Shark Tank episode 724 showcases Amy Roiland’s FashionTap app, enabling fashion bloggers to sell their fashion images and reviews.
Roiland, a fashion blogger and former model, designer, and public relations representative, established FashionTap as a fashion-focused social network that allows members and fashion influencers to tag products and earn money when other users purchase the items mentioned in the photos.
They can publish their images on various social media platforms while maintaining the tracking tools included in the FashionTap App.
The software functions similarly to a “members-only” version of Instagram with built-in monetization. The app’s/home website’s page features hundreds of images of members.
Join by creating a profile and tapping on the images you’re interested in viewing (and possibly purchasing).
For that matter, fashion marketers – or any user – can share images of their favorite apparel or accessories, along with a link to purchase the items.
Roiland’s goal is to create a community and an income stream for members while also equipping them with the tools necessary to determine what’s hot and what’s not.
Roiland proudly asserts that she does not profit from anyone who uses the app – all sales commissions go directly to the member. She founded it as an expression of her passion for her craft and profession.
Roiland may profit from her member images, but she’ll need Sharks to figure out how to monetize the site – perhaps by presenting a premium service to businesses and public relations firms.
Will a Shark seize the opportunity presented by this new, fashion-focused social network?
What is FashionTap?
FashionTap is social networking and e-commerce application. It connects fashion bloggers and influencers with buyers, sellers, and followers, monetizing their brands, products, images, and reviews along the way.
When FashionTap was launched, users were rewarded for using the app by getting commissions based on sales made through the app.
FashionTap is one of the most popular online social networks for fashion. It’s simple; one may sign up for free and earn money by creating material that conveys your interest to others.
The FashionTap network enables business brands to directly interact with their customers by connecting them with fashion bloggers and costume designers. A fashion blogger’s affiliate marketing platform, FashionTap, does just that.
This online network offers a forum for connecting fashion industry professionals with enthusiasts, using the latest trends, styles, designers, and photographers.
|Product||Fashion Blogger Affiliate Marketing App|
|Investment Seeking||$100,000 For 10% equity in FashionTap|
|Final Deal||No Deal|
|Business Status||Out of Business|
Who Is the Founder of FashionTap?
FashionTap’s innovative founder and former CEO Amy Roiland founded the company.
FashionTap was founded in January 2014 in Los Angeles due to Roiland’s enthusiasm for fashion and her ambition to provide a revenue stream and knowledge to her consumers.
She is currently employed at Betty and Veronica as a social media manager and formerly worked as a fashion blogger for Fashion Nerd.
Amy Roiland was born and raised in Manteca and previously worked as a model/designer.
She is a graduate of California State University, Northridge, where she majored in Business Marketing and Fashion Merchandising.
At the time, she had 51,000 Instagram followers for her blog, A Fashion Nerd, 5,000 Twitter followers, and millions of Vine video views.
Her ambition was to bring the fashion industry together on a single platform. She began blogging as a way to share her wardrobe with the world.
Amy’s concern with the disconnect between technology and fashion and the constraints of social networking platforms resulted in the development of FashionTap, which cost $140,000.
According to Roiland, you should monetize your social media accounts because we are all walking advertising.
FashionTap was owned by two investors who held a combined 67 percent of the company. Over the past six months, 6000 downloads were recorded, and more than 1,500 users were active each month.
The app had amassed a total of $60,000. Through affiliate marketing opportunities, she hoped to increase revenues to $7 million.
FashionTap Before Shark Tank
FashionTap was founded by Amy Roiland. The former model and fashion blogger already have a successful career as a designer, fashion blogger, and public relations professional. Amy blogs as A Fashion Nerd on FashionTap and manages Betty and Veronica’s social media.
Amy, a blogger herself, founded her social media site in response to the restrictions of other platforms on the market.
Her product is unusual in that it enables bloggers to upload text and categorize photographs. The consumer clicks on these tags and is directed to their sales landing page, from which he or she can purchase things and earn a commission.
Amy decided to establish her social networking platform after becoming frustrated with the lack of functionality on other platforms.
She created a platform that allows bloggers to upload images and categorize them. Bloggers earn a commission by linking to the sales page to purchase the item via the tags. What do you think of this novel concept? Would the Sharks be interested?
How Was the Shark Tank Pitch Of FashionTap?
Amy enters the Shark Tank looking for a $100,000 investment in exchange for a 10% stake in her business.
The Sharks start by debating the necessity of a niche fashion app based on established platforms such as Instagram.
