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Direct Response Marketing

As Seen On TV Finishes Purchase of; Plans for Promotion Unveiled

11 Jul, 2012 By: Doug McPherson

CLEARWATER, Fla. – Now that As Seen On TV Inc., the direct response marketing giant, officially owns, the company plans to promote the site more to garner millions of new users.

“It’s a site that already has a cult following of more than 2 million, and we plan to grow it to many millions more,” says Kevin Harrington, chairman of As Seen On T Inc. Harrington says sales on the site have been up by 65 percent since As Seen On TV Inc. announced a year ago that it planned to buy the website.

“The site has been doing well, but we plan to start a campaign in the fourth quarter to grow it even more,” Harrington says. “We’ll be launching 30- and 60-second TV ads, a lot of social media and public relations.”

Harrington says that because of his three seasons on ABC’s “Shark Tank,” public relations was a natural and logical move. He says he’s already appeared on the daytime talk shows “The View” and “The Wendy Williams Show.”

In addition to its 2 million-plus customers, boasts 700,000 E-mail registrants and hundreds of thousands of unique visitors monthly. The site reportedly generated $5.45 million in gross revenue in 2011. In the first half of 2012, the site generated approximately 40 percent gross revenue growth year-over-year.

As Seen On TV Inc. will assume the license agreement with Delivery Agent, the entity that operates the website. The license agreement calls for a 7.5-percent royalty of gross revenue to As Seen On TV Inc.

As Seen On TV Inc. paid $2.7 million, using cash, stock and warrants. Originally it was announced that the acquisition price would be $5 million.

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