How to Market on TV Infomercials
If you have the right business and the right product, infomercials can be a powerful way to launch your company to success. Unknown companies have prospered into companies worth more than $100 million in a few months through building successful sales channels through infomercials.
Instructions
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Evaluate margins. Your product needs to sell for at least $20 with margins of at least five to one. If you're selling a $50 product, the product must cost no more than $10 to produce. Any lower margins and your product probably won't make in on infomercials.
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Evaluate the mass appeal of your product. Can you create a deal that seems irresistible to consumers? Can you build a demonstration that shocks and awes viewers, keeping them glued to the TV?
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Contact infomercial production companies. Some infomercial production companies are strictly audio/visual companies, while others are sales consultants who will help walk you through the process. An infomercial can cost as little as $75,000 to produce and as much as $1 million. Most infomercials cost between $150,000 and $250,000 to produce.
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Do a test run. A test run generally costs between $25,000 and $50,000. You'll know what kind of return on investment you can expect from a national rollout. If your sales aren't covering your costs by $50,000, chances are your infomercial won't work. If you're profitable by this point, it's time to start buying on a much larger scale.
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Roll out. In a successful rollout, you'll be spending between $400,000 and $2 million each month on infomercial placements while making a profitable return on your money. Keep running the infomercial for as long as the placements are profitable.
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References
- Photo Credit Gaye Gerard/Getty Images Entertainment/Getty Images