Interview with Shark Tank entrepreneur and Infomercial Guru, Kevin Harrington of ABC's Shark Tank offers tips for navigating treacherous entrepreneurial waters.
If the phrase, “But, wait! There’s more!” makes you instantly
think of the Ginsu Knife, you’re already acquainted with Kevin Harrington’s
work. A pioneer in the infomercial industry, Harrington has helped make
products like the Food Saver and Tony Little’s Ab Isolator into household
names. In the past 26 years, he’s launched more than 500 products, with
cumulative sales of more than $4 billion worldwide.
In 2009, the savvy investor came out from behind the camera for
ABC’s Shark Tank. In 2010 he teamed up other super-successful entrepreneurs
and motivational experts for a 20-city tour called Empower 180. At the one-day
events, attendees have the chance to pitch Harrington their product ideas and
learn from some of today’s top business leaders.
Harrington is also a co-founder of the Entrepreneurs’ Organization
(formerly the Young Entrepreneurs’ Organization) and the Electronic Retailing
Association, two networking groups that provide resources and support to
entrepreneurs around the globe. Here, Harrington shares advice on overcoming
fear, choosing the right partners and mentors, and believing in yourself.
SUCCESS: Pitching an idea to a group of strangers
can be intimidating—especially on a show like Shark Tank. How can people push
past that fear and offer a killer presentation?
Kevin Harrington: I was a little intimidated the first time I went to the
Shark Tank set. There was a crew of 175 people, including Mark Burnett and all
the top Sony and ABC execs. It was a million-dollar production. I shoot
low-budget infomercials, and this was huge. But then I thought, “I’ve been a
shark for 25 years. This is what I do.” My confidence came back when I zeroed
in on the entrepreneur walking down the hall. I focused on what he was
pitching. I put blinders on, and at the end of the day it didn’t matter how many
cameras or people were on the set. I positioned myself as understanding that
none of the others have my same experience. I’m the product guy, I’m the
expert. So my advice to the person making a pitch is to forget about the people
and the cameras, and believe in yourself and in your product. Don’t worry about
the millions of viewers. At that moment, all you have to do is talk to us and
convince us. Do it just like you’re talking to your banker—with your excitement
and your belief in yourself. My advice to any salesperson is to prepare
yourself by doing your pitch in front of a camera or a mirror. Do your
presentation for your spouse or your kids. Practice. Don’t go in cold.
Infomercials take a message from one person to thousands. They
make the pitch scalable. How can entrepreneurs make their businesses scalable?
KH: I always say, “If
you do what you’ve always done, you’ll always get what you’ve always gotten.”
In 1990, I had a library of infomercials that had run their course in the
United States. That’s when I thought, “In the movie business, they take films
outside the U.S. Why can’t I do that with infomercials?” We did, and the
business grew to $500 million on a global basis in a couple of years. You can’t
just sit and do it the way you’ve always done it. Get motivated to see what you
can add to what you do currently to expand your markets.
In your book Act Now!, you note that infomercials can
boost the sales of other similar products in stores—not just the brand you’re
selling. How do you differentiate your product or incentivize customers to buy
your brand and not a substitute?
KH: We stress that we
are the original; we are the brand. A good example is the Snuggie. They got it
across every spectrum they could right away—collegiate, child, pet—they didn’t
let knockoffs come in. When they went to the retailers, they said, “We’re going
to give you the original, but if you sell other brands, we can take our brand
out of your store.” And by the end of 2009, they sold more than 20 million
units. It’s all about the quality of the relationship, the quality of the
product and the continuity of the brand.
How has the Internet impacted your business model?
KH: It’s a double-edge
sword. We get knocked off quicker, but we also use the Internet to drive
massive amounts of sales because we can get into places we couldn’t get in
before. It has also given us a platform for new ways to launch products, with
webcasted shopping channels, and to develop relationships.
You’ve worked with a number of different people through the years.
How do you choose the right people or companies with which to partner?
KH: Picking the right
people to work with is important. I believe you find those people by
networking, being on boards, getting involved with associations and being on
committees. It’s amazing how many times I’ve started working with people
because I’ve spent time with them in a different environment.
What advice can you give to entrepreneurs and business leaders who
may be facing challenges in their businesses?
KH: Go to people who
have been there before, and seek advice on what they’ve done. Develop great
relationships with your bankers and accountants; get mentors who can advise
you. I utilize people outside my company. I’m not afraid to pick up the phone
to have someone help me work through issues. A lot of times you have to get out
there and network with the people who can help you in times of challenge.
Anything else?
KH: I
love this quote from Paul J. Meyer: “Whatever you vividly imagine, ardently
desire, sincerely believe and enthusiastically act upon must inevitably come to
pass.” When I understood that, I began waking up every morning and saying that
quote, and I believe “It’s going to happen.” That’s how I overcome my fear, and
that’s how I live my life. It doesn’t mean you’ll get it every time. Sometimes
you have to reboot or hit the reset button and start over. But eventually,
believing it and acting upon it make it happen.
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