Shark Tank has spawned so many major brands, from the Ring doorbell (which didn’t get a deal when the founder appeared on the show!) to the Scrub Daddy sponge that has since sold millions.
Airing on ABC for 14 seasons since 2009, the concept remains the same: the “sharks” on the listen to a pitch for a product or business concept, ask questions, and decide if they want to invest, after which negotiation begins. The process is exciting for fans to watch, but there are some behind-the-scenes rules fans might not be aware of about the show.
Entrepreneurs Must Meet With A Psychologist
Sometimes, pitches can get heated and the sharks can be downright mean, especially when looking at some of the worst pitches of all time on Shark Tank. The sharks have been known to tell entrepreneurs to simply quit because their idea will go nowhere. Or they have even cringed when someone reveals they sold their home and emptied their savings to back a product that is not likely to succeed.
Thus, it’s not surprising that according to an interview AOL had with shark Mark Cuban back in 2017, entrepreneurs are mandated to sit down with a psychologist after a pitch. This is to ensure they are okay and have not been psychologically impacted by the process and .
No Until The Pitch
While sharks might have heard about a brand or by people backstage before filming begins, they are not allowed to listen to pitches or even engage with the contestants until it’s time for their pitch. This ensures that when the person gets in front of them, the sharks are truly hearing the pitch for the first time.
According to Dave Vasen via Medium, who appeared on a season of the show to pitch his company BrightWheel, companies or people who will be pitching are not permitted to the sharks or any of their teams before the show. He adds that he was “amazed at the authenticity and integrity of the entire process, before, during, and after.”
Companies Are Vetted Immediately After A Deal Is Made
If a contestant is lucky enough to strike a deal with a shark (or two or more), they leave the room happy to finally be able to take their businesses to the next level. But there’s a lot of due diligence required before the ink is dried on a contract. According to Cuban in his AOL interview, the person pitching must immediately meet with a member of the shark’s team before leaving the set.
There, they do an investigation of the company to make sure that the information they provided was factual and that generally, all Is are dotted and Ts crossed. Then, and only then, is the deal truly official, and will proceed to the next step, which has happened with some of the best pitches on Shark Tank.
Both Sides Can Back Out
While fans get excited when a stay-at-home mom inks a deal worth thousands of dollars with a shark to take her crafty invention to the next level, the deals aren’t always set in stone. Along with the aforementioned vetting process, there is also the opportunity for either side to back out of a deal should they get cold feet.
What’s most surprising, according to an interview with rejected ideas on Shark Tank have gone on to become successful anyway.
No Deal Shopping
In several cases, contestants have been accused of coming onto the show simply for exposure. The sharks have questioned if they were just there to get their brand and/or product or service in front of millions of viewers with no intention of accepting a deal from a shark. The first red flag for this is when they are offered a fair deal, even the exact one they came in asking for, and still say no to the offer.
Nonetheless, according to shark Barbara Corcoran, she told AOL that every entrepreneur must sign something that confirms they cannot shop the deal elsewhere in an attempt to get a better offer after having inked a deal with a shark.
Producers Can Tweak Pitches
While contestants write their pitches, which are sometimes pretty elaborate, even animated and funny, they must submit this script to producers before appearing on air. Producer Clay Newbill told USA Today that the producers then have the opportunity to review the pitch first and make tweaks.
The reason for the tweaks is typically to make the pitch more interesting or entertaining for television. Nonetheless, he confirms that the entrepreneurs can decide not to implement these tweaks if they don’t agree: they have the final say in the pitches they deliver. But the pitch has to be shown to producers beforehand.
There Are No Do-Overs
Claybill also told USA Today that there are no do-overs: the cameras start rolling as soon as the entrepreneur walks out (there’s even reportedly a one-minute stare-down period to build tension) and don’t stop rolling until the person leaves. If the person makes a mistake or freezes, they don’t get to start over and do a second take.
This is why fans often see contestants make mistakes and have to pause, get some encouragement from the sharks, and start over. It all shows up on camera as part of what becomes the televised episode.
Producers Help With Questions
Many times, Shark Tank has had emotional moments where a contestant talks about something in their personal life that drove them to build the business they have. It might be the loss of a loved one or parents who gave up everything to give them a better life in America. Whatever the case, these backstories always come up during the pitches. This isn’t by accident and is not always driven by the entrepreneur freely offering up the information.
The sharks wear earpieces, according to fakest things about Shark Tank, according to cast and crew.
Deals Have To Be Kept Secret
It can be exciting to go on Shark Tank and get a deal. But there’s also a long waiting period between when an episode is filmed and when it airs. During this time, contestants are not permitted to reveal to anyone whether or not they got a deal, according to Vesen in his Medium post.
He noted that producers will go so far as to cut the segment from the episode if the person violates this rule. This includes right up to the night of the episode. Until it airs, contestants have to do their best to remain tight-lipped about what happened.
Equity Goes To Production (Changed)
One controversial rule that has been changed was one from previous years whereby any contestant who appeared on the show had to give the production company behind the show 2% of their profits or 5% equity in the company, according to Huffington Post. Interestingly, it was lead shark Marc Cuban who pushed to have this rule changed.
Back in 2017, Cuban told ABC’s lawyers that if they didn’t change the rule, he would not return to the show, according to Jason Cochran’s blog, the award-winning author of the book Here Lies America. Reportedly Cuban fought to have the clause removed retroactively, which means it applies to every contestant who has ever appeared on the show since the first season.