Doug Marshall created a face-paint product that isn’t just easy to apply, but easy to remove too! Will he earn a deal on
Shark Tank The GameFace Company Update
- Entrepreneur: Doug Marshall
- Business: Easy application face paint
- Ask: $450,000 for 25% equity
- Result: $450,000 for 35% equity, plus $80,000 salary for 3 years, and 10% royalty
- Sharks: Mark Cuban and Lori Greiner
Doug, founder of The GameFace Company, brought his two kids to demonstrate the product. He showcased a number of the designs currently for sale, and showed how easy it was to remove the face paint from his face, as it required no washing and could be removed simply by peeling it off.
When Mark Cuban asked about numbers, Doug provided the precursor that, in 5 years of operation, his company remained a part-time job for him and his wife. Regardless, he revealed that they sold $6,700 in their first year and scaled it to $102,000 in the previous year. He also shared that The GameFace Company was projected to make $105,000 that year.
This led Daymond John and Kevin O’Leary to ask why Doug would value his company at $1.8 million. He responded that there were still a large number of big box retailers yet to carry his product, and so there was still untapped market potential.
Mark asked more about the financials, and found out that it cost between $0.25 and $0.60 to make one unit, which then would wholesale at $2.50 and sell at $4.99. When Doug said they had only made $32,000 in profit during the previous year. Robert Herjavec wasn’t pleased, and said that it seemed like the numbers weren’t adding up.
Daymond asked if there were any direct competitors, and Doug said no. The sharks didn’t believe that, but Doug said that the patent he had, prevented competitors from producing a comparative knockoff.
Mark asked what Doug’s full-time job was and why he didn’t quit to focus on his company full-time. Doug said that with two kids, a wife, a home, and a mountain of bills to pay, it was not feasible to leave his day job of selling copiers for Xerox.
Kevin wanted to know Doug would do with an investment, and Doug said he would leave his job, and work full-time to secure licenses. The sharks were not happy to hear this, however. Daymond perceived Doug as asking for a handout, so he went out. Robert echoed the sentiments, and went out for the same reason.
Kevin was willing to take a chance on Doug, and offered the $450,000, but wanted 30% equity. In addition, he said that $100,000 would be for the equity and $300,000 would be treated as a loan that Doug must pay back. Mr. Wonderful also wanted a$0.25 royalty on every unit sold, until he made his money back.
Lori Greiner offered, Doug the $450,000 in exchange for 40% equity, and asked Mark to join the deal. However, Mark instead asked Lori to go in on a different deal, of $1 million for 100% of the company. He said that he would also offer Doug an annual salary of $80,000 for 5 years. Lori agreed to the deal.
After stepping out to discuss the offer with his wife, Doug countered with $450,000 and an $80,000 annual salary for 5 years, in exchange for 35% equity. Lori countered with $450,000 at 40% equity, and an $80,000 annual salary for 3 years, instead of 5 years.
Mark was amenable to this deal, but also offered Doug $450,000 for 35% equity, the $80,000 annual salary for 3 years, but with a 10% royalty on every unit sold until the investment was recouped. Mark then told Doug he could decide if he preferred to give up more equity or give up a royalty until the money was repaid.
Without further hesitation, Doug accepted the deal from Mark And Lori. What happened next for his company? Keep reading The GameFace Company update to find out!
We have great news to share in The GameFace Company update! Following the episode airing, there was a spike in sales, netting $200,000 in the first 10 months. In addition, Doug made good on his plan to license the product, making deals with a number of major league sports teams. As of 2023, The GameFace Company has an estimated annual revenue of $5 million.
Would you like to learn about the other companies featured on Season 4 Episode 12? Follow the links below!
For even more on companies and products, be sure to stop by our Season 4 Products Page!
Shop the Shark Tank Recap Store
Jennifer is an avid Shark Tank fan that has been watching the show for years. She serves as Senior Editor at Shark Tank Recap and ensures that all our information is accurate and that our posts are up to date. Her favorite Shark Tank products are Le-Glue and Ring!