, geographical location, and the agreement with the individual brow artist. In many instances, a steady 25% commission was agreed upon, meaning that if a “unicorn” successfully referred a client, they later received a quarter of the procedure's original fee.

Financial Implications for Brow Artists

This referral system effectively meant performing the procedure at half the standard price for the brow artists, considering the combined cost of the client discount and the “unicorn” commission. This strategy was a calculated investment to broaden their client base through a mutually beneficial partnership with non-competing beauticians.

Cross-Selling Opportunities

The “unicorn strategy” outperformed alternative marketing campaigns and social media efforts in attracting actual buying customers and created substantial cross-selling opportunities. This aspect of the strategy significantly amplified its effectiveness. Remarkably, in 44% of cases where a “unicorn” partner referred clients, the brow artist successfully performed at least one additional procedure. These additional services were charged at the standard rate, effectively mitigating the initially reduced profitability of the “half-price” arrangement for the initial brow service.

The cross-selling phenomenon highlights a critical advantage of the "unicorn strategy." The referrals often led to a deeper engagement with the clients beyond just the initial discounted brow procedure. By offering and successfully performing additional treatments, artists recuperated some of the initial discount costs and expanded their service footprint with each new client.

5. Psychology Behind the strategy

The Psychology Behind Effectiveness of "Unicorn Strategy”

The success of the "unicorn strategy" in the beauty industry can be largely attributed to two key factors: establishing trust and relevance within the beauty industry.

First Key Factor: Trust

Trust plays a pivotal role in the effectiveness of referrals from "unicorns." When a "unicorn," who has experienced the brow artist's services, recommends them to their clients, it creates a strong, immediate sense of trust. Several psychological factors underpin this trust, explained next.

Long-standing Relationships. Many clients have long-term, trusted relationships with their "unicorn" beauticians. These relationships, sometimes built over years, lend significant credibility to any recommendations made by the “unicorns."

Relevance within the Beauty Industry. The fact that the recommendation comes from within the same broad field – the beauty industry – adds to its credibility. Unlike a suggestion in a completely unrelated field like home electronics or yoga, a recommendation about brow pigmentation from a beauty professional carries more weight. Clients perceive it as a well-considered, informed suggestion from someone knowledgeable in the field.

The Impact of Industry Relevance

The "unicorn" strategy's effectiveness is further enhanced because the recommendation remains within the realm of beauty services. This relevance ensures that the referral is seen as more than just a casual suggestion. It is perceived as a thoughtful, expert endorsement from a professional within the same industry. This perception that the "unicorn" has effectively 'done the homework' for the client by selecting the best brow pigmentation service provider amplifies the impact of the referral.

Thus, the combination of established trust and industry relevance is what makes the "unicorn strategy" particularly effective. It leverages existing relationships and expertise within the beauty industry to create a seamless and credible referral pathway, leading to increased clientele and business opportunities for brow artists.

Second Key Factor: “Unicrons” desire to build a loyal customer base

The second underlying reason for the effectiveness of the "unicorn strategy" is more subtle yet profoundly impactful, involving the concepts of hidden reciprocity and information scarcity.

Enhanced Value Through Reciprocity

Interestingly, many "unicorns" began converting the -25% discount gift cards into even more attractive -50% offers for their clients. They achieved this by foregoing their potential 25% commission from the brow artist. This decision was motivated by a desire to strengthen their client relationships, valuing this over the immediate financial return. By offering these enhanced discounts to their clients and close friends, the "unicorns" effectively utilized the gift cards as a tool for reciprocity, deepening customer loyalty and appreciation.

The Scarcity Effect

The scarcity principle also played a crucial role in this strategy. The special arrangements and discounts were not publicly advertised but were instead presented as exclusive, privileged deals. This approach of treating the -25% discount cards as a unique, "for-your-eyes-only" offering, which actually amounted to a 50% discount, created a sense of rarity and exclusivity. Consequently, clients felt more compelled to take advantage of these special deals, perceiving them as rare opportunities.

High Utilization Rates and Mutual Benefits

The result of this approach was a dramatic increase in the utilization rate of these gift cards, jumping to an impressive 76%. This starkly contrasts the typical lower utilization rates seen with standard discount offers. The psychological impact of receiving a "special deal" motivated clients to act on the offer, feeling both a sense of obligation and the allure of an exclusive opportunity. This translated into a steady influx of business for the brow artist, often at a price point suitable for someone new to the field.

This mutually beneficial scenario created a win-win situation: "unicorns" could offer substantial value to their clients and friends, effectively "sponsored" by the artist, while the artist gained new business at a reasonable cost. This strategy fostered client loyalty for the "unicorns" and facilitated business growth for the brow artists, showcasing the power of strategic, psychologically informed marketing in the PMU industry.

