Smoke Mirrors Revenue Model

A business model where the main advertised activity (like bingo) is actually just a hook to drive revenue from a secondary source (like alcohol sales). Here's how it works:

Core Concept

• Primary activity is a "smoke and mirrors" distraction from real revenue source
• Similar to Connor McGregor's fighting style - everything is designed to set up the left hand
• Goal is to get people to stay longer and spend more on the secondary revenue stream

Real World Example: Bingo Loco

• Appears to be a bingo game/event company
• Actually an alcohol-focused entertainment business
• Revenue details:
  • Tickets cost ~$53
  • Pre-COVID revenue ~$20M/year
  • Main profit from alcohol sales, not ticket sales

Business Model Components

• Primary Hook:
  • Entertaining activity (bingo, shuffleboard, etc.)
  • Keeps people engaged for extended periods
  • Creates social atmosphere
• Revenue Generation:
  • Secondary spend (usually alcohol)
  • Extended stay times increase purchases
  • High margins on drinks

Operational Strategy

• Use off-peak nights at venues
• Leverage existing venue infrastructure
• Add entertainment elements:
  • Confetti showers
  • Performers
  • Music/dancing
  • Contest elements
• Create party atmosphere while maintaining core activity

Marketing Approach

• Promote primary activity (bingo)
• Position as entertainment experience
• Use social media to show high energy atmosphere
• Focus on group participation
• Book venues months in advance
• Build anticipation through pre-sales

Similar Business Models

• Museum tours (Museum Hack)
• Scavenger hunts
• Pool/ping pong bars
• Activity-based entertainment venues

The key is finding activities that:

• Keep people engaged
• Encourage group participation
• Create natural drinking occasions
• Can be enhanced with entertainment elements