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MEDIA JOINT VENTURES and *Purchasing television airtime requires a substantial amount of upfront *capital. It is therfore common to seek joint ventures to finance your *media buys. and *Entering into a joint venture with a TV station simply means that the station *is willing to extend you the airtime in exchange for a percentage of your *sales. Or they will finance you for a flat fee based on units sold or inquiries *generated during each airing. and *Since TV stations rarely advertise this aspect of their business, you may have *to call a number ofthem to find those who accept per order (PO) or per inquiry *(PI) deals. and *There are also media brokers who put together similar deals. Service bureaus *who broker turnkey infomercial projects also have access to TV stations that *will do PO/PI deals. See the listings at the end of this Guide. and *Regardless of which route you take, you will be required to produce customized *material that shows an 800 number exclusive to the TV station on which your *material is being aired. This will allow both you and the station to track *the number of leads or sales generated by each airing. and and
*If you have a lead generation DRTV spot, some TV stations, particularly those *with huge inventories of unsold commercial time, will accept payment based on *the actual number of leads each airing of your ad generates. and *Per inquiry deals are usually confined to 1 and 2-minute DRTV spots. TV *stations seldom extend half-hour airtime for a lead-generation infomercial. *If they do, however, expect to pay a premium foreach inquiry you generate *with each airing. and *Some stations may require a quarantee to run your DRTV spot on a per inquiry *basis. For example, if you sgree to spend $1 for each inquiry, the station *may require you to give them $300 in advance until you've generated the *equivalent of 300 leads. and
*Per order deals are usually available for both DRTV spots and half-hour *infomercials. With per order advertising, the station amy charge a fixed *amount for each unit sold or a percentage - between 30% and 75% - of the *gross value of the product. and *As with per inquiry deals, some stations may want a quarantee before they *air your infomercial or DRTV spot. The guaranteed amount is usually based *on the percentage the station expects to earn from the selling price of *your product. and *For example, if your poduct sells for $100 and the station wants 50%, the *station will want a guarantee based on $50 per unit. If the station asks *for $1,000 as a guarantee, it will run your infomercial or DRTV spot until *you've sold 20 units. and and and |
