NewAgeStore.Com's Entrepreneur Is Unsure About This Offer | Shark Tank Australia | Shark Tank Global

Summary

Jen Lawrence and her partner John Bennett pitch their online spiritual guidance website, newagagetore.com, to investors on Shark Tank, seeking a $100,000 investment for a 10% stake. The site offers automated tarot card readings and generates income through Google ads and affiliate links, with minimal management required. Despite impressive monthly traffic and profit, the sharks express skepticism due to ethical concerns and the site's reliance on ads. After a tense negotiation, Naomi offers $100,000 for a 20% equity share, which Jen accepts, marking a pivotal moment in the business's growth.

Takeaways

• 😀 Jen Lawrence is the owner and founder of newagagetore.com, a spiritual website offering tarot readings and guidance.
• 😀 Jen and her life partner, John Bennett, are seeking a $100,000 investment for 10% equity in their business.
• 😀 The website receives over 600,000 visits per month and conducts 2.2 million readings, generating approximately 6 million page views.
• 😀 The website has a 90% profit margin and has earned over $1 million in revenue, with a nearly passive income model.
• 😀 The business runs on a very light-touch model, with Jen spending just 2 minutes a month on the site.
• 😀 Jen generates revenue through Google ads and affiliate systems, where she earns a kickback for user sign-ups.
• 😀 The business has consistently earned $140,000 per year for the past 3 years, with a profit of $108,000 annually after expenses.
• 😀 Some investors, including Janine, express concern about the ethical implications of the business model, particularly the automated readings.
• 😀 Jen proposes adding a paid reading feature, priced at $5, to diversify revenue and reduce reliance on Google Ads.
• 😀 Naomi offers a counterproposal, valuing the business at $500,000 for a 20% stake, which Jen and John agree to accept.
• 😀 Naomi, with experience in the online spiritual industry, believes in the potential of the business and is excited to collaborate moving forward.

Q & A

What is Jen Lawrence's business, and what does she offer to the Sharks?

Jen Lawrence is the owner and founder of newagagetore.com, a spiritual guidance website. She offers the Sharks an opportunity to invest $100,000 for a 10% equity stake in her business.

How did John Bennett become involved in the business?

John Bennett, Jen's life partner, is the 'numbers guy' behind the business. He shares his personal story about how his grandfather gave him a set of tarot cards, which ultimately became a cornerstone of the website.

How successful is newagagetore.com in terms of traffic and revenue?

Newagagetore.com receives over 600,000 visits per month, performs 2.2 million readings, and generates around 6 million page views monthly. Despite operating with minimal effort, it brings in approximately $140,000 annually, with $108,000 being profit.

What is the business model of newagagetore.com?

The website is free to use, and its revenue is generated primarily through Google Ads and an affiliate system, where Jen earns a kickback from sign-ups.

How much time does Jen spend on the business each month?

Jen spends about 2 minutes per month managing the website, emphasizing its 'light-touch' business model.

What concerns do the Sharks express about the business?

Several Sharks express concerns about the ethical implications of the business, with one questioning the automation of life decisions through a spiritual website and another concerned about the reliance on Google Ads, which could change its revenue model at any time.

What is the proposed change Jen suggests for the future of the business?

Jen proposes introducing paid readings at $5 each to diversify the revenue streams, while the readings would still be automated rather than personally done by her.

What is the major reason some Sharks decide to back out of the deal?

The Sharks who back out do so because of ethical concerns. One Shark is uncomfortable with the idea of offering spiritual services that are automated, while another believes it provides an 'out' for people instead of encouraging personal responsibility.

What makes Naomi interested in the business despite concerns?

Naomi shows interest in the business because of its potential in the spiritual space, referencing a similar business, horoscope.com, which was sold for $17 million in 2011. She also values Jen's entrepreneurial journey and her ability to sustain the website.

How does the deal with Naomi differ from Jen's original offer?

Naomi offers $100,000 for a 20% stake in the business, which is a higher equity stake than Jen originally proposed (10% for $100,000). Jen and John agree to this revised offer after discussing the terms.