Why Starting Artists Fail

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1. Background

This article is based on the findings from three simultaneous research projects conducted in the European Union, the United States, and the United Kingdom. These studies focused on tracking the career progress of 581 students who had completed training in Powder Brows, Lip Blush, or Microblading between 2020 and 2022, during the COVID-19 and post-COVID era. The participants were surveyed 12 to 15 months after they finished their courses and obtained certifications to perform these procedures.

The research encompassed a wide range of participants, including those who underwent training in small groups or individually and in larger group sessions. This information was cross-referenced with data from many active artists in similar regions, collected for separate but related studies. These students' backgrounds varied; some were educated at well-known, large international academies, while others received their training from smaller-brow education providers or individual trainers. As we will see in the results section, the challenges faced by these starting artists were less dependent on the type of academy or educational structure they chose and more on other factors.

2. Perception Versus Reality

Many artists embarking on careers in lip blush, powder brows, or microblading often believe they have done ample, if not exhaustive, market research before starting their training programs. However, our research uncovered a significant gap between this perception and the realities these artists later encountered. Over 84% of the students surveyed 12 to 15 months after obtaining their certifications reported that the business landscape was "harder" or "considerably harder" than they had initially expected.

This discrepancy points to an interesting phenomenon: despite the participants' confidence in their market research, many were not fully prepared for the real-world complexities of running a beauty business. Confronted with day-to-day challenges, they encountered various unexpected difficulties and intricacies.

When considering the data from 2020-2022 in the context of the economic downturn 2024, it seems the divide between expectations and reality for new students in this field might be broader than previously thought. Our additional, smaller-scale research projects aimed to explore this issue further. These studies indicate that while current students know the challenging market environment, they might not completely understand its severity or the full scope of the challenges they will face.

3. Observations about Satisfaction

Only 26% Found Technical Preparation Inadequate

On a brighter note, only a minority of students (26%) felt their technical preparation was inadequate for the challenges of starting a new business in the beauty industry. This finding doesn't necessarily reflect the overall quality of training across different educational systems. Rather, it indicates that most students attributed their challenges to factors beyond the technical skills acquired in their training programs.

This also suggests that the issue may not lie in the technical training itself but in a mismatch between students' expectations and the industry's actual demands. While trainers efficiently teach the necessary technical skills, they may not adequately prepare students for the realities of potential earnings and market competition.

The Disconnect in Trainers' Perception and Market Realities

There is a possible gap in how trainers convey the challenges of attracting customers, especially for those entering the pigmentation field from another career. This could be due to trainers not fully understanding the difficulty of starting with no client base and the importance of extensive marketing efforts. While trainers may have experienced declining organic engagement, they often haven't faced complete silence regarding client interest.

New Artists Facing a Harsh Reality

For new artists transitioning from other careers, this absence of organic interest could be their initial reality. The concerning factor is when their sales funnel is so inefficient that the cost of acquiring a customer exceeds what the customer is willing to pay. This difficult scenario might be hard for an experienced trainer to recognize, but new artists might face it, particularly in competitive regions.

12 Months Post-Class: 70-85% Contemplate Exiting the Field

Alarmingly, 70-85% of students who completed training in lip blush, powder brows, and microblading considered exiting the field entirely one year after their classes. This wasn't due to dissatisfaction with the education quality but rather disillusionment with the industry. Launching and sustaining a business in this competitive field was far more challenging than anticipated.

Next, we will explore the specific factors contributing to this sentiment. While the top three reasons varied by country, the core issues remained consistent across different regions.

4. Overestimation of Inbound Business

Comparing Business Start-Up to Rowing a Boat

Initiating a business in lip blush, powder brows, or microblading isn't just about facing challenging market conditions; it's more akin to a fundamental preparation issue. Many students could not effectively apply their technical skills in a real-world setting, resembling a boat that never quite makes it into the water to start rowing.

Expectations Fueled by Perception Alone

To understand this better, consider that about 54% of the students had some business plan before training, which included sales projections. However, these plans were often based more on perception than hard data. Many students formed their expectations by simply observing that "other artists are constantly working with clients," which is not a solid basis for reliable business forecasting.

