Your Own Home Shopping Show
TV marketing is the new dominant form of distributing products from
the source directly to the end user. It's the new electronic mall
that brings the retail stores right to your living room.
LONG-FORM ADS
Half-hour shows that hack products from screwdrivers and shampoos
to exercise equipment and how-to programs is not at all a new
concept. Afterall, during its infancy, advertising was what
television was all about.
These long-form ads, now commonly called Infomercials, has fast
become the new growth area in mail order marketing.
CATALOG FORMAT
Unlike infomercials that sell only a single product throughout the
30-minute show, the new twist in TV retailing is the catalogue
format. Here, the producer of the infomercial offers products from
different sources.
Independent producers are now putting together halfhour shows that
showcase "theme" products as in a catalog. There are shows that
feature jewelry, audio CDs, electronic items, clothing, etc.
The idea is to present uncommon products that appeal to your target
market. These products may be from different manufacturers or
importers who will give you the exclusive rights to market their
products on television.
CHARGING A BASE FEE
You can charge these manufacturers a base fee for featuring their
products on your Home Shopping Show.
Considering that their exposure on TV will give their products
visibility that can help their regular retail and other marketing
efforts, a base fee for their participation is essential and
reasonable.
This fee can offset the cost of your production. For example, if
you have 15 products that will pay you $750 each, you'll make
$11,250.
This basic fee can more than pay for a simple broadcast-quality
production finished on 3/4-inch U-Matic video system.
PERCENTAGE OF SALE
In addition to the basic fee, you can structure your pricing
wherein you can collect anywhere from 10% to as much as 25% of the
gross sales for each and every product you feature in your show.
Ideally, whatever percentage you charge as your margin should pay
for your airtime cost plus give you a decent profit.
The order taking can be done by an independent service which you
must hire. Orders received are forwarded to the respective
manufacturers who drop-ship the merchandise to the buyer.
