Infomercial and DRTV Blog

Infomercial Budgets - Cost of Infomercials 2012

2012-01-15T07:21:00.000-05:00

Infomercial budget questions? Are you trying to understand the costs of producing an infomercial? My name is Ron Perlstein, and I started producing infomercials in the early 1990’s and run a very successful Direct Response Infomercial Production and Media Agency called InfoWorx Direct. Part of our client base includes many marketers and product developers who are new to this unique and profitable form of Direct Marketing. Please bookmark or subscribe or follow me on Twitter.

TV Infomercial Production Costs:
Short Form TV Infomercials run in 5 minute; 2 minute; and 1 minute lengths depending on your product, goals and TV media availability. Many producers charge a fee plus a royalty on the back end based on performance. There are a few DRTV Agencies (like InfoWorx) that not only produce winners, but provide media buying services. TV Production costs for these short form TV infomercials or DRTV commercials range from $5,000 to $75,000 depending on many factors.

Long form TV infomercials are about 30 minutes (most are 28:30 minutes). Again here costs can vary greatly. Do you want a production with a spokesperson sitting at a table with a black curtain or do you want to produce a TV show that is convincing with great talent, custom sets, animations and high end graphics? Take a look at these TV Infomercial production packages to get a better idea of production values.

TV Infomercial Campaign Costs:
In addition to production costs a TV campaign must include media. I recommend that a marketer test their offer or several offers. A media test on a limited national basis costs about $15k to $20k per test. These tests produce sufficient data to determine if you have a winner, moderate success, or …..ugh….a loser. The backend of a campaign or test is also imperative. Inbound telemarketing in the form of an IVR or live agent call center has setup fees ($1,000 and up) and ongoing transactional fees. A non swipe merchant account is required and nowadays a landing page e-commerce site is recommended. Also a DRTV friendly fulfillment shop is recommended to handle inventory management, pick and pack services, payment processing, and returns and exchanges. Like inbound telemarketing, there are setup fees and ongoing transactional costs associated with this aspect and having a world class fulfillment partner helps.

Check back here often. Also check my DRTV Media blog. We’re working on one now regarding rollout media budgets.

TV Infomercials Are Here To Stay

2011-09-17T11:59:00.001-04:00

Thanks to all of you who visit and read my blogs. Since 1992, my company InfoWorx has been innovating, straight talking, and making money for our clients. DRTV can be tough, even brutal sometimes, but marketers with patience, an understanding of the dynamics of testing, tweaking and massaging somehow make their products successful. Others come in underfunded, with unrealisitc expectations and a desire to reinvent DRTV - and they usually fail.

Today's topic is the old fashioned (since 1984) long form TV infomercial. A lot has happened since 1984, but these shows keep on keepin' on. Many marketers are fearful of producing a long form show because the budgets can get up there. (Check out InfoWorx affordable and award winning packages) I'm here to tell you today that those video assets are valuable. They are valuable for social media marketing, they are valuable for your web site, they are valuable for point of purchase and other corporate videos, and they are valuable for b-roll footage at home shopping networks like HSN and QVC.

Now I'm a guy who goes to the gym early in the morning during the week and the weekend. My gym keeps CNBC, E! and several local channels on, along with CNN and ESPN. You know what? I see Long Form TV Infomercials every day at 630A or 7A while I'm on the eliptical - just like millions of others. Long form TV Infomercial are everywhere. They are airing on your local network affiliate on Sunday afternoons, Satyurday evenings and most every day during late fringe. Remember this - if they are airing they are working!

Conventional wisdom is that short form works on low cost products and long form works on high cost products. That's conventional, 1980's wisdom. Here are the facts: We live in a multi channel world of communications and media. We get our messages from TV, Radio, Internet, Print, Social Media, etc. With a Long Form TV Infomercial you already have all of the video assets necessary for every application and media distribution. Your messaging can be more complex, better explained, and more fully demonstrated with the long format. Before you box yourself in, consider creating a long form show that can be used in short form, online video, and all of the channels we already discussed.

TV Infomercial Producer - Infomercial Production Values

2011-07-22T06:49:00.000-04:00

Yesterday a new client called with many questions about the cost of TV Infomercials including production values like camera quality, animations, and set construction. Now mind you he was calling about a Short Form TV Infomercial or a DRTV Commercial to sell an inexpensive new and patented fitness product. He was confused because he had spoken to some companies in the Los Angeles area who quoted a minimum of $100,000.00 for a short form project. Together we looked at some competitive products and broke down the production values for each to help him determine how high the production values for his Direct Response TV project needed to be.

Of course there are many factors that determine the cost and quality of a TV Production. Nowadays there are HD cameras sold at Wal-Mart, Target and Best Buy for a few hundred dollars, so beware of a producer offering HD, when in fact it may be a consumer format like HDV. Likewise, the lighting should include a truck full of professional lighting like HMI and Kino Flo lights. Some producers offer very low prices that would be appropriate for a wedding or Bar Mitzvah event, not a national quality TV commercial.

On the flip side, large corporate advertisers like beverage and automotive companies spend $250,000.00 and up on a single 30 second spot. The hottest camera out there today is a heavy duty broadcast HD camera called Red. Recently, a new client approached InfoWorx Direct asking us to replicate an ad for a competitive product. We broke down the production values and suggested that the client spend about $55,000 with us to replicate the two minute DRTV spot which had a budget over $100,000.00. We added a film lens package, a studio shoot with custom set, dolly, additional crew, animation and a graphic designer to our standard package. After 19 years of award winning TV Infomercial production (and many roll outs), we know where and when a marketer needs to put some extra dollars into their production.

