March 2010 – Channel Crossing: Legal

Weight-Loss Battles Heat Up

The New Year ushers in the height of the diet season during which marketers of weight-loss programs and products vie aggressively for their share of the marketing pie. This diet season, however, has brought increased challenges for marketers of weight-loss products.

First, the Federal Trade Commission’s (FTC) newly issued testimonial and endorsement guidelines, which took effect in December 2009, have required most marketers of weight-loss products to reevaluate and edit their existing shows for compliance with the new guidelines. Absent clear direction from the Commission, marketers struggled to find creative ways to adapt existing shows to the new guidelines and to then secure clearance from the networks, some of whom have taken a somewhat conservative view of the guidelines’ requirements.

Online marketers of weight loss, business opportunity and other perceived high-risk products and services loss were greeted following the New Year with news that their merchant accounts were being shut down by MasterCard. Many of the impacted sites involved the marketing of products via free trials or other forms of negative option marketing, which are currently subject to intense scrutiny not only by the credit card companies but by the state attorneys general, the FTC and the class action bar. While the state of negative option marketing and card-on-file transactions are outside the scope of this article, it is safe to say that the landscape for these transactions is rapidly evolving and the future of post transaction marketing–at least in the online environment–remains uncertain.

While marketer attention has thus understandably been focused on regulatory and merchant account issues, a recent lawsuit filed by Weight Watchers against Jenny Craig serves as a striking reminder that your own competitors can be a powerful source of potential challenge, as well.

WEIGHT WATCHERS V. JENNY CRAIG
In mid-January, Weight Watchers filed a lawsuit under Section 43a of the Lanham Act against Jenny Craig. The Lanham Act is the section of the trademark law that allows competitors to sue one another over false and misleading advertisements. Remedies under the Lanham Act include injunctive relief and monetary damages, which can include treble damages where the deception is willful. At issue in this lawsuit are claims by Jenny Craig, in print, broadcast and online advertising that clinical studies prove that Jenny Craig’s clients lost over twice as much weight as those on the largest weight-loss program.

Although Weight Watchers is not explicitly named in the advertisements, the reference to the largest weight-loss program is a clear reference to Weight Watchers and there is ample case law supporting the proposition that a competitor does not need to be specifically named in order to bring a claim for false advertising against a competitor.

According to the Weight Watchers complaint, in order to support this claim, Jenny Craig relied on the results of two separate and independent tests–one conducted by Weight Watchers over 10 years ago and another conducted by Jenny Craig. The Weight Watchers study, which was conducted 10 years ago, was a randomized two-year trial that was actually designed to compare the weight-loss and health benefits achieved and maintained through self-help weight loss with a structured program. According to the complaint, the Jenny Craig study was designed to test in a randomized controlled trial whether participation in the Jenny Craig Centre-based program and/or the Jenny Direct program is associated with greater weight loss at six, 12 and 18 months and whether weight loss is maintained over a 24-month period compared to self-help conditions. Thus, neither study was designed to directly measure weight loss achieved on one program as compared to the other.

Weight Watchers has alleged in its complaint that the studies upon which Jenny Craig is relying cannot support the advertising claims at issue. First, according to Weight Watchers, although Jenny Craig’s advertisement compares Jenny Craig’s current weight-loss program to Weight Watchers’ current weight-loss program, the Weight Watchers clinical study was conducted on a program that was in existence over 10 years ago and is at least four generations removed from the current Weight Watchers program. Because the Weight Watchers program has undergone significant changes and modification during this 10-year period, Jenny Craig cannot compare the results of its weight-loss program to the results achieved on a Weight Watchers program that is no longer in effect.

Secondly, and perhaps most significantly, Weight Watchers has alleged that in order to support a comparative claim between Weight Watchers and Jenny Craig, Jenny Craig must conduct a randomized head-to-head test between the current Weight Watchers and current Jenny Craig programs. In essence, Weight Watchers is alleging that the only type of testing that can support a direct comparative claim between the two programs is a direct head-to-head test between the two. If Weight Watchers prevails on this point, this would certainly place at greater risk many current weight-loss advertisements that contain broad and often unqualified superiority claims without any corresponding head-to-head testing.

THE RAMIFICATIONS
This current battle between Weight Watchers and Jenny Craig is the latest in the series of brand wars that dominated the traditional advertising marketplace during the past year. A comparative advertising lawsuit under the Lanham Act can be a very powerful tool through which competitors can attack each other’s advertising. While direct response marketers have not resorted to Lanham Act litigation with the same fervor as traditional marketers, as the economic climate continues to place pressure on marketers and as branded products become more commonplace in direct response, it is possible that the brand wars trend will find its way into the direct response community as well. At the very least, this case between Weight Watchers and Jenny Craig is one that should be closely monitored by the direct response community, as it will certainly establish some important precedent regarding the type of substantiation required for these types of comparative claims.

Linda A. Goldstein is a partner and chair of the advertising, marketing and media division at Manatt Phelps & Phillips LLP in New York. She can be reached at (212) 790-4544.

February 2010 – Column: Product Talk

In last issue’s installment of Product Talk–your virtual preview to upcoming direct response products like those premiering at ERA’s twice-annual conferences–we showcased three interesting new product ideas. We also asked you–as the leading direct response experts–to submit your assessment of the products, together with suggestions for marketing campaigns and predictions for success.

We’re pleased to report that we received detailed commentary from three of the industry’s foremost experts. Bill Sullivan is president of William Sullivan Advertising, a full-service direct response agency that specializes in per inquiry, pay for performance, and remnant spot radio and television campaigns. The agency has many years of experience marketing a wide range of products, from skincare products to nutritional supplements, weight-loss aids, hair restoration and, yes, even pianos.

Marcia Waldorf, along with her partner Jim Crawford, founded Waldorf Crawford in 1989. It’s an award-winning direct-response production and marketing company with services ranging from creative concept and scripting, to first-quality DR production for broadcast, cable, satellite TV and Internet distribution. Waldorf Crawford works closely with clients to achieve and surpass their campaign expectations and opportunities, including webisodes, e-mail programs and social networking sites.

Live Link TV Inc. was formed by Karen Hyman in September of 2005. As a full-service marketing company, Live Link TV offers opportunities, to both corporate clients and small inventors alike, to maximize profits by developing a strong shopping channel business without the upfront expense of full-time employees in this very specialized marketing arena. Live Link TV offers a proven turnkey approach to success through the world’s largest shopping channel: QVC.

I interviewed Sullivan, Waldorf and Hyman regarding each of the three products and highlight their responses for you below:

Mike Hughes is reputation correspondent at Reputation Media in Boulder, Colo. To participate in future installments of Product Talk–as a product inventor or as an expert analyst–e-mail Hughes at producttalk@gmail.com. To view the next three new product videos, go to youtube.com/producttalkshowcase.

To offer product analysis in a future column or to join our virtual tradeshow networking, visit www.YouTube.com/ProductTalkShowcase, e-mail us at ProductTalk@Gmail.com or call (925) 210-9005.

