"I Think It's a Load of Hocus Pocus" | Shark Tank Australia | Shark Tank Global

Summary

Jen Lawrence, founder of newwagstore.com, pitches her spiritual website to investors, seeking $100,000 for 10% equity. The website offers free tarot readings, generating revenue through Google ads and affiliate links. Jen’s business has a passive income model, earning around $140,000 annually with a 90% profit margin. However, some sharks express concerns about the ethics of the business, with one even questioning the potential risks of relying on Google ads. Ultimately, Nomi offers $100,000 for a 20% stake in the business, and Jen accepts, leaving the future of the business looking promising.

Takeaways

• 😀 Jen Lawrence is the founder of newwagstore.com, a spiritual guidance website.
• 😀 Jen and her partner, John Bennett, are seeking a $100,000 investment for 10% equity in the business.
• 😀 John Bennett shares a personal story about his grandfather's tarot cards, which led to the creation of the website in 1999.
• 😀 The website receives over 600,000 visits and 2.2 million readings every month, generating around $140,000 in revenue annually.
• 😀 The business model is based on free readings with income from Google ads and affiliate marketing.
• 😀 Despite earning $108,000 in profit annually, the business runs passively with very minimal time commitment from the owners (about 2 minutes a month).
• 😀 Some Sharks express skepticism about the ethics and value of the business, with concerns about the automated spiritual readings and its potential risks.
• 😀 Jen plans to introduce paid readings at $5 each, which would still be automated, to diversify income streams.
• 😀 The spiritual industry is a multi-billion dollar market, and a similar competitor was sold for $17 million in 2011.
• 😀 The Sharks debate the business's valuation, with one proposing a $100,000 investment for a 20% stake instead of the original 10%.
• 😀 Jen accepts the offer for 20% equity, signaling the start of a new chapter for the business with the involvement of an investor.

Q & A

What is the name of Jen Lawrence's business and what does it offer?

Jen Lawrence's business is called newwagstore.com. It is a website that offers automated tarot readings and spiritual guidance services.

How much equity is Jen seeking for the investment?

Jen is seeking $100,000 for a 10% equity stake in her business.

How does John Bennett, Jen's life partner, describe his background?

John Bennett shares that he grew up without much and recalls his fond memories of his grandfather giving him tea and reading his tea leaves. He also mentions receiving a set of tarot cards from his grandfather, which became the cornerstone of the website.

What are the key statistics for the website's performance?

The website receives over 600,000 visits a month, performs 2.2 million readings every month, and generates around 6 million page views per month.

What is the profit Jen's business generates annually?

Jen's business generates about $140,000 in revenue per year, with a profit of around $108,000 after expenses.

How does Jen generate income from her website?

Jen generates income through two main sources: Google ads on her website and an affiliate system where she receives a kickback for sign-ups.

How much time does Jen spend managing her business?

Jen spends about 2 minutes per month managing the website, describing her business as a low-maintenance, nearly passive income source.

Why does one of the investors express concern about the business model?

One of the investors expresses concerns about the ethics of offering spiritual guidance through automated systems, suggesting it may be like gambling or preying on people's hopes in an irresponsible way.

What change does Jen propose to diversify her revenue stream?

Jen proposes introducing a paid reading service, where users would pay $5 per reading, although the readings would still be automated.

What was the final investment offer made by one of the Sharks?

One of the Sharks, Nomi, offers $100,000 for a 20% stake in the business, valuing it at $500,000, which is double the original valuation Jen proposed.