There is no doubt in my mind that Shark Tank will make or break some companies. Even if you don’t get a deal with the Sharks, your company will just been advertised to millions of people for free (well almost free).
ABC had previously aired two seasons of the show called American Inventor, a group of inventors were chosen and given $50,000 and expert help to develop their product and then judges and viewers pick the winner of the $1 million prize. The problem with American Inventor was that most of the inventors do not benefit from the exposure they got from TV. Their products were not ready to be sold and by the time they were most of the audience had forgotten about them. Businesses that pitch on Shark Tank will hopefully be ready to sell their product, meaning the exposure that the show brings will lead to increased sales.
Now something to keep in mind when applying for Shark Tank, the producers have the right to between 2% and 10% of gross revenue of your business for three years.
… as a condition of my participation on the Series, Producer or its designee shall receive an irrevocable option to take a perpetual ten percent (10%) royalty of 100% of the gross receipts derived from the idea, product, invention, service or business that I present to the “sharks” …
Update: I mistakenly quoted a unreliable source. To clarify Shark Tank has the right to 2% of net revenues, if and only if they decided to activate it. Meaning if your business becomes the next Google then I would assume they would activate it but for most business it would not.
You will have to examine the cost-benefit of giving up, up to 10% 2% in exchange for the huge exposure you’ll get from prime time television.
Last week I posted a first look at Shark Tank. I have been able to pull it out four companies that appeared in the video.
WiSpots
WiSpots provides interactive centers for medical waiting areas. Which helps to generate additional revenue and educates patients.
LifeBelt
Lifebelt The device that is installed in cars to ensure that all the occupants are wearing their seatbelts. The vehicle will not start if the driver is not buckled up, and if the seatbelt is removed while the car is running the radio will turn off and loud annoying noise will come out of the radio until the seatbelt is re-buckled.
Mr. Tod’s Pie Factory
Mr. Tod’s sells personal sized pie, they are very popular in Somerset, New Jersey and they currently operate two retail locations.
College Foxes Packing Boxes
College Foxes Packing Boxes provide organization, moving and unpacking services.
When Shark Tank airs this summer we will find out if these companies can sink or swim and if the exposure helped them grow.
Tags: Amarican Invetor, College Foxes, development, Funding, LifeBelt, Mr. Tod's, Pitch, shark tank, WiSpots
I’m submitting my paperwork now and it says “2% of net revenues” and NOT 10% of gross receipts. And you only pay if you do a deal with a Shark or if you get enough air time for a “reasonable person” to identify your business and product.
I want to clarify what WiSpots is and does:
WiSpots provides software driven efficiency tools for medical practices and hospital systems (to include a significant revenue share), provides entertaining, educational and productive amenities / tools for bored, frustrated patients while waiting and provides the most captive, interactive and undistracted consumer audience on the planet to our sponsors and advertisers. All of this is delivered via WiFi or 802.11 on our Patient Interaction Centers. We call it the WiSpots Triple Play….the practice wins, the patient wins and the advertiser wins! Every 30 high traffic medical practices add 1,000,000 plus “captive” sets of eye balls annually to our interactive network.
I have had an idea that became a product and shown on QVC. I saved a lot of money by doing the legal documents myself. I did all my disclosures, patent search and provisional patent and also though not required cad cam drawings of my idea. I am available to help other inventors on a more reasonable cost than attorneys to protect their idea and aide them in their process. Before any idea is disclosed or shown the idea has to be protected. Anyone interested in securing my services can email me brandy2102003
@yahoo.com for further info. Thank you Marjorie hall