Product Video #1: Speed Typing with Almena – Retail $39.95 The Almena Method is an innovative training program that teaches computer keyboarding and touch typing in one lesson for a $39.95 download. That’s right. In one 20-minute lesson, Almena teaches the entire 26 letters of the alphabet on the computer keyboard. Anyone can learn to touch type through this amazing method. Eliminate typing errors and increase speeds to 99 words per minute and beyond. With almost 2 million users, this incredible method is rapidly becoming the primary teaching tool for learning to type, which is now a necessary life skill for almost everyone, from kids to CEOs.

Sullivan: I was impressed with it. Eliminating typing errors and increasing speed to 99 words per minute? With 2 million users? At less than $40 to download a product with this sort of innovation, I think it’s an attractive solution to a big problem: most people type way too slowly and make errors.

I would definitely try to get it into as many people’s hands as possible. I would give the customer a risk-free trial, a 100-percent guarantee allowing a return within 30 days if they’re not happy–something like that where the person has no reason not to try it.

Certainly a radio ad at 60 seconds could get that out there. I think it might be able to be transmitted on to TV with 30 seconds, which really would be an economical way to get a great deal of reach and frequency.

Waldorf: It’s faster; it’s easier; it’s better–much less time-consuming than typing lessons. After looking at the video on your website, I believe this product may be very successful a la The Rosetta Stone DR product (which is a faster, easier way to learn languages). That’s a perfect model that sells on TV and in catalogs–it’s even in airports. I think Speed Typing with Almena would be great in airport gift shops to practice on airplanes and in retail outlets like FedEx/Kinkos, Borders, Amazon, Staples and Office Depot.

At $39.95, I think it has tremendous potential for success and for reaching an expanding market. She has a long history of success with it already and now is the right time for expansion.

Hyman: When Almena told me that the whole program could take just 60 minutes to learn all 46 keys of the keyboard, I was impressed. In fact, in 15 seconds she teaches you how to access 12 keys subliminally and then there’s only 14 keys left. The bottom line is that QVC offers a vendor a highly demonstrable way, together with the host, to show in a six- to eight-minute segment how quickly you can learn this. Once you make your numbers, you’re invited back. I would recommend setting up a demo for this product.

Product Video #2: Diagnose My Pain – Retail $49.95 This program was developed by a former president of The American Academy of Pain Management. If you wish to find out what is really causing your pain visit: www.DianoseMyPain.com. For only $49.95, you will take an online medical questionnaire. It has 72 questions with 2008 possible answers and is computer scored. Your results will be e-mailed to you in just five minutes. The test will deliver results that correspond to diagnoses from the Johns Hopkins Hospital staff 95 percent of the time. You then take the results to your doctor to discuss them.

Sullivan: This program has 72 questions, right? I would think that would potentially save you money at the doctor’s office–and your life, possibly. It’s also developed by the former president of The American Academy of Pain Management, which should reassure people worried about credibility.

I would first consider online marketing, driving people to the e-commerce site via affiliate marketing, e-mail–maybe even radio station and TV station websites. After the Internet program gained traction, then I would start to consider radio then short-form TV.

Waldorf: With doctors under such time pressure, they just don’t spend that much time with you today. I think it’s great to come to your doctor with a diagnosis already done with such a high degree of accuracy. I would suggest an outreach to other doctors so they don’t feel threatened by his product. I also think it’s a great Internet product. But this marketer should make a concerted effort to communicate with the medical establishment to enlist their support for a pre-diagnostic tool like his.

Hymen: I’m going to shoot some holes in this one and then talk about how to patch it up with a better marketing plan. I thought the medical explanations were too complicated–simplifying them with some visuals would go a long way to helping market this project. (Personally, I would love to take the diagnoses from this to my personal physician as a strong second opinion.) I also am concerned about liability issues for a shopping channel, but I think it addresses a need and could be a catalog item and an especially strong Internet item.

Product Video #3: The Kool Locker – The Secure Personal Container Finally, a lockable lunch box that offers you peace of mind. Now you can keep your personal property safe from others–great for construction workers or by the pool. The Kool Locker offers hundreds of uses for many who need to tamper-proof their belongings. The Kool Locker is not yet manufactured and seeks initial bridge financing, manufacturing or a marketing partner to license the Kool Locker and launch it into the hands of consumers.

Sullivan: It’s certainly a good concept; there are plenty of places you may be concerned that someone might steal or tamper with your food or drinks. The Kool Locker strikes me as a very visual product–people need to see it in use and understand the safety features it offers. I would recommend television for this product; I think it could be a winner.

Waldorf: I wonder if the name Kool Locker might throw people off track as to what this product might be used for. I mean, it really is a portable, secure personal locker. Obviously, you would need to go off shore to find a partner to provide the tooling because of the cost required to manufacture it. I don’t see it as a DRTV product, but I do think there is a niche market for it–construction workers come to mind.

Hyman: The InventHelp company has a special program for clients of mine to help them develop products and then take them on to QVC. This is an interesting product because it keeps your lunch cool, your valuables safe and anchors them down so no one can walk away with them. I think it’s innovative enough that–once the manufacturing issues were solved–we would endeavor to get Kool Locker accepted at QVC.

February 2010 – Cover Story: Have You Called Jenny Craig Lately?

The Weight Management Service Company Earns Electronic

Retailer’s Direct to Consumer Marketer of the Year Honors.

By Vitisia Paynich

Not since her role as the quintessential “girl next door” on the hit ’70s TV sitcom “One Day at a Time” has actress Valerie Bertinelli attracted so much media attention. Thanks to the Jenny Craig weight-loss program, the actress dropped 40 pounds and unveiled her bikini-fit body in a national commercial. The spot triggered a public relations windfall leading to talk show appearances, magazine covers and book deals for Bertinelli–and major brand exposure for Jenny Craig.

However, PR and general advertising are simply not enough for this iconic brand. To maintain its competitive edge in the $40 billion weight-loss market, Jenny Craig, which is owned by Nestle, embraces a multichannel strategy that encompasses DRTV, print and online, as well as social media.

The weight management service company combines its arsenal of top-celebrity spokespeople with infomercials, blogs and direct mail to engage clients in their preferred medium and promote shared dialogue. What’s more, the company features webisodes on its site highlighting both celebrity and client success stories.

This outside-the-box thinking has garnered Jenny Craig Electronic Retailer’s 2009 Direct to Consumer Marketer of the Year Award.

Electronic Retailer spoke one-on- one with Steve Bellach, senior director of North America marketing, to discuss the marketing strategies that have helped make Jenny Craig a leading weight-loss brand, along with future plans for expanding its global operations.

Electronic Retailer: What do you believe has made Jenny Craig such a strong competitor in the weight-loss category for three decades?

Steve Bellach: It really starts with the brand, the program and the fact that it’s a clinically proven weight management solution. It’s important that we have a science-based, personalized approach to weight management. And what really differentiates us from others are our one-on-one consultations.

The Jenny Craig website features a host of e-tools, links to celebrity blogs, as well as access to a library of webisodes.

