AbsolutelyNew Blog

More tips from the Shark Tank

We’ve now seen three episodes of ABC’s Shark Tank. Still love the show, still stand by our August 10 comments about it after its debut episode.

And now that we’ve seen a crop of additional inventors and entrepreneurs enter the tank… many practically eaten alive before a national TV audience… we thought we’d come back to the subject with a few more tips for people trying to sell inventive ideas:

1. Know your ultimate goal. Yes, you want to achieve invention success. But does this mean your #1 priority is to make money, or to establish a business? The two can often be at odds, yet time & again we’re seeing inventors on Shark Tank struggling because they never figured out what they really want. The struggling makes for perfect TV drama, but it's not something you ever want to experience first-hand. Before you engage in any discussions with any companies, let alone try to get on television, take the time to think about what you really, truly want. 

 

2. Know your numbers. You should know the size of your product category, how much it costs to make your product, how many units you’ve sold thus far (if applicable), and so on. If you can’t answer such questions, you’re going to have a very hard time persuading others to give you money. We suspect the sharks actually like these uninformed people—it gives an excuse to tear them apart (again, good drama). But since you don’t want to be shark food, make sure you’ve done your homework and are armed with answers. And stepping back, these answers should help you plot your course of action long before you ever get in front of others.

3. Know your present value. Just about every inventor and entrepreneur on Shark Tank has overvalued his or her proposition. Their common mistake: confusing what they believe an idea may be worth in the future vs. what it's worth now. The distinction really matters. Think about it: would you buy a house based on what it may be worth in 5 years, or based on what it's worth today? Of course you're going to focus on the value today. And businesses are going to think the same way as they consider buying or investing in your idea. So if you’re looking for a deal here & now, you’re going to need to stay more grounded in the present.

Don’t tase your invention

The Today Show this morning featured a segment on NY mom Audra Harmon, who got tased (aka: Tasered) roadside by a local sheriff’s deputy for resisting arrest. Her children witnessed it from inside the family minivan.

We can’t say whether Harmon’s innocent or guilty of the moving violations that led to her being pulled over in the first place (the deputy alleges she was driving while using a mobile phone and speeding), but we can say we know why this made Today: there’s spectacular video from the patrol car… and the video very strongly suggests that the deputy went way too far.

Of note, almost all of the drama, and now the all-too-predictable lawsuit, could have been avoided had Harmon simply stayed in her car. Everybody knows you’re supposed to stay in the car. But she was mad about being stopped, so she got out of the car to demand the deputy immediately show her video proof of her crimes.

Why do we bring this up? Because inventing is hard. Very hard. And turning your inventive idea into a marketplace success is harder still. So when the going gets tough—and it will at some point, unless you’re incredibly lucky—try to keep your emotions in check and don’t do the equivalent of getting out of the car. Said another way, don’t Taser your own invention.

Our view of the Shark Tank

See ABC’s Shark Tank last night? The new reality TV show follows U.S. inventors and entrepreneurs as they go before a panel of highly successful business people (the “Sharks”) and pitch their ideas with aim to secure financing from the sharks.

Here’s what often unfolds: inventor pitches “brilliant” idea and a business proposal—ie: a 10% stake in exchange for $460K—only to be eaten alive by the sharks with their tough questions about the product, business model, sales potential and so on.

In other words, it’s sort of like watching a horror film: drama, pain, a few heart-warming moments for good measure... and sheer exhilaration. And while we’re not such big fans of the horror genre, we really liked Shark Tank for demonstrating a number of real-life realities for inventive people:

• Business is a heartless math exercise. Time & again, the sharks did the math and said they didn’t believe the numbers justified investment. In a couple instances, one or more sharks countered with alternative financing terms based on what they felt a product or idea might generate. This led to on-the-spot negotiations with dollar amounts, percents, and controlling ownership positions flying back and forth. And while the TV show setting is contrived, the sharks' tough questions are not. Remember, you can put your heart & soul into your product, but outsiders including retailers and manufacturers will focus squarely on the return they’ll get on their investment. It’s not cold—it’s the cold, hard truth.

