The Unicorn Strategy and how to use it

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1. Background

This article is informed by comprehensive interviews with 113 PMU (Permanent Makeup) artists who achieved sales growth in various local markets despite economic fluctuations from 2017 to 2022. The majority of the interviewed artists, 74, are based in the European Union, with 24 from the UK and 15 from the US. The main objective was to understand their diverse sales and marketing strategies.

The focus here is on a specific collaboration model termed the "Unicorn strategy." This strategy involves establishing affiliate partnerships with beauticians in non-competitive fields. This article explains how such strategic alliances can significantly enhance a PMU artist's business and local market presence.

2. Who are "Unicorns"

Identifying the “Unicorns” in the Beauty Industry

In the Permanent Makeup (PMU) and beauty industry, "unicorns" refer to local service providers and salon owners with a substantial client base who do not offer services that directly compete with powder brows, hairstrokes, or microblading artists. Typical "unicorns" include nail technicians, eyelash service specialists, hairdressers, and salon owners. In the semi-permanent makeup business, they are invaluable for collaboration and client referrals, often underestimated by PMU artists who view them as operating in a different realm.

3. Why This Strategy is Underused

Despite its logic and potential benefits, many in the permanent makeup industry have not fully embraced the "unicorn strategy." The reasons for its limited use include misconceptions, unawareness, and skepticism.

Misconceptions about Marketing Strategies

A major reason for the strategy's underutilization is its obscurity and the misconception that only online marketing is effective. These partnerships often operate quietly, leading many artists to overlook them as a viable marketing avenue.

Fear of Appearing Aggressive or Desperate

Some artists hesitate to seek collaborations, fearing they may appear aggressive or desperate. However, this concern is largely unfounded, as reaching out for collaboration is often considered confident and professional.

Skepticism About the Effectiveness

Skepticism regarding the productivity and mutual benefit of such collaborations is another barrier. Contrary to this belief, empirical evidence shows that partnerships with "unicorns" benefit PMU artists and enhance the services these partners offer.

The "unicorn strategy" offers significant potential for PMU artists but remains underutilized due to misconceptions about marketing, fears of negative perception, and skepticism about its effectiveness.

Recognizing and overcoming these barriers can open new opportunities for business growth and client acquisition in semi-permanent makeup.

4. The Mechanics Explained

Research Results: Remarkable Impact

The term "unicorns" is apt for their significant impact on brow businesses. Research involving 413 PMU artists during 2021-2022 showed that collaborations with "unicorns" led to more business growth within 12 months than any other source. This highlights their crucial role in driving business growth, making them an essential strategy for serious brow artists.

Study Setup to Evaluate the "Unicorn Strategy”

The study aimed to assess the direct impact of referrals from “unicorns” on customer acquisition for brow procedures. It used a carefully planned strategy involving professionally designed, numbered gift cards.

Implementation of Gift Cards

Each gift card featuring the brow artist's brand and imagery was numbered for tracking. These were given to "unicorn" partners like nail, lash, or hairdressers who didn’t offer brow pigmentation services or work in salons offering such services.

Customer Incentive: A 25% Discount

Each card offered a 25% discount on brow services. The card enabled brow artists to track referrals from “unicorns.” Most brow artists also offered complimentary powder brows or hairstroke procedures to the “unicorn,” increasing the likelihood of their clients inquiring about brow services.

Incentive for the Unicorns: Earning a Commission

"Unicorns" were incentivized with a commission, typically up to 25% of the business generated from their referrals. The exact percentage depended on factors like collaboration duration and geographical location.

Financial Implications for Brow Artists

This referral system meant brow artists performed procedures at about half the standard price, accounting for the client discount and “unicorn” commission. It was an investment to expand their client base through partnerships with non-competing beauticians.

Cross-Selling Opportunities

The “unicorn strategy” was more effective than other marketing campaigns and social media efforts in attracting buying customers, offering substantial cross-selling opportunities. In 44% of cases where a “unicorn” referred clients, the brow artist successfully performed at least one additional procedure at standard rates, offsetting the initial discount.

The cross-selling aspect of the "unicorn strategy" is a key benefit. Referrals often led to deeper client engagement beyond the initial discounted procedure. By performing additional treatments, artists recuperated some initial costs and expanded their service offerings to new clients.

5. Psychology Behind the Strategy

The Psychology Behind Effectiveness of "Unicorn Strategy”

The success of the "unicorn strategy" in the beauty industry is primarily due to establishing trust and relevance.

First Key Factor: Trust

Trust is crucial in the effectiveness of referrals from "unicorns." A "unicorn" recommends a brow artist to their clients, creating a strong sense of trust. Several psychological factors explain this trust.

Long-standing Relationships: Clients often have long-term relationships with their "unicorn" beauticians. Recommendations from these trusted sources carry significant credibility.

Relevance within the Beauty Industry: Recommendations from a beauty professional, as opposed to unrelated fields, are perceived as more credible and informed.