Harsh Reality: Zero Inbound Business

A significant miscalculation for many new artists was their expectation of a baseline level of inbound business. The harsh reality they faced was a stark lack of incoming clients. When a business has some level of customer activity, there's room to refine strategies based on feedback. Even a minimal influx of clients or leads allows for adjustments and improvements. However, starting artists often find themselves without the initial customer flow to work with and adapt from.

5. The "Zero to One" Dilemma

Peter Thiel's Concept in a Brow Artist's Journey

The struggles of many new artists in the beauty industry mirror the concept described by Peter Thiel in his book "Zero to One." Specifically, they did not understand how far they were from securing any business. The business stagnated after the initial "honeymoon period," often described by seasoned artists as a phase of initial excitement and influx. Artists found themselves without client interest and, even more dauntingly, without inkling how close or far they were from generating leads. They faced a scenario where small adjustments were insufficient; a significant leap was needed to gain traction, often proving insurmountable.

Complexity in Achieving the First Client

The task of moving from no clients ("zero") to minimal viable business ("one") is more complicated than it appears, especially in terms of business planning. When customer inflow is minimal or non-existent, it becomes almost impossible to gauge how close one is to reaching a break-even point or establishing a viable business. The feasibility of overcoming this challenge varies greatly. In some cases, targeted adjustments might lead to success, but in other situations, considering factors like location and business climate, reaching profitability could seem nearly impossible, requiring a major overhaul rather than minor tweaks.

Valuable Lesson: Planning for Zero Inbound Business

Preparing a business plan that accounts for zero inbound business is essential for those considering enrolling in a training program for lip blush, powder brows, or microblading. This conservative approach ensures that any incoming business is a welcome surprise, not a dependency. Planning for zero business sets a realistic foundation and avoids the shock of a dry start, allowing for a more manageable path toward growth and success.

6. Customer Acquisition Cost (CAC)

The Underestimation of Customer Acquisition Cost (CAC)

A critical aspect often underestimated by new artists is the Customer Acquisition Cost (CAC), which is closely linked to the overestimation of inbound leads. While students knew the need for digital media marketing, their long-term cost estimates for acquiring customers were significantly lower than actual expenses, sometimes by nearly 100 times.

Expectations Versus Reality: A Stark Discrepancy

This significant gap between expectations and reality is a clear example of heuristic errors. Many students believed that out of every 100 people reached through marketing, about three would make contact for bookings or inquiries. However, the figure was closer to 0.03 contacts per 100, highlighting a crucial need for starting artists to reassess and adjust their customer acquisition strategies.

The Reality of Marketing Budgets

Though students understood the need for advertising "boosts," many failed to account for the costs of creating and running ads accurately. The reality of acquiring a hot lead often consumed their entire marketing budgets. Several factors contributed to this discrepancy.

Expectations Based on Hearsay. Surprisingly, many students based their budget estimates on casual conversations or generalized statements from other artists, leading to skewed expectations.

Outdated Calculations. Some students claimed first-hand experience with social media advertising but relied on outdated metrics from more favorable past conditions, such as organic reach, advertised reach ratios, and engagement pricing.

Misjudgment of Social Media Capabilities. A 91% of students greatly underestimated the effort and cost required to grow their social media accounts organically, often comparing their new accounts to well-established ones and assuming easier and cheaper growth than reality.

Additional Challenges in Organic Growth

About these points, students acknowledged a sharp decline in interest after the initial "honeymoon period." Regarding organic account growth (excluding purchasing fake followers), many realized that catching up to well-established accounts would take 18-36 months of intensive effort and an unpredictable budget. An overlooked aspect by 94% of students was the relative growth of competitive accounts. They did not consider that larger, well-known artists' accounts in their region would likely grow faster, increasing the gap further.

Lesson to Learn

For those planning to join training programs in lip blush, powder brows, or microblading, it's crucial to draft a business plan with zero inbound business as the default forecast. Any business that does come should be considered a bonus, aligning expectations with a more realistic outlook for success.

7. Shallow Analysis of Competition

The Issue of Competitive Edge

A significant number of students, 63%, faced uncertainty regarding their competitive advantage in the market. This multidimensional issue involves misjudgments about pricing strategies, underestimation of competitors' adaptability, and incorrect assumptions about market prices.

