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Need a DRTV/Infomercial Business Plan? This downloaded sample Direct Response Television Business Plan is a comprehensive example that includes exhaustive financial forecasting, in layouts that are required by banks, lenders, and investors. The sample can be used to quickly and easily develop a DRTV or Infomercial business plan that reflects your company's situation. Plus much more ..
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PERFORMANCE RATIO
Performance ratio is a percentage derived from dividing your CPO by your selling price, or by dividing your total sales revenue by your total media cost. Although the maximum CPO should be 50% of your selling price, few advertisers consider 50% to be acceptable. Ideally, your CPO should be 1/5 your selling price, which means you should receive $5 for every dollar you invest in media.
For example, if $1,000 worth of airtime produces 50 sales, your CPO is $20,which means it costs you $20 in media time to sell one unit of your product.
- If your selling price is $40, your CPO is 50% of your selling price ($20 divide $40), a 1 to 2 ratio.
- If your selling price is $60, your CPO is 33% of your selling price ($20 divide $60), a 1 to 3 ratio.
- If your selling price is $100, your CPO is 20% of your selling price ($20 divide $100), a 1 to 5 ratio. This means that for every dollar you invest in media time, you're getting $5 back.
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This downloaded sample Direct Response Television Business Plan is a comprehensive example that includes exhaustive financial forecasting, in layouts that are required by banks, lenders, and investors. The sample can be used to quickly and easily develop a DRTV or Infomercial business plan that reflects your company's situation.
The plan includes highly detailed sections on:
- DRTV Industry Overview and Market Analysis Data for 2003
- Products and Competitive Comparison
- Strategic Alliances and Vendors Necessary for Success
- Marketing Strategy
- Positioning, Promotion, and Pricing
- Timeline and Milestones
- Management Summary
- Personnel Plan
- Financial Plan (12-Month and 3-Year Projections)
Plus much more ... |
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