WEBVTT - Sharkreach's Smith, Harrington, on Influencer Marketing (Audio)

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<v Speaker 1>Intermediate crew. I'm Charlie pelt That's a bloom Bird business flash.

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<v Speaker 1>You're listening to taking stock with Katlee Hayes and Pimp

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<v Speaker 1>and so now we want to go from Shark Tank

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<v Speaker 1>to Shark Reach. Let me fill in the dots in between.

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<v Speaker 1>We have two very interesting guests on the show today.

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<v Speaker 1>Kevin Harrington has been a successful entrepreneur for over forty years.

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<v Speaker 1>He's actually the inventor of the infomercial has seen on

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<v Speaker 1>TV Pioneers launched over five hundred products, generating uh five

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<v Speaker 1>billion dollars in sales worldwide. Uh. He was one of

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<v Speaker 1>the original sharks on Shark Tank, so you've seen him

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<v Speaker 1>many times on TV. And if you're fanatical about Shark Tank,

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<v Speaker 1>like my family, as you watch the reruns too. Also

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<v Speaker 1>want to bring in a person that he is partnering

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<v Speaker 1>with now who is the CEO of this company that

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<v Speaker 1>Kevin Harrington has joined. Steve Smith has also a long,

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<v Speaker 1>long career as a successful entrepreneur and their new company

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<v Speaker 1>that they're going to tell us about now is called

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<v Speaker 1>Shark Reach. It's to reach millennial. So, gentlemen, long introduction,

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<v Speaker 1>but I want to get right to what this is

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<v Speaker 1>all about. So let me welcome you and thank you

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<v Speaker 1>for Johnny Mean Studio. Great to be or Kathleen, thank

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<v Speaker 1>you so, so Kevin Harrington, tell me what drew you

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<v Speaker 1>to this company where you are now the chairman. You've

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<v Speaker 1>got you know how to sell, you know how to market,

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<v Speaker 1>so why join Shark Reach? So is it the essene

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<v Speaker 1>and TV industry has had a little bit of a

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<v Speaker 1>disruption because there's fewer people watching television nowadays, and so

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<v Speaker 1>our business has moved into a digital means now. So

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<v Speaker 1>we we do over half of our sales digitally and

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<v Speaker 1>we still have lots of TV stuff happening, but but

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<v Speaker 1>we use television to help build the brand, but we

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<v Speaker 1>really use digital to test. We use influencers. And so

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<v Speaker 1>as our industry is moved into all of the social

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<v Speaker 1>networking and and the facebooks and the pinterest and the

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<v Speaker 1>Instagrams and now Instagram is doing stories video. We take

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<v Speaker 1>the ideas, we put them onto the social networks. This

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<v Speaker 1>is the way of the future and using influencers to

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<v Speaker 1>take products to the next level is a natural progression

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<v Speaker 1>for us. Okay, So Steve Smith, you have just gotten

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<v Speaker 1>this trick. Trick Sherman who brings a lot to the table.

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<v Speaker 1>You have so many years in marketing and uh in

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<v Speaker 1>media you were at to discover communications w w E

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<v Speaker 1>World Wrestling entertainment that teaches you a whole lot of

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<v Speaker 1>different things. Tell us about Shark Reach, How did you

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<v Speaker 1>get started? What was the genesis of this? So obviously

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<v Speaker 1>we have the shark in common, right, so yeah, shark

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<v Speaker 1>creating Shark Tank. So it was it was sort of

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<v Speaker 1>a natural genesis of things. The um the world you know,

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<v Speaker 1>has changed. It's it's a really already changed in the

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<v Speaker 1>way that audiences exist now in the millennial era, is

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<v Speaker 1>is attached to what we call influencers, and influencers are

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<v Speaker 1>really just people who have large followings across a broad

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<v Speaker 1>selection of social networks. Sure, Kim Gardashian would be an

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<v Speaker 1>obvious one, but you know, there's only so many Kim

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<v Speaker 1>Kardashians in the world. And there's already a lot of

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<v Speaker 1>doubts about Twitter and the model and how long it's

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<v Speaker 1>gonna last. Right, many people's look and valure critical that

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<v Speaker 1>the original uh founders didn't do an SSA could are

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<v Speaker 1>are you staking a lot on something that is going

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<v Speaker 1>to involve so quickly? Well I'll speak to that a

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<v Speaker 1>little bit. So So Twitter, Yeah, Twitter is a challenge

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<v Speaker 1>right at the hundred the short number of awards kind

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<v Speaker 1>of all that aspect of it. And there are other

