Since I delivered my last quiz on a Monday morning, I decided to wait for Thursday morning this time.
Are you ready once again to test your DRTV knowledge? OK then, here's pop quiz No. 2:
1. When choosing products for DRTV, why is it important that they be easy to explain?
2. Explain the 'five-times markup rule.'
3. There are several cliché DRTV phrases almost anyone can recite. Which one, pertaining to a satisfaction guarantee, did direct-selling pioneer Alvin Eicoff coin?
That's it: Just three questions once again. So how did you do this time around?
If you don't feel the complete confidence of an expert right now (congrats if you do), you should consider attending "What Every DRTV Professional Should Know," my pre-conference workshop at the 2015 ERA D2C Convention. For more information and to register, visit the landing page for the event.
Here are the answers to the quiz above:
- Unlike long form, live shopping and other direct-selling formats, DRTV commercials only provide about a minute and a half of selling time (the length of a DRTV commercial minus the offer and end tag). Combine that with the fact DRTV products are typically unique (i.e., people haven't seen them before), and it becomes critical for them also to be easy to explain. Extra credit if you remembered one of my favorite catch-phrases: Confusion is a sales killer.
- Simply put, the 'five-times markup rule' states that the retail price of a DRTV product should be five times its cost. Actually, this is more commonly used in reverse. For instance, if I want my retail price to be $10, the cost of goods should be around $2. Of course, this is just a rule of thumb.
- The DRTV cliché coined by Alvin Eicoff is also the title of his 1982 autobiography: "Or your money back."
Photo by Stuart Miles/FreeDigitalPhotos.net
Jordan Pine is a consultant specializing in short-form DRTV and the author of The SciMark Report (scimark.blogspot.com).