The No-Skin-in-the-Game Problem

The No-Skin-in-the-Game Problem is one of The Four Trolls of Thoughtland. It highlights the fact that opinions are cheap when there's nothing at stake.

When you ask people for their opinion on a new product idea, they have no "skin in the game." They have nothing to lose or gain by their answer. This makes their opinion an unreliable predictor of their future behavior.

For example, someone might tell you they would gladly pay $100 for your new product. But when the time comes to actually pull out their wallet, they may not be so willing.

To get reliable data, you need to ask people to put some skin in the game. This can be in the form of:

• Money: A preorder, a deposit, or a payment for a trial.
• Time: Attending a demo, participating in a trial, or filling out a detailed survey.
• Reputation: Publicly endorsing the product or referring it to friends.
• Personal information: Providing a real email address or phone number.

The more skin in the game you can get, the more reliable your data will be. This is a core principle of Pretotyping.