Anyone catch Shark Tank recently? If you’ve never heard of it, it’s one of the most frustrating inspiring shows on TV where regular folks like you and me pitch products to a bunch of one percenters in an attempt to sell or grow their bsiness. It’s really cool with a lot of “why didn’t I think of that” moments. Apparently one episode caught the attention of Entrepreneur.com because some guy selling a pretty cool wine balloon was offered $600,000 for his technology and turned it down.
First of all, the wine balloon (which he brilliantly calls the “wine balloon”) is a pretty cool idea. I’m not sure of all the details and I’m no wine connoisseur but it helps save half bottles of wine. Apparently, most people don’t finish every bottle of wine they open… who knew… haha. So this guy came up with a solution that combines a balloon, tube and pump. Simple. And brilliant!
So this guy goes on the show and is offered $600,000 for his balloon, tube and pump and says no! You have to respect the guy, but did he make the right decision? It certainly takes… well … you know… to turn down that much cash for something at the start-up stage. Maybe he was drinking too many half bottles of wine for all of his demos…
But that got me thinking: What would Nick do?
Reasons to sell
- Guarantied $600,000 (minus taxes) in my pocket.
- This product is limited. The idea is great, for sure, but the concept is now out there and competition will be fierce. For some things, the first or flashiest remains the king of the ring for a long time (i.e., iPhone). In other cases, the first or even better product is the ultimate market loser (i.e., betamax v. VHS, CDs v. MP3s, etc. I’m sure there are more). $600,000 might be the best offer and it’s a bird in the hand.
- This money could mean a new beginning to your family. It can buy time – to spend with your family; to come up with your next idea; to put your family finances on solid ground; to make sure your kids will be able to afford college without debt some day – and the list goes on. The money might mean more to you than this product.
- If you’ve invented this one product chances are you have some other great ones in you. This way of thinking can be applied in many different ways. No way this is your only idea. And now you know what it takes to make something happen.
Reasons to not sell
- $600,000 is not “eff you” money. You know what I’m talking about, right? The amount of money that you need to have to run around telling all the jerks in the world to … um… “jump in a lake.” I have no idea how much that is, but I know when I see it. $600,000 is not enough.
- It’s your “baby.” This is different from it being your “passion.” Passions can be applied in different ways and be fulfilled. You only have one baby. Your passion might be wine, problem solving (or balloons, haha). But this product you worked nights and weekends to perfect is your baby. It’s hard to let go of your baby. I get it.
- Why would these “experts” offer to pay $600,000 unless they thought it would make them a ton more than that?
I’m sure there are more reasons on both sides, but that’s enough to get me thinking. If you couldn’t tell by the title of this post or the way I subconsciously telegraphed my opinion in the bullets: I’d sell. $600,000, even after taxes, is a lot of money.
And I could do a lot with that money. I’m thinking I would buy a nice little house, or a very little house, haha, with cash and then use my student loan funds that I’ve been earmarking for a larger down payment to … wait for it … actually pay off my student loans! Then I’d only have my sub prime mortgage and HELOC left, the latter of which I’m hoping will be gone in the near term anyhow. Sweet!
So anyone looking to buy a blog? Silent auction. Bidding starts at $600,000. E-mail all offers before April 21, 2012 to saftmblog (at) gmail (dot) com, haha!
What would you do? And what would you do with the money if you sold? You know it would be hard to turn down that cash, right?
Until next time, put your credit card down and slowly step away from the mall!
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{ 11 comments… read them below or add one }
I'm pretty sure I would sell ina hear tbeat. On the other hand look at ideas like Facebook…how do you think Mr. Zuckerberg would feel if he had sold Facebook early on? Pretty stupid if you ask me
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This product will be easily knocked-off by competitors. Selling is a no-brainer. Facebook is a different case altogether.
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I know someone who pitched an idea to the Canadian version of that show (called Dragon's Den). He rejected their offer too. The thing with the offers is that they are almost always lowball offers in an attempt to make a lot of money off of someone who may not realize the true value of what he has. I think a lot of people pitching ideas on that show are actually using it as a springboard to get more potential investors interested. As long as they have a strong patent on the product, it might not be all that risky. There would be times when the person just gets too greedy and wants millions instead and loses out on any money.
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I agree with this. There are many idea's on that show that just by getting the TV exposure (that show has been averaging 5+ million viewers) will jump start the business. The whole idea behind being a shark is to get the most for the least amount of money. Of course, as the businessman, you cannot be overly greedy and expect millions for every idea you have.
Look at American Idol as an example. You don't need to be the American Idol to still win. Most of the people who finish in the top 10 are getting record contracts.
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I think the smart move is not to sell, but personally speaking, it would be hard to turn down that kind of cash.
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I wouldn't buy a blog. A blog tends to be really personal, so you're not getting the previous blogger's intangible assets (e.g. style of writing) if you buy his or her blog.
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I hear ya. Have you seen the story about the venture capital group that passed on Facebook back in the day? Google it if you haven't – I think it's called Battery. You never know what Facebook would have looked like if some VCs got their hands in it and Mr. Z was out. Who knows? It could have been much different (although Mr. Z wasn't going to be out). I think I'd have a little regret, but I wouldn't be too upset. For every Facebook there's a dozen Myspaces…
I agree Kooz. Especially with an idea like this, I'd sell. Then again, Snuggie has a bunch of knock-offs and I'm sure Bill and Melissa Snuggie (made that up) are still making some sweet cash… Does that change anything? I'd still sell.
That's a good point. We don't know what other meetings/inquiries/etc. this guy had. It's probably not the only good offer and I'm sure the Sharks would buy it again if he came back a week later. You never know what kind of drama the TV show plays up with the "now or never" element.
It would definitely be tough to turn down. I'm one of those "if I can do it once…" guys, so (especially with a blog) I'd be cashing those checks and starting ” target=”_blank”>http://www.iam1percenttoo.com...
Oh man, Rick, you drive a hard bargain! How about if I sweeten the deal by agreeing to post up to 5 times per week for a total of up to 260 posts that you can spread out to 2 years if you want by slowing down the posts per week? If this works I'll send over my paypal info, haha