The bottom line….TV production values do matter. You cannot produce national quality infomercials and Direct Response TV commercials for a few hundred or even a few thousand dollars as so many sites advertise today. However, a good short form infomercial can range between $15,000 and $50,000.00 and a good long form infomercial can range between $55,000 and $150,000.00. National quality, broadcast HD cameras, professional talent, lighting, design, editing and animation are all must haves, but there is no need to break the bank.

Infomercial Cost 2011

2011-05-19T16:08:00.000-04:00

What is the cost to produce an infomercial? Infomercial Production Costs 2011? You guys keep asking. TV Infomercial costs? Cost of infomercial media? The calls and emails and searches continue. Thanks for visiting the Infomercial and DRTV Blog - a good place to get straight, real information on the wacky, wonderful world of TV Infomercials. Let’s look at some different formats and talk about the range of TV Infomercial Production Costs.

Short Form DRTV: Short form TV Infomercials are actually TV commercials with a response mechanism like a toll free number or URL or both. These spots are available in :120 second and :60 second lengths with :30 seconds used mainly for TV lead generation. Production costs vary according to the Direct Response Agency or Production Company and other factors including camera equipment, size of crew, etc. Many short form direct response television producers charge about $30,000.00 plus a royalty. Beware of any producers less than $10,000.00 because too many corners must be cut. However, some companies bundle services together and provide media services in lieu of a royalty.

In addition to Short Form TV Production, other costs associated with a DRTV launch include: TV media costs, inbound telemarketing setup, fulfillment and payment processing, as well as duplication costs. As you can see, it starts to get a bit complicated so it’s always best to work with an experienced professional, not someone getting their feet wet with your project.

Long Form TV Infomercials: These are really TV shows! Since 1984 when the length of commercials was deregulated, marketers have had the ability to fully demonstrate, create emotional testimony, and make a complete pitch to truly sell their products. It’s a unique marketing platform and creates all the video assets needed for every other new media platform in the 21st century. Since you must produce about 30 minutes of content, these productions naturally cost more than short form. Rates are all over the place. Some of the best known infomercials may have a multi-million dollar celebrity and others may be shot in front of a black curtain. Costs range from the down and dirty (avoid this!) to the ultimate shoots on The Red One. Choose your producer wisely. Again, many producers must make a substantial profit on your show, while others may work close with you and gain their profits with a rollout and substantial media buying. Some product developers and owners are looking for “partners” to fund the production. If you want to keep control of your product be careful. TV Production costs and initial media tests are very affordable, and there are media funding companies who will assist with a roll out without any equity in the product.

Additional costs for Long Form DRTV are the same as Short Form DRTV, except your duplications fees are higher. The trick is knowing which format works best with your product and establishing proper metrics and goals for success. Check some of our older blog posts for lots of information on these issues.

The bottom line: TV Infomercials and Direct Response TV commercials represent a low cost, high exposure advertising method that can take your product to marketing heaven.

FIVE MINUTE INFOMERCIALS NOW AVAILABLE

2011-03-08T16:54:00.005-05:00

How would you like the best of both worlds, that is -- long form infomercials and direct response short form commercials? What are we talking about here? We all know the old saying, “the more you tell the more you sell.” Well now about 15 national cable networks are offering five minute infomercial airtime. Most of the Discovery owned and NBC Universal networks have five minute inventory. Networks like OWN (Oprah Winfrey Network), which formerly aired half hour infomercials and many other smaller networks like MGM HD give marketers an opportunity to demonstrate, explain, and sell, sell, sell.

TV infomercial costs are often a barrier to launch and test a direct response TV project, even if a long format is required for the price point or detailed explanation of the product. A five minute production can be shot in one day, like a two minute or one minute production. Obviously, you will have the assets necessary for a full roll out to brand your product in short direct response media.

Now you may ask – what products work best in a five minute format? Answer – most long form half hour infomercials have a three to five minute call to action (CTA). We always counsel our clients to test – so almost any 30 minute TV infomercial should be tested in this new, exciting hybrid format. Short spots work best for direct to retail $19.95 products. With a five minute direct response TV spot, you can make a longer pitch, sell products with high price points, and generate lots of traffic to your web site. Remember, though, your media buyer must be smart and connected!

Long Form Media Rates Down!

2010-09-16T13:01:00.007-04:00

You know people there's a Yin and Yang, ebb and flow to life and business. On our sister blog DRTV Media Blog we recently posted the "bad" news about how tight inventory is in the short form market -- let's call it the Yin....Well, how about some Yang -- long form media rates are down and avails are plentiful. Moreover, the long form infomercial format is a staple and boasts the highest conversions of any TV shopping format.
In the last several years, many marketers have gravitated to short form because the production fees are lower and the demographic targeting is more scientific. Many of the most well known AS Seen On TV products ultimately roll out in short form, too. But the idea here is to sell your product on TV -- and from day 1. Make no mistake, long form TV infomercials give you the best chance to convert a sale, fully demonstrate your product, and make emotional testimony come to life. TV Production costs are also down, and a simple talk show format can cost as little as $25,000.00 and a nice demonstration show with lots of bells and whistles go for $55,000.00.
We buy long form paid programming for our clients for as little as $40.00 a half hour. And this is on a broadcast station in the 6th largest market in the country. Smaller markets may have time for even less! There's plenty of inventory and the rates are highly negotiable. Heck, there's also PI long form inventory out there, and we know where to find it.

So before you jump in, consider if your product or service could use the benefits of a half hour infomercial. Also, with the added production values you will have the footage for short form, too.

Radio Infomercials Drive Infomercial Sales

2010-05-29T16:54:00.004-04:00

If you are thinking about marketing a product through the use of direct marketing and electronic retailing, give some thought to long form radio infomercials. This format is perfect for selling financial information, dietary supplements and neutriceuticals, or any talk show style news format.

