|SEASON 7 EPISODE 26|
|Pitch||affiliate marketing app for fashion bloggers|
|Asked For||$100,000 for 10%|
|Status||Out of Business|
What is FashionTap?
FashionTap is an online social networking/ e-commerce app. It allows fashion influencers and bloggers to connect with designers, buyers, and followers, thereby monetizing their brands, products, photos, and reviews. Unlike Instagram, at the time, FashionTap incentivized the use of the app by offering commissions from sales made via the app.
Who is the FashionTap Founder?
Amy Roiland is the visionary founder and former CEO of FashionTap. Founded in January 2014 in Los Angeles, FashionTap stemmed from Roiland’s passion for fashion and her desire to create a source of income and information for her users.
She is currently a social media manager at Betty and Veronica and was formerly a fashion blogger for Fashion Nerd.
Amy Roiland is a Manteca-native and a former model/designer. She is a CSU Northridge graduate with a double degree in Business Marketing and Fashion Merchandising. At the time, she had 51,000 followers on Instagram, for her blog, A Fashion Nerd, and 5,000 on Twitter, and millions of video views on Vine.
Her dream was to connect the fashion industry on one platform. She began blogging as a way of sharing her clothes with everyone.
Amy’s frustration at the void between tech and fashion and the limitations of social networking platforms led to the development of FashionTap costing $140,000 to develop.
Roiland holds the view that you should monetize all your social networks as we are all walking advertisements.
FashionTap had two investors holding 67% of the business. There were 6000 downloads over six months with 1,500 being active monthly users. The app had generated $60,000. She aimed to grow sales to $7 million through affiliate marketing opportunities.
FashionTap Shark Tank Update
Is FashionTap Still in Business?
Amy was invited to try out for Shark Tank, Season 7 Episode 26, in April 2016, and was offered $100,000 by Barbara Corcoran for a 25% share. Roiland declined the offer receiving notoriety instead, causing the app to shut down in July 2018.
Amy stands by her decision in the belief that one should fight for one’s dreams, for what one wants, and to let patience be one’s mantra.
Instagram subsequently began to permit affiliate links on its platform. In hindsight, it looks like Roiland did not take the Sharks’ advice to heart.
Her failure was due to her being too small to take on industry leaders, underestimating the work needed to develop relationships with fashion industry giants, choosing not to work with a big box store, focusing and utilizing available funds solely on marketing, not having the following to grow viably and the fact that Instagram made notable changes to its application.
How Did FashionTap make Money?
FashionTap incentivized posting on its app to earn a commission from the sale without taking a share of the profits. It would have three revenue streams with 10% coming from e-commerce, a second from sponsorships with large brands, and the third stream from affiliate links which would provide between 3 -35% of revenue.