'Shark Tank': How did HelloPrenup bag $150K deal with two Sharks despite low sales?
No matter how good a product or a pitch is, when it's time for a Shark to decide on whether or not to invest their hard-earned money in a business they take a hard look at the numbers. Over the years, 'Shark Tank' fans saw several entrepreneurs leave the tank empty-handed just because they had low profit margins or high customer acqusition rate, or even extremely low sales numbers. So, when Sarabeth Jaffe and Julia Rodgers, founders of HelloPrenup managed to close a deal with not just one but two Sharks despite having made only $20,000 in sales, they managed to perform an impossible feat that many entrepreneurs can only dream of.
Before we get into how these two women managed to accomplish such an impossible feat, first let's take a look at what exactly HelloPrenup is. HelloPrenup is the premier online platform for engaged couples to create affordable, fast, and comprehensive prenuptial agreements. The brand's goal is to set up every marriage for success by promoting communication and financial transparency. Julia and Sarabeth delivered a pretty solid pitch on how more and more millennials are looking to get a prenuptial agreement before walking down the aisle, and the pain points of getting one. They also pointed out how HelloPrenup makes the task of getting this crucial legal document with just a couple of clicks on the computer. Needless to say the Sharks were pretty impressed by their wildly unique service. But before dipping their toes into the HelloPrenup pond, they first wanted to know about the sales numbers and profit margins of the brand. When Kevin O'Leary asked them the hard questions, the entrepreneurs then ended up revealing some shocking numbers. The duo explained that they had written only 25 agreements so far on the platform and they made a total of $20,000 in sales.
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The Sharks were immediately put off by the numbers. Mark Cuban and Robert Herjavec began laughing at the numbers. Lori Greiner sat out of the deal as she felt that it didn't fit in her portfolio. Robert, Mark Cuban, and Kevin O'Leary felt that most people would much rather prefer going to an actual an actual attorney to get their prenuptial agreement drafted instead of getting one off the internet, so for that reason the three Sharks chose to sit out on the deal. Final it was Nirav Tolia's turn.
The tech mogul declared that the other Sharks weren't seeing the potential he could see in HelloPrenup which he was seeing. He immediately decided to make an offer but wanted a 30% stake in exchange for $150,000 instead of the 10% they came in with. The ladies felt that 30% was a bit too high, Julia pointed out how she invested all of her money into the business and requested Nirav to reconsider his offer. So Nirav asked brought it down to 20%. But before closing the deal with Nirav, the ladies tried to rope in Mr Wonderful aka Kevin O'Leary too into the deal by asking him to join in.
Kevin then said he too wanted a good chunk of equity to make it worth his while. So the two Sharks teamed up and made a joint offer of 30% equity stake in exchange of the $150,000 investment. Julia and Sarabeth happily agreed and closed the deal. Julia and Sarabeth's persuasion coupled with stating the growing demand for prenuptial agreements helped them pique the interest of Sharks despite their very low sales numbers. They also had sales projection of $4 million for the next year, which significantly helped their case.
Fans were pretty surprised and impressed by the two entrepreneurs' skill at bagging a deal with two Sharks. A fan tweeted, "I’m surprised they actually got a deal #SharkTank." Another fan wrote, "Didn't think they'd pull off a deal, but they turned on the charm at the end! Congrats to @HelloPrenup! #SharkTank." "These Hello PreNup ladies on #SharkTank are brilliant! They’re not wrong. I know tons of millennials who would be so on this. My stepdaughter and her husband still split so many things. They have joint and separate checking and savings accounts," shared a fan. Another fan added, "To have so little sales and snag two sharks is impressive! Congratulations #HelloPrenup #SharkTank."
I’m surprised they actually got a deal #SharkTank— tvismyescape 📺 (@hershey_bar22) November 13, 2021
Didn't think they'd pull off a deal, but they turned on the charm at the end! Congrats to @HelloPrenup! #SharkTank— Phil Lemos (@Phil_Lemos) November 13, 2021
These Hello PreNup ladies on #SharkTank are brilliant! They’re not wrong. I know tons of millennials who would be so on this. My stepdaughter and her husband still split so many things. They have joint and separate checking and savings accounts.— MissKittyATX (@DafuqRUwearing) November 13, 2021
To have so little sales and snag two sharks is impressive! Congratulations #HelloPrenup #SharkTank— Ryan Bartholomee (@RyanBartholomee) November 13, 2021
'Shark Tank' Season 13 airs every Friday at 8/7c on ABC. Missed an episode? Been wanting to catch up? Episodes can also be viewed the next day on demand and on Hulu. Not just that, you can also watch old seasons and episodes on Amazon Prime Video and iTunes.