Popping Pimples – Pop It Pal – Shark Tank S10 E08

 $200 000 – 10% equity / $2 500 000 Valuation

 Total Sales - $315 000 / One Product Pack - $19.99 / Cost - $8.32 (landing cost)
 Earnings of around $50 000 per month, following 30 million view YouTube hit of product
advertising through other channels
 Distribution facilities available in Germany
 $ 330 000 profit of the $900 000 projected for the year
 Kevin O Leary’s offer - $250 000 for a royalty of $1.50 a unit until $750 000 is returned with a
5% equity after the $750 000 is recouped
 Mark Cuban’s offer - $250 000 – 10% equity

Profit of Selling One Unit = $19.99 - $8.32 = $11.67

11.67 * no of units sold = 750 000

Min no of units that have to be sold (for Kevin’s money to be returned) = 750 000 / 11.67 = 64 268

Assuming that most, if not all earnings of $50 000 per month was coming from the product itself –

11.67 * no of units sold = 50 000 50 000 / 11.67 = 4 285

4285 units sold in a month considering that the earnings were mainly coming from the product

64 268 / 4 285 = 15 (months) $1.50 x 64 268 = 96 402 - amount of money Kevin O Leary
generates from the royalty deal itself; only if the units are sold

Even if only half the units are sold, due to an increase in production capacity or with a greater
monthly return rate – $96 402 / 2 = 43 201 – amount of money Kevin O Leary generates (royalty)

Assuming that the company has to sell 32 134 units of the product, their profit from the product
would be – ($19.99 – 8.32 – 1.50) x 32 134 = $326 803