Do you have a product that you believe is ideal for Direct Response Television?
Here are some questions that need to be considered realistically before you spend a dime:
Room for pricing
Can your product be sold at a markup of 5 to 1? In other words, if your product costs you $10 to produce, is it “reasonable and appropriate” to sell it for $50? A minimum 5 to 1 margin is crucial so you can pay for your media costs and still make a profit.
There are a few exceptions to this rule, including selling what is known as a “continuity system,” such as a skincare or makeup line, vitamins, or other products where each month or two the customer is going to want to replenish her supply. Continuity-type products can have a lower than 5 to 1 margin and still be highly profitable, as long as the ongoing continuity program is handled properly. Music or DVD “monthly club”-style programs – where you sign up and receive a new installment periodically – are also considered continuity products which can successfully break the 5 to 1 rule.
Let’s make a deal
Can you take your product and make it part of a “system,” add more goodies so that the buyer really feels like he’s getting a bang for his buck? This is what every TV buyer wants – a deal. Maximizing the perceived value of your offer is critical for success.
Show me the money shot
How many ways can your product be demonstrated? How easy is it to use? How quickly can you see results? Are the results dramatic?
A picture is worth a thousand words, as they say, and if you can show skin going from acne-ridden to clear, the belly going from flabby to flat, the face going from wrinkled to smooth, the car scratch disappearing before our eyes – if your product lends itself to dramatic “before" and "afters,” then people will believe in the results you're promising, and be moved to buy.
I gotta have it, and so does everyone else
How many people want what you have to sell? Does your product fulfill some widespread, dire need? It had better have broad appeal. There are issues that many people have to deal with, like obesity, acne, wrinkles, hair loss, poor health. Does your product offer a revolutionary solution to a common problem? Something you can’t get anywhere else?
How much do infomercials cost?
Like anything, the cost of producing a half hour infomercial can vary greatly. However, paying more for production doesn’t necessarily mean better performance. Thousands of products have been sold successfully using infomercials with relatively small production budgets.
Follow this link to see a study done by Response Magazine showing the low and high ranges that infomercial companies charge for a half hour show:
