Getting Guarantees With Exclusivity

Getting Guarantees With Exclusivity

I was watching some clips from that TV show called Shark Tank today and there was this one part that was kind of interesting. Essentially, there was a couple that was looking for some investor funds and as usual in these situations people pitch on why their product or services are good and as well the direction that it is currently going. For this couple they mentioned that they sign off an exclusive contract for a sales team to try and sell the product which in their mind that was a great landmark for the business of sort.

The investors was then asking if this sales contract had any guarantees in terms of how much they would sell. The couple mentioned that there was nothing like that in the contract and as well essentially any sales that has been made this company would receive a percentage as well. I thought that was interesting as in many ways you can say that the contract benefited the sales team more than the couple.

Not surprisingly the investors were interested in their business with the agreement that they could get out of that contract. I suppose it is one of those things too where when you look at it from the outside you think who in the world would think that is a good deal. Yet I know even with a lot of online networks for example many people are just so exited with the fact that someone potentially big will help them in their business that they immediately sign off based on that one thought. If you are going to sign away some kind of exclusivity deal like this where the other party gets a guarantee on you then it is only reasonable that you get some kind of guarantee too.

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