Can This Answering Service Stop $9.6 Billion Yearly Scams? | Shark Tank US | Shark Tank Global

Summary

In this engaging pitch, Roger Anderson and Steve Burkson present the Jolly Roger Telephone Company, which uses humanlike robots, or 'Pirates,' to waste telemarketers' time, fighting back against scams that cost Americans billions annually. The company seeks $400,000 for 10% equity to scale their service, which has processed over a million calls without spending on marketing. Although the Sharks express skepticism, the business attracts interest, especially from Mr. Wonderful, who proposes a deal with a substantial stake. The pitch highlights innovation, the fight against telemarketing, and potential growth, though the venture is still in its early stages.

Takeaways

• 😀 The Jolly Roger Telephone Company is seeking $400,000 for 10% equity in their business, aiming to combat the problem of telemarketing scams.
• 😀 The company uses human-like robots, called Pirates, to waste the time of telemarketers, thereby preventing them from scamming consumers.
• 😀 The Jolly Roger service records telemarketing calls and provides amusing recordings to customers, turning the tables on scammers.
• 😀 The company is still in its early stages, pre-revenue, and has spent two years on research and development.
• 😀 Customer acquisition costs are low because the company has not yet spent money on advertising, relying instead on word of mouth and customer referrals.
• 😀 The subscription cost for consumers is $12 per year, with a cost of $4 per customer to maintain the service, due to fees like hosting and telecommunication costs.
• 😀 The company has processed over a million calls for customers, but it’s still in the growth phase, with plans to scale significantly.
• 😀 Investors express skepticism, asking for more concrete plans and financial details, as the business is still a side project for the founders.
• 😀 There are concerns about the long-term sustainability and growth of the company, given that it’s pre-revenue and has no clear customer acquisition strategy.
• 😀 One investor, Mr. Wonderful, proposes investing $400,000 but demands 50% equity, offering his expertise to guide the business towards a more structured growth model.

Q & A

What is the Jolly Roger Telephone Company aiming to do?

The Jolly Roger Telephone Company aims to combat telemarketing scams by using humanlike robots (called 'Pirates') to waste telemarketers' time and prevent them from scamming consumers.

How does the Jolly Roger Telephone Company’s service work?

The company uses robots that engage telemarketers in long, unproductive conversations, keeping them on the line while wasting their time, which prevents them from targeting actual customers.

What are the key benefits of using the Jolly Roger Telephone Company’s service for consumers?

Consumers benefit by receiving recordings of these hilarious, frustrating calls with telemarketers, as well as having their time protected from scammers. It also provides a way to thwart unwanted calls.

Why is the company seeking $400,000 for 10% equity?

The company is seeking $400,000 to fund their expansion and marketing efforts, especially to scale their service through carriers and grow their customer base.

What is the pricing model for the Jolly Roger Telephone Company’s service?

The subscription costs $12 per year for customers, and the company incurs about $4 per year in operating costs for each customer, including hosting, telecommunications, and gateway fees.

What are the challenges the company faces regarding customer acquisition costs?

While the company hasn’t spent on customer acquisition so far, they face a high cost of $4 per customer per year due to hosting, telecommunications fees, and other operational costs.

Why do the founders believe their service can scale quickly?

They believe working with carriers will allow them to reduce customer acquisition costs to nearly zero and tap into a vast market of potential users, facilitating rapid growth.

What is the current status of the company in terms of development and market presence?

The company is in the early stages of growth, having spent two years on research and development. They have servers, a website, and telephone systems in place but have not yet invested in marketing.

What are the founders’ backgrounds and how did they come up with the idea for the business?

The founders have extensive experience in telecommunications, with one being a telephone engineer and the other working in the telecom industry for over 30 years. The idea was sparked after a telemarketer insulted one of the founders' children.

What did the investors think of the business model during the pitch?

While some investors appreciated the concept and the humor behind it, they were skeptical about the business's current lack of structure, sales, and the founders’ full-time commitment to the venture. Some expressed concerns about scaling and the need for more marketing and operational plans.