A long form radio infomercial listener may be driving in their car and be quite attentive to your information, or they could be listening on a mobile device through online hookups. The bottom line - radio listeners buy product and radio infomercials convert callers to sales.

The cost of a radio infomercial is a fraction of the cost of a TV infomercial and could also be used as a testing format for various offers and direct response strategies. Remember, the smartest and savviest direct marketers test multiple offers and several telemarketing scripts to optimize conversion rates and enhance revenue.

Radio infomercial airtime can cost as little as $50 -- that's a half hour to inform, convince and make your best offer to your best prospects. Good prospects, you bet...you can target different demographics through radio direct response. Men through talk stations, women through music formats and religious stations. This long form format is here to stay and it delivers good customers at a low cost per acquisition.

Infomercial Tips for 2010 - Now is the Time!

2010-04-25T09:59:00.009-04:00

My how time flies! It seems like it was yesterday that we were just starting out in 2010 with new dreams, plans and projects. At InfoWorx it's been extremely busy, profitable and exciting. Our clients bring us innovative products that solve problems and make life easier. That brings me to some infomercial money making tips for 2010.

1. If you want to launch your product in 2010 - NOW is the time. Infomercial projects take anywhere from six weeks to six months. You should be ready to test in August to roll out in the last third of the year - when everyone is back in school and at work.

2. Your product should solve a problem. Infomercials work best with visuals that demonstrate the problem and the solution.

3. Not only should your product solve a problem, but it should be new and innovative.

4. Your product should have mass appeal. Kitchen products do well because everyone has a kitchen. Floor care products save time, money or both.

5. Remember, THE OFFER IS KING. You could have great creative and a problem solving product that's new and innovative.....but unless your offer is packed with value, sounds almost too good to be true, and has upsells or line extensions your infomercial will not have a good chance for success.

Stay tuned. Bookmark or subscribe to this blog and come back here often. There's still time to maximize the improving economy but now is the time to have a chance at success in 2010.

How To Make Money With TV Infomercials

2010-04-11T16:15:00.004-04:00

For 18 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 an experienced 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 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.

Infomercial Cost Per Order

2010-02-07T12:56:00.008-05:00

Let's talk about infomercial metrics. Every day we speak to product developers and innovative direct response marketers. I often ask the question to these would be infomercial start ups - How much can you afford per order or per call? Of course our regular direct response media clients know what their allowable is. Allowable cost per order you say? I say you better crunch the numbers and have a plan to get your product out there. Check out this link for an ROI forecasting tool. Well, let's define allowable, or cost per order, or CPO.

Ad Allowable: Your ad allowable tells you how much you can afford on a cost per order basis. The ad allowable is the dollar amount determined to be the maximum media expense for each unit sold in order to generate a legitimate profit.

Another infomercial metric that is widely used is the media efficiency ratio. The MER is a universal metric that is discussed among all infomercial professionals. We use this metric to determine how infomercial television media is performing.

Media Efficiency Ratio (MER): The total number that decides an infomercial's overall success or failure. The ratio is derived by dividing total sales by the media cost. Sales/Media Cost = MER.

To determine MER you must be able to track media efficiency through toll free number tracking and good Internet analytics. Through the use of this analysis, we cancel non performing media buys and renew those that have MER's that are profitable.

Allowable cost per order is such an important concept in all of direct marketing including mail and internet, that you must learn the concept, crunch the numbers and be scientific in your analysis. This is the concept that will drive your media buys, ROI, and overall success of your project.

Direct Response TV Advertising FTC Update

2009-11-15T07:43:00.010-05:00

DRTV Advertising and TV Infomercial Advertising rules changes as of December 1, 2009. The Federal Trade Commission announced the implementation of its new Testimonial and Endorsement Guides. The new Guides go into effect on December 1, 2009. Here are a few areas of important changes as reported by John Hendricksen of Manhattan Advertising and Media Law:
"The Guides remove the "safe harbor" provision which previously allowed use of a text disclaimer such as "results not typical" or "results may vary" when presenting exemplary testimonials of the product or service. In short, marketers should be prepared to disclose the "typical" results which users can expect to achieve."

"If bloggers or "word-of mouth" marketers have a "material connection" to the product or service, this fact must be disclosed when writing, posting, or otherwise promoting the product."

"Celebrities must disclose their relationships with advertisers when making endorsement-like statements on talk shows, interviews, blogs, tweets, or in other social media."

We always recommend that you have your scripts checked by a good attorney to make sure that you are in compliance. For more information and DRTV and Infomercial resources look here.

Long Form Media Rates Down!

2009-10-31T11:21:00.010-04:00

You know people there's a Yin and Yang, ebb and flow to life and business. On our sister blog DRTV Media Blog we recently posted the "bad" news about how tight inventory is in the short form market -- let's call it the Yin....Well, how about some Yang -- long form media rates are down and avails are plentiful. Moreover, the long form infomercial format is a staple and boasts the highest conversions of any TV shopping format.

In the last several years, many marketers have gravitated to short form because the production fees are lower and the demographic targeting is more scientific. Many of the most well known AS Seen On TV products ultimately roll out in short form, too. But the idea here is to sell your product on TV -- and from day 1. Make no mistake, long form TV infomercials give you the best chance to convert a sale, fully demonstrate your product, and make emotional testimony come to life. TV Production costs are also down, and a simple talk show format can cost as little as $20,000.00 and a nice demonstration show with lots of bells and whistles go for well under $50,000.00.

We buy long form paid programming for our clients for as little as $40.00 a half hour. And this is on a broadcast station in the 6th largest market in the country. Smaller markets may have time for even less! There's plenty of inventory and the rates are highly negotiable. Heck, there's also PI long form inventory out there, and we know where to find it.