ER: Jenny Craig embraces a multichannel marketing strategy that comprises traditional and new media. Why was it important for the company to concentrate on multiple channels as opposed to just one–such as television?

Bellach: As you know, the media environment has become so fragmented and consumers seek information through many media channels. We want to be in front of them in all those channels. At the end of the day, if the consumer decides they are ready to make a lifestyle change–and whether they’re watching TV, reading a magazine, on Facebook or whatever it might be–we want to make sure we’re in front of them talking about how effective our program is.

ER: How do you make certain that your branding remains consistent across all marketing channels?

Bellach: One strategy we use and have used over the years is our celebrity tactic. The celebrity helps put a face on the brand across channels. So, for example, if you see Valerie Bertinelli–or one of our current celebrities such as Sara Rue or Jason Alexander–on TV, on the website or in print, that brings some consistency to the brand. We are very strict in terms of our brand standards and how our brand is presented. A lot of my background is in classical brand marketing, so I like to make sure that every touchpoint a consumer uses to interact with us gives them a similar brand experience and communication.

ER: Which celebrity campaigns have been the most successful for the company?

Bellach: We’ve used a number of celebrities over the years. They’ve all been very successful in losing weight in their own way. With Valerie, we’re now in our third year with her and she’s really been very powerful for us. Queen Latifah was effective. We’re now just launching Sara Rue. Nicole Sullivan has been on the program for several months and she’s been very effective in generating publicity for us. One of the powers of working with a celebrity is the publicity topspin. So in addition to TV, print and online, we can generate magazine covers and significant television talk show appearances.

We think what makes our celebrity program most effective is we’re the only company out there that launches them before they’ve lost the weight. Think about any other competitor who uses even regular clients. They only show them after they’ve lost the weight. We stick our necks out there and say, “Hey, Sara’s joined Jenny Craig and she wants to lose 30 pounds.” And, she hasn’t lost the weight yet, but we’re so confident in the efficacy of the program that we then show their journey almost in real time–on TV, on the website both through written and video blogs, on Facebook. We give clients and consumers as many ways to connect with our celebrities as possible.

ER: You mentioned that actor Jason Alexander recently partnered with Jenny Craig. In recent years, you’ve mainly featured female celebs. Is this a way of focusing more on the male demographic?

Bellach: Yes, we just announced him in January and we’re very excited. Naturally, we hope it will reach a new demographic. It’s important to note, however, that we have used male [spokespeople] in the past, about 10 years ago. But you’re right, recent celebrities have been women. Right now, roughly about 10 percent of our client base are men and obviously, the obesity epidemic has affected everybody. We feel our program and the flexibility of it works for everybody–whether you’re older, younger, male or female. We just launched a microsite called Jenny Craig Type 2. The program is very effective for people with Type 2 diabetes. Again, it’s not necessarily a new program for communicating to men, but it’s more like saying, “Hey, Jenny Craig works for you, too.” We’re using Jason in the ad and Valerie will be featured, as well.

ER: When did Jenny Craig begin marketing through DRTV?

Bellach: Actually for many years, we have been in spot DR. It’s probably within the past five years or so that we have been national–primarily cable. And we feel that the comprehensive, hybrid approach gives us a nice balance between the efficiency of DR and the brand building with some of the other channels out there.

ER: Can you tell us about some of the company’s other marketing efforts?

Bellach: Well of course, TV advertising is critical. We also do a lot of print and a lot of magazine advertising. We make a significant investment in public relations. I’ve never been with an organization that gets the People magazine covers and talk show appearances. We also do a lot of direct marketing through direct mail with post cards, e-mail marketing, and also in the social media arena. In the past two years, we’ve ">been active on Facebook and Twitter.

ER: It’s clear that the web is also a big part of your overall marketing. What online tools and features do you utilize to assist existing clients as well as engage new ones?

Bellach: We offer a suite of free e-tools. You don’t even need to be a client, just a registered user. You have access to recipes and health help tools. Also on our website, there’s a menu planner to make it more efficient for existing clients. They don’t need to come into the center to go through all the details of planning their weekly menu; they can get a lot of the work done ahead of time.

In terms of reaching new clients, in the past year or so, we’ve launched a strategy against microsites. So, we have, for example, a microsite called JennyCraigAtHome.com. And on January 4, 2010, we launched three new microsites: JennyCraigForMen.com, JennyCraigType2.com and JennyCraigSilver.com. It’s really in the spirit of trying to reach new segments. We have some banner advertising out there as well against these microsites. There’s much richer content that would be relevant to these segments.

ER: When did you first venture into webisodes and how do your campaigns complement your DRTV efforts?

Bellach: Webisodes have been part of our mix for a little over a year. In late 2008, we launched our first webisodes. Consumers generally don’t know a lot about our program. And once they understand it and how comprehensive it is, they’re more compelled to join. It’s really hard to communicate a lot about the program in a 30-second ad. The webisodes have provided a great complement to our DRTV efforts to give a lot more information about the food, which is more about portion control and about the body or activity component, which is really not about joining a gym. It’s about getting off the couch and walking. There’s also the mind component. What are the motivators and how do we really help you with the lifestyle change that you’re looking for?

We’ve been working with Waldorf Crawford and they’ve been a great partner for shooting the infomercials, which kind of dovetailed into the production and creative development of the webisodes.

ER: You spoke earlier about Facebook and Twitter. How does social media play a role in your marketing and branding?

Bellach: With celebrities, we’re communicating a journey. It’s almost a reality show of their weight-loss progress. It’s for people who want to come to our website and read the written blogs or view the video blogs, which are monthly. Or maybe they want to go to Facebook and see how Sara’s doing at a certain stage of her weight-loss progress. So, it’s just another avenue to reach consumers and update them on the celebrity progress. It’s also about non-celebrity clients’ progress. If you went to the Jenny Craig fan page, for example, on Facebook there’s a lot of dialogue. One of the things we know is that if people have a support system and try to lose weight with somebody or at least know other people trying to lose weight, they’ll be more successful. And, it’s just really gratifying to read strings of comments and see how people are cheering each other on and providing support.

ER: Is the company currently doing mobile marketing?

Bellach: We’re evaluating that. Again, given that we’re so direct response-oriented, if we can find a way for it to generate efficient phone calls and efficient sales, we will pursue it. We just want to make sure that before we make a significant investment we really understand how it is going to work for our business.

ER: What does the future hold for Jenny Craig and the brand?

Bellach: We’re part of the Nestle organization, which is the largest food company in the world. They’re shifting their focus to be much more focused on health and wellness. Thus, there are significant resources around program innovation, around investment in the business, and we are looking at some global expansion opportunities. So, we really fit in the sweet spot of that.

January 2010 – Channel Crossing: Production

Untold Secrets to Producing Your Infomercial or DR Spot

So you’ve worked hard and now your new product is priced low enough to compete, but what about the cost of the actual infomercial or spot? In this marketing climate, it’s not enough to be able to deliver a great pitch for a great product, at a great value. Today, you also have to get a great price for the production of the infomercial. Then, that great product can remain a great value (instead of burning a great big hole in your pocket before you ever get it on the air!).

