Is It Expensive To Be On Shark Tank? Here's What To Know

There are things about "Shark Tank" that people might not know, such as the process participants must go through for the opportunity to pitch their businesses on the hit TV show. For the most part, viewers are happy to watch budding entrepreneurs share their ideas with the Sharks and enjoy the entertainment that stems from it. "Shark Tank" is a platform that enables unknowns to gain overnight business success — but do participants have to pay to get onto the show?

The simple answer is, yes and no.

According to Own Your Own Future, the initial stages of applying to "Shark Tank" are free. Wannabe participants are required to fill out an application form and send in a pitch video with some details about their company and the product they want to sell, which is the cheapest part of the process. That said, chosen candidates might end up having to pay thousands of dollars due to other important factors that must be taken into account. Nothing in this world is truly free, and that includes getting onto reality television shows.

The "Shark Tank" process can be very costly for participants, depending on where they are based and how well they understand the complex intricacies of their businesses. The first thing to consider is travel costs, as the aforementioned Own Your Own Future report notes that candidates must pay money out of their own pockets to get to their in-person auditions. Throw in accommodations, food, and everything else associated with a trip, and it's going to take a chunk out of one's bank balance.

After that, participants must obtain a business valuation to find out how much their company is worth. Knowing that information is valuable for negotiating with potential investors — after all, the Sharks don't fund ideas out of the goodness of their hearts. They typically ask for a stake in the company, so participants shouldn't risk being ripped off. The downside of obtaining a business valuation, however, is having to pay thousands of dollars to get one.

Finally, participants will be required to provide information on their businesses' financial and legal situations. As such, the budding entrepreneurs might have to hire professionals to advise them and ensure everything is up to scratch, and lawyers and accountants aren't always cheap. These are just some of the rules people have to follow on "Shark Tank," but the expenses might pay off if the Sharks invest in a business proposal.

If you enjoyed this article, check out this ranking of the most successful "Shark Tank" products.