So before you jump in, consider if your product or service could use the benefits of a half hour infomercial. Also, with the added production values you will have the footage for short form, too.

TV Infomercial Budgets

2009-10-24T10:42:00.009-04:00

What is the cost of an infomercial? How much does it cost for TV infomercial production? Are long form infomercials more expensive than short form infomercials? These questions -- and others about the cost of TV infomercial media and airtime come into our offices every day. This blog is for you -- to answer your questions and help you understand the wacky, wonderful world of TV infomercials -- our world!

Let's start with question number one: What is the cost of an infomercial? First of all, as you may know, there are two basic formats: short form infomercials and long form infomercials. Short form is comprised of commercial lengths of two minutes or less. Long form is generally considered the thirty minute format (actually 28:30 minutes, but there is now some nationwide media distribution for five minute infomercials too. So what is the cost of an infomercial? TV infomercial budgets start with a TV production budget. This cost is a one time fixed cost, and it needs to amortized over the life of the project. Short form budgets can run anywhere from a few thousand dollars to more then $50,000.00 depending on the scope of the production. Long form infomercial costs also run in a wide range of budgets. Talk show formats cost about $20,000.00 and up, demonstration shows usually cost around $50,000.00 to $100.000.00. Again, think production values -- or in movie language big action movie budgets verses low budget indie films.

The largest portion of a TV infomercial budget is the media budget. And you may be surprised to learn that long form infomercial media is cheaper than highly targeted CPM short form airtime. Check out our other blog for ongoing discussions about TV and radio media costs, clearance issues, and the latest trends. We recommend testing your offer on national and regional cable with test budgets of at least $5000.00 per week. Remember, repetition is very important in all forms of television advertising, so you must stay on the air to build momentum.

Check back here frequently for more information on TV infomercial budgets.

Radio Infomercials Drive Infomercial Sales

2009-04-06T06:35:00.011-04:00

Infomercial Production in the 21st Century

2009-03-18T16:35:00.016-04:00

Let's talk about infomercial production. Let's talk about the latest affordable TV production techniques. Let's talk about using 21st century computer technology to make your long form TV infomercial look like it cost a million bucks!

Green screen or Chromakey technology allows you to shoot against a green screen background and drop in any environment you wish. Well .... when you combine the latest Chromakey magic using an Orad system combined with top notch virtual sets by the leading Hollywood virtual set designer, your direct response TV infomercial will look like it was shot on a million dollar set. Think of an infomercial shot ten years ago against a black curtain and no set and now for the same low infomercial budget, you can have a top quality 3D virtual set customized with your product identity. Lately you see green screen infomercials and direct response commercials often with testimonials shot against green screen backgrounds. We've had several short form infomercial rollouts recently like SnorEnz, Memacin, and Cinergy Health.

Infomercial production costs are coming down in 2009, and the cost to produce great long form infomercials and test them has been driven down considerably from just a few years ago.

How To Produce An Infomercial Part III

2009-01-12T06:30:00.012-05:00

In the last post of this series we talked about avoiding production delays. Please be mindful of those points. Today let's talk about some of the TV Infomercial production values. After all, a TV Infomercial is a TV show! Keep in mind that we are talking half hour long form TV infomercials for broadcast.

Now remember, you start the project with a product that has been fully evaluated by professionals who have determined that it is best suited to be presented in an infomercial format. Your TV infomercial production company should have a budget with specific production values. For instance, at InfoWorx, the cost of half hour infomercials ranges from $31,500.00 to $80,000.00. And there is wide difference in the production values.

None of these budgets includes celebrities or even C list "has been" celebrities. This question always comes up, so let me address it now. If the celebrity is well known enough to be a channel stopper, it can help. If the celebrity "fame" is congruent with the product it can help. If your celebrity does not possess one or both qualities for your product, then use non union talent and make sure you have full permission to use the infomercial production any way you see fit. There are advantages to this approach such as: affordable infomercial budgets, no restrictions on the use or distribution of the TV infomercial, and no back end royalties or residuals.

TV infomercial budgets can vary widely and some products lend themselves to lower budget productions. Many supplements, business opportunities and intellectual property can be well presented in a talk show environment. If you have a kitchen product, say a counter top oven, you should have a full kitchen set, food stylist, and more for the production values. When doing your do diligence in the selection process of an infomercial company, make sure you compare apples to apples when evaluation budgets and look for samples of the company's work at those budgets.

In the next post, we will discuss TV infomercial scripts, infomercial rundowns, and changes in the scripts.

How To Produce an Infomercial - Part II

2008-12-22T06:55:00.021-05:00

I hope some of you are following along because you will find tips and secrets to TV Infomercial success that have taken me over 16 years to learn. We explained in "How To Produce an Infomercial - Part I" a little bit of the planning, research and thinking that went into our first steps.

Now, today, I want to talk about time lines, point person, and the best way to effectively produce a winning infomercial hit show. Our client, with a business opportunity perfect for the New Year wants to create the show and the intellectual property product in just several weeks. Yes, we can do it....but it takes a concerted effort by both sides of the team to achieve it. I have seen scenario fall apart time and time again.

So how can you produce an infomercial and the related intellectual property in 4 weeks or so? It can be done. First, the client must select a point person. He or she should be the main point of contact, and when there are times that all parties need to make decisions, a simple conference call can settle these sticking points. But be decisive, make a decision and stick to it! Please see our article, written and also published in DM News several years ago on production delays,"Production Delays That Cost Money....."

The five keys to keeping a production schedule are as follows:
1. Write up a timeline that is feasible.
2. Designate a point person so that all questions filter through he or she.
3. If your team has several members all of you can work independently with the offer strategy and outline, then come together and gain consensus before presenting your suggestions to our creative team.
4. Make all of your payments on time to the producer according to your agreement. This is an ongoing pitfall that causes many production delays.
5. Be committed to your timeline and make it happen instead of finding alibis to force postponements.