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<v Speaker 1>uh like an Instagram or Snapchat that are certainly moving

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<v Speaker 1>vastly quicker in terms of growth. So we're really platform

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<v Speaker 1>agnostic in terms of our influence are offering. So we're

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<v Speaker 1>we're really we have about one influencers, which basically anybody

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<v Speaker 1>domestically who has more than fifty thou followers across any

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<v Speaker 1>of the social works is within our system. So we

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<v Speaker 1>were able to activate that talent, uh kept really for

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<v Speaker 1>any brand and and that's the reach of that is

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<v Speaker 1>pretty phenomenal. Kevin, You've had such success already, is do

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<v Speaker 1>you feel that too for your own future success, for

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<v Speaker 1>the success of marketing? This is this is the train

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<v Speaker 1>you have to jump on now, Yes, I really do,

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<v Speaker 1>because I mean we're even used sing mommy bloggers and

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<v Speaker 1>people in their homes that have uh, you know, ten thousand,

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<v Speaker 1>twenty thousand followers, so you know, and that's the the

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<v Speaker 1>advantage of a Shark reach. They have twenty one thousand

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<v Speaker 1>access to twenty one influencers. We we can put a

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<v Speaker 1>ton of them together in a campaign and actually have

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<v Speaker 1>tremendous movement. In fact, you know, Steve can talk to

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<v Speaker 1>some of the things that the company has done, but

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<v Speaker 1>you know, engaging people to go watch movies and things

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<v Speaker 1>like that have been you know, very powerful. Okay, so

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<v Speaker 1>you just Steve, you just mentioned that fifty thousand followers

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<v Speaker 1>is sort of the minimal threshold across to be considered

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<v Speaker 1>an influencers. So besides that, Kevin, how do you pick

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<v Speaker 1>your influencers? Uh? Do you? And how do you pay them? How? What?

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<v Speaker 1>How does this relationship work? Several ways? Um? One is

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<v Speaker 1>you know, on a on a on a per action basis. Um.

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<v Speaker 1>You know, to put the message out to their crowd.

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<v Speaker 1>It comes on if they're doing a video, how long

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<v Speaker 1>the video might be, what they're doing. Sometimes that some

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<v Speaker 1>of them will get a percentage of what might occur,

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<v Speaker 1>a percentage of sales or something like that, but generally

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<v Speaker 1>it's it's paid on an upfront basis. Okay. Uh, proprietary technology,

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<v Speaker 1>I here that there's something. It's not just the fact

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<v Speaker 1>that you guys are harnessing. Hey, let's get these influencers

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<v Speaker 1>and let's use this as the the new wave of marketing.

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<v Speaker 1>Maybe not so new, but how does the technology come in? Steve? So,

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<v Speaker 1>technology is definitely a big part of our business that

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<v Speaker 1>the way that we work with um we call them

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<v Speaker 1>the talent ice with the influencers. They're all within a

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<v Speaker 1>back end system that we use has a number of

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<v Speaker 1>tools within it which do something called Shark rank Shark

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<v Speaker 1>polls just three or four of them, but they basically

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<v Speaker 1>allow us to work with For example, we work with

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<v Speaker 1>Universal Pictures for the movie Straight Out of Compton, which

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<v Speaker 1>was sort of famous for that at this point because

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<v Speaker 1>it really took over the social networks for three weekends

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<v Speaker 1>and rather than we became number one and something percent

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<v Speaker 1>was a result of the social media. UM that was

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<v Speaker 1>kind of the pulling. So within that context, we we

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<v Speaker 1>take a movie like that who wants to reach a

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<v Speaker 1>specific demographic, uh, and then we really source that within

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<v Speaker 1>our system. It kind of tells us who the best

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<v Speaker 1>fits are in that case, you know, hip hop sort

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<v Speaker 1>of talent. And then we then it's kind of a

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<v Speaker 1>white glove process of talking with the talent, matching them

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<v Speaker 1>up correctly with the brand and kind of that process. Okay,

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<v Speaker 1>and you've got some things also, you just partner with

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<v Speaker 1>mastermind correct and Mastermind to explain to our listeners that

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<v Speaker 1>why this is interesting and important. Take that one yeah,

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<v Speaker 1>it's a little bit more than a partnership. We we

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<v Speaker 1>recently just acquired Mastermind. That was a couple of a

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<v Speaker 1>couple of weeks ago. We probably dropped that information out

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<v Speaker 1>there in the in the world, but um so Mastermind

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<v Speaker 1>Marketing is a digital creative agency and um what we're

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<v Speaker 1>doing is we're really doing it quite a bit of

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<v Speaker 1>growth through M and A. UM Influencer Marketing is kind

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<v Speaker 1>of like our core sort of social media marketing tool set.

