Myth #1 – INFOMERCIALS ARE EXPENSIVE TO PRODUCE

Not always. It is true that the national average for television production of a half hour (28.5 minutes) show is $350k on the low end to $900k+ on the high end. However, there are many examples historically of relatively inexpensive shows that have done very well. The national average to produce a short-form (one or two minute) show is $40k to $300k+.

These amounts are deceiving because they often include celebrity talent fee estimates, which are impossible to predict, and some elements that are not always necessary. There are so many variables in production that it is unrealistic to even “estimate” production costs until, at least, the creative brief is finalized. Even then there may be issues that arise – especially with inexperienced production companies – that dramatically change the costs of production.

Be very careful of companies who offer to produce an infomercial for free and just take a percentage of the revenue it generates. Many times these “small” percentages have been, by far, the most expensive expenditures in the campaign.

When talking with an infomercial production company, make sure:

1. They sign a non-compete/non-disclosure agreement BEFORE your share any product or company information – there are many companies who specialize in product knock-offs.

2. They are experienced in the Direct Response (Infomercial) industry – going through a learning curve with an inexperienced production company can be very expensive.

3. They understand your product or service thoroughly – this is your responsibility. Make sure they have all of the information they need before you let them begin.

4. They are NOT a cookie-cutter production house that will plug your product into their standard production template. You want a campaign that focuses on the uniqueness of your product.
Finally, an Infomercial that contains the critical direct response elements and works, will in the long run be the most cost effective. The most expensive infomercial is the one that does not work.

Next we will explore Myth #2 – THE COST OF AIR TIME FOR AN INFORMERCIAL IS EXPENSIVE

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Myth #2 – INFORMERCIAL AIR TIME IS EXPENSIVE

This one is pretty easy to dispel. Like most commodities, Infomercial (direct response) airtime costs can vary greatly, depending on the station or network and the program or day part. Yes, some of the long-form (28.5 minutes) television time has run as high as $30,000 to $40, 000 dollars for one airing, but some can be as low as $500.

Other variables include seasonality – inventory demand, such as the Olympics, Super Bowl, elections, other infomercials and etc. Also, short-form spots (:30 second, :60 second and two minutes) have lower rates, and like long-form can vary with station/network and day part.

So, by in large, inexpensive media time is available for infomercials, especially since many stations and networks have special discounted rates for direct response advertisers. However, the critical concern should be running your show in the most effective timeslot. Since most infomercials are run in day parts or on stations that have no ratings (believe it or not) it is critical to work with a company who has access to a database of similar products to know where they aired that generated the highest number of calls and sales.

When thinking about inexpensive media air time don’t forget about radio. For the right product or service, it can be very cost effective and successful.

Next we will discuss Myth #3 – IF I HAVE A GREAT PRODUCT I WILL BE SUCCESSFUL

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Myth #3 – IF I HAVE A GREAT PRODUCT I WILL BE SUCCESSFUL

This is another myth that is easy to dispel. While a great product is certainly important, there is much more to launching a successful infomercial campaign. To begin with, your product should always be the “star” of the show. With (sometimes) large egos, on both sides of the camera, this is often much easier said than done.
Even with a production that includes all of the critical elements for success, the back-end functions (call center, media buying, merchant account, fulfillment, customer service and etc.) have an enormous influence on the outcome. If the back-end elements are weak, even a great product, with good production qualities, can fail.

Which is a great segue to Myth #4 – STRONG SALES MAKES A SUCCESSFUL CAMPAIGN

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Myth #4 – STRONG SALES MAKES A SUCCESSFUL CAMPAIGN

Strong product sales may not always be enough to support a successful infomercial campaign. As with Myth #3, the backend functions are critical. (Also see our Infomercial 101 tab.) Other areas that can sink an otherwise successful campaign are returns and bad debt- both of which can cut deeply into product profits. Keeping close track of both is critical, but accurately estimating those IN ADVANCE, and planning them into your price point, can mean the difference between success and disaster.

Next we will tackle our favorite myth – Myth #5 – SUCCESSFUL INFOMERCIALS NEED CELEBRITY TALENT