THE INS AND OUTS
When companies come to me to review a budget for their upcoming infomercial or DR spot, I am constantly amazed at the waste and over-spending I routinely see–even from people with many years of experience!

When I worked at CBS, there was a famous producer who had a wacky series he was shooting there and also starring as M.C. (his name might ring a bell). He had a saying, which was directly responsible for me saving millions of dollars over the years: “Never Hesitate to Negotiate…”

If there’s one thing to take with you from this article here it is: Everything in production is negotiable.

If you are renting camera gear, studio facilities, props, grip, electric, celebrities, locations–I don’t care how prominent the prices are listed on the “rate card”–the bigger and fancier a price is displayed, the more flexible the cost to you.

But, like most things, I am flabbergasted to see how many people pay “the full ticket!” So you’re a bit dubious? Maybe you’re not a seasoned line producer, or it’s awkward for you to ask for a discount. Following is an easy experiment you can try to instantly be successful with monolithic results. What do I mean by “monolithic results?”

The next time you’re in a camera rental house, studio or talent agency and they quote you a price just say one phrase: “That is more than I can spend.”

Without a doubt, the response will be: “Well, how much do you have to spend?” You’ve just taken the first step to substantial savings.

Now that you understand the philosophy, here’s the key to powering it: Know the real costs.

If you’re going to negotiate, you have to be totally aware of the best price that guy across the table can give you. I make it a point to know the best prices on everything in the industry. If you want a live dancing bear, I can tell you where you an get the best bear at the best price plus everything you’ll need in order to be able to get that bear to dance quickly, safely, and on cue. Because the bear itself is not that expensive but–if you think a live 600-pound bear is dangerous–the “extras” you’ll require will “kill you” before the bear ever gets there!

The last thing to remember is not to clobber people. You can get unbelievable savings without cutting a vendor down so low that they don’t want to deal with you again.

The simple truth is: You get the best deals from people who feel you genuinely appreciate their collaboration. Make the people on your production feel like they are part of the process. Whether I am producing, directing, or even when I’m the client, I always take the disposition that the people on my production don’t work for me…they work with me.

Follow these suggestions and your production will benefit from the lowest, most efficient costs and the highest possible production value.

Neil Gordon is director of production operations at Thane Direct Inc. in Los Angeles. He can be reached via e-mail at neil@thanedirect.com.

January 2010 – Column: Product Talk

Product Talk is your virtual preview to upcoming products like those that premiered at the recent Great Ideas Summits presented by the Electronic Retailing Association. This column offers analysis and predictions by experts about their suggestions for a direct response marketing campaign.

The Great Ideas Summits are your chance to learn more so you’ll earn even more. Similarly, “Product Talk” invites ERA product judges and ER readers to interact with this column by watching three innovative product videos (see products below). You can sit in judgment just like “American Idol’s” Simon, Paula and Randy have done for new talent.

HOW TO PARTICIPATE AND INTERACT
Participation only takes two simple steps:

1 Visit www.YouTube.com/ProductTalkShowcase to see great ideas on video.

2 E-mail your comments about each product to ProductTalk@Gmail.com. Tell us how you’d market it or why you would or would not buy it.

In the next column, we’ll share a wealth of opinions from our mastermind ERA group and everyday readers alike and introduce more new product videos to judge.

It’s also important to note that you can submit your own product videos for review or e-mail your comments on video. For more information, please call (925) 210-9005.

Remember, everything you want to accomplish and learn about direct response marketing will come to you as a result of one thing: networking with the right media marketing professionals.

We’ll show you why attending ERA’s Great Ideas Summits are must events for every new marketer. Our new friends from the affiliate marketing industry are invited to participate in this interactive column to offer TV and radio professionals a whole new view on modern media marketing.

This is your open invitation to begin networking right away with ERA marketing professionals about your new product idea, service, business opportunity or website promotion.

Nobody markets a product to direct response success alone. It always takes a team of professionals and nobody understands that better than the Electronic Retailing Association. ERA has been promoting professional networking since its inception and continues to specialize in networking through conferences, trade shows and Electronic Retailer magazine.

Many media experts believe that online video may already have become the “new television.” Why shouldn’t the way we do networking for new products also change and evolve into virtual networking with ERA professionals?

By using short online video presentations we can expand the talk possibilities about product offers and marketing. We can even test sales presentations using a web-based interactive forum to instantly measure consumer reaction to a particular product in the marketplace. The results can be published in the following issue of the magazine.

Mike Hughes, the NetWorKing, is reputation correspondent at Reputation Media in Boulder, Colo.

	PRODUCT VIDEO #1: SPEED TYPING WITH ALMENA – RETAIL $39.95 The Almena Method is an innovative training program that teaches computer keyboarding and touch typing in one lesson for a $39.95 download. That’s right. In one 20-minute lesson, Almena teaches the entire 26 letters of the alphabet on the computer keyboard. Anyone can learn to touch type through this amazing method. Eliminate typing errors and increase speeds to 99 words per minute and beyond. With almost 2 million users, this incredible method is rapidly becoming the primary teaching tool for learning to type, which is now a necessary life skill for almost everyone, from kids to CEOs.
PRODUCT VIDEO #2: DIAGNOSE MY PAIN – RETAIL $49.95 This program was developed by a former president of The American Academy of Pain Management. If you wish to find out what is really causing your pain visit: www.DianoseMyPain.com. For only $49.95, you will take an online medical questionnaire. It has 72 questions with 2008 possible answers and is computer scored. Your results will be e-mailed to you in just five minutes. The test will deliver results that correspond to diagnoses from the Johns Hopkins Hospital staff 95 percent of the time. You then take the results to your doctor to discuss them.
	PRODUCT VIDEO #3: THE KOOL LOCKER – THE SECURE PERSONAL CONTAINER Finally, a lockable lunch box that offers you peace of mind. Now you can keep your personal property safe from others–great for construction workers or by the pool. The Kool Locker offers hundreds of uses for many who need to tamper-proof their belongings. The Kool Locker is not yet manufactured and seeks initial bridge financing, manufacturing or a marketing partner to license the Kool Locker and launch it into the hands of consumers.

January 2010 – Column: Your Association, Your Bottom Line

Issues Arise as Guides Take Effect

It’s been just over one month since the FTC’s revised Guides Concerning Endorsements and Testimonials in Advertising have taken effect. In order to ease the transition to the new standards, ERA recently hosted two Spotlight Sessions on the revised Guides, assembling panels comprised of FTC representatives, leading legal experts and marketers to address the real-world issues that have emerged.

Both sessions made it abundantly clear that there’s a lack of clarity for many marketers regarding the Guides, causing an immediate and significant impact on the businesses of many ERA member companies and others in direct-to-consumer commerce.