Please keep checking this blog, as in the next installment, we will discuss talent selection, art direction and sets.

How to Produce an Infomercial - Part 1

2008-12-13T07:31:00.023-05:00

About two weeks ago, just before Thanksgiving, two wonderful women with a proven instant money making business opportunity contacted InfoWorx offices. On the telephone, we qualified the product....and their infomercial budget. You see, you cannot fly from New York to LA for $50.00, and you must have some funding in place to pull off an infomercial project. Remember, if your product screams for the long form half hour format, it's a serious mistake to "settle" for short form simply because you do not have the funds yet. The good news is that new, innovative technology has empowered infomercial producers to create first class TV shows at a fraction of yesterday's price. We have two shows in production now at the same cost of a basic direct response commercial. That's right....you can make a half hour long form infomercial for less then the cost of many short form productions.

We set up a meeting, and they explained their product and we presented the benefits of InfoWorx. They needed a lot of work, strategic thinking, and an infomercial direct response agency that knew how to produce great low cost infomercials using the latest cost saving techniques. Oh, yeah....one more thing they needed our help developing the product DVD's and manuals all within a limited budget. The project was a challenge, but we felt it has great promise for our current economic crisis. We worked out a deal that stayed within the client's limited budget and will deliver all of the goods.

One we had a deal in place, we went to work. First our team studied all of the existing business opportunity shows currently airing. We studied the offers, price points and upsell strategies. Then, we had several lengthy pre-production brainstorming meetings with our great client. Here our team was able to distinguish the USP (unique selling proposition) necessary to communicate the benefits of their product. From those meetings we began to develop an offer strategy, backend revenue strategy, and a creative feel for the show we were about to begin writing.

Please check back soon for part 2 and learn how to build an infomercial, produce it in two to three weeks and how we save our clients tens of thousands on infomercial production.

The Cost of Infomercials - Part 1

2008-12-03T11:59:00.007-05:00

Please follow this blog regularly over the next days and weeks because I will disclose and describe to you the step by step process involved in a real long form infomercial project. From the cost of a long form infomercial, to the development and writing of an infomercial, and other infomercial production issues such as infomercial hosts, infomercial sets, straight through to long form infomercial media planning and infomercial telemarketing, fulfillment and logistics.

The first part of the process starts when a new client contacts us to discuss their infomercial project. We must determine if the product has the attributes necessary for As Seen On TV Success. We usually ask the client to fully describe their product from the first call, and many are hesitant unless there is a NDA in place. At InfoWorx, we provide a standard NDA which you can download from our site.

At the time of the first contact, a discussion takes place as to the chances of success and which format: short form direct response commercials or a long form infomercial is best for your product. Often clients are hesitant to spend the extra dollars necessary for a long form production when that is the appropriate format. Do not make that mistake because it will set up a series of failures sure to derail the success of your infomercial project.

Short form infomercial production can run from as little as $5,000. Successful lead generating programs often generate substantial response with very simple production values and a great lead generating offer.

On the next blog in this series, we will discuss different long form infomercial production values and the costs of production for those types of shows. And I will continue to take you step by step through our current project which we will call “Business Opportunity 2009.”

TV Infomercials and Internet Work Together

2008-11-17T08:17:00.005-05:00

In this quickly and ever changing information world of ours, over 50% of those watching television are online at the same time….potentially researching your direct response TV offer or even shopping around for a better price for an infomercial product.

Research shows that 70% of US adults use the internet to gather more information when shopping, according to Kelsey Group and Constat.

E Commerce transactions have risen from $149 billion in 2004 to an expected $316 billion this year, according to Forrester Research.

Using a TV infomercial production along with a solid online approach that may include a well designed E Commerce site, online adwords and SEO support, and online video preroll sponsorships - highly targeted to your audience….you’re campaign will bring in healthier results and conversions.

Direct Response Television Lead Generation

2008-11-04T06:21:00.006-05:00

Leads are the lifeblood of any sales organization. And DIRECT RESPONSE TV leads bring to your organization the most qualified, timely, warm and hot leads that you can find.

Using the accountability of direct marketing and the integration of an infomarketing campaign that may include: DRTV, inbound IVR telemarketing, and savvy media management, established and entrepreneurial companies can lower their cost per lead.

An experienced direct response agency or infomercial company can target your best prospects, create high powered messaging that brings high response and get your phones ringing with new prospects ..... hot for your offer.

Smart media buyers can then distribute your lead generating offer through per inquiry campaigns across many channels including unsold television remnant time, online video ads, and even radio and print.

Your direct response TV agency should have experience rolling out lead generation programs in both long form infomercials and short form direct response TV commercials. Direct response television lead generation is effective for many industries such as: insurance, mortgages, hair replacement, cosmetic surgery, and senior products.

Infomercial Pioneer Infoworx Adds In House Telemarketing Services

2008-10-27T06:49:00.010-04:00

InfoWorx, who pioneered turnkey infomarketing for infomercials proudly announces the addition of in house telemarketing services. InfoWorx is the only Direct Response TV and infomercial company that offers Infomercial TV Production, DRTV Media Buying, and Direct Response Telemarketing services in a single shop.

"Back in 1999, we pioneered turnkey infomarketing to meet the needs of entrepreneurs and established companies seeking a single source for their infomercial campaigns. Our unique approach saves time and money and produces long form and short form infomercial winners." Ron Perlstein, President of InfoWorx, stated.

With their new in house telemarketing services, InfoWorx not only produces award winning Infomercial TV Production, but now creates and implements the telemarketing scripts so important to success in the infomercial and direct response marketplace.

