Sales Lessons from the Shark Tank: Mark Cuban

Mark Cuban summarized his activity as a Shark Tank investor recently at the Wall Street Journal's "WSJD Live" conference: "Of the 71 startups that I've invested in through Shark Tank, two have gone out of business, three are so stupid they don't know they're out of business, and then probably 50, give or take, are in growth."

"Out of the 71, I would say ten or 11 are netting a minimum of half-a-million dollars a year, doing $8 million to $15 or, in some cases, $20 million-plus. I would say about 30% of my companies have returned all of my investment and then some."

The popular show, Shark Tank, provides a great platform for hopeful entrepreneurs to present their ideas to a panel of industry titans. The budding entrepreneurs are there to try to convince the sharks to invest in their product idea.

As a sales person, what can you learn from this master class in selling and sales techniques? If you were sitting face-to-face with a prospect similar to Mark Cuban, what would be your strategy?

What Makes Mark the Shark Receptive?
Mark looks for someone with a passion for life, a passion for their idea, and a plan that bridles the passion. He's looking for a jockey on a thoroughbred wanting to break out of the starting gate. He has described that combination when he said, "Always wake up with a smile knowing that today you are going to have fun accomplishing what others are too afraid to do." If you want him to invest, demonstrating that outlook is what is going to get his attention and raise his attention to a level of interest.

Pages From Mark's Playbook
If Mark were to have business playbook, it would look a lot like what ASLAN Training & Development teaches about selling, because Mark views selling and doing business from the same perspective. That should not be shocking. The ASLAN approach is based on principles. Principles are rock-solid fundamentals of life that aren’t changed by passing fads and fancies.

"Selling ultimately comes down to connecting and serving." That's what Mark told the audience when he was a speaker on a Dave Ramsey podcast. It sounds a lot like a recent ASLAN blog post, "The Genesis of ASLAN," which talks about serving more, caring more, learning more, and doing more. Mark Cuban explained it as "Not trying to convince them of anything. You're trying to show them how you are going to make their lives easier." That is just another way of saying "If the customer's needs are put first, then our needs will ultimately be met." The ASLAN principle of being Other-Centered^®.

Mark wants to know what your plan is. You have to be completely open and honest. This information and his perception of your understanding of how business operates may be the final determining factor for getting Mark to invest. According to the Wall Street Journal, he wants to know what your exit strategy is. (You had better have one.) But he also wants to know how your company is going to succeed if you can't get an exit. You need to have a playbook.

There is no reason you can't succeed if you are willing to put in the effort. The passion you demonstrate should not be wrapped entirely around your idea. Rather, it should embrace your belief that your idea can change people's lives to the better, so much so that you are willing to devote long hours and extra effort to make your business succeed.

Don't mistake Mark Cuban for a celebrity with cash. He became successful by understanding the fundamental principles of putting others first and having a servant's heart. Mark is living proof that being Other-Centered works.

Is Your Prospect a Mark Cuban?

As a sales person, if you are faced with a prospect that displays similar traits to shark Mark Cuban, will you know how to lure them in? How will you convince them you are fully prepared, you are passionate about your product and you ultimately have their needs above your own?

Please check out these other articles in our Shark Tank series:

Sales Lessons From The Shark Tank: How To Lure A Shark

Sales Lessons From The Shark Tank: Kevin O'Leary

Sales Lessons From The Shark Tank: Robert Herjavek