You’d think ‘Shark Tank’ contestants get paid huge — but the truth behind the scenes is surprising
‘Shark Tank' has successfully been running for 16 seasons and could be considered one of the major revenue-earning shows for ABC Network. This implies that the show has made a lot of money over the years, and the ‘Sharks’ get paid for their contribution. Since it always takes two to Tango, the contestants also play a huge role in the show’s success. But do they get paid after their episode air on television? The investors are paid a certain amount for their time on the show, but the money they invest is their own. However, the hopeful entrepreneurs who walk over to the‘Shark Tank’ stage don’t get any money, as per The Sun.
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The founders walk out empty-handed unless they get a check from any of the investors. But it turns out that appearing on the show is enough marketing for the budding entrepreneurs. In 2013, the New York Times reported that many contestants only care about the exposure. Entrepreneurs come on the show with no real intention of closing a deal. “They say ‘yes’ on the show because it makes for a better story. But they were always in it strictly for the exposure,” said Rob Merlino, author of SharkTankBlog, who has auditioned more than 70 participants.
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The outlet also claimed that a certain percentage of contestants give 5 percent of their company or 2 percent in royalties in exchange for the exposure on the show. If they agree to this term, it has to be followed regardless of whether they get an investment or not. However, the show’s producers denied commenting on the contract, as per the outlet. Investor Mark Cuban was reportedly upset over this clause in the agreement. As per the outlet, Cuban took to Facebook to address the matter, writing: “FYI, there is no additional equity or percentage of anything taken any longer. That was removed retroactively.”
“I told them I wouldn’t come back this season if it wasn’t,” Cuban added. He insisted that if the show continued this way, the quality of companies and entrepreneurs would only “decline.” ‘Shark’ Kevin O’Leary admitted that he’s learn to factor in the fame aspect while making calculations. “I’m always looking for that company with a great concept that just needs the platform we provide to really take off,” Mr. Wonderful revealed. He named Wicked Good Cupcakes as the perfect example. It is a cupcake shop on the South Shore of Massachusetts run by a mother-daughter team.
They cracked the idea of shipping their confections in a single-serve Mason jar and delivering them anywhere in the country. O’Leary struck a deal of $75,000 in exchange for $1 from every cupcake sold until he gets his money back. The ‘Shark’ considers it one of his most successful deals. Another thing that the audience doesn’t get to see is what happens after the deal is sealed. “A lot can happen between the time we finish shooting and a segment airs,” said Mark Burnett, whose company is a co-executive producer of ‘Shark Tank.’ Some deals might even fall through before their pitch is even aired.
