The Real Elf
DEAL
EPISODE SUMMARY
🕓 Air Date: December 10, 2021
Asking For:
$125,000 for 25%
Investor:
Barbara Corcoran
Deal:
$125,000 for 35% equity as long as half the sales go to a cancer charity
PRODUCT SUMMARY
The Real Elf offers personalized holiday digital messages, known as Elf Grams, bringing joy to people worldwide during the holiday season.
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Background Story
Tommy, known as the Real Elf, discovered his enchanting holiday venture in a rather serendipitous way. It all began during a spirited holiday gathering where he was lightheartedly christened as an elf. Little did he know that this playful jest would spark the inception of a heartwarming business. Armed with a professional background in a full-service global media agency, Tommy possessed the skills and creativity needed to turn this cheerful concept into a thriving enterprise.
What truly sets Tommy apart is his profound personal connection to the cause. In 2013, life presented him with a formidable challenge when he received a diagnosis of epithelioid sarcoma, a rare cancer that necessitated the amputation of his left pinky finger. Amid this trying period, he found invaluable support and solace through his association with a remarkable organization called Imerman Angels, which offers free one-on-one cancer support.
Driven by his own cancer journey, Tommy decided to use his newfound elf persona as a force for good and embarked on a partnership with this worthy organization. Through his journey from holiday reveler to the Real Elf, Tommy’s business venture now stands as a heartwarming testament to the power of humor, creativity, and a deep-seated desire to make the world a little brighter during the holiday season.
The Product
At the heart of Tommy’s endearing business, the Real Elf, are the cherished Elf Grams. These delightful, personalized messages are conveyed in video format and are brimming with holiday spirit. For a fee of $50 per video, individuals can partake in the enchantment of receiving a unique message from Tommy, the Real Elf, tailored to their specific needs and wishes. Each Elf Gram exudes warmth, joy, and the unmistakable magic of the holiday season, making recipients feel cherished and cherished.
Originally, the Real Elf was primarily an in-person service, with Tommy personally delivering his heartfelt messages. However, recognizing the potential to spread holiday cheer far and wide, Tommy is orchestrating a transition towards an online model. This strategic shift aims to broaden the reach of the Real Elf, allowing people from all corners of the globe to bask in the merriment and receive personalized Elf Grams from the ever-charming Tommy.
As the Real Elf adapts to the digital age, it opens doors to new possibilities, enabling more people to experience the wonder of personalized holiday messages. This shift not only makes the Real Elf accessible to a global audience but also keeps the holiday spirit alive throughout the year, transcending the traditional seasonal boundaries.
How It Went
The company’s position before Shark Tank
The Real Elf business has carved a niche for itself in the holiday industry, bringing joy to countless individuals during the festive season. On average, the company garners a monthly revenue of approximately $10,000 to $15,000 when the holiday spirit is in full swing. Impressively, the most recent holiday season marked a peak in success, raking in nearly $20,000 in profit. This surge in profitability underscores the demand for the Real Elf’s personalized Elf Grams, a heartwarming testament to the magic they bring to people’s lives.
Currently, the Real Elf operates as a personal service business, with every facet of the venture overseen by the effervescent and charismatic Tommy, the Real Elf himself. His personal touch and genuine commitment to spreading holiday cheer have been instrumental in the business’s appeal and success. However, this model is seasonal and inevitably carries limitations.
Recognizing the potential to expand the reach of the Real Elf brand and make it accessible to a global audience year-round, Tommy is seeking investment to pivot toward an online model, ensuring that the spirit of the holidays can be experienced whenever and wherever people desire. This strategic shift aims to unlock the full potential of the Real Elf, allowing it to flourish beyond the confines of a traditional seasonal business.
The Negotiations:
As Tommy, the Real Elf, presented his heartwarming business pitch, he captured the attention and admiration of the Sharks. However, as the negotiation phase unfolded, it became clear that this unique venture posed some challenges, particularly the fact that Tommy was already occupied with a full-time job. Mr. Wonderful, Kevin O’Leary, was the first to exit the negotiation, expressing that Tommy’s business might be better suited for Barbara Corcoran.
Barbara, recognizing Tommy’s genuine desire to make the world a better place and the fact that he seemed more motivated by goodwill than profit, stepped in with an offer. She proposed $125,000 in funding, which included $50,000 in cash and $75,000 as a loan, in exchange for a 35% equity stake in the Real Elf. Additionally, Barbara suggested that half of the sales go to a cancer charity of Tommy’s choice, a move that could not only elevate the business but also contribute to a worthy cause close to Tommy’s heart.
Overwhelmed with gratitude and touched by Barbara’s proposal, Tommy gladly accepted her offer. With tears of joy and a room full of admiration, the negotiation concluded on a heartwarming note, embodying the spirit of the holidays and the Real Elf’s mission to make the world a better place one Elf Gram at a time. Barbara Corcoran’s support would enable Tommy to take his beloved business to the next level and continue spreading joy and kindness during the holiday season and beyond.
