Friday, December 7, 2007

YOUR OWN HOME SHOPPING SHOW

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-FORMATS

Half-hour shows that hack products from screwdrivers and shampoos to exercise

equipment and how-to programs is not at all a new concept. After all, 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 half-hour 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.

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