"We use research to target our client's best customers, award winning creative to generate high response, and media buying power to get the offer in front of millions. Now we can control the conversion of response to revenue like never before," said Perlstein.

With the InfoWorx inbound telemarketing system, telemarketing scripts are written along with TV productions. The infomercial offer strategy and telemarketing upsell strategy match. The backend is supported by vast bandwidth through a partnership with Prairie Interactive Messaging. InfoWorx system can support very large roll outs and handle thousands of calls per minute. InfoWorx has created a new level of efficiency providing economies of scale and timing. Telemarketing voice overs are recorded along with the call to action. Setup time and launch to market are reduced substantially. All in all, InfoWorx innovative teleservices shortens the timeline, integrates the selling messages, and converts more calls to orders.

For additional information on InfoWorx, contact Ron Perlstein, or visit www.InfoWorx.com.

How To Make Money With TV Infomercials

2008-10-01T06:33:00.008-04:00

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.

Infomercial and Direct Response TV Facts

2008-09-11T19:43:00.009-04:00

10 Important Infomercial and Direct Response TV Facts

Viewership incidence is highest for direct-response spots, followed by infomercials and live shopping shows.

TV infomercials were watched for a median of seven minutes prior to a purchase call being placed; TV shopping programs for a median of 5 minutes.

The majority of Americans who watch infomercials typically join in the middle of the program.

The TV Viewer and Buyer population is 54% female. Long form infomercial Buyers are more likely to be female (64%) than male (36%).

Infomercials and live shopping shows are the most effective at converting Viewers to Buyers.

Long form infomercial product Buyers were motivated to make a purchase after an average of 2.8 exposures; live shopping show (6.9) and direct-response spot (7.5).

The amounts spent on infomercial products were on average $98 with a median of $40. Direct-response TV Viewers are more affluent than they were six years ago.

The infomercial Viewer population has become younger in the last six years.

For many Buyers, infomercials, live shopping shows, and direct response spots generate “afterthought sales - products that are purchased at a later date through retail stores or over the internet.

How To Make Short Form DRTV

2008-08-21T06:39:00.008-04:00

Short form DRTV commercials are often confused with long form infomercials. Of course, the word infomercial is a combination of the words information and commercial. But the two formats reach TV shoppers in different ways. Short form DRTV commercials reach viewers through targeted TV commercial ad placement, while long form infomercials find interested channel surfers who are looking for something interesting to watch.

But the question is how to make great short form DRTV! Well you better start with a compelling offer. Viewing a commercial and feeling attracted to the product is one thing, but viewing a commercial and feeling the impulse to buy....is quite another. Also, many potential direct response marketers think they can make their pitch in :30 second or :60 second direct selling messages. For sure, those units are great DRTV lead generators. But for a hard offer, the short form infomercial unit of choice is the two minute or :120 second DRTV commercial. Please remember that great short form as seen on TV success requires consistent repetition of your commercial. Start testing by working with a smart DRTV media buyer, and always walk before your run.

The Benefits of Long Form Infomercials

2008-08-12T06:50:00.006-04:00

Yesterday, we met a new client with a great "challenger" product. The product has mass appeal, great value, and fills a void in the marketplace. Their competition consists of some of the savviest and most well funded marketers in the world. This great product could be a big winner with a long form infomercial launch. Why? Long form TV infomercials give advertisers the chance to fully demonstrate, make the pitch and build a value proposition. Market research indicates that TV infomercial viewers convert at three times the rate of short form viewers. That number bears repeating. It takes an average of 2.5 views for a long form buyer to convert and it takes an average of 7.5 views for a short form buyer to convert! Conventional wisdom (which is wisdom that has been accumulated over time) tells us that higher priced products need more convincing. We also know that when fighting big marketers such as cosmetics companies or behemoth electronics companies that you better make a convincing pitch. Long form gives you the opportunity to do just that and prove that your product can satisfy even the most skeptical of customers.

The Cost Of An Infomercial

2008-07-17T06:56:00.007-04:00

For 16 years, InfoWorx has been a leading infomercial producer, short form DRTV company, and nationwide cable media buyer. Our telephones are always ringing with new clients who have great new innovative direct to consumer products. Everyone wants to know the cost of an infomercial. And before you know it, you have prices all over the board. If your production company has no skin in the game, they will charge a lot more to make sure they make a great profit no matter what. At InfoWorx, we believe that your success is our success. We always look for ways to make our clients win. Our production fees are relatively low when compared to other well known infomercial companies with successful track records.

Let's break down the difference between long form and short form. Long form infomercials are 28:30 minutes long. There is much more production involved and these shows can range anywhere from $50,000.00 to $250,000.00. Short form DRTV or direct response commercials are usually one to two minutes long. Here the production costs are lower and usually range from $30,000.00 to $50,000.00. These fees include scripts, crew, locations, studio, talent and editing. When shopping infomercial companies, also learn about their knowledge of customer acquisition costs, media costs and backend campaign management. A video production company is not an infomercial company. Experience and success matter.

Call Now, But Wait There's More!

2008-07-07T17:37:00.006-04:00

We've heard it a thousand times....on a thousand infomercials and DRTV commercials. We hear the infomercial offer, a plea to call now....and, then, "but wait...there's more"....and we are offered more free premiums, lower pricing, free shipping, lifetime service, better return policies....all in the name of generating a direct response television order! It's how we build perceived value in direct marketing, and these techniques work to generate a low cost per order. And that's what direct response TV is all about - generating orders, acquiring customers, and upselling those new customers.

Nowadays, we see the largest marketing companies utilizing tried and true direct response TV tactics. Companies like Proctor and Gamble have embraced infomercials and introduced great new products like the Swiffer. Major advertisers like Wamsutta, Emerson Appliances and Rubbermaid have all used infomercials and DRTV.

