Yahoo Finance Mark Cuban Broke His Negotiation Rule for Game-Changing Business Pitch
Billionaire investor and Dallas Mavericks owner Mark Cuban is known for his wise investing strategies and ability to spot promising entrepreneurs. But on a recent episode of ABC’s “Shark Tank,” Cuban surprised viewers by breaking one of his cardinal rules during a negotiation.
Previously, Cuban has been asked what the worst piece of career advice he ever received was. He responded: “‘Follow your passions. No. Follow your effort. No one quits anything they’re good at. If I followed my passion, I’d still be trying to play professional basketball.”
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And he’s not alone. “Telling someone to follow their passion is dangerous,” wrote Cal Newport in “So Good They Can’t Ignore You: Why Skills Trump Passion in Searching for Work You Love.” “Because the vast majority of people do not end up owning successful businesses in that way, that advice likely resulted in more failed businesses than all the recessions combined.”
However, Cuban did decide to follow his passions on “Shark Tank.”
The pitch was from Fred Zwar and Kirsten Maitland, founders of Rebel Cheese, an artisanal vegan cheese company. Cuban, who is vegetarian and has invested in vegan companies before, loved the product and the founders’ passion. But what happened next shocked his fellow Shark investors.
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Cuban Makes First Move
Cuban is notorious for staying silent during negotiations, listening carefully and gathering information before making an offer. As he shared previously, “They say silence is golden, silence is powerful. Silence is money, money in the bank. A lot of people don’t realize that.”
Yet just five minutes into the Rebel Cheese pitch, Cuban jumped in with an offer of $750,000 for 10% equity in the company — taking the lead ahead of the other Sharks.
“I’ll offer you $750,000 for 10%,” Cuban told the founders. Fellow shark, Lori Greiner, also wanted in on the action and jumped in immediately.
Two Sharks Join Forces
Greiner told the Rebel Cheese founders that she successfully invested in charcuterie board company Boarderie. With Cuban’s interest in vegan offerings and Greiner’s existing distribution pipelines, they seemed a natural pairing on this investment opportunity.
“We make the most fabulous cheese and charcuterie board that you can imagine, and we have no vegan cheese,” Greiner said. She proposed teaming up with Cuban on the deal, and Cuban agreed. He even upped the ante: “$750,000, 10%, you get two of us.” Anyone who knows the sharks, knows this was a big deal.
Why Cuban Broke His Golden Rule
Cuban broke his signature negotiation tactic because he saw massive potential in both the company and the founders.
Rebel Cheese had already hit $2.5 million in revenue in 2022, with projections of $3.5 million in 2023. Just like Cuban and Grenier, the husband-wife founders are confident they can change the whole cheese game and are now signed with the sharks. Say cheese!
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This article originally appeared on GOBankingRates.com: Mark Cuban Broke His Negotiation Rule for Game-Changing Business Pitch