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<v Speaker 1>But over the last few weeks we started announcing sort

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<v Speaker 1>of like the stealth portion of the of the growth.

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<v Speaker 1>And Mastermind Marketings acquisition was one some huge clients that

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<v Speaker 1>they've had for its ask me to understand, I mean,

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<v Speaker 1>this is their pharmaceutical pole pre big deal. So Kevin

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<v Speaker 1>tell us about Shark Reach Labs the project. So so

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<v Speaker 1>we're taking we're able to take products. We have a product,

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<v Speaker 1>for example, it's called I Grow Laser. It's a it's

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<v Speaker 1>a hair growing product laser and um led lights and

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<v Speaker 1>it and it grows hair right. And this has been

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<v Speaker 1>now it's been selling on QVC for five and forty

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<v Speaker 1>five dollars, is blowing very big numbers. But now we're

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<v Speaker 1>able to go out and find influencers who can talk

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<v Speaker 1>to their their friends and family and networks about their

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<v Speaker 1>hair growing experiences. So we can target people that want

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<v Speaker 1>to grow hair by getting influencers that can help that

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<v Speaker 1>help get the word out about a product like this.

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<v Speaker 1>Just surprise. I don't think anybody needs encouragement for wanting

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<v Speaker 1>to grow hair and get at a certain point man

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<v Speaker 1>or you know it's a it's a big deal. I

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<v Speaker 1>guess The point is an influencer is presumably someone who

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<v Speaker 1>isn't just got lots of followers, but has followers because

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<v Speaker 1>they have some kind of credibility because I trust that influencer,

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<v Speaker 1>not just say hey, I'm cute by this, but trust

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<v Speaker 1>me correct and and so yes, they they and and

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<v Speaker 1>they've been engaging with their their followers and their clients

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<v Speaker 1>for for X number of months or years so they

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<v Speaker 1>know what to expect and um and if they like

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<v Speaker 1>a product, of course, you know it is there. Many

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<v Speaker 1>of these people do like to try and make sure

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<v Speaker 1>that they believe in it also and and validate the

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<v Speaker 1>product themselves. Okay, so how one of our listeners, small

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<v Speaker 1>business or an investor, how do they what is the

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<v Speaker 1>intersection they might have with Shark Reach Steve. So, we

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<v Speaker 1>generally work with the mid tier to large larger brands,

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<v Speaker 1>but really it's across a product segment we can work with. Really,

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<v Speaker 1>it's because like I said, followers, right, So there's a

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<v Speaker 1>really it can go very broad and go very niche

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<v Speaker 1>depending on what that brand or what that company you

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<v Speaker 1>know is looking to do. There even can be like um,

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<v Speaker 1>these kind of meetups that we do within owensers at

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<v Speaker 1>regional level, which is kind of fun. I mean they're

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<v Speaker 1>real people with real followings and it's kind of just

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<v Speaker 1>a way to connect them to what the brands want

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<v Speaker 1>to do in a really true organic way. Okay, Kevin,

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<v Speaker 1>you are an influence there here. Now you're going to

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<v Speaker 1>jump in with this digital millennial approach. Tell what what's

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<v Speaker 1>the number one thing an influencer should know or what

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<v Speaker 1>are you looking for? Well, what I look for is

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<v Speaker 1>I look for a credible company with a great background

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<v Speaker 1>or if it's a product, a great product that has

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<v Speaker 1>a proof of concept and and the ability to reach

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<v Speaker 1>the masses. So uh So, I think that's that's one

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<v Speaker 1>of the advantages with with some of these influencers because

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<v Speaker 1>they have you mentioned a Kardashian. They have such a

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<v Speaker 1>mass following you you've got to have a mass product

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<v Speaker 1>for somebody like that, because you can't. You can't go

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<v Speaker 1>to a Kardashian on a hair growth product because it's

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<v Speaker 1>it's too niche of a product. So because they'll help

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<v Speaker 1>plenty of hair exactly. Well, thanks You guys have to

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<v Speaker 1>come back when this is when you get your next

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<v Speaker 1>big acquisition or your next big influencer. Thank you so

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<v Speaker 1>very much to Kevin Harrington, he's the chairman and board

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<v Speaker 1>member of Shark Reach. And Steve Smith, he's the CEO

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<v Speaker 1>of Shark Reach. I'm Kathleen Hayes. This is Bloomberg