Cheek’d Dating Service
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 28, 2014
Asking For:
$100,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Cheek'd is a unique dating service that facilitates face-to-face initial attraction with interaction happening safely online through personalized cards.
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Background Story
Lori Cheek, a native of a small town in Kentucky, is the founder and CEO of Cheek’d, based in New York City. With a background in architecture, Lori’s creative instincts led her to pursue a passion beyond building structures. Her journey to entrepreneurship began when she observed a friend successfully initiate a date by handing out a business card with a witty pickup line. Inspired by this encounter, Lori envisioned a unique approach to dating that combined face-to-face interaction with the safety of online communication.
Determined to revolutionize the dating scene, Lori developed the concept of Cheek’d, a service that facilitates initial attraction through personalized cards. These cards, adorned with intriguing pickup lines, allow individuals to discreetly express interest in someone they encounter in real life. By including a unique code on each card, recipients can access the giver’s profile on the Cheek’d website, enabling further interaction while preserving anonymity until both parties are comfortable.
Lori’s transition from architecture to entrepreneurship reflects her bold entrepreneurial spirit and willingness to pursue unconventional paths. Despite facing financial challenges and sacrificing her personal assets, including her apartment and designer wardrobe, Lori remains steadfast in her belief in Cheek’d’s potential to transform the dating landscape. Her unwavering determination and creative vision drive her to overcome obstacles and propel Cheek’d towards success, making her a resilient and passionate entrepreneur dedicated to realizing her dream of making Cheek’d a household name in the world of dating.
The Product
Cheek’d offers a unique dating service that combines offline and online interaction to facilitate meaningful connections. The core of Cheek’d’s product is a set of personalized cards adorned with catchy pickup lines, designed to initiate contact with individuals encountered in real-life settings. Recipients of these cards can visit the Cheek’d website and enter the unique code provided on the card to access the giver’s profile, enabling further communication in a safe and controlled environment.
Users can purchase decks of Cheek’d cards, which come in various designs and quantities, with the option to customize their own deck. Each deck typically costs $20, with an additional subscription fee of $9.95 per month to keep the profile code activated. The subscription model ensures ongoing access to the platform and facilitates continued interaction with potential matches.
Cheek’d’s innovative approach offers several benefits to users. Firstly, it allows individuals to express interest in others in a non-intrusive manner, bypassing the awkwardness of traditional approaches to dating. Additionally, the platform provides a layer of safety and anonymity, as personal information is only shared when both parties are comfortable.
Cheek’d offers a novel solution for those seeking to connect with others in real-life situations while leveraging the convenience and security of online communication. With its blend of creativity, convenience, and safety, Cheek’d aims to redefine the dating experience and foster genuine connections in today’s digital age.
How It Went
The company’s position before Shark Tank
Cheek’d, despite its innovative concept, faces significant challenges in terms of financial performance and sustainability. With $56,000 in revenue generated over 3.5 years and 4,500 active members, of which only 1,125 have made payments, the company struggles to achieve profitability. The subscription-based model, coupled with ongoing technical issues, hinders revenue growth and limits the company’s ability to attract and retain paying customers. Additionally, Cheek’d lacks significant partnerships or notable investors, relying primarily on founder Lori Cheek’s personal funds for sustenance.
The company’s financial situation is precarious, with Lori having invested $120,000 of her own money into the venture, leading to personal sacrifices such as selling her belongings and relying on friends for accommodation. Despite reaching customers across 47 states in the U.S. and 28 countries internationally, Cheek’d’s revenue generation remains insufficient to cover expenses, resulting in ongoing losses.
Cheek’d’s current structure revolves around Lori Cheek’s leadership as the founder and CEO. The company’s operations are primarily focused on maintaining and improving its online platform, resolving technical issues, and attracting new users. However, without a stable source of funding or strategic partnerships, Cheek’d’s future prospects appear uncertain, with the company struggling to achieve sustainable growth and profitability in the competitive online dating market.
The Negotiations:
In the negotiation process on “Shark Tank,” Lori Cheek sought a $100,000 investment in exchange for a 10% equity stake in Cheek’d. However, none of the Sharks were convinced to invest, primarily due to concerns about the company’s financial performance and flawed business model. Barbara Corcoran, known for investing in people, empathized with Lori’s passion but ultimately declined to invest, advising Lori to recognize when a business idea isn’t working and move on to more promising ventures.
Mark Cuban echoed this sentiment, comparing Cheek’d to a “rabid dog” and urging Lori to abandon the idea. Despite Lori’s persistent belief in Cheek’d’s potential, none of the Sharks were willing to offer a deal. Robert Herjavec highlighted the flawed premise of Cheek’d’s business model, questioning its relevance in the modern dating landscape. Ultimately, Lori’s refusal to accept rejection showcased her unwavering determination to succeed, even in the face of overwhelming skepticism. However, the Sharks remained steadfast in their decision, with each one ultimately opting out of investing in Cheek’d.
The negotiation process highlighted the challenges Cheek’d faces in gaining investor confidence and overcoming fundamental flaws in its approach to online dating. Despite Lori’s resilience and passion, the Sharks’ unanimous decision not to invest underscores the significant hurdles Cheek’d must overcome to achieve success in the highly competitive dating market.
