Telebrands started as a direct response marketing company in the early 80s. This brands have successfully sold millions of products and generated billions of dollars. It’s likely that you’ve come across one of their entertaining “As Seen on TV” ads in the middle of the day or late at night. Here are five things you need to know about Telebrands and the secret to its success.
1. $19.95 is the Sweet Spot
You probably came across a commercial late in the night for an incredible invention such as a pot that prevents you from losing your spaghetti while straining the water int eh sink. Most of these incredible products — and more — can be yours for $19.95. It’s become a popular price for most “As Seen on TV” products. Even as prices go up and the cost of living goes up, this price remains the same. This sweet spot has made it possible for Telebrands to make a sale every time an advertisement runs on TV. As a result, of the products must stay under $20 in order to make a profit.
2. Telebrands Has Become Its Own Brand
Telebrands is just one of the many marketing companies that uses the “As Seen on TV” logo. This technique makes customers stand up and take notice from their customes. It gives them a sense of rush because they’re buying a product that’s not sold anywhere else. The “As Seen on TV” logo has also decreased competition among the different marketing companies. When other companies succeed, all of them succeed. It’s a win-win situation.
3. Telebrands Relies on Retail Sales
The infomercials aren’t the only component of this company’s success. This company has a marketing strategy that combines online marketing, print advertising, radio, and television. In addition, they have hundreds of brick-and-mortar stores in over 120 countries. They have effectively combiend several marketing methods to increase sales.
Telebrands focuses on keeping 10 to 12 products on their store shelves to build a sense of urgency. When product is low, the customer feels the urge to purchase that product right then and there. Even retail stores such as Big Lots, Bed Bath & Beyond, CVS, and Wal-Mart carry some of their well-known products. They have aisles dedicated to “As Seen on TV” products.
These retail stores have cashed in on this industry because they know they’re going to make a profit from this form of direct advertising.
4. Aspiring Inventors Are Given a Chance
This company even hosts an “Inventors Day” where they invite aspiring inventors across the nation to pitch their invention. It’s similar to the intimidating shark tank that you see on television. These designated “Inventors Days” take place in several states, including Chicago, Las Vegas, Los Angeles, and New Jersey. This is where Telebrands finds most of their “As Seen on TV” products. They choose five out of thousands of auditions each year. Each inventor has five minutes to impress them.
5. Telebrands is Succession-Proof
Since its inception, this brand has sold millions of various “As Seen on TV” products. Some of their most popular products include Aluma Wallet, Doggy Steps, InstaBulb, One-Second Needle, Pasta Boat, the PedEgg and Pocket Hose. The PedEgg alone sold over 45 million products since its launch in 2007.
Ajit “A.J.” Khubani, the founder and CEO of the brand, considers himself the king of the infomercial. He did everything with great risk and now he’s reaping great rewards. Khubani is now sitting on top of a billion-dollar empire.