To help settle the confusion and provide actionable advice for ERA Members implementing the changes set forth in the revised Guides, here are a few of the key takeaways:

Network clearance issues are already arising. Shows are already being blocked for failing to satisfy the Guides. According to Product Partners, LLC’s Jonathan Gelfand, the problems lie not with the Guides themselves, but with networks’ misinterpretation or excessively conservative reading of the Guides. Gelfand called for further clarification from the FTC to provide additional guidance to the stations and networks. I urge you to bring these issues to ERA’s attention as they occur; we will compile these accounts and present them to the FTC to urge the Commission to provide clarification regarding the exact language of the Guides that is proving to be problematic in execution.

Regarding social media marketing, have a plan. Social media marketing will only grow and increase in effectiveness as more marketers harness the power of their consumer base, influential bloggers and others to spread their message. But as the FTC’s assistant director Rich Cleland stresses, you must have a reasonable social media policy and monitoring program in place. The FTC acknowledges that complete control over your social media agents is impossible; you simply need to have policies in place and take reasonable steps to monitor your agents and enforce the policies.

With celebrity endorsers, know when to disclose. In the context of an ad, it’s assumed that celebrity endorsers are being compensated, so no disclosure is required. Outside of this context, however, disclosure of the connection between the celebrity and the marketer is likely to be required should a discussion turn to the celebrity’s use of your product.

The FTC has clear priorities in social media. High on the FTC’s enforcement list? Fake blogs or “flogs,” phony product review sites and “astroturfing”—enlisting agents or company employees to post positive reviews about your products or negative ones regarding your competitors’ without disclosing their connection to your company. Inadvertent mistakes where a social media agent has “gone off the reservation” in speaking about your product without your knowledge and despite your social media policy? Not a priority.

Clarification is on the way. Look for the FTC to publish FAQs regarding the revised Guides soon. In addition, ERA, as your association of record, will continue to provide guidance to our members. Specifically, I urge you to attend The Great Ideas Summit (held Feb. 1-3 at the Hilton New Orleans Riverside) where keynote speakers (including David Vladeck, director of the FTC’s Bureau of Consumer Protection) and educational sessions will address the topic in detail. For more information, please visit www.eragreatideas.org.

I look forward to your thoughts and concerns on this issue. Please contact me at any time at jcoons@retailing.org. I look forward to seeing you in New Orleans!

December 2009 – Column: Rick Petry

The E Ticket

Among the pantheon of Oprah-anointed personalities who’ve become one-person cottage industries (think Rachel Ray), this year, a few of our industry’s own emerged to join their rarified ranks. Led by the late Billy Mays, suddenly the likes of Anthony Sullivan, A.J. Khubani and Kevin Harrington were showing up not only on primetime hit programs, but also on the likes of “The Today Show,” “The Tonight Show” and the show named after the aforementioned Ray. In the process, our much-maligned industry surfed the shimmering coattails of 2008’s Obamamercial, stepped out of the shadow of the Bassomatic and became mainstream legit.

These ambassadors of direct marketing played a vital role in dispelling the notion that the industry is nothing but a bunch of hucksters, because they demonstrate that behind the hype and circumstance, lies the same gritty hope and aspirations that form the foundation of many an American dream. Every viewer watching these Horatio Alger-like stories unfold catches a glimpse of their own castle in the air descending a bit closer to Earth. Beneath the weight of the Great Recession, what’s wrong with a show that peddles a flake of hope along with the soap?

Hope that surely these self-made entrepreneurs can relate to, for each in their own way is a rags-to-riches story forged by a combination of hard work, chutzpah and no small measure of good fortune. Now imagine having the opportunity to sanctify the desires of others bereft of cash and connections. In the parlance of “Harry Potter’s” J.K. Rowling–a divorcée who turned her pen into a wand and transformed herself into a billionaire–mere Muggles become wizards when they wield such magic dust.

Any doubt that DR has caught fire with the general public was dispelled by the palpable excitement that swirled around the “Pitchmen” tryouts at this year’s ERA D2C Convention. Throngs of wannabes crowded the booth in hopes of getting the golden ticket–the ticket that would ensure fame and fortune, but certainly something more: a sense of validation, security for loved ones, the chance to have their voice heard on a broader stage. Such opportunities don’t exist in every business, but in this industry they remain so plentiful you might trip over one; but instead of scraping your knee, take flight.

In a recent AskMen.com poll, “Mad Men’s” cryptic advertising creative director Don Draper emerged as the most influential personality of the year. Interestingly, Draper lives in a pre-Kennedy assassination, pre-Vietnam escalation and pre-Watergate state where a sense of possibility abounds. His is a world where a great idea can turn a boardroom on its head. In today’s world of direct marketing, this same potential exists. It’s a notion worth remembering, for while the sugar plumbs that dance in heads this chilly holiday season may seem arthritic, it is one’s perspective that gives them the power to moonwalk still.

Rick Petry is a freelance writer who specializes in direct marketing and is a past chairman of the Electronic Retailing Association. He can be reached at (503) 740-9065 or online at rickpetry.com or twitter.com/thepetrydish.

December 2009 – Feature: The Art of the Script

Insights into the “Black Arts” of Direct Response Scriptwriting

By Rick Petry

“What we do is a kind of black arts. It’s magic,” says Jim McNamara, a veteran of more than 20 years of DRTV scripting who has penned hits for the likes of Guthy-Renker and Jenny Craig. McNamara was one of a quartet of seasoned DRTV writers who Electronic Retailer recently sat down with to get a better understanding of the process, best practices and pitfalls these experts have encountered over decades of experience writing both short- and long-form DRTV.

If Product Is King, Is The Emperor Wearing Clothes?
The first mission-critical objective for any DRTV program is to identify a product’s unique selling proposition (USP), traditional marketing parlance for the magical thing that differentiates one product from all others. “A lot of products don’t have a USP, only a P,” comments Geraldine Newman, a Clio-award-winning writer and director who first hit it big in DR with Buns of Steel. “A lot of marketers don’t go wide enough or deep enough. You have to find out what really makes a product work versus all of the others out there. I fascinate in the product. I bathe in the product.” Colleen Szot, an architect of hundreds of DRTV campaigns who cut her teeth on NordicTrack echoes that sentiment: “The first thing I want the marketer to do is send me the product. I want to touch it, see it, feel it and love it. They can’t send me enough information.”

At the end of the day, the USP is really about positioning, and Cesari Direct’s creative director, Ron Lynch, has a singular perspective on how to approach it: “One of the things we like to do is find a way to create a new category or market for somebody and then have them dominate that new market.” Lynch sites the example of the Hunter Fan Company, which had what the company thought of as an air purifier with two major obstacles: it was the most expensive on the market and had one of the largest footprints. By re-positioning the item and demonstrating it as an air sterilizer with wholly unique properties, Hunter was able to step out of the crowded air purifier category and create a whole new class of product.

Such thinking gets laid out in a roadmap known as a creative brief, the foundation document that articulates the basic who, what, where, when, how and why of a particular offering. McNamara sees the brief as his responsibility, whereas Szot’s view differs, “I’m the writer, not the strategist. I focus on the message and that’s it.” Lynch sees it as a collaborative effort that includes not only the client, but perhaps the call center and their inbound scriptwriter, a fulfillment company versed in offer strategies and others; however, aggregating the ideas and putting them down in words on paper falls to the writer.

