Advice From a Shark Tank Shark

We’ve all been there. It’s late at night, you’re flipping through the channels and you stop on CNBC. Chances are there is an old episode of Shark Tank playing, and sitting in one of those leather chairs you might have seen Kevin Harrington, one of the original sharks.

Now think back many years ago, you’re still flipping through the channels, but this time you stop on an infomercial for a George Foreman Grill or a Tony Little Gazelle. Did you know you were actually seeing Kevin there, too? Maybe not physically, but Kevin’s fingerprints and dollars were very much present in those “as-seen-on-TV” specials. 

Kevin was the pioneer of the television infomercial, and, therefore, the direct-to-consumer industry. And when the internet emerged, Kevin was one of the first to move his sales online. On this episode of Up Next in Commerce, we grabbed Kevin for a quick interview to discuss his latest book, Mentor To Millions, and asked him to take us through his transition from TV powerhouse to digital investor. Kevin explains some of the key areas he looks at when determining if a company is worth investing in, and he details some of the ways that eCommerce companies should be thinking about marketing and product strategy.   

3 Takeaways:

• If You Don’t Have Marketing Money, Get Marketing Money: It is impossible to have a successful business if no one knows you exist. No matter how small a company might be, marketing has to be a top priority and, when spent wisely, whatever you invest in marketing has the potential to lead to huge ROI.

• Follow the Customers: The move toward eCommerce began in the mid-1990s when TV infomercials started putting website addresses at the bottom of the screen. Suddenly, companies saw that customers were opting to bypass telephone operators and place the orders themselves, and from there, ecommerce as we know it emerged. By always testing new ways to capture customers, you create opportunities to discover and encourage new types of buying behavior.

• Exit This Way: What’s more valuable than a product? A brand. And with the marketing tools available today, the ability to create a brand that customers love and trust is easier than ever before. Big buyers everywhere are eager to tap into these niche, high-conversion networks, which in turn, creates exit opportunities for smaller companies that never would have existed in the past. 

For an in-depth look at this episode, check out the full transcript below. Quotes have been edited for clarity and length.

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Up Next in Commerce is brought to you by Salesforce Commerce Cloud. Respond quickly to changing customer needs with flexible Ecommerce connected to marketing, sales, and service. Deliver intelligent commerce experiences your customers can trust, across every channel. Together, we’re ready for what’s next in commerce. Learn more at salesforce.com/commerce

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Transcript:

Stephaine:

Welcome back to Up Next in Commerce. This is your host, Stephanie Postles, and today I'm really excited. We have Kevin Harrington on the show, the OG original shark from Shark Tank and the CEO of Harrington Enterprises. Kevin, welcome.

Kevin:

Stephanie, thanks for having me. Looking forward to having some fun today.

Stephaine:

Oh, me too. Your background is so interesting. I feel like I can't even do it justice, going through how you started out in the world of e-commerce. So, I was hoping you could actually touch on that, of where did you start in Ecommerce? Because I see you listed as the original everything. The infomercial guy, the guy who created this stuff. So, I want you to put it in your words how you started out in this industry.

Kevin:

Okay. Yeah. So, I started... I was a young entrepreneur back in Cincinnati, Ohio, one of six kids, and I had started a... Getting, ordered cable television. And so, I remember I got a 30 channel package. This was, now, early eighties. And so, I'm going through my 30 channels, 24 hours of sports on ESPN and 24 hours of movies on HBO. I get to Channel 30 and there's nothing there. So, I call the cable company and I said, "Hey, look. I love this cable, all these channels, 29 of them. But I'm paying for 30. Nothing on channel, Discovery Channel."

Kevin:

And so, they said, "Oh, Discovery is our latest channel. It's brand new. They don't have a budget for 24 hours a day. They do an 18 hour a day schedule. Six hours is nothing." And so, that's when the light bulb went off. I'm thinking, "Wait." I said... I literally said to the person, "If I have something to put on that six hours, would you be interested?" "Hey, yeah. Come on down. Talk to us. We're definitely... Whatever you're thinking."