6. Preparation for “Unicorns"

Essential Preparations for Aspiring Brow Artists

For new artists in the semi-permanent makeup industry, successfully partnering with "unicorns" requires more than just the desire to collaborate. Before reaching out to these potential partners, here are three critical steps to take.

Cultivate a Robust Social Media Presence

One of the first impressions "unicorns" will have of you comes from your social media feed. Therefore, it's imperative to have a well-curated collection of at least 20 high-quality images. This number usually fills a mobile device screen, presenting a complete and professional portfolio to potential partners. Your social media feed should showcase your skills and demonstrate diversity in your work. Include a variety of models and brow procedures to illustrate your versatility and experience. This depth and breadth of content are crucial in establishing your credibility and skill level.

Conduct In-Depth Research on Potential Partners

Before initiating contact, thorough research on the "unicorn's" business is essential. Understand their range of services to ensure they don't already offer semi-permanent pigmentation. A proactive approach could include booking a consultation for a service they provide, allowing you to assess their offerings and clientele. This research will help you avoid awkward situations, such as approaching a potential partner who is already in your field, and will streamline your search for the right “unicorns."

Establish and Publicize a Clear Pricing Model

Having a clear and well-defined business model, including a transparent pricing structure, is vital before approaching "unicorns." While you don't need to reveal all the details initially, you should be confident about what you're offering. Publicize your standard pricing on your social media or website to provide a reference point for potential collaborations. According to research and artist feedback, an effective strategy is to set your prices around 5% higher than the average of top local artists. This pricing positions you competitively and gives you some flexibility when negotiating collaborations. Do your market research to ascertain the average pricing in your area, then set your rates accordingly before reaching out.

Building a strong social media portfolio, conducting thorough research, and establishing a clear pricing model are fundamental in preparing to approach "unicorns." They lay the groundwork for successful collaborations and set the stage for a productive and mutually beneficial partnership in the PMU industry.

7. How to Contact "Unicorns

To ease the process of approaching potential "unicorns" and foster successful collaborations, artists have identified several practical strategies. These approaches aim to eliminate friction and foster more natural and productive interactions.

Become a Customer First

A natural and effective approach is for artists to first engage with potential "unicorns" as customers. This strategy is particularly beneficial when the "unicorn" is a service provider. By becoming a customer, the artist creates a platform for organic conversations that can later transition into discussing potential collaborations. For instance, if an artist has previously been a customer of a salon owner or a service provider, reigniting that relationship can smoothly open doors to cooperative discussions. In the case of a salon owner "unicorn," artists are encouraged to patronize their establishment at least once, creating a comfortable setting for future partnership talks.

Leverage Common Connections

Another successful tactic involves utilizing shared acquaintances or social circles. Artists often start by inquiring within their network about where they get their nails, lashes, or hair done. Identifying potential "unicorns" through mutual contacts simplifies the initial approach significantly. This method converts a potential “cold call” into a warmer, more personal introduction. For example, artists might begin the conversation with, “I’ve been searching for the best [nail/eyelash/hair] expert in the area, and [Friend’s Name] highly recommended you.” This approach establishes a common ground and makes the conversation more engaging and less formal.

Leverage Your Brow Brand

Surprisingly, many artists have found success by highlighting their association with a specific brow brand. Positioning themselves as intermediaries between their chosen brow brand and the potential "unicorn" has proven effective. For instance, artists have approached potential "unicorns" with statements like, “I’m working with the excellent system at [Brand Name],” which helps to ease into the conversation. This strategy not only alleviates initial apprehension but also adds a level of professionalism and credibility to the artist’s proposal, enhancing the likelihood of establishing a cooperative relationship.

8. Conclusions

When starting one’s career as a pigmentation artist attracting clients is to collaborate with "unicorns" - local service providers in complementary industries like lashes, nails, and hair. The most fruitful business model commonly involves offering an affiliate program with 25% off gift cards. These cards grant the "unicorn" the flexibility to either retain an additional 25% or pass it on to the end user, effectively providing a 50% discount.

Before you approach any "unicorns," there are three prerequisites to fulfill: Firstly, ensure you have a robust social media presence with sufficient posts to avoid appearing as a novice. Secondly, conduct thorough research on the potential "unicorn" to ascertain whether they don't already offer services like semi-permanent pigmentation. Thirdly, be clear about your pricing strategy and display your official prices publicly.

To simplify the approach and increase your chances of striking a deal, consider these three facilitators: become a customer of the "unicorn," initiate contact through a mutual friend, or leverage your affiliation with a recognized brow brand to serve as an authoritative third party.