Coalescing the team’s thinking typically involves a brainstorm that identifies all the elements that can be leveraged to help sell a product. These assets might include relationships with celebrity endorsers, demonstrations, before-and-after results, evangelical testimonials–in short, anything that can help the cause. Particular attention is paid to who is being targeted, although writers often rely on their own research and intuition to get into the skin of the prospective buyer. “It takes a lot of sensitivity,” remarks Newman. “Nobody knows the product better than the client, but the writer knows television and knows how to translate the ideas via the unique medium of TV,” adds McNamara.

From there, the writer will typically construct a number of different creative approaches in the form of a treatment, a brief synopsis that describes a variety of approaches to the creative. The marketing team then debates the merits of these different concepts, selects one or, in some cases, a hybrid of ideas, and then the author gets busy constructing an outline prior to scripting, a technique that can save time, frustration and the number of drafts required to get to a mutual agreement.

A Formula for Success?
Just how formulaic a DRTV script should be remains debatable. One school of thought suggests that short form built on the tried-and-true structure of problem, solution, features, benefits and an irresistible offer has paved the way for many a success and given consumers a short-hand template for fundamentally understanding when a direct offer is being made. Similarly, the three-pod nature of many infomercials capped by a traditional call to action that asks for the sale represents a set of conventions easily understood by viewing audiences. Szot advocates a return to such DR basics. “We need something that is demonstrable, that solves a problem and that people can afford, particularly in light of the down economy. The industry tends to mimic what’s going on in television programming, but programming doesn’t always have the answers.”

Lynch argues that the structure of many infomercials is actually derived from other forms of communication including three-act dramas and even remedial writing structure. “The assumption that the industry invented this formula is false. It’s something you learned in grade school as basic as a five-paragraph essay: one paragraph that tells you what you’re going to read, three paragraphs in defense of an argument and a concluding paragraph that recaps why you should be persuaded by what you were just exposed to.” Lynch likens the product to a hero who must overcome obstacles, reveal a secret and rise above all circumstances to conquer the villain who, in this case, is the proverbial problem the “hero” product solves.

Newman scores a direct hit with her take on slavishly following rules: “Why would you adhere to a rigid formula when the rate of success is typically one out of 25?” In fact, it’s clear that even in DR, every rule was made to be broken–perhaps. McNamara comments, “People who make infomercials that look like every other infomercial do themselves a disservice. You have to look at each situation individually. For example, I did a show for a seminar pitch that was linear and we didn’t ask for the order until the very end–very unconventional. And that approach did $50 million in sales.”

Likewise, celebrity spokespeople may or may not be the answer, but when paired with the right product, they can be a wonderful component on which the writer can unleash his or her imagination. “Stars and great spokespersons can add tremendous power to your spot or show,” enthuses McNamara. “Think of a Tony Robbins, a Tony Little, a Jay Kordich or a Suzanne Somers advertisement. Without these unique personalities, how would you do these shows? But of course, you still need the right words.”

Ultimately the script acts as a blueprint, but because so many elements in infomercials rely on spontaneity, the scripts frequently act more as guidelines. “Tony Little works off of bullet points,” Szot explains. Yet, she still scripts his words in an effort to ensure that the salient selling points are captured with deliberate intention.

The Keys to Successful Testimonials May Not Be On The Keyboard
Given how vital testimonials are to DRTV success, writers have strong opinions about the proper approach, but the vital common element is captured in a word heard often in marketing circles these days: authenticity. Szot begins the process by reviewing letters and e-mails from enthusiastic customers, then moves to telephone interviews where, she claims, she can quickly discern whether to put the consumer on the air.

Newman approaches testimonials with directions and intentions in mind, but prepares open-ended questions that will allow the testimonial to tell their story. “I avoid directing them, otherwise you make bad actors out of good people,” she says. Further, too much direction can cause people to shut down. And once that happens, according to Newman, “They’re dead. I want them out of control.”

Szot echoes that view, describing one fitness show that involved adult twins. One had worked out and gotten quite fit using an exercise bar, while the other was still grossly overweight. Szot interviewed the sisters together and asked the heavy twin how she felt. “That’s what started the waterworks.”

McNamara advocates for quality over quantity, “In the Proactiv shows, testimonials may take two minutes or longer. We want to give people time to tell their stories and move the audience.”

In most cases, the writers actually conduct the testimonial interviews, having done the spadework in advance by interviewing them over the telephone prior to their arrival on set. The writer understands their stories and has prepared the material necessary to, hopefully, extract the ideal, real and credible sound bites. Says McNamara, “The more the merrier when it comes to testimonials, because they’re so unpredictable. The ones you think are going to turn out great can be lousy. But real people will say things about a product you would never think of–and it’s pure gold.”

Don’t Try This At Home
With the longer lengths of DRTV, sometimes marketers are tempted to stuff too many messages into their shows in the misguided belief that if they cover as many bases as possible, the consumer will self-select a scenario that is relevant to them. Szot warns against this “kitchen sink” tendency: “Clients try to cram five features into a 60-second spot. I say one primary feature in a 60-second spot and two features in a two-minute one. Otherwise, it’s information overload.”

Testing many offers, however, is a different matter. Lynch recommends preparing four or five offers prior to the first airing of the show and going through with the testing process regardless of what the results are. Not a big fan of focus groups, he notes, “Broadcast is where the truth is told. Offers have to be tested in the real world. I convince myself in my mind what the highest possible price could be for an item and then I write with that level of perceived value in mind.”

The craft of writing involves a fascinating dichotomy; it’s something that many professionals loathe to do and yet it is also something that many untrained folks remain convinced they can do. “People don’t realize the skill and talent involved in writing,” comments Newman, “but they shouldn’t write their own ads anymore than they should perform their own dentistry.” Adds Lynch, “This is a collaborative art form that requires perspective, and the only way you can truly gain perspective is through different sets of eyes.”

Rick Petry is a freelance writer who specializes in direct marketing and is a past chairman of ERA. He can be reached at (503) 740-9065 or online at rickpetry.com or twitter.com/thepetrydish.

December 2009 – Cover Story: The Hit Maker

A conversation with Tristar Products’ Keith Mirchandani

By Tom Dellner

For anyone with even a remote interest in direct response, the chance to sit down for a conversation with Keith Mirchandani is an opportunity you simply can’t pass up. After all, Mirchandani–and his company Tristar Products–are on the cutting edge of so many aspects of this multi-faceted industry: production, retail distribution, international sales and brand development. His hits have become household names, promoted by celebrities from Jack LaLanne to Brenda DyGraf, Carol Alt, Kim Alexis, Bruce Jenner and–soon–Joan Rivers. His joint venture with Montel Williams has resulted in the “Talkmercial”–an hour-long format innovation that’s proving to be a winner.

Mirchandani reflected on each of these topics–and on the industry’s future in a shaky economy and shifting media landscape.

