and if you order now…developing and getting a million dollar product on tv

And If You Order Now…Developing and Getting A Million Dollar Product on TV !!!

Marty M. Fahncke

Marty M. Fahncke

DRTV since 1986Projects and campaigns generating over

$1 BillionDRTV in over 70 countriesFocus on DRTV/Online interaction since

1999Over $200 million online revenue

Writer/Media resource

But wait, there's more!

SpeakerConferences and Associations

Corporate and Education

DRTV…facts & figures

DRTV stands for Direct Response TeleVision $200 BILLION worth of goods and services

sold through DR annually One in four Americans (28.6%) report that

they have purchased a product advertised via an infomercial

*Source – Direct Marketing Association and Electronic Retailing Association

DRTV…facts & figures

In addition to generating immediately trackable sales, DRTV campaigns also drive retail store traffic.

– More than one-third of viewers indicate that they have purchased a product they were exposed to via advertising at a later time, primarily through brick and mortar retail stores.

1:7 ratio

*Source – Direct Marketing Association and Electronic Retailing Association

DRTV...facts & figures

Infomercial viewers are more likely to trust infomercials over used car salesmen, corporate executives...

...and congress!

Forms of DRTV

Infomercials (Long form 28:30)Short form (:60 and :120)Home shoppingInternet/E-CommerceRadio

Examples of DRTV success...

Showtime Rotisserie - $300 million

Total Gym - $1 Billion


AbDoer - $200 million

ProActiv - $2 Billion


And of course...

It's for the “Big boys” too...

Criteria for successful DRTV product

#1 Solve a problem?

#2 Great “demo”?

#3 Mass-market appeal?

#4 New and unique?

#5 Line extensions / upsells / bonus?


#6 Testimonials

#7 Track record of success

#8 5:1 margin? 7:1?

#9 Short form - $30 or less?

#10 Long form – Double “Perceived Value”

#11 Back up the claims?


#12 Does your product fit into a category with proven success in DRTV?

– Fitness/Exercise

– Housewares/Kitchen

– Weight Loss/Self Improvement

– Cosmetics / Health & Beauty

– Tools/Automotive

– Business Opportunity/Making money

– Golf, Fishing, Music/Entertainment

Types of deals in DRTV

Licensing

Joint-Venture Distribution

For-hire / Agency

Licensing

Lowest risk, lowest rewardYou do nothingCosts you nothing1-3% royaltyLoss of control over timeframe, marketing

message, etc.

Joint Venture

Both parties contribute:Time, money, expertise, product, etc

Both parties take riskProfits are split (Not necessarily 50/50)

For hire/Agency

You run the showCreative, media, order processing,

fulfillment, customer service, etc. Highest risk, highest reward

Case Study:The 5-year overnight success

History:

Retail price of $199COG $60Too many bells and whistlesTurned down for 4 yearsIn fifth year, $500,000 market testFailed product

Elements of success:

COG lowered to $35Tested $129, $149, $199 retailRetail price of $149.95 (3 payments of $49.95)

Sold approximately 600,000 units at this level ($118 million)

Additional revenue (Upsells!)

Videos $29.95Power Spring $29.95Tri-roller $19.95

Average order: $196.00

Decline of Product

Went to retail too early, creating our own competition

COG lowered to $28.00Tested $129.95 without successTested $99.95 with good resultsWith upsells. Average order $124Moved another 200,000 units at this level

($25 million)

Final Phase

$89.95 with videos ($29.95) included

100,000 units ($9 million)

Net $$ to inventor: Approx. $5 million

Case study:Don’t forget the rest of the world!

Product: Soccer training device targeted toward youth

Slow start, small Success

Short form DRTV test failedRetail distribution sporadicHome shopping showed life

($500,000-$700,000)Average customer purchased 2.1 items

Leverage outside the U.S.

Based on success on U.S. home shopping, took the show on the road

Success in UK, Germany, Japan Japanese distributor reworked US DRTV spot

and sold $3-4 million on TV, Print, and retail

Bringing it back home

U.S. distributor purchased company for several million $$

Had existing distribution to all major retailers

Product in Wal-Mart, Target, etc.

Questions?

Want to connect?

Email: [email protected]

Read my Blog: http://www.MartyFahncke.com

LinkedIn Connect: http://www.linkedin.com/in/martyfahncke

Follow me on Twitter: http://twitter.com//fawnkey

Friend me on Facebook: http://www.facebook.com/martyf

and if you order now…developing and getting a million dollar product on tv

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