In late 2009 SkratchTrack.com, owned by Dave Tilgner of Skratch Publishing, received serious attention from US investors looking to snap-up his solution for parents trying to encourage their children to read.
In late 2009 Dave Tilgner, the proud owner of SkratchTrack.com, was actively promoting his offering through online blogging, radio and parent and teacher conferences. At one such conference he met a Canadian representative for a 'children's charitable organization' from the United States. Two Producers from this organization had just completed a documentary on their own organization's recent accomplishments.
Shortly thereafter a meeting was established between Dave and the Producers. Skratch Publishing's solution was both exciting and so well aligned to their goals that there seemed to be a great connection there. The idea of a partnership was seeded and a follow-up meeting with Dave was arranged.
Naturally, Dave was thrilled about the prospect of a major partnership. The following day another meeting confirmed that both the Producers and an Associate of theirs loved the idea. Key changes for the solution were discussed but it was agreed that the underlying concept was so promising that they definitely wanted in. A partnership would grant Skratch Publishing access to substantial marketing muscle throughout the US. There was however, a catch. This marketing would come at the hefty cost of 75% of company ownership.
Here is where Dave faces a dilema. Everyone loves big sponsorships, partners and investors, but at what point is one just giving away the farm? These savvy Producers threw everything from "you'll regret not partnering with us" to "think about your family" to a slightly unsettled Dave. Numbers flew back and forth, anxieties grew and negotiations got a little rough. One would think this stuff is supposed to be fun but it was starting to feel like bare knuckle boxing!
Maybe you assume that a final figure was reached and Dave sold SkratchTrack.com and never looked back? Well if so, you guessed wrong!
In actuality, Dave felt that all the hard work he put into his solution, the values he built it upon and the joy of choosing his role in the company were too much to give up. At least, not without the Producer's making an even bigger offer.
To other web business owners out there Dave shares that you should trust your gut and be patient. If someone wants something badly enough you should think twice about giving it away. Protect your investment, especially something brand new. When entertaining bids, keep the communication friendly and professional but don't give in to threats or fears.
Skratch Publishing continues to promote SkratchTrack.com and registrations continue to grow. If you want to make reading more fun for your children I highly recommend it. As soon as my son Sebastian is of reading age I know I will. My sister already has an account for her two children and we recommend it to all our friends with kids.