Electronic Retailer: What initially drew you to the DR industry?

Keith Mirchandani: I was captivated by the industry as a consumer. It offered such unique products, demonstrated so compellingly. I found myself being sold by the product every time, from the time I was a little boy begging my mom for toy products I saw being advertised.

Eventually, I went to work for a direct response company for a few years and then decided to venture out on my own. That was 17 years ago, when I founded Tristar. So I’ve been in the industry for 20 years.

ER: What was the unique business opportunity you spotted when launching Tristar?

KM: The model in the industry at the time was to ride a hot product as long as possible–until demand began to die down, and then bring it to retail. My focus was to bring products to retail much earlier on in the process–in fact, from the very beginning. It began with a partnership with a single retailer, then grew into an entire network of retailers.

ER: It sounds as though success came rather early for Tristar. Is this true, or did you encounter initial challenges?

KM: We were fortunate to be pretty successful right out of the gate. We knew what the basics were and that we had to meet them every time. We needed a quality product that solved a common problem. We had to price it aggressively and–equally important–we knew we had to protect our products from unscrupulous competitors. The Ab Roller is a great example of the importance of the latter. That product alone has been litigated 38 times! And I’m happy to report that our record is 38-0.

ER: What are some of the most important changes you’ve seen in DRTV over the past 10 to 15 years, and how has Tristar been able to adapt and thrive?

KM: Fifteen years ago, the percentage of web orders was miniscule; now, it is often around 50 percent. People go online to read product ratings, comments from other consumers or to research the company to see whether it’s legitimate and trustworthy. They’re also making sure the price is right.

The way we’ve responded (other than to deliver outstanding product quality) is to create the best websites possible, giving the consumers all the tools they need to learn everything they want to learn about a product–answers to common questions, additional consumer testimonials and ratings, among other content.

ER: Any other changes of note?

KM: Competitive forces have made it extremely important to keep control of production costs and to be able to turn on a dime in response to audience reaction. It’s hard to do both.

We’re fortunate to have our own on-site studios with hi-definition capability–it’s afforded us a tremendous advantage. We’re able to rehearse more efficiently than some other companies. We can also offer our consumers more content, too. For example, with kitchen products, we can shoot how-to videos or recipe collections and then post them to the web. Whatever our customers are looking for, we can shoot it quickly and publish it immediately on the Internet.

ER: The list of celebrities that you’ve worked with is a long and impressive one. Are there a few especially rewarding or interesting relationships that have developed over the years?

KM: Jack LaLanne is one that jumps to mind. I’ve worked with Jack for more than seven years now, selling over 5 million units of the Power Juicer. Just recently, we had a 95th birthday celebration for him. He’s such an inspiring man. He still works out two hours each day, at 95.

As part of the celebration, we unveiled a special edition Power Juicer, with part of the profits going to the Ovarian Cancer National Alliance (OCNA), in honor of my mother who passed away from the disease. I’m very happy to report that the project is doing extremely well. It’s nice to be able to give back. In fact, we’ve been able to donate more than $250,000 back to the organization in the two months or so since the celebration.

Montel Williams is another celebrity with whom I’ve enjoyed a special relationship. We’re doing a new format we call the Talkmercial. Montel–an exceptionally talented talk show host–spends an hour discussing a particular problem, with a solution married to a product. One of our biggest hits right now is called the Health Master, an emulsifying blender for fruits and vegetables under Montel’s Living Well brand.

ER: How has the Talkmercial project been received, now that it’s been on air for awhile?

KM: We’re getting tremendous feedback. Many people expressed doubts about the one-hour Talkmercial format, but it’s currently one of the top three infomercials–and soon to be number one. In the not-too-distant future, we’ll be launching another half dozen products with the format.

ER: How much of the Talkmercial is devoted to content and how much might be best described as selling?

KM: The content identifies the problem. For example, child obesity is a very significant and growing problem. The Health Master is such a perfect marriage of a solution to the problem, even when we’re airing interviews with doctors and information strictly related to child obesity, it still fulfills a sales function in addition to an educational one. It’s a win-win for everyone.

ER: Of all your campaigns, are there any that are especially rewarding or memorable?

KM: Certainly, the Jack LaLanne Power Juicer–and the current partnership with the OCNA–ranks at the top, for the chance to give back and honor my mother. But all my products are extremely important to me, and I have the same sense of excitement as each campaign rolls out–I think that’s probably key to our success.

The 50 State Quarter Coin Map is one that I look back upon fondly. In 12 weeks after its launch, we had sold millions and millions of units–we just couldn’t make it fast enough. We did, but we had to enlist a number of folks to make it for us. That product stands out for how it exploded right out of the gate. It was very, very exciting.

ER: Are you confident in the industry’s ability to adapt to the many changes it’s facing?

KM: Yes, but the industry will have to adjust the business model a bit. We’re seeing media rates begin to inch back up again after a few years of decline. National advertisers are replicating our model. Even President Obama leveraged direct response during his campaign. All this is driving rates back up.

Marketers are going to have to embrace the Internet and social media. The power is in the consumer’s hands and those companies that will continue to succeed will be those that adjust their business models to work within this new paradigm.

ER: Your media reach extends to more than 100 countries worldwide. Are your international hits more global or regional in scope?

KM: It tends to be more global in nature. For whatever reason, a hit seems to be a hit across the world. And we’ve found that we have more success with our half-hour hits internationally than with our short-form hits. The fitness products tend to do quite well internationally.

ER: In the last 18 months or so, the mainstream media has developed something of a love affair with the DR industry. How, if at all, has all this affected your business, either positively or negatively?

KM: The negative way is clear: Broader interest in the medium is driving up media rates.

On the positive side, companies–and consumers–are looking at DR with more respect . Companies are seeing it as a more cost-effective way of getting their message across. Take a traditional advertiser with a $3 to $5 million budget. This used to be seen as a 100-percent expense. But with DR, now you get a measurable return on this advertising expense. With the economy the way it is, national advertisers are excited at the prospect of generating a return on this investment–and then using the return to increase their marketing budgets.

As for consumers, they are seeing national advertisers come to the DR platform, and are becoming increasingly trusting of the industry–a trend we had already been seeing. The pool of consumers hesitant to purchase a DR product continues to shrink.

ER: Do you have any new projects on the horizon you can share with us?

KM: Yes, I’m working on a new campaign called “Beauty Discoveries.” We’ve signed Joan Rivers to promote a new line of beauty products. We’ve shot three half hours so far. In fact, one show has just launched and the second two will be finished this month.

ER: What’s Joan like to work with?

KM: She’s fantastic. For one thing, she’s an absolute workaholic. When we were shooting with her in August, we had her scheduled Monday, Wednesday and Friday. The other two days, she was on QVC. And after a full day of shooting, she would do comedy shows in the evening. Her energy level is just amazing!

November 2009 – Feature: Put Your Money Where It Counts

How to cut costs on a DRTV show–without wishing you hadn’t

By Jack Gordon

How can you reduce production costs for a DRTV commercial without sabotaging its quality or its chance to succeed?

