ABC Shark Tank Kevin Harrington Shares His Wisdom
I spent a few days in Miami at the Pro Athletes Business Summit and I actually was voted to pitch my deal, Children's Educational Network, to a few sharks including Kevin Harrington. One of the Shark investors on ABC's Shark Tank TV Show and he loved my pitch and agreed to give me an interview and share some of his wisdom.
He was a very nice and I am glad I got to know him. He has been in the infomercial business for 25 years and had had over $4 billion in revenues from his infomercial! He is looking for more products he can bring to market, so if you think you have a product that would be worthy on mass marketing on TV check out his site at www.TVGoods.com and tell him Greg Writer sent me!
I was not aware that in 1987, Kevin and a group of young entrepreneurs including Michael Dell, of Dell Computers, and Ted Leonsis, of AOL, teamed up to create the Entrepreneurs’ Organization, or EO (formerly known as the Young Entrepreneurs’ Organization), and today it has grown to over 7,000 members worldwide, with 113 chapters in 38 countries with more than 924,000 members. The EO is recognized as a catalyst that enables entrepreneurs to learn and grow from each other, leading to greater business success and an enriched personal life.
So there's proof he has been an entrepreneur advocate for decades! Thanks Kevin, we appreciate your efforts!
Here's his bio for your review.
Kevin Harrington, CEO of TVGoods.com, LLC, is widely acknowledged as the pioneer and principal architect of the “infomercial” industry. Since producing the industry’s first infomercial in the 1980s, Harrington has financed more than 500 product launches resulting in sales of more than $4 billion worldwide with 20 products reaching individual sales of over $100 million each, and creating dozens of millionaires.
Harrington got his start in direct TV marketing with his company Quantum International, which after merging with National Media in 1991 grew to over $500 Million in annual sales with distribution in over 100 countries in 20 languages. Harrington was the pioneer responsible for setting up international infrastructure worldwide which lays the groundwork for today’s infomercial industry. He had offices in: London, Tokyo, Sao Paolo, Brazil, and Jeddah, Saudi Arabia.
After leaving Quantum, Harrington had several other successful infomercial ventures including HSN Direct with Home Shopping Network before founding TVGoods in 2005.
He subsequently raised more than $20 million in capital from a New York hedge fund in a venture, which then acquired Tampa’s premiere film studio where TVGoods is headquartered. The studio is located in Clearwater, Florida, featuring a 33,000 square state of the art production studio on 5.4 acres.
Regarded as a tireless entrepreneur with a talent for identifying blockbuster products, Harrington’s business was a case study that was chronicled and taught for over 12 years at Harvard/MIT, called “The Rise, The Fall and The rise of Quantum International.” The case study is used as a teaching guide about what it means to be a grass-roots entrepreneur in a fiercely competitive industry.
In his latest venture, Harrington is an investor on a new ABC show called “Shark Tank”, in which budding entrepreneurs compete in pitching their potentially moneymaking ideas to business experts in hopes of securing investment financing. The show is owned by SONY Pictures and produced by Mark Burnett.
Harrington is uniquely qualified as an investor/shark because of his involvement over his career in a wide range of industries. As a young entrepreneur at the age of 19, Harrington launched and operated a successful company that reached $1 million in annual sales and employed 25 people, all while still in college. In 1979, he started Franchise America, a franchise consulting and brokerage business, through which he sold thousands of businesses, giving him insight to the inner workings of dozens of industries; from restaurants to retail to small manufacturing, etc.
Harrington’s book, ACT NOW!, explains how he innovatively turns ideas into million-dollar products. It is available through Amazon and at bookstores nationwide. Examples of popular products available through TVGoods.com currently are: Tony Little fitness, George Foreman cleaning, Jay “the Juice Daddy” Kordich Health, Flying Lure fishing, Wolfman Jack music, and the Dual Saw, marketed by the late legendary pitchman Billy Mays. One TVGoods.com product, the Air-Cutter, a precision vacuum haircutting system, will be featured in the upcoming film Father of Invention starring Kevin Spacey.
Harrington is proud to have founded two of the most important global networking associations in the marketplace, the Entrepreneurs’ Organization (EO) and the Electronic Retailing Association (ERA).
As Worn by Royalty (Episode 2.8)
Third Guest: Aldo Orta, Aldo Orta Jewelry
Aldo is an artist from Mexico City, now living in Chicago. He wants to bring his jewelry to a bigger market and inspire other artists with his success..jpg)
Barbara really liked him and his style, and offered to put up half the money.- Presentation: He was poised and focused, and did a good job representing himself. He seemed like a very passionate and successful artist.
- Business Strengths: He has built a great clientele and a good brand for himself.
- Business Weaknesses: The business is totally dependent on Alto. If he is unavailable for any reason, the business dies. And the business depends on a strong economy, and we don’t have one right now.
- The Deal: He asked for $180,000 for 45% of the company and got it! Barbara and Kevin split the deal.
- Sharks: They were very professional. Kevin O wasn’t nearly as rude as he usually is.
- Use the money and Kevin’s knowledge and connections to leverage the QVC channel.
- There is great power in a brand that is sold to celebrities and you can say so.
- You can find out more at http://www.aojewelry.com/. There aren’t a lot of products to purchase, but we did notice a charming little bracelet for $4,500.
Postponed Delivery (Episode 2.8)
Second Guest: Kim Preis, Samson Martin
All of Kim’s girlfriends were pregnant at the same time and they were always being asked the same question: “When are you due?”. So she created a specialty clothing line that carries messages such as “Due in the fall” or “Due this April”..jpg)
Daymond was concerned that the market was down right now. He thinks the environment is poor, and doesn’t want to invest in another fashion brand.- Presentation: She was poised and well spoken. And very disappointed. But she was polite and said “thank you” anyway.
- Business Strengths: She had a good company before the recession, and has established the brand in many outlets.
- Business Weaknesses:. The IP was not strong, and her sales fell excessively (75%) during the recession. That makes me think there are other factors at play, such as the emergence of strong competition.
- The Deal: She asked for $50,000 for 15%. She got no counter-offers and no deal.
- Sharks: Robert was totally rude and obnoxious. He really makes the other sharks seem very professional.
- I think going down-market is a mistake. I suggest she try to grow organically again, and perhaps offer some complementary products.
- Sales are everything.
- It can be very difficult to convince investors that they will rise again once they have fallen.
- You can find out more at http://samsonmartin.com/. She has a small line, and it doesn’t look like she received funding from other sources. But she has expanded with a couple of new lines: one for new mothers and another for the kids.
Cats on the Throne (Episode 2.8)
First Guest: Rebecca Rescate, Citikitty
Rebecca is focused on helping cat lovers everywhere. She was living in a tiny apartment, and needed a way to eliminate the smells from the litter box.
Daymond thinks that Kevin H was a better partner and was out.- Presentation: She was very strong, poised, and polished. And it turned out that she was a fantastic negotiator.
- Business Strengths: She has great market traction, and the market is very large. I think she also has a compelling value proposition.
- Business Weaknesses:. None that I could see. There is a lot of competition in the kitty litter business, but very little (none?) in the cat toilet training business.
- The Deal: She asked for $100,000 for 15%; Kevin H offered $100,000 for 40%, and ended up with $100,000 for 20%.
- Sharks: Kevin O was his usual obnoxious self, and I was not surprised to learn that he hated cats. Kevin and Barbara did a little sparring over the deal, which put Rebecca in a a great position, and she took advantage of it.
- Let Kevin H do his magic! I think this is going to sell a bundle.
- In this crowd, market traction is everything.
- A bidding war between potential partners can be a very good thing!
- You can find out more at www.CitiKitty.com. This is a very good selling website! And she has complementary products to increase her sales and lifetime value of the customer.
This Idea Connected! (Episode 2.7)
Fourth Guest: Jeff Stroope, Hyconn LLC
Jeff is a full-time captain of a fire brigade and in charge of maintenance. He realized that it was taking way to long to get water to the scene of a fire, so he created a product that will revolutionize the fire safety industry..jpg)
He hasn’t been marketing the residential version because he has been focusing on the fire-fighting market. Kevin O says it may only take a few calls to talk to all of the big hose manufacturers.- Presentation: He was very convincing and authentic. I really wanted to work with him right away. The professional firefighters at his side were a nice touch.
- Business Strengths: There are a lot of hoses out there! And the residential market is huge.
- Business Weaknesses:. The only weakness I saw was Jeff’s focus on the fire-fighting market. And that ended with the deal and the dual focus on the residential market.
- The Deal: He asked for $500,000 for a 40% stake. Kevin O offered $500,000 for the residential business alone, and Mark offered $1.25 million for the whole business. Jeff and Mark made the deal.
- Sharks: They really got testy with each other. I think Kevin O and Mark are perfect for each other – both of them are rude and aggressive.
- Focus on building the business through licensing deals with major hose manufacturers.
- Intellectual property is very valuable.
- Bidding wars are great for those who are selling!
- You can find out more at http://www.hy-conn.com/. The home edition is only $19.99, including shipping and handling.
This Shoe Fits! (Episode 2.8)
Fourth Guest: Dominique McClain Barteet, OneSole