MagicMoments is an iPhone app and online marketplace that allows you to take pictures, turn them into products, buy, share and sell them!
Magic Moments is an application which utilizes the ‘Café Press’ system. People are able to take photographs or put pictures on their mobile device. They then have the opportunity to add these images to merchandise sold by Café Press. The merchandise is then printed and sent on over to the purchaser ‘on demand’. Magic Moments takes a small amount of commission from each sale they send Café Press’ way.
Straight away the Sharks noticed a problem with the business model. It relied on Café Press far too much. In fact; if Café Press crumbled then the Magic Moments application would crumble along with it. This is not going to be ideal for investors as they will not have full control over the profitability of the business and that means they would be unable to secure their investment.
The investors also believed that this was not a good business opportunity. They believed that if so much cash could be made from having a mobile application like Magic Moments then Café Press would be doing the same thing. They are not. This means that they have identified that the idea may not be all that profitable. If by chance Magic Moments did take off then you could be sure that Café Press would jump in there and launch their own app. This again means that Magic Moments would lose its profitability virtually ‘overnight’.