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Tumultuous Time in Business Sector Opens Up Opportunities

As the tsunami of job cuts continues in the American marketplace, economists’ predictions are making the year 2009 look pretty bleak. Major American companies like Home Depot, Sprint Nextel, Caterpillar, and Pfizer, announced thousands of job cuts today and it looks like the trend is expected to continue for the next six months.

While the news is bleak there is a silver lining to this cloud. Prime television and radio space is available at bargain basement prices. Also, talented employees whose jobs have been eliminated are available for hire.

Bargains are everywhere… that is, if you have the money to take advantage of them. This might be the perfect time for nonprofit groups to shore up their workforce and broaden advertising plans to include television and radio. According to AJ Khubani, president of Telebrands (the folks who make all of those “As Seen on TV” gadgets for “Just $19.99″) this is a boom time for businesses with low priced goods and services.

Nonprofits could take a lesson from this “infomercial” advertising model. According to Infomercial DRTV, “Infomercial production costs generally start at $75,000 and go up from there. An infomercial media test cost is typically $10,000-$15,000.If the test is successful, then media expenditures will increase, which can translate into in a larger ROI.

For example, if your infomercial campaign spending is at $10,000/week and bringing in $20,000 in revenue, if you can maintain that same 2:1 revenue to media expenditure ratio (Media Efficiency Ratio or MER), at a spending level of $100,000/week, then your campaign will generate $200,000 in revenue.”

Opportunities abound for those who have a sense of innovation. When the going gets tough, the tough really do get going. What are your thoughts?


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