Infomercials are a very cost effective way to reach
the largest targeted audience for the least amount if they are done
correctly. You can make a 1/2 hour infomercial for less than the price
of a :30 second network spot.
Many times if a product is priced under $40 or contains
a soft offer (no price), you can create a short form campaign (1&2
minute spots) for substantially less money than a 1/2 hour infomercial.
Cost for infomercials are determined by the scope
of the production (i.e. locations, studio and sets, famous actors,
etc..) and Post-Production (i.e. editing, graphics, music, etc..)
Ball park figures for a short form campaign (1&2
minute spot package) is generally between 20,000 and up to $100,000.
For a long form campaign (1/2 hour), prices range from around $100,000
up to a $1,000,000. 
Be wary of low ball prices. Usually they are being
offered by inexperienced producers who are just trying to get a job
and take your money. One major rule of thumb to live by in the Infomercial
business is "You get what you pay for." There is a definite
expertise in creating a successful DRTV campaign. Pay somebody a low
up front for a bad infomercial and you can almost guarantee yourself
that you will have a failed campaign. That usually ends up in the
end of the line for a first time entrepreneur or a re-do for a larger
company.
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