Make sure your offers always give more and more reasons to CALL NOW!

Long Form vs. Short Form

2008-06-19T20:30:00.006-04:00

For the last 16 years, InfoWorx has produced AS SEEN ON TV SUCCESS for many direct marketing clients. In many cases, we are asked for infomercial consultation on the subject of infomercial formats. Long form infomercial shows feature longer and more detailed demonstrations, more emotional testimonials, and a call to action (CTA) that may be as long as three minutes. Conventional wisdom suggests that the higher the price point the more appropriate the long format. Short form direct response commercials (DRTV) target demographics more effectively but require an impulse response from the viewer. Budgetary issues often affect client decisions, but remember, there is much power in the half hour.

When evaluating your direct response television product, keep in mind that the offer and marketing strategy are key in the execution of the format. Short format can be very effective with a soft offer and a great telemarketing script. Long form infomercials often work on higher priced hard offers, but your infomercial must be channel stopping. The bottom line...make sure you have a smart direct response consultants and understand the theory of testing.

InfoWorx Adds 3 New Awards for Infomercial and Short-Form DRTV Spots

2008-05-09T10:12:00.004-04:00

As an infomercial company and DRTV Agency, InfoWorx added 3 more awards for excellence to our trophy case. Two awards were for short-form Direct Response Television Commercials and another for a long-form infomercial.

At the highly competitive WorldFest in Houston, the InfoWorx 30-minute infomercial for the revolutionary weight management tool, C-Fabaline, won a Bronze Award. The Service Industry Advertising Awards - SIAA - honored the turnkey media and production company with a Merit award for the Memacin short-form DRTV spot, and the prestigious Summit Awards presented Infoworx with a Silver for the EZ Par DRTV commercial campaign.

Over the years, direct response television agency and infomercial production company, InfoWorx, has established itself as an award winning producer of both short-form DRTV commercials and long-form infomercials. It is one of very few turnkey production and media DRTV companies that has been successful in generating results and creating winning direct response television campaigns in both the short and long formats.

Infomercials were then. InfoMarketing Is Now.

2008-05-03T17:51:00.002-04:00

There was a time that if you had a half an hour, some testimonials, a good demo, and a strong call to action, you could put it all into an infomercial, and have a pretty decent shot at DRTV success, but not anymore. Competition in direct response television has heated up, and the market has evolved with new media, eCommerce, and other developing ways to communicate. Today, InfoMarketing is the key to success.

As an infomercial and DRTV commercial agency when we create award winning infomercials at Infoworx, we always lift out a two minute and one minute DRTV commercial as part of our infomarketing strategy. Then we focus on finding low media rates and targeted media placement, and that is only scratching the surface. As a turnkey production and media TV company, Infoworx must also integrate inbound telemarketing, fulfillment, eCommerce, Home Shopping Networks, and ultimately, retail distribution. The key to "As Seen On TV" Success is no longer simply a good infomercial. It requires a fully integrated and coordinated InfoMarketing campaign.

InfoWorx Direct Response TV Spot Sends SNORenz Brand Soaring

2008-04-24T08:13:00.002-04:00

As an award winning infomercial company, InfoWorx is expected to produce high response, and that is our goal with every project. Well, we scored again with our new direct response television commercial campaign for SNORenz. The telephone response and sales from the short-form DRTV spot have been very positive, and indicate that this re-introduction of the SNORenz Anti-Snoring Brand will be a major success. After we finish market testing, we will launch our national roll-out with the strongest DRTV commercial and most compelling offer.

When it was previously marketed, SNORenz sold over 5 million units. Our test results here at InfoWorx indicate that we can exceed those levels, and restore SNORenz back to a major brand in the anti-snoring market in a very short period of time.

Infomercial Testing Is The Key To Generating Maximum Response.

2008-04-17T12:51:00.002-04:00

At Infoworx, the key to success in any infomercial or direct response television campaign is testing. Our recent test launch of SNORenz has shown that we have the right message and a compelling offer. We know this because the phone response and the internet traffic has been very positive. The testing process is so important because it allows you to find out information so that adjustments can always be made.

For SNORenz, we modified the media plan based on test results, and we adapted our telephone scripts to increase conversion. The testing even allowed us to review the website and make changes to optimize sales. Without spending a huge amount of money, InfoWorx has been able to refine our strategy with real results, and now we feel confident that everything is in place for the national roll-out.

Making Testimonials Believable In Short Form Direct Response Television Can Increase Response.

2008-04-07T08:43:00.001-04:00

When you are using testimonials in a 2 minute or 1 minute short-form direct response television commercial, you simply do not have time for the compelling sincerity and even tears that the camera can linger on during a 30 minute Infomercial production. The challenge at InfoWorx is to make our testimonials in our short-form DRTV commercials just as believable and compelling as the ones in our long form, 30 minute infomercials.

"Real" people are often camera shy, and it can take them a while to relax in front of the camera and say what they think as if they were telling it to a good friend. On the InfoWorx production of our recent SNORenz short form DRTV spots, we worked hard to get our testimonials to relax so that the tight, short 5 second statements that we had time for would come off just as real and believable as if we had 20 or 30 seconds to let them pour their hearts out. Our efforts paid off, and the testimonials we use in the 2 minute and 1 minute spots convey their message in a very compelling, sincere way even though they are not long statements.

Commercial Rotation of Infomercials and DRTV Spots Optimizes Reach and Frequency.

