$250 billion Most recent estimated market size of TV infomercials in the United States.
$120 billion Size of the entire US broadcast TV industry, making the infomercial business larger than TV itself.
$28 billion The size of the entire US book publishing industry.
$24.95 The cost of the UroClub, a golf club ingeniously designed as a camouflaged portable urinal.
400 Percent markup, the industry standard for pricing products on infomercials, making that $19.99 offer appear even less like the deal of a lifetime and more like just $4 of materials.
$460,000 Average cost of producing and airing one standard 30 second TV commercial.
$153,000 Average cost to produce and air a ten series 30-minute infomercial.
20 Percent improvement in infomercial response rates with a celebrity appearance.
$17.5 million George Foreman’s lifetime earnings from his entire Hall of Fame boxing career.
$200 million Estimated lifetime royalties paid to George Foreman from the infamous grills named after himself, which he did not invent and was initially apathetic about marketing.
Ah, I love the infomercial industry. There’s nothing quite as fascinating to me as America’s obsession with junk sold on TV.
Unfortunately, “As Seen on TV!” might as well be code for, “ridiculously marked up gutter trash.”
And while purchasing one UroClub Portable Urinal isn’t likely to leave anyone in financial ruin, infomercials’ mind blowing popularity shows a much more systemic issue.
Have a problem? Don’t put in the work to find a solution, just buy some cheap junk hoping for a quick fix!
The no-thought, buy-now culture is a recipe for disaster. “What’s $19.99 anyway? I make good money. Never mind the house I can’t afford, the car I don’t actually own, and the job I can never quit.”
Here’s a better plan – reject junk when you see it and start saving money. As easy as it is to fall into the habit of buying crap, it’s even easier to fall into the habit of defaulting to an automatic, “No thanks.”
In fact, it’s probably even easier because it doesn’t cost you any money!
It sounds crazy, but these small decisions really do add up! I kinda-accidentally saved $150,000, and you wont find any UroClubs in my golf bag.
“Money Wizard, you don’t golf…”
Hey, the point still stands!
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That was a fun read 🙂
It is truly amazing the junk that is sold on TV, and even more so the fact that people actually purchase it!
Glad you enjoyed it!
Interesting facts!
I’m amazed at the amount of royalties George Foreman gets just by having the grills named after himself! Especially when he didn’t even invent it!
Amazing, isn’t it?
That Uro Club would make a great gag gift!
I have to think that’s the majority of the UroClub’s sales…
Consumerism, the great american pastime. There is a documentary on netflix called minimalism that you should watch if you haven’t already.
Thanks for the suggestion, I’ve been meaning to watch that one for a while.
I would like to see a number: “total time wasted on watching these trash-sellers by humans”. It would be a very saddening number.
Haha true, although I’d be lying if I didn’t say I’ve been caught in the light night infomercial watching spiral of wasted time. There are definitely more productive ways we could spend our time.
so only a 20% improvement with a celebrity endorsement, i bet you though they make at least what you have as the average cost to produce and air a ten series 30-minute infomercial – this then is added to the price to offset which is then passed onto the consumer – consumer lose/lose (product/cost) 😉
thanks for the insight into the infomercial space –
there is a great article over at frugalwoods.com that we should all look to use before buying from any infomercial – “My Foolproof Method To Stop Impulse Spending”
– Corbett @ FIscovery.com
Thanks for the suggestion, I will check it out. I do enjoy their site.
Nice post. You’re right, most of this stuff is junk, however the George Foreman Grill is most certainly not! That thing cost me like 50 bucks and kept me full all through bachelorhood. Got 10 years out of that thing.
Percentages are confusing. $20 revenue on $5 in costs is indeed a 300% markup.
I work in the commercial industry and wish we brought in 460K per spot!!
Thanks, and the George Foreman did get me through college as well. Although to be fair, it’s nothing that a cast iron skillet with a plate on top couldn’t accomplish.
Good catch on the percentages, I really need to reread my posts sometimes before publishing!
I met Kevin Harrington kind of recently and had an opportunity to pick his brain briefly.
Amazing, motivational guy!
He invented the infomercial and is worth ~$450MM from royalties on all sales from his network.
Pretty crazy thinking about it; I’d probably always be in a great mood too!
Very cool! Learn anything interesting from him?
Something I noticed about him (and other successful people) is that they just don’t stop. Thinking, moving, working, they’re in a constant, almost-frenetic state.
I think that’s a major part of the