I watched the new ABC show Shark Tank tonight. Here’s how it works: there are four greedy sons (and one daughter) of a bitch who are out there to steal away the ideas of prospective businessmen and women. The prospective businessmen and women (contestants) try their best to sell their product and investment offer to the five sharks. The sharks are typically hard to please, unless the products have made a decent profit and great sales. They also demand more than half of the ownership of the contestant’s company or product. The contestants are usually left with two options that look something like this: 1) sell a majority of the equity to the sharks or 2) walk away with no investment. It comes down to this: doing it yourself or having billionaire big business people run the operations for you. For instance, one contestant selling a life saving seat belt attachment rejected the sharks’ offer (which would have given them complete control his patent, his idea) because he would have “sold out” in essentially the same manner that independent rock musicians do when they sign to a major label. That’s really a core aspect of the show: does the contestant want to be completely immersed in something that he created…something that he knows what direction it should go in…OR does the contestant want somebody with more “business knowledge” to take control in the name of greed and “branding”? The first contestant was selling a line of clothing called Crooked Jaw Fashions. The sharks were only interested in the brand awareness/target audience of the clothing line. I’m probably going to keep watching this show even though I despise the sharks. And you might say well aren’t the contestants dumb for coming on to the show? Not really. They are asking for extra funding, like any investor might. When the contestant sacrifices control of the business, the operation, in my opinion, becomes unethical. Another contestant on tonight’s show made a Shakespeare rock disc collection to help students better understand the great English writer. Awesome idea! But he sold it away to the sharks. He’s only going to get 5% in royalties. Seems kind of ridiculous.
Glen
Kids Like You & Me (KLYAM) 
Just a couple of comments. 1st – the seat belt guy was given and offer to sell his patent for $1M. Unless he paid a LOT of money for a good IP attorney chances are there are holes in the patent and other folks can be making a similar device and patenting right now. That was a good deal.
The English teacher selling the music for learning Shakespeare was offered $250K and 49 percent equity. HE was the one who was ridiculous for turning that down and taking only 5% in royalties.
He shouldn’t have to sell HIS patent.
He was ridiculous to accept the royalties offer. The 250K and 49 percent equity doesn’t give him a majority of the control. The sharks are just in it for themselves. Like last night, he called the fold-up guitar guy greedy for not accepting their offer. Clearly the guy was a bit hesitant to give up a concept that he created…which isn’t greedy at all…it’s staying true to yourself.
I’ve not watched the show for 3 weeks. I think its totally ridiculous. I’ve seen some really good business ideas and some really bad. The thing that I find ridiculous is that these so called ‘Sharks’ want these companies to be earning millions or else they aren’t interested. If these people had that type of revenue they wouldn’t be coming to these clowns seeking money!
Totally ridiculous! I think the American Inventor was a way better show for people who had creative business ideas trying to get assistance.
Exactly. Good points.