Kevin:

So, anyway, make a long story short, I started putting products on Discovery Channel back in the early eighties. I then tied up that six-hour block on the nationwide level at the parent, Discovery, which was in now tens of millions of homes. And so... And again, this is back in the early eighties and we were doing the Food Saver, the Jack LaLanne Juicer, the Tony Little Fitness, George Foreman, Billy Mays. We even started getting into mainstream celebrities like Paris Hilton and her lip plumpers and the Kardashians and their skin care and things like this. So, we got involved, and this was early on, the early eighties. Nobody else was doing this, so people call me the inventor of the modern day infomercial.

Kevin:

So, that's when it all started and we've, over the years, gone public with a few companies. Build them, sell them, build them, sell them. I like entrepreneurship and bringing in the right kind of team of people to help, but... So, as we were then selling products on TV, that was the beginning of my entry into the marketplace and I think as we started getting more sophisticated, things started happening down the road, where we started putting websites. Of course, in the early eighties, websites didn't exist, right? It wasn't until, I believe, around '94 that things started. I mean, Amazon started in '94. I was in business for a dozen years before Amazon ever started. So, selling products direct to the consumer.

Kevin:

And in the nineties, we started putting websites into our infomercials and wow. All of a sudden, we found a certain percentage of the people, they didn't want to call the operator. They wanted to go straight to that website, get all of the details, and now we found a whole new area business between websites and Amazon and digital and now when you look at Facebook, etc. etc., it's a whole new world.

Stephaine:

That's awesome. So, what does your role look like today? I read that you have launched more than 20 businesses that have grown to over 100 million in sales each, so I wanted to hear kind of what are you doing today and what kind of principles are you using that you've learned from the many years that you've been doing this?

Kevin:

So, that first company that I mentioned, we ended up being a public company in a little bit of a complicated transaction. But here we were, public on the New York Stock Exchange. The stock was sitting at a dollar a share and I started bringing the right kind of people on board and you give options and things to people. But make a long story short, a few years later, that stock went to $20, and so I was one of the co-founders and had millions of shares, so this was my first chance to be like... And take some chips off the table, as they say, right? So... Because I was building my business all those years, putting all my own personal cash back into building the business until we had a public company, then I could use other people's money. We had lines of credit and all kinds of amazing things. So, that was the first public company that I got involved with and we had great success with it. So, I thought to myself, look, yes. I can make money selling products, but I can also make money driving share prices in public companies.

Kevin:

So, since then, fast forward, I like to participate in public companies. I like to be on the board if that's important for me from their standpoint. Also, there's hardcore board of directors of public companies. There's also advisory boards. So, as I invest in companies and take board seats and things, I'm involved now in about north of 10 public companies in some significant fashion, meaning I own equity, shares, board position, advisory seats, whatever. I mean, for example, one of my companies I got involved with five years ago was a little company called CELSIUS and it's an energy drink that... I don't know. Have you ever heard of CELSIUS [crosstalk 00:06:14]?

Stephaine:

Yes, I've... Yes, I have.

Kevin:

Okay. So, I got involved at a start-up, CELSIUS. The stock was 22 cents a share and again, I got a nice package when I got involved with these guys. But the stock yesterday hit $19, okay? So, I mean, it's... So, when you think about... When you get in in the beginning and get a big block and that block goes to a big number, that is wealth creation. So, I can talk about national media. I can talk about another one As Seen On TV, another one [inaudible] Travel Biz. I'm involved in various of these pub-cos. Some of them have product, some of them... Most of them have some kind of relation to what I can bring to the table. But I will say this. Almost every single one of them needs the expertise of Ecom and selling and doing digital marketing to create, whether it's customer acquisition or investor acquisition or friendly participant in whatever it might be, the acquisition of names and value to the company.

Kev