2008-04-04T09:06:00.001-04:00

The SNORenz direct response television campaign, created by InfoWorx, consists of a 2 minute and a 1 minute DRTV commercial. The media strategy we implemented uses the 2 minute DRTV spot to "tell the whole story", and the 1 minute DRTV spot to reinforce, remind, and gain greater brand awareness for the product. This commercial rotation strategy allows us to optimize our media budget and generate the reach and frequency we need in a way that delivers our message as effectively as possible.

In a perfect world, we may want to run all 2-minute Direct Response Television Commercials in the media schedule, but that can be very expensive and may not deliver the reach and frequency necessary to generate a hit. On the other hand, simply using the 1 minute DRTV spot may not give you the chance to tell the whole story and deliver the message and the offer in as compelling way as possible. Using a commercial rotation strategy allows the 1 minute to expand reach and frequency and the 2 minute to really sell hard for us. Of course, at InfoWorx, we often adjust the mix of the rotation to find out how we can optimize our media budget and generate the maximum response.

Producing Infomercials On HD Makes Direct Response TV Look Better!

2008-04-03T10:20:00.007-04:00

In September of 2007, InfoWorx made the commitment to shoot all of its infomercials and Direct Response TV commercials on High Definition. This raised production values and improved the overall look of our infomercials and commercials. It is our job to make our clients' products look as good as possible, and High Def literally makes their products jump off the screen.

Infomercials and Direct Response TV commercials must generate response to be successful. By improving the commercial production values and the overall visual presentation of the product, High Def features the product in the best possible light, and makes it look very attractive to the viewers. Response rates are generally higher when the product looks better, and that's why we made the commitment to shoot our direct response spots and infomercials with the best technology available.

Infomercial Lighting Challenge: Day For Night Lighting Brings Reality To DRTV Spot for SNORenz.

2008-04-02T08:29:00.001-04:00

One of the greatest challenges when you are producing a Direct Response Television commercial or an Infomercial for a product that is used during the night, like we had with SNORenz, is to make the nighttime shots look real and convincing. On our most recent SNORenz commercial production, the InfoWorx lighting director put an enormous effort into making the scenes look like nighttime even though we were shooting during the day.

Using a mix of HMI's and colored gels to simulate the moonlight and warm incandescent lighting to simulate a home at night, we were able to capture that magic that truly makes the nighttime scene look real. By making the sleeping scenes look real, we can communicate the "undisturbed sleep" benefit of the anti-snoring product in a much more compelling and believable way.

Infomercial Product Demonstrations for SmoothLine 123 Make DRTV Spot Compelling

2008-03-31T16:25:00.003-04:00

SmoothLine 123 is our latest European product that we are creating a Direct Response Television Commercial for viewers in Europe. It's an incredible hair removal system that not only removes hair better than any other razor, shaver, gel, or wax, but it includes an extra formula that slows hair from growing back. The benefit is that you stay smoother longer and don't have to go through the hair removal chore as often.

To introduce this system and demonstrate how well it works, the InfoWorx crew shot some dramatic demonstrations. We even used one man who did not shave and made him perfectly hairless. These incredible demonstrations should make the product very compelling to the viewers in the European market.

Infomercial Location Can Help Raise Response In Direct Response TV Spots.

2008-03-28T07:55:00.003-04:00

It seems obvious that you always want to shoot in the best possible location, but in a direct response TV commercial or an infomercial, where you shoot the program or DRTV spot can be just as important as how you shoot it. In our most recent direct response TV commercial for Oiko's SmoothLine 123, we knew we would be spending a lot of time in a bathroom since it was a hair removal product.

The InfoWorx location scouts found a large, gorgeous bathroom that made it easy for the cast and crew to move around. Even better, there was a gorgeous glass block wall behind the bathtub. Our director of photography put an HMI back light shining through the glass block, and it made the bathroom, the talent, and the product look absolutely beautiful. As a result, the product shots for SmoothLine 123 will take your breath away. The talent looks great, the product stands out, and the entire feel of the direct response commercial portrays the hair removal system as a high quality, premium product that works and will take the Hair Removal chore to a better level.

European DRTV Success Drives New Infomercial Products To InfoWorx.

2008-03-17T16:52:00.003-04:00

There is a huge opportunity for Direct Response Television "Across The Pond", and award winning infomercial company, InfoWorx - http://www.infoworx.com/ - is taking advantage of it. As part of its ongoing direct response marketing partnership with Oiko, the leading TV shopping company in Greece, InfoWorx is winning "As Seen On TV" success throughout Europe with the revolutionary hair removal system, SmoothLine 123.

"Our success in Europe is driving more products to us everyday.", Ron Perlstein, President of Infoworx - a full service TV infomercial production and media business, explained. "As a direct response television agency, InfoWorx is applying the successful formulas we developed on American television and making them work in the European direct response market."

Snor-Enz DRTV Commercial Scores With InfoWorx Direct Response Campaign

2008-03-17T15:30:00.005-04:00

Award winning DRTV infomercial company, InfoWorx - www.InfoWorx.com - has scored another hit with it's new television commercial campaign for Snor-Enz. The telephone response and sales from the short-from DRTV commercial are high and indicate that this re-introduction of the Snor-Enz Anti-Snoring Brand will be another "As Seen On TV" success story.

"The tests are positive. The phone is ringing and response is good. We'll continue to make some adjustments to improve performance.", Ron Perlstein, President of InfoWorx, stated. "The initial success makes us very optimistic for a successful national roll-out. When it was previously marketed, Snor-Enz sold over 500,000 units. We would like to exceed those levels, and restore Snor-Enz back to a major brand in the anti-snoring market in a very short period of time."

Welcome to Infoworx's Blog

2008-01-20T21:03:00.000-05:00

This Blog will focus on some of our latest infomercial productions. As a company that specializes in DRTV and Infomercials, Infoworx will also editorialize industry news.

Stay tuned for great information about the world of infomercials.