Ever watched an infomercial and wondered why the items being advertised were so cheap? Ever thought about owning your own infomercial business?
Here’s how you can get started:
1. Research all of your target audience demographics.
Doing this will help you figure out what groups would most likely buy your products. Then, use that information to market your product in a way that appeals to these groups. For example, if you’re selling light bulbs, targeting stay-at-home mothers and young couples may be more profitable than targeting senior citizens or small businesses. Your marketing campaign should reflect the type of people who are most likely to purchase it.
2. Figure out how large the target audience is for each product.
If you’re selling baby food and you’re trying to get into stores like Wal-Mart, your potential market is huge. If you’re selling anti-theft devices for cars and there’s not a demand on the market (i.e., very few people want these), sell it on another platform such as late-night infomercials.
3. Find out how much the average customer will purchase.
If they only need one bulb or one product that solves their problem, then target each customer individually and give them incentives to buy more than one at a time (such as free shipping). Also, consider offering bulk discounts — this gives customers added incentive to buy multiple items at once instead of purchasing single units over and over again.
Generally, try not to rely too heavily on impulse purchases; these customers may be more likely to regret their purchase later and less likely to return.
4. Look for similar products or services that already exist.
Use what you learn from your research to see how you can provide a better product than the current ones available, or at least one that addresses any potential problems with those products (e.g., light bulbs that don’t break and burn out). For example, if there are other infomercials selling exercise equipment for $500 and yours costs $200, you may want to try advertising your infomercial as “lower cost” — just make sure it’s not too much lower!
Also, consider providing information about the expensive competitor products in your infomercial; this lets the customer know that your product does the same thing, but for less money.
5. Research similar infomercial products or services.
You might find out something you didn’t know before (e.g., selling shoes through late-night TV is more profitable than selling makeup directly to customers). Also, consider interviewing anyone who works in the infomercial business; they may be able to give you information about how much it costs to produce and market an infomercial, as well as what types of products sell best.
This could help you determine whether or not the opportunity is right for you (and if there’s enough profit potential).
6. Start investing.
Once you’ve determined there’s a demand for your product, create it yourself. Now1 offers a wide selection of infomercial products for sale, including those on TV and online.
7. Market your product.
Depending on the type of infomercial you have, this could include phone calls, newspaper or magazine ads, local spots on cable TV, or even going door-to-door (if you’re selling face cream or something similar). Look online to see what marketing opportunities are available in your area; this will help you determine how much money and time you can invest in your infomercial business.
A good rule of thumb is to only spend as much as you earn — never more! For example, if you make $100 and spend $20 advertising it and building the website for that product, then that’s all you need to do.
8. Ship products.
Once you’ve finally completed making your product, shipping it out is the next step. This may be done through a separate company or with one who already ships products for other infomercial businesses (i.e., Amazon). If you’re producing your infomercial product, you can ship them before they sell if necessary; just don’t go overboard! Remember that overstock is bad for business, so only produce what will sell within 1-2 weeks.
9. Establish ties to local stores and websites.
Getting into stores like Wal-Mart will help boost sales while allowing customers to test out your products in person (while also introducing them to the “goods” without forcing them to watch an infomercial). Then, some websites will help you promote your products. For example, Amazon allows you to sell your product directly on their website, while Google Ads can be used to increase online sales.
Finally, the popular auctioning site eBay is yet another way of reaching customers, especially if they’re buying high-ticket items or something unique.
10. Get more exposure on TV.
Just because you have an infomercial doesn’t mean people are going to start buying it immediately. This means that the next step is getting more exposure for your product — and this may include pitching it as a “guest” product on popular TV shows (or even just sending free samples to talk show hosts, asking them to mention it on air). You can also have local TV stations carry your infomercial so they can be viewed after the national spot runs.
11. Keep track of everything.
As you’re building up your infomercial, keep track of your expenses and income (including potential profits lost through giveaways or otherwise), as well as the success rates of various advertising methods. For example, you might find that newspaper ads are working better than direct mail for selling items locally, while online ads are better for selling products nationally.
This will give you a more complete picture of how your product is doing in different markets around the country (or even the world), meaning you’ll know where to invest extra time and money down the road.
Then, judging from how your product is doing in different locations and demographics, you can make a more informed decision about whether or not to start a new one.
12. Hire staff.
If your infomercial business grows enough that it’s too much for you to handle on your own, then hiring employees might be the next step for increasing its productivity. This will allow you to focus more closely on major decisions without neglecting day-to-day tasks, but it might also mean increased costs if you have designated office space or other facilities. Still, though, don’t neglect what brought you here in the first place — so do what needs to be done!
More on most profitable businesses here, just click it.