The infomercials and shopping networks are very profitable simply because they are martketing gone to the extreme. As soon as an infomerical airs the marketing company can tell by the number of phone calls DURING not after but DURING the show if the product is worth hawking.
There is no loss if the product doesn't go it's pulled. Since marketing is done by the people backing the inventions there is little cost to stations or the networks. Depending on the agreement the stations may even get percentage of the sales.
And a lot of this is marketing. For instance the lady who invented the self wringing mop said she tried to sell it on one of the shopping networks twice and failed. Then she hit the right pitch and boom, she's now loded.
So informercials are like winning a lot of small lotteries. Instead of winning the MegaMillions the consistantly win small lotteries that add up fast.
There is no loss if the product doesn't go it's pulled. Since marketing is done by the people backing the inventions there is little cost to stations or the networks. Depending on the agreement the stations may even get percentage of the sales.
And a lot of this is marketing. For instance the lady who invented the self wringing mop said she tried to sell it on one of the shopping networks twice and failed. Then she hit the right pitch and boom, she's now loded.
So informercials are like winning a lot of small lotteries. Instead of winning the MegaMillions the consistantly win small lotteries that add up fast.