• Greed is a very big turn-off. Just about every inventor and entrepreneur on the show asked for too much money for too little in return—like the guy wanting $1.2 million in exchange for a 10% stake in his highly questionable if not insane idea. Some of this was due to unrealistic expectations, but much of it was very clearly greed. And the sharks had none of it. In fact, the greed only served to inject tension from the start of the discussion. Knowing that your audience is treating this as an investment, and knowing that they’re usually quite savvy—the retail buyers we work with are very smart people—greed won’t get you very far. If you’re looking to go far, propose terms that help ensure all parties win; otherwise, you’ll likely be the loser, as was the case with some visitors to the Shark Tank.

• Do you have a product or a business? The sharks noted a couple times that an inventor has a “product,” not a “business.” The difference: a single product is hard-pressed to stand out and often holds limited potential, whereas a business is one with broader scope and greater growth potential ongoing. To be sure, this isn’t always the case, but we appreciated the sharks counseling at least one inventor to license her product and move on rather than investing everything she has to proceed alone.

We could go on & on... but what did you think? And what did you get out of the Show?

Full disclosure: Shark Tank producers contacted us months ago asking us to send inventors their way. We declined. We didn’t like the fact that inventors would need to sign away 2% of their sales to ABC, parent company Disney, and producer Mark Burnett (the guy behind Survivor) just to be considered for casting. We also felt our clients’ aims would be better served by focusing on outreach to leading manufacturers and retailers, not a Reality TV panel that may be more keen on ratings than inventions.

Invention lessons from Billy Mays (1958-2009)

The invention world has lost one of its greatest champions: TV pitchman Billy Mays died unexpectedly over the weekend.
 
We sometimes laughed at Billy’s larger-than-life style, but we also greatly respected the fact that he got behind so many individuals' inventions early on... and used a louder-than-life selling approach to make them very big hits. From OxiClean to Mighty Putty to Mighty Mend-It, Billy’s fingerprints (and signature hand gestures) are all over the success.
 
In tribute to Billy Mays, here are three lessons learned from the black beareded, blue-shirted master (and yes, we’re tempted to write in ALL CAPS... but Billy was really much more nuanced than that once you study him carefully):

1. Convey your benefits. Billy understood that most people don’t want to hear about the 19 different features of an inventive new product -- they want to hear the top 3 benefits they’ll experience, with tangible examples to drive the message home. What’s more, Bill always made sure to show at least one dramatic visual torture test to close the sale. Remember when he poured OxiClean powder into iodine water and the liquid turned from red to clear before your eyes? When Billy Mays sold it, you knew the exact benefits you’d get. You should do likewise as you sell your product.

2. Test it. In his Discovery Channel TV show Pitchmen, Billy and his co-host made sure to put each invention through its paces before deciding how to proceed. For a salon product, he gave it to women at a nearby salon in exchange for their candid feedback. For a cleaning product, he asked a professional housecleaner to evaluate it. To be sure, we’re fans of deeper research than the show depicted, but we appreciate the realities of a TV show... and we appreciate the broader point that Billy made sure to dig in and learn before moving into selling. Everyone out there should follow such a path.

3. Be passionate. Within the advertising world, Billy’s critics (yes, there were a few) accused him of “yelling not selling.” But the fact is, Billy effectively sold a whole lot of products. It’s the only reason he was able to stay in the business. Why was he so good, even when he was so loud? Among other reasons, because shoppers saw his loudness, his boldness, and his conviction for what it really was: genuine passion. We’re not saying everyone should try to mimic Billy’s style; however, being passionate about your product will only serve to excite others too. And isn’t that what selling is all about?

Do you buy into the Pitchmen?

Seen Pitchmen? It’s the relatively new Discovery Channel show featuring infomercial pros Billy Mays and Anthony “Sully” Sullivan working with independent inventors to bring their products to the airwaves.

We didn’t want to rush to judgment on the show, so we’ve waited to see several episodes before weighing in. Our view: entertaining program, offers some good insights to inventors, but not necessarily the greatest invention show ever as some have proclaimed. Why:

• We love the attention this show brings to the invention world. We genuinely think inventors make the world a better place, so putting a respectful spotlight on them and their creations is a generally positive thing.

