EasyK.com Free Reports

MEDIA JOINT VENTURES

Purchasing television airtime requires a substantial amount of upfront

capital. It is therfore common to seek joint ventures to finance your

media buys.

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.

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.

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.

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.

6. PER INQUIRY

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.

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.

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.

7. PER ORDER

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.

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.

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.