Misjudging the Impact of Pricing Strategies

Many students believed a particular pricing point would make their services irresistibly competitive. However, this assumption overlooked the cost of marketing and the net cost of performing procedures. Even with lower prices, marketing expenses could outweigh profits. Artists must consider the cost of performing the procedure and other expenses like rent, supplies, transportation, and living expenses. As a result, promotional discounts or lower price points might require additional funding due to the cumulative operating costs exceeding client fees.

Underestimating Competitors' Adaptability

Students often underestimated how their competitors would adapt to market changes. Instead of a static market condition, competitors were dynamically adapting, which many students failed to anticipate. This misjudgment led to unrealistic expectations about the market.

Misjudging Actual Market Prices

Many students entered the field with an overestimated perception of market prices, expecting high earnings. However, upon closer examination, they found that active artists were charging 25-40% less than anticipated.

Hierarchical Cannibalization: A Hidden Challenge

A unique challenge in this field is "hierarchical cannibalization." This occurs when a student's trainer, operating within the same geographical area (approximately 120 miles or 1 to 1.5 hours driving distance), competes for the same clients. Cannibalization is less likely if the trainer's prices are significantly higher (over 120% more) than the student's. However, if the prices are similar, competition is almost inevitable. This principle also applies to academy hierarchies, where artists of a "higher status level" within the same area can cannibalize the market.

In conclusion, these factors contribute to the complexity of starting and sustaining a business in lip blush, powder brows, or microblading. Understanding and navigating these challenges are crucial for new artists entering the field.

8. Takeaways and Lessons Learned

Promotional Offers Aren't Always Profitable. Contrary to popular belief, creating promotional offers does not guarantee profitability. Often, these promotions entail significant initial investments, implying that resources are spent rather than earned. New artists should approach promotional strategies cautiously and clearly understand their potential financial impact.
Never Underestimate Established Competitors. Many new artists mistakenly assume that established competitors, or "old movers," are less adaptable. However, the reality is quite the opposite. These experienced competitors are often agile and can adapt swiftly, aggressively defending their market share when they perceive a threat. New artists should be prepared for this competitive agility and develop strategies to differentiate their services in a crowded market.
Competition from Within the Training Ecosystem. An unexpected source of competition for many new artists is their training ecosystem. Trainers and high-ranking artists within the same academy system or geographical area can become direct competitors. This internal competition can significantly affect new artists, as these established professionals might compete for the same client base, reducing the available market for their former students.

Thus, becoming a successful artist in fields like lip blush, powder brows, or microblading is filled with unexpected challenges and competitive dynamics. Understanding these nuances and preparing accordingly is essential for new artists to navigate the market effectively and establish a sustainable business.

9. Conclusions

The journey to becoming a successful brow artist is fraught with challenges, as evidenced by the experiences of numerous new artists.

Underestimation of Market Challenges. A staggering 84% of new artists initially underestimated their difficulties, despite 74% believing they had adequately analyzed the market. This discrepancy highlights a common overestimation of their ability to accurately assess market conditions and business opportunities.
Consideration of Exiting the Field. Within a year of starting, 75-85% of students, varying by background, have contemplated leaving the business. This is indicative of the unexpected challenges they encounter.
Major Stumbling Blocks. The three primary hurdles include a lack of inbound business, the unexpectedly high cost of customer acquisition, and intense competition. These factors contribute to only 26% of students attributing potential failure to the technical skills provided by their training.
Misjudged Inbound Business and Marketing Costs. Most students face the harsh reality of little to no inbound business. Additionally, they severely underestimated the costs of generating leads through social media marketing – often by about 1000%. Over 90% of students had an overly optimistic view of organically growing their social media presence.
Miscalculation of Competitive Strategies. Many students overvalued the impact of low-price offers and failed to anticipate the high marketing costs that eroded potential profits. They also underestimated the adaptability and pricing strategies of established competitors.
Overlooked Internal Competition. The internal competition or "hierarchical cannibalization" was an unexpected challenge within their training academies. This aspect made their entry into the market even more challenging.

These insights paint a sobering yet realistic picture of the complexities of establishing a successful career in the brow artistry industry. Understanding and preparing for these challenges is crucial for aspiring artists to navigate this competitive landscape successfully.