Amy says that the present sites are “too busy” and lack features like linking to a specific object in a photograph.
Users who tag things in their images can create a link to the retailer’s website and receive a percentage of any sales generated through their link.
Kevin O’Leary is interested in revenue streams. Amy explains that she intends to connect with large box stores via her user base to earn a 10% fee on all purchases produced by her app.
The strategy is predicated on large box stores, assuming she seems to have enough followers to drive enough revenue to warrant offering her a commission.
Mark Cuban is interested in learning about her subscriber base. She has accumulated 6000 downloads in 6 months and 1,500 monthly active users.
Amy’s blog served as a “soft launch” for the app. She has not increased her advertising or marketing.
Her second revenue stream would come through sponsorships first from the fashion industry, which would pay for models to appear in images on the app wearing their clothing. Affiliate links would provide a third revenue stream.
The app has generated $60,000 in revenue thus far. Amy’s goal is to earn between 1-3 percent of total sales via the app; however, she is not currently earning anything.
She has a $90,000 investor who owns 38% of the business. Another investor holds 29%, bringing the total ownership to 67 percent. The Sharks’ enthusiasm has waned.
Amy intends to spend the $100,000 on marketing to grow the app’s readership. She believes she can grow the app’s sales to $7 million and make it profitable.
Chris Sacca informs her that Instagram has already established itself as “the fashion app.”
He believes that designers, models, and big-name corporations will be unwilling to give up even a small percentage of their profit margins to affiliate links without a significantly larger user base.
While Mark Cuban disagrees, he believes there are insufficient reasons for customers to download her app.
He does not believe that the affiliate percentage incentive is sufficient to grow her audience to the required levels. He has departed.
Chris Sacca informs Amy that she is “pursuing the holy grail,” that the concept of a “click a button and purchase the sweater Jennifer Aniston is wearing on Friends” has existed for a long time.
He admires her concept but is skeptical that she is honest about the amount of work and time required to get affiliate relationships with fashion industry giants. He has departed.
Kevin O’Leary believes Amy is too small and crushable by the industry’s established major competitors. He has departed.
Daymond John refers to Amy as the “genuine deal,” but he expects Instagram will eventually take over the market. He has departed. Barbara is the sole survivor.
“I should listen to the tech experts here, but I’m going to disregard them,” Barbara adds. She compares FashionTap to her previous successful investment in Grace ‘n Lace and offers $100,000 for a 25% stake.
Amy makes no rebuttal. She rejects the offer outright, despite the Sharks’ pleas for her to reconsider. Barbara exits when she maintains her resolve.
As a result, there was no deal between FashionTap and Sharks on Shark Tank.
FashionTap Shark Tank Update
Amy is committed to growing her app and seeking affiliate marketing opportunities. She is actively promoting the app via her website, social media, and blog.
Despite this, there is no indication that the app has taken off in the fashion world as she had planned. Will Instagram simply enter the niche market by allowing affiliate links on its platform?
The Sharks’ speculation seemed plausible, given the scope of Instagram’s reach. This is one app that appears to be going the way of the duck face selfie. FashionTap would almost certainly be acquired by a larger platform in that case.
Amy did successfully grow her following on Instagram, where she currently has 153,000 followers. In July 2018, she deactivated the app.
What Happened To FashionTap After Shark Tank?
It is noted on FashionTap’s About page that the company has expanded both in terms of personnel and users. Despite being restricted to iPhone and iPad users, there are tens of thousands of software users on the iOS app store.
They have 114 reviews, the majority of which are positive. The few negative reviews they have received a note that the app’s search capability is lacking. It’s challenging to locate unique looks. Amy Roiland has ambitious future aspirations.
She is now adding additional features to the FashionTap app, such as improved search and developing the e-Commerce component. Additionally, she intends to open FashionTap offices.
Is FashionTap Still in Business?
Barbara Corcoran offered Amy $100,000 in exchange for a 25% stake in Season 7 Episode 26 of Shark Tank in April 2016. Roiland declined the offer, resulting in the demise of the app in July 2018.
Amy stands by her decision, believing that one should battle for one’s aspirations, for what one desires, and that one’s ideology should be patience.
Following that, Instagram began allowing affiliate links on its site. In retrospect, it appears as though Roiland disregarded the Sharks’ warning.
Her failure was a result of her being too small to compete with industry titans, underestimating the amount of work required to develop relationships with fashion industry titans, declining to work with a big box store, focusing and utilizing available funds exclusively on marketing, lacking the following necessary to grow sustainably, and the fact that Instagram changed its application significantly.