FashionTap Shark Tank Pitch
FashionTap provides bloggers with a way to monetize their photos instantly using affiliate marketing and targeted imaging. The users creates image content and tag an image map with an item that links directly to the merchant for purchase. Each link has an affiliate link allowing them to make a commission on sales.
Instagram is not likely to offer photo tagging because they of the width of categories.
FashionTap has three revenue sources. The first is being built out an ecommerce platform that is being built into the app allowing FashionTap to take 10% off each sale from the bigbox store. The second revenue stream is sponsorships whereby the bigbox sends out clothes and she pays bloggers to wear the clothes. The third revenue stream is affiliate marketing.
In six months they have $60,000 in sales and she is sending that out in full affiliate commissions. She is living off her savings. She owns 33%, and has a chairman who has 38% and has put $90,000 in to the company. Her CTO has 23%. the COO has 5% and the developer has 1%.
Amy wants to use the investment from the Sharks for marketing to increase her user base.
Mark wants to know what happens if the $100,000 doesn't work to make the app go viral.
She has 6,000 downloads in six months leading up to her Shark Tank pitch.
FashionTap Tank Episode Data
- Company: FashionTap – Website
- Entrepreneur: Amy Roiland
- Ask: $100,000 for 10% equity
- Episode Season 7 Episode 726
- Companies in this episode:
- First Aired: 04/29/2016
- Deal: No Deal
What do the Shark Tank Investors say about FashionTap?
- Mark Cuban – is telling Amy that $100,000 is not a lot of money to scale the business with and he wants to know what she will do if it doesn't take off. She tells Mark if they scale to 100,000 monthly active users she will have $7 million gross sales. Mark says she has not answered the question on how Amy will get people to switch over to her platform. He is out.
- Daymond John – loves the fashion business, and he would love to work with her, but the Instagrams are going to do something that will address this and he sees it as too complicated so he is out.
- Kevin O'Leary – sees Godzilla and he sees Amy very flat as a stain in the carpet. He wishes her the best, but he sees bad things for her. He is out.
- Barbara Corcoran – thinks she should probably listen to the tech guru's, but she is thinking of Grace and Lace as a long shot, but ironically, they have been the most profitable and Amy reminds her of Grace and Lace. She wants 25% for $100,000. Amy declines because she cannot do the deal. She is firm of $100,000 for 10% and is not countering. Barbara is out.
- Chris Sacca – doesn't hear anything in the business plan about the army of business development folks you will need to go do deals. They are already cut pretty thin, and they won't want to cut a big piece of margin for you. Chris disagrees with Amy saying Instagram is not a fashion network. Chris says everyone is chasing the strategy she is working on, but it's not close enough. It is out.
FashionTap after Shark Tank
FashionTap crashed during her Shark Tank episode, and Shark Tank fans accused her of not wanting a deal, but seeking notoriety. She got the attention, and even criticism of expecting to get exactly what she asked for and not being willing to negotiate. Let's face it, the fashion industry is known for not playing by the rules, and Amy certainly didn't do that in Shark Tank. She did take criticism from Kevin O'Leary well.