The Impact of Industry Relevance

The strategy's effectiveness is enhanced because the recommendation stays within the beauty services realm. It's seen as a thoughtful, expert endorsement from a professional in the same industry.

Second Key Factor: “Unicorn” Desire to Build a Loyal Customer Base

The second reason for the strategy's effectiveness involves hidden reciprocity and information scarcity.

Enhanced Value Through Reciprocity: Some "unicorns" transformed the -25% discount cards into -50% offers for their clients by foregoing their potential commission. This strengthens client relationships, prioritizing long-term loyalty over immediate financial returns.
The Scarcity Effect: The discounts were not widely advertised but presented as exclusive deals. This created a sense of rarity and exclusivity, compelling clients to take advantage of these special offers.
High Utilization Rates and Mutual Benefits: The utilization rate of these gift cards increased dramatically, with clients acting on the offer due to a sense of obligation and exclusivity. This resulted in a steady influx of business for the brow artist at a reasonable price.

This approach created a win-win situation: "unicorns" provided substantial value to their clients and friends while the artist gained new business. This strategy fosters client loyalty for "unicorns" and facilitates growth for brow artists, demonstrating the effectiveness 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, partnering with "unicorns" requires preparation. Here are three crucial steps to take before reaching out to potential partners.

Cultivate a Robust Social Media Presence. Your social media feed is often the first impression "unicorns" will have of you. Having at least 20 high-quality images to fill a mobile device screen is essential, presenting a complete and professional portfolio. Showcase a variety of models and brow procedures to demonstrate your skills and versatility. This variety is key in establishing your credibility.
Conduct In-Depth Research on Potential Partners.Before contacting "unicorns," research their business thoroughly. Make sure they don't offer semi-permanent pigmentation services. Consider booking a service with them to understand their offerings and clientele. This step helps avoid approaching someone already in your field and streamlines your search for suitable “unicorns.”
Establish and Publicize a Clear Pricing Model.Have a transparent pricing structure in place. While you don't need to disclose all details initially, be clear about your offerings. Publicize your standard pricing on social media or your website. Based on research and artist feedback, an effective strategy is to set your prices about 5% higher than the local top artists' average. This positions you competitively and allows flexibility in collaborations. Research local market rates to set your prices accordingly before initiating contact.

Preparing to approach "unicorns" involves building a strong social media portfolio, conducting thorough research, and establishing a clear pricing model. These steps are essential for successful collaborations and creating a productive, mutually beneficial partnership in the PMU industry.

7. How to Contact “Unicorns"

Artists have identified several practical strategies to approach potential "unicorns" and establish successful collaborations effectively. These methods aim to reduce barriers and encourage natural and productive interactions.

Become a Customer First

A natural and effective strategy is for artists to first engage with potential "unicorns" as customers, especially when the "unicorn" is a service provider. Becoming a customer allows artists to initiate organic conversations, which can evolve into discussions about potential collaborations. For example, if an artist has previously been a customer of a salon owner or service provider, rekindling that relationship can smoothly lead to cooperative discussions. Artists are advised to patronize a salon owner's "unicorn’s" establishment at least once, setting a comfortable foundation for future partnership talks.

Leverage Common Connections

Another successful tactic is to use shared acquaintances or social circles. Artists often start by asking within their network about where they get their nails, lashes, or hair done. Finding potential "unicorns" through mutual contacts makes the initial approach much easier. This method turns a potential cold call into a warmer, more personalized introduction. For instance, artists might begin the conversation with, “I’ve been looking for the best [nail/eyelash/hair] expert in the area, and [Friend’s Name] highly recommended you.” This creates common ground, making the conversation more engaging and less formal.

Leverage Your Brow Brand

Many artists have successfully highlighted their association with a specific brow brand. Presenting themselves as intermediaries between their brow brand and the potential "unicorn" has been effective. For example, artists have approached potential "unicorns" with statements like, “I’m working with the excellent system at [Brand Name].” This strategy eases the initial apprehension, adds professionalism and credibility to the artist’s proposal, and enhances the chances of establishing a cooperative relationship.

8. Conclusions

When starting a career as a pigmentation artist, a key strategy for attracting clients is collaborating with "unicorns" - local service providers in complementary industries like lashes, nails, and hair. The most effective business model often includes an affiliate program offering 25% off with gift cards. These cards enable the "unicorn" to keep an additional 25% commission or pass it on to the customer, effectively providing a 50% discount.

Before approaching any "unicorns," fulfill three prerequisites: First, establish a strong social media presence with enough posts to present yourself as experienced. Second, thoroughly research potential "unicorns" to ensure they don’t already offer semi-permanent pigmentation services. Third, have a clear and public pricing strategy.

To ease the approach and improve your chances of forming a partnership, consider these three facilitators: become a customer of the "unicorn," use a mutual connection for an introduction, or leverage your affiliation with a recognized brow brand as a credible intermediary. These steps can significantly increase the likelihood of successful collaborations and client acquisition in your pigmentation business.