MEDIA JOINT VENTURES

                 Purchasing television airtime requires a substantial amount of upfront capital. It is therefore common to
                 seek joint ventures to finance your media buys.

                 Entering into a joint venture with a TV station simply means that the station is willing to extend you the airtime
                 in exchange for a percentage of your sales. Or they will finance you for a flat fee based on units sold or
                 inquiries generated during each airing.

                 Since TV stations rarely advertise this aspect of their business, you may have to call a number of them to find
                 those who accept per order (PO) or per inquiry (PI) deals.

                 There are also media brokers who put together similar deals. Service bureaus who broker turnkey infomercial
                 projects also have access to TV stations that will do PO/PI deals.

                 Regardless of which route you take, you will be required to produce customized material that shows an
                 800 number exclusive to the TV station on which your material is being aired. This will allow both you and the
                 station to track the number of leads or sales generated by each airing.

                 PER INQUIRY

                 If you have a lead generation DRTV spot, some TV stations, particularly those with huge inventories of unsold
                 commercial time, will accept payment based on the actual number of leads each airing of your ad generates.

                 Per inquiry deals are usually confined to 1 and 2-minute DRTV spots. TV stations seldom extend half-hour airtime for a                  lead-generation infomercial. If they do, however, expect to pay a premium for each inquiry you generate with each                  airing.

                 Some stations may require a guarantee to run your DRTV spot on a per inquiry basis. For example, if you agree
                 to spend $1 for each inquiry, the station may require you to give them $300 in advance until you’ve generated
                 the equivalent of 300 leads.

                 PER ORDER

                 Per order deals are usually available for both DRTV spots and half-hour infomercials. With per order advertising,
                 the station may charge a fixed amount for each unit sold or a percentage - between 30% and 75% - of the gross
                 value of the product.

                 As with per inquiry deals, some stations may want a guarantee before they air your infomercial or DRTV spot.
                 The guaranteed amount is usually based on the percentage the station expects to earn from the selling price
                 of your product.

                 For example, if your product sells for $100 and the station wants 50%, the station will want a guarantee based
                 on $50 per unit. If the station asks for $1,000 as a guarantee, it will run your infomercial or DRTV spot until
                 you’ve sold 20 units.