Electronic Retailer - November 2011 - 37

5 KEYS TO CREATING A DR HIT
to take the idea and sell the product.” According to Harkey, only about 10 percent of sales result from DRTV and the other 90 percent are from retail. In essence, the DRTV campaign serves as self-sustaining advertising for products in retail. “DR is good advertising for driving products off the shelf,” he says. “It’s not easy to get into retail, and then there is the challenge of getting the product off the shelves once you’re in,” Yallen says. Getting appointments with retailers can be extremely difficult. This is where partnering with the right agency and vendors – who already have retailer relationships – can be very important. “With the invention of online commerce, the retailers have changed their model,” says Yallen. “Now they’re selling real estate. And it’s expensive.” may choose to get financing from the bank, others from the media company themselves. “After you test something, and it’s working, it’s a lot easier to find money,” Yallen says. Think of all costs up front, including administration and media and actual product costs. “The more you sell, the more product you need to get,” he adds. “In the direct channel, you are paid fast, but in retail its 60 or 90 days out that you get paid, but they still need to carry the inventory.” Harkey says, in the end, only embark on a product and campaign with true potential. “We turn down more campaigns than we take,” he says. “If we’re not right for it, we tell people you’re throwing your money away. It’s not going to work. If the financials don’t work, if it costs too much to make it, there is no sense to go forward.”

5. Be Financially Ready
Finally, do not overlook the importance of being financially ready for a DR campaign. Without a doubt, a large portion of designated marketing campaign funds will go to DRTV. But funding for other channels, especially the web, should not be overlooked. In 2011, an engaging and easy-to-navigate website, preferably unique to the product, is essential to closing a sale. “The website is likely to be responsible for more sales than your TV spot as many consumers like to learn more about products and read customer reviews prior to purchasing a product,” Minionis says. Harkey warns that an agency should do a financial model long before an infomercial is produced and shot. The financial model should include figuring out what the best possible offer is on a product so that it sells profitably. “Don’t wait, figure out on the front side how to make money,” Harkney says. And be aware that some production companies will offer quality work, but they might not have the best business sense when it comes to product offers. Yallen agrees in laying out the financials early on. In the beginning, a product or company may need financing to even start producing the goods for testing a campaign. Some companies
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November 2011 | electronicRETAILER

Electronic Retailer - November 2011

Table of Contents for the Digital Edition of Electronic Retailer - November 2011