Mom Invented helps moms start businesses and develop products and inventions with inventing advice, business advice and inspirational inventing help

Beware the Lure of Direct-Response Companies

as-seen-on-tv

The direct response companies that have called my office always have made it difficult, if not impossible, to find out exactly what they were proposing -- other than a chance to sell a lot of my product on TV.

After the initial interest-grabbing sentence, the callers are quite skilled at steering the conversation. The "producer" engages the inventor in discussion about how terrific his product is, expresses a need to do good "planning" in order to "purchase" sufficient inventory. The producer will also tout her experience and skill at producing winning TV ads and the ability to purchase cable advertising spots across the country at a significant discount.

One inventor sent me the direct response company's proposed agreement. Not only did it lack any meaningful protection for the inventor, the agreement itself required exclusivity.

When we ask these "producers,"  "Are you an infomercial company?" the answer has typically been an indignant, "No, we are a direct-response company."

The kicker is how long it takes the caller to get to the topic of the "production fee." When my callers finally get to it, it has ranged from $15,000 to $25,000 -- so much for the benefits of "selling my product wholesale."

Perhaps it's a matter of a few bad apples spoiling the bunch. Besides, I've been around enough by now to know that there can be a thin line between skillful sales and deceptiveness. Still, my experience with these calls has tilted too far toward deception.

Read Tamara's full August "Inventions" column, including 5 steps to avoid a costly mistake when considering direct response, on Entrepreneur.com.


Tagged as: , , ,

Leave a Response


 

Recent Comments

  • Michelle Ostaseski: THANKS SO MUCH!!! MO
  • Michelle Ostaseski: Have i missed something? I’m sorry if i somehow didn’t answer something. You can always call me...
  • Michelle Ostaseski: YAY, THANKS!!!
  • Michelle Ostaseski: i havn’t been able to speak to everyone… did we speak? I’m sorry if not. Please do not take it as a...
  • Michelle Ostaseski: Hi, Sorry for the super late response. Please contact me about my manufacturer. I think they only do plastic....
  • Teresa Maita Green: I am a patternmaker living in Austin Texas with 22 years experience. Nice to see at home mothers sucess stories

Advertisement