Shark Tank

[Mark F]

I don't quite understand how that works. Why does it make a difference when the money leaks out?

When you are growing a business you need cash... So if you are paying the guy a royalty you are going to have less cash to grow the business.

[wayfe]

When you are growing a business you need cash... So if you are paying the guy a royalty you are going to have less cash to grow the business.

But that money isn't yours to invest in the first place if you owe it as equity?

[Mark F]

But that money isn't yours to invest in the first place if you owe it as equity?

Equity is ownership in the company... You don't get a paycheck from the equity, however, you get a paycheck from a royalty.

[moish]

Equity is ownership in the company... You don't get a paycheck from the equity, however, you get a paycheck from a royalty.

thats not entirely accurate. the profits belong to the owners who can choose to leave it in the company as retained earnings

[Mark F]

thats not entirely accurate. the profits belong to the owners who can choose to leave it in the company as retained earnings

I was trying to bring out a difference between equity and royalty...

[moish]

I was trying to bring out a difference between equity and royalty...

right but his question was what difference does it make how he structures the deal. certainly someone who wants to bleed the company by taking a royalty, if he were instead to take equity, no doubt he would want to take the profits out

[CS1]

right but his question was what difference does it make how he structures the deal. certainly someone who wants to bleed the company by taking a royalty, if he were instead to take equity, no doubt he would want to take the profits out

perhaps some of the profits will come out, however, isn't the affiliation for being on Shark Tank good for overall PR?

[wayfe]

Equity is ownership in the company... You don't get a paycheck from the equity, however, you get a paycheck from a royalty.

Over a year or so, will the a amount paid as a royalty be greater than the profit made as equity?

[Mark F]

Mark Cuban is leading in the poll...

[lcyitz]

Mark Cuban is leading in the poll...

i dont understand why... cuz hes cool??

[Mark F]

i dont understand why... cuz hes cool??

Who did you vote for?

[rots5]

i dont understand why... cuz hes cool??

prob bec he has the biggest name out there. though i dont think hed be the most helpful to your in company business. but having his name on your business is prob just as useful.

[lcyitz]

Who did you vote for?

Lori 

[Mark F]

Lori 

Why do you want to make a deal with her?

[rots5]

Why do you want to make a deal with her?

She might have the most clientele over 50 u know

[lcyitz]

she seems to boost most business

[12HRS]

prob bec he has the biggest name out there. though i dont think hed be the most helpful to your in company business. but having his name on your business is prob just as useful.

I think you are right. I think Mark only invests in companies that he sees the entrepanauer is going to do the work and really just needs a cash infusion. There was one episode where he even said that to barbara "I don't want to do the work" and then they went in together after barbara said "i'll do the work"

Seems like barbara/lori are the best for taking your hand and helping you grow.

Kevin just wants to make money off you not make you money.

I can't get a handle on robert/daymonds style yet, though I have only watched one season

[Chaikel]

Over a year or so, will the a amount paid as a royalty be greater than the profit made as equity?

Basically, although technically your equity can be worth more

[Mark F]

Hmmm...   Barbara didn't get even one vote.

[Joe4007]

Hmmm...   Barbara didn't get even one vote.

That's really strange considering her track record.