"To infomercial or not to infomercial...that is but the question...."
At Launch DRTV, we measure our success by the results of each and every infomercial production, not by the sheer number of projects we complete. If direct response marketing is right for you and your product, then we want to be the ones to help you make it happen. But if DRTV is not your best fit, we'll be the first to tell you. This is how we avoid turning our clients into the masses of failed infomercial productions that take place each year. Here are a few things you should be thinking about when considering if DRTV is your best move:
One of the biggest mistakes newcomers to direct response marketing make is underestimating the importance of a large margin. In general, a successful product to be sold on TV needs a cost to sales price of at least 5-1 or more. This means a product being sold on TV for $100 should have a total cost of goods not exceeding $20. This is due in large part to the media costs you will need to incur in order to air your infomercial or spot.
One of the main exceptions to this 5-1 rule is when a product has a continuity, such as a diet pill, skincare line or other product that has a fast use-up rate so it can be shipped and billed to consumers on an ongoing basis. Therefore, continuity-based products can have lower margins on the front end and still be successful on TV (assuming the backend is properly managed). The amount of traffic a television informerial campaign drives to retail channels is an additional factor to be considered and one that Launch DRTV will discuss with you when reviewing your potential direct response marketing campaign.
There's no doubt about it: we all love a good deal. And there's no more important place to offer a great deal with strong value than on TV. Great TV products all have the potential for a high level of "perceived value" to be demonstrated. A seasoned direct response firm such as Launch DRTV will play a key role in helping to develop and emphasize the perceived value that exists within your product. One of the ways we accomplish this is by expanding your existing product into an entire "system" or program with further-reaching product benefits. Consumers love lots of "stuff" so it's critical to make sure your system has numerous components to it.
Is it easy to use? Pain free? Fun? Fast? Are the results substantial and obvious? These are critical components to selling a product on TV and they must all be demonstrated effectively in your commercial. Remember that TV is a visual medium. Since seeing truly is believing for most of us, a good infomercial production should easily and clearly demonstrate a product's features and effectiveness on television.
You may have developed the most amazing product in the world with the best results ever, but if your product is targeted towards a very small and limited audience, you're simply not going to hear phones ringing off the hook. Murad® Acne Complex® and Proactiv® have both had long and impressively successful TV campaigns that are still going strong after many years on air. Granted, they are both great products complemented by very strong commercial productions, but undoubtedly an aiding factor is that more than 30 million Americans suffer from acne and other causes of breakouts. Clearly, there is mass appeal for quality products that can clear up your skin.
Weight-loss is another great category for mass appeal. Aside from the staggering number of people who are clinically considered to be obese and in dire need of a weight loss and fitness program, have you met many people who don't think they need to lose weight or get in better shape? Categories such as fitness, weight-loss, anti-aging, housewares and hair replacement (just to name a few) are tremendous examples of products with mass appeal that have limitless potential.
Is it new and exciting? Or is this the same boring everyday product you can buy on the shelves at Walmart for ten bucks? TV is the place to catch people's attention with the latest and greatest "revolutionary" products. How do we compel someone to drop the remote, pay attention to the TV and even pick up the phone and give their credit card number to a perfect stranger to order a product they never heard of or thought they needed until a few minutes ago?
The answer is that we sell products that are revolutionary breakthrough products that simply can't be found anywhere else. And, even if you can find it, or something similar elsewhere, you can't find it for this price (value!) with all of these extra free bonuses (system!). This is where production and product positioning are critical.
We can't say it enough...seeing is believing. There is no substitute for a product that truly delivers powerful results. Let's look again at Proactiv and Murad Acne Complex. Aside from the mass appeal acne products have, both of these products offer tremendous "before and after" testimonials clearly showing the powerful results of their products. If you suffered from acne or breakouts, wouldn't you be willing to try this product when you see that it clearly has worked for so many people just like you? Weight loss and fitness shows (successful ones) also do a good job of showing dramatic before and afters as well as compelling testimonial stories that most of us can truly relate to and take to heart.