Songlorious Personalized Songs
DEAL
EPISODE SUMMARY
🕓 Air Date: October 15, 2021
Asking For:
$400,000 for 10%
Investor:
Peter Jones, Kevin O'Leary, Daymond John, Mark Cuban (25)
Deal:
$500,000 for 40%
PRODUCT SUMMARY
Songlorious offers personalized, studio-quality songs for special occasions. Customers can select a genre, specify song length, and share their story, resulting in a unique song crafted by their team of musicians.
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Background Story
Ellen Hodges and Omayya Atout, both musicians with a shared passion for creativity and heartfelt expression, embarked on their entrepreneurial journey with Songlorious. The genesis of their business can be traced back to a deeply personal experience – crafting a personalized song as a gift for a friend’s wedding. The emotional resonance of this gift was undeniable, sparking the idea for a service that could help others create similarly meaningful moments.
What began as a heartfelt gesture soon turned into a bustling enterprise as word of their unique service spread. The demand for personalized songs surged, leaving Ellen and Omayya with little choice but to expand their operation. They recognized the opportunity to turn their passion into a thriving business.
In the previous year, Songlorious achieved remarkable success, boasting sales totaling $700,000. Their growth trajectory was nothing short of impressive, and they had ambitious plans for the current year, projecting revenue of $2.5 million. This astounding growth showcased the universal appeal of their service, proving that people yearned for personalized, emotionally resonant gifts that transcended the ordinary. Ellen and Omayya’s journey from musicians to successful entrepreneurs was fueled by their dedication to creating lasting memories through the power of music.
The Product
Songlorious’s product is a unique and emotionally resonant gift experience that revolves around personalized songs. The process is elegantly simple yet profoundly meaningful. Customers begin by selecting from a range of musical genres, catering to various tastes and preferences. Next, they specify the desired song length, with options ranging from concise 30-second acoustic tunes to fully immersive three-minute productions.
The heart of Songlorious lies in the personal touch – customers share their stories and the purpose of the song, which serves as the creative fuel for the talented team of around 100 musicians. These musicians, who are part of the Songlorious family, bring these stories to life, crafting bespoke songs that reflect the essence of the occasion or the recipient’s personality.
Importantly, the musicians are fairly compensated for their artistry, receiving a percentage of the order cost and any tips received. This fair compensation model not only ensures the quality of the music but also fosters a sense of community among the creative team, making each song a labor of love.
How It Went
The company’s position before Shark Tank
Songlorious has demonstrated impressive performance in the competitive landscape of personalized gifts and creative expressions. With a keen focus on delivering unique and emotionally resonant songs, the company achieved a commendable 9% profit margin even before compensating its founders, highlighting the sound financial footing of their venture.
The founders’ commitment to nurturing and growing the business is evident in their strategy. Recognizing the potential for further growth, they have laid out plans for marketing expansion, particularly targeting the lucrative wedding sector and corporate clientele. Weddings, with their intimate and sentimental nature, offer an ideal opportunity for Songlorious to shine, while corporate partnerships promise a steady stream of orders for promotions, employee recognition, and special occasions.
Looking ahead, Songlorious aims to scale its operations not only within its current market but also on a global scale. Their ambition extends to offering personalized songs in languages beyond English, opening doors to a broader international customer base. This expansion strategy underscores their commitment to spreading the joy of personalized music and creating memorable moments worldwide.
With a solid financial foundation, a clear growth plan, and a passion for their craft, Songlorious is poised to continue its remarkable journey of transforming personal stories into musical masterpieces, leaving a lasting impact on the world of heartfelt gifting.
The Negotiations:
The negotiation phase of Songlorious’s appearance on “Shark Tank” was marked by a high-stakes bidding war as the sharks recognized the company’s potential for success. Initially seeking $400,000 in exchange for 10% equity, Ellen and Omayya received multiple offers that showcased the sharks’ interest in their business. Peter Jones and Kevin O’Leary were the first to make an offer, proposing $400,000 for 20% equity.
However, Mark Cuban and Lori Greiner quickly joined the fray, suggesting a joint deal of $400,000 for 25% equity, underscoring the allure of Songlorious’s business model. Ultimately, it was the collective might of all four sharks that won the day. Peter, Kevin, Mark, and Lori united to offer $500,000 for a total of 40% equity (10% each). This comprehensive partnership allowed Songlorious to leverage the expertise and resources of each shark.
The negotiation was a testament to the sharks’ belief in the company’s potential for explosive growth and their desire to play a pivotal role in its success. By accepting this joint offer, Ellen and Omayya secured not only the funding they needed but also a powerful network of experienced mentors who could guide them in scaling their business to new heights. The negotiation on “Shark Tank” marked a turning point for Songlorious, setting the stage for their expansion and solidifying their position in the market of personalized, emotionally resonant gifts.
