In season 3 of Shark Tank India you would have noticed that Sharks are asking for royalty it a lot of deals they do.
So what exactly is this Royalty and why are Sharks so keen to have this as par of their investment terms?
See Royalty is nothing but a commission which Sharks would get on every sale the business will make. For example if a pen is sold for Rs. 10 and Shark wants a 10% Royalty. This means that the Shark will get Re. 1 on each pen sold. As simple as that.
Now comes the part that why they want Royalty? So the very simple answer to this would be that there are businesses which seems risky to invest and in order to get some assurance of the returns , Sharks asks for royalty. It makes then feel safe and reduce the risk of investment.
I personally don’t like this concept and I will tell you the reason in the next video. What are your thoughts on this ?
[Shark tank India, royalty, business, entrepreneur, marketing , sales, MBA, bba , start up, founder]
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