Wednesday, October 1, 2008

How To Make Money With TV Infomercials

For 16 years, I've been helping entrepreneurs understand the dynamics of direct response television or DRTV. Nowadays everyone refers to short form direct response commercials and long form infomercials as simply infomercials. But make no mistake they are different infomercial formats, with different ways of targeting customers to make your product an as seen on TV success. Here's 7 tips for making money with TV infomercials and DRTV spots.

1. If you have a single SKU product, find some other products to work your offer and create an upsell stream of revenue.

2. TV infomercials are much more then TV production and media. Remember that a successful infomercial campaign includes telemarketing to convert leads to orders, payment processing, fulfillment, customer service and e commerce web sites. Look for a turnkey infomercial shop with a successful track record.

3. Direct to consumer selling is a science. You must conduct research to understand your most profitable customer. Then, test more then one offer, price point, and upsell strategy. An agency with experience and the ability to move quickly can help get your product out to market faster.

4. Make sure you have adequate funding. Today smart direct response companies can utilize the latest technologies and produce award winning infomercials with limited budgets. But you must have adequate funds to test an offer, tweak the creative and telemarketing scripts and re-test. Be patient.

5. When you hire a good TV infomercial company, listen to their advice. They are on your team and know a lot more about what works and what doesn't.

6. Beware of infomercial companies offering joint ventures. Usually these deals are simply a hook to sell you a cheap TV production that will never go anywhere. Your direct response agency should have years of experience, a good reputation and offer services for a legitimate fee.

7. Be clear on your goals and objectives. Is your product a direct to consumer product with an ongoing revenue stream and continuity offer? Or is your product better for direct to retail -- using retail sell through as the back end profit center? Make sure your TV marketing strategy fits your product line and team strengths.

There is much power in TV and Internet TV infomercial promotions. You can launch a new product on a nationwide stage faster and cheaper then any other marketing method. Media delivery is more efficient and targeted then ever before. Now it's your turn to introduce your dream product and make money on TV.

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