• The black-bearded Billy and Anglo-accented Sully (and Billy’s son, who of course sports a perfectly trimmed beard just like his dad) really know how to work the camera. Their repartee is especially amusing.

• Episodes give a good sense of the behind-the-scenes in getting an invention on air, from figuring out the product name and claims to selecting and refining the product demonstrations to letting the numbers drive decisions.

• Pitchmen shows that not every invention proves to be successful, even when the inventor is absolutely convinced he or she has a winning idea... and those around them support this thinking.

• Despite the above, we fear the show may lead viewers to unrealistic expectations of success. Episodes start with four inventions, two of which the hosts pick to work on, one of which is usually successful and the other not so much. We wouldn’t want anyone to think 25% or 50% of all inventions will be successful, as industry statistics are less compelling.

• By expressing serious doubts but still investing in a number of inventions, as Billy and Sully do for this show, they’re suggesting it’s relatively easy for inventors to secure outside funding. The show does this because it makes for good television, especially when there’s a great story behind the inventor. But the cold reality is that cold, hard cash is hard to come by.

What do you think?

But wait, there’s more: The Discovery Channel site offers a fun quiz to determine what infomercial product best suits your personality. What does it mean that we match Ontel Corp.’s Cordless Swivel Sweeper?

An inventor's perspective on a QVC sellout

In case you missed it, we’re pleased to report that our inventive Side Solution(TM) pillow sold out in the first few minutes of its QVC debut. This also marked the TV selling debut for its inventor, Dr. Paul Mettler.

As we scramble to arrange another segment on the world’s largest TV shopping channel, we also paused for a moment to ask Dr. Metter about the experience. Here are Q&A snippets from the conversation, which we hope you’ll find useful as you consider promoting your invention on television:

Q: How did you prepare for selling on QVC?
A: I worked for several weeks on developing a script that would focus on the problem/solution strategy. This is very important, so I worked on it with AbsolutelyNew and the QVC training program. I also practiced with friends to get the message and delivery fine-tuned

Q: How did you feel right before going on air?
A: This was my first live, on-camera experience so I was somewhat anxious but excited that a 15-year dream of getting the pillow into the national market was finally happening.

Q: What was the on-camera experience like?
A: I had no idea that QVC’s on-air host would just walk over from the set he had been previously selling on, shake my hand, and then immediately begin the show for my pillow. Everything happened really fast and not entirely as we planned. For example, our time was moved up, and our live model was not given notice of this time change, so we began the presentation without the model and then she came just as I was ready to do a live model demo. Once the model arrived I was able to really relax and have fun. 

Q: Can you describe the moment when the host interrupted you mid-sentence, shook your hand again, and told you that QVC had just sold out all inventory?
A: I was really focused on the message and connecting with the host. So I really did not think about the audience or selling out. I was really surprised but very excited we sold out so fast

Q: What are your thoughts looking back?
A: It’s an exhilarating and very rewarding experience. And I feel very blessed for the excellent preparation I received.

Q: What advice would you give another inventor who wants to sell on QVC?
A: I would tell them not to give up on their dreams, be persistent, and let others help them reach their full potential

BTW, to see the man behind the pillow success, click here to see QVC's selling page... and then click the Videos tab to watch Dr. Mettler's debut.

Stop the CES Celebrities!

Way back in the day, it seemed that people including famous people did just one thing – they were a mechanic, or a doctor, or a nationally recognized TV talk show host.  And that was it.  But the world’s gotten smaller and the lines are blurring and vanishing.

For the most part, this is good.  I’m all for stepping out and crossing lines.  After all, most inventors are people with day jobs that tackle their inventions at night and on weekends, with aim to solve problems and challenges they face every day... and the world's a fundamentally better place because they crossed those lines.