Let’s complicate the question. Suppose you’re going to film an infomercial. You know up front that you will want to test multiple offers: different bonuses, different pricepoints, different product configurations. If the infomercial is a hit, you will want to create short-form DRTV spots to follow up. You’ll also want video clips that work well on the product’s website and perhaps other online venues. You might even take the campaign to international markets.

Knowing all this, how do you hold down costs on the original production in ways that aren’t going to come back to bite you later when you have to re-shoot footage that you could have grabbed the first time?

A good place to start is with a realistic idea of the budget you’ll need for the type of show you want, says James Kunitz, president of DV Creations, a DRTV production house in Santee, Calif. A half-hour infomercial in a simple sit-down interview format–think of health- and wealth-tips purveyor Kevin Trudeau–can be produced for as little as $40,000, Kunitz says.

But to play in the market for products requiring demonstrations and testimonials–especially those in the health, fitness or beauty categories–the entry-level cost is usually around $250,000. “You just aren’t going to compete against a product like Proactiv with a $50,000 show,” Kunitz says. “So the question really is, how do you cheat the budget? How do you spend $250,000 and walk away with what looks like a $400,000 show?”

How indeed? Experienced DRTV producers agree that it boils down to a matter of knowing where to cut corners–and where not to.

The People
Never skimp on a scriptwriter, producers agree. Using the best writer you can find will ensure the quality of your show and ultimately save you money. An excellent lighting person also is essential, especially for food and beauty products. The photography director should be top-notch. And the show’s host should be the best you can afford.

Above all, DRTV producers stress, make sure that the person in charge of the production–the director or producer–has experience with planning, shooting and editing DRTV programs. Do not entrust your show to corporate video producers, crews from local cable TV stations or producers of general-market commercials, no matter how attractive their sample film clips.

The point is self-serving, of course, but no less valid. Joan Renfrow, president of Onyx Productions Direct of Los Angeles, puts it this way: “Quality in DRTV is not about whether you can shoot pretty pictures. DRTV is a tool to make people pick up the phone or go to a website. A lot of companies can shoot commercials, but they don’t have a clue how to script and shoot a show that’s about motivating, demonstrating and encouraging people to buy. They don’t even know how to cut it right. Your product will suffer, and you’ll bring it to me to fix.”

The place to save money on people is further down the skill chain. For instance, Renfrow says, a first-rate wardrobe specialist may well be worth the money, but “the chief wardrobe person doesn’t necessarily need a specialized assistant at $450 per day to make pickups and returns. You can use a $200-per-day production assistant for that.”

Put the Dollars Where They Count
A lot of time and money gets wasted by fussing with and second-guessing elements that have no bearing on a DRTV commercial’s selling success, says Collette Liantonio, president of Concepts TV Productions in Boonton, N.J. A client will show a rough cut of a commercial to friends and family members, “and everybody turns into an expert.” They want different music or a different wardrobe for the host–and costs start to balloon.

A fabulous-looking host, striking attire, familiar music that viewers might love or hate–all of those things usually just rob attention from the product. Unless you’re selling music, Liantonio says, the last thing you want in a DRTV show is your spouse’s favorite song. “That’s just distracting. It should be elevator music, not an element you actively listen to. Don’t waste time in the edit suite, at $300 per hour, playing around with the music. Just use needle drops.”

The trick is to “put the money where it will impress the viewer,” Liantonio says. This depends heavily on what you’re selling. If it’s a fashion product, then what the host wears is important. If it’s a hair product, put money into the models’ hair, clothes and styling. If it’s a kitchen commercial, shoot it in a trendy, upscale kitchen, with a stainless steel refrigerator. If food plays a role, by all means spend money on a good food stylist.

“I recently saw a commercial for nail polish where the models had ugly knuckles–and feet with heavy make-up that didn’t hide the flaws,” she says. If you’re selling nail polish, for heaven’s sake put it on attractive fingers and toes. “Hire hand models and foot models,” Liantonio says. “That’s why they exist.”

How Much to Shoot?
Do you want a DRTV show that not only has the best chance to become a hit on its own, but also to anchor a long-lasting campaign, with short-form spots, changes in the offer and so on? This sounds counterintuitive, says Alex Dinsmoor, VP of marketing strategy for Santa Ana, Calif.-based production company Script to Screen, but 95 percent of the time, the most cost-effective strategy is to “spend more time shooting up front, so you make sure you get all the creative elements you’re looking for.”

You will almost always come out ahead, Dinsmoor says, if you “get more footage in the edit bay.” Why? You’ll have more options. “And it’s always more expensive to go back and do it again.”

More is better when it comes to demonstrations, testimonials, host segments, product shots “and any ways to prove that the product does what we say it does,” Dinsmoor says. There is no way to know up front “which combination of elements will resonate with the consumer. So it’s good to have the option to test more of them.”

Renfrow and Liantonio echo the more-film-is-better theme. They point out that production crews normally charge by the day, not by the hour. You won’t save money by sending the crew home early, but if you keep shooting, you might get the magic shot–the key testimonial, the perfect take on a demo–that makes the whole campaign click. Even a few hours of overtime are less costly than coming back another day to pick up the shot you didn’t get.

Yes, editing time is expensive, the producers admit. But the answer is not to shoot less. The best ways to save editing time, they say, are to use digital cameras that transfer footage directly into the editing bay, keep meticulous records of which shots are where, send edited segments online for client approval–and, Dinsmoor adds, streamline the client-approval process in any way possible to eliminate delays.

The odd man out on this point is Kunitz, who argues against the more-is-better philosophy, warning that it can add more costs than value. The biggest variable in the cost of DRTV productions, he says, “comes down to how much you shoot. It’s the raw footage. If you overshoot to account for every thought that comes into your mind about something you might use if you go international, for instance, that gets very expensive.”

He agrees that one always should shoot to allow for different pricepoints and offer configurations. “But we try as much as possible not to overshoot stuff…. If you plan well, have a good writer on board and everybody agrees on a script, that’s how you can save a lot of money.”

How Much Green Screen?
Producers agree that shooting products and likely bonus items against a green screen is a great way to save costs when you will want to configure different offers for testing. Testimonials and other elements also can be shot against a green screen to save on travel costs and location set-ups: Film satisfied customers against a green screen once, then edit in backgrounds that put them anywhere from a tropical beach to a snowy mountaintop.

But filming people–as opposed to static packages–against a green screen is not for novices. Some esoteric technical issues involving lighting, camera movement and other variables can destroy the illusion that a host or testimonial giver is really out in the snow, for example. Kunitz and Dinsmoor both warn that a show’s quality can suffer when green screens are overused.

“If realism is something you’re really concerned with for a scene, and you want to show a woman in a house, put her in a house,” says Kunitz. The technology surrounding green screens is now so good that viewers won’t be able to explain why they sense something is wrong about a scene, he says. “But they’ll get a feeling that something about the person is fake.”

And that’s not a feeling calculated to make viewers pick up the phone.

Jack Gordon is Electronic Retailer magazine’s editor at large.