But the line crossing is now going too far!  What leads me here?  Well, the Consumer Electronics Show is rapidly approaching – in case you don’t know it, this annual January show is THE show for just about all cool things you’d want to plug in at home – and I just read that it’s going to be Celebrity Central with a famed mix including:

• Singer Stevie "I Just Called to Say I Love Your New Smartphone" Wonder
• Jeopardy! host Alex Trebek
• Star athletes “Big Papi” Ortiz (Red Sox) and Joba Chamberlain (Yankees)
• Oprah’s on-air doc, Dr. Oz
• and just about the entire NBC News team, including the Today show gang, Nightly News anchor Brian Williams, and CNBC's Maria Bartiromo

I am not excited to see the celebs descending upon CES.  In fact, I’m exasperated to think these folks will be distracting and diluting the goodness of the show.  Let singers become actors, and baseball players become TV commentators… but let’s let the electronics shine at CES!  If I want to watch Big Papi, I’ll watch him on my TV... not hyping new TVs or drawing throngs that prevent me from checking out the latest new TVs.  Because when it comes to CES, nothing’s hotter than that new TV, that inventive new touch-screen device, and that breakthrough laptop with true surround sound?

Are you with me in my quest to stop the CES celebrities?  Do you agree we should keep power hitters separate from power buttons?  Who should we call to…?

BTW, a shameless but lucrative plug – AbsolutelyNew can still potentially showcase your invention at CES… so definitely contact us quickly if it’s where you’d like to be.

The newest hands-free device in California

California’s “hands-free” law went into effect in July, making it illegal to drive a motor vehicle while holding a cell phone to your ear.  I haven’t seen any impact on the roads, but I can’t miss the impact in stores – from my local Costco to the Verizon Wireless stores, I’m bombarded with hands-free headset products and images.

Yet the newest hands-free device in CA has nothing to do with the phone – it’s the Pribot, a hands-free (actually, driver-free), robotic Prius that hit the streets of San Francisco and successfully crossed the Bay Bridge earlier this month…with police escort.

We love this kind of innovation – an inventor (Anthony Levandowski) with a full-time “day job” pursuing his dream in his spare time, trying to move the needle in a big way, in a direction that could have significant consumer benefits.  We’re also suckers for anything involving robots and radar.

I’m trying to get the inventor on the phone so I can get you his perspective on his experience – including perspective on filming a segment about his invention for a new Discovery Channel show, Prototype This! – so stay tuned for more.  In the meantime, I’m left wondering how soon before Dominos orders up a Pribot or two to test for pizza deliveries.  I’ve got to believe this will be a reality within 10 years, tops.

Don't touch the remote!

We're gearing up to showcase several of the latest AbsolutelyNew innovations on the TV shopping channels, and needless to say, we're quite excited.  Did you know the largest of these networks reaches >140 million homes, and has shipped more than a billion packages?  And the sales in this channel are growing!

Given this, I thought you might value some inside perspective on the world of TV shopping.  So I reached out to our Director of TV Sales, Wendy Knecht.  Wendy's been selling products to QVC, HSN, and the others for years, and has appeared as a “guest” on QVC more than 25 times.  She's had her big successes, and her complete busts (like when major Iraqwar news had everyone switching off QVC to watch CNN).  Here are some highlights from my conversation with Wendy:

• The TV shopping channels continue to get bigger.  More players (like ShopNBC and Shop Latino TV) are also getting in on the action.  This growth translates to more opportunities to get innovative products on air. But the stakes are also a lot higher – products are getting shorter time segments (ie: 6 minutes each) and the dollar sales per minute expectations are getting higher.

• Selling on TV can be very lucrative.  It can also be very risky, because you must agree to a “guaranteed sale.”  This essentially means that once you've received an order, you need to produce 100% of the inventory up front... but you will only receive payment for units that sell.  Unsold inventory will be returned to you, at your expense.  Thus it is very important to work with your buyer to determine a reasonable quantity for each order.

• Seven keys for on-air success:

1. Start out by presenting a need or problem, and then quickly show how your product addresses it.
2. Be enthusiastic.
3. Be repetitive.  Simplicity sells on TV, whereas too many different selling points often make a product seem complicated.
4. “Facts tell. Stories sell.”  Always make it personal by talking about how you’ve used the product, how it’s made your mom’s life better, etc.
5. Let the host run the show because they truly know the audience best.
6. The camera follows your hands so use them wisely to showcase your invention.
7. Thin stripes and plaids blur on camera.  Choose a wardrobe of solid colors that stand out.

Want to learn more? Or have any additional thoughts based on your own experiences?