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Infomercial biz ‘Proactiv’-ly reinvents itself in digital age

WASHINGTON — Rest assured — it will be possible to buy the Snuggie, Proactiv, and the Perfect Bacon Bowl even as the infomercial industry reinvents itself.

In the early days of infomercials, viewers who just had to buy a blender or other product demonstrated by enthusiastic salespeople had only one choice — pick up the phone.

Things have changed dramatically, says Julie Coons, president of the Electronic Retailing Association, the Washington, D.C.-based trade association for companies that sell goods and services on television, online and on the radio.

“Many consumer do pick up the phone, but increasingly it’s through Internet ordering,” says Coons.

While customers may first see the product on TV, they are now more inclined to take action by typing, rather than dialing.

“We see our members report anywhere from 40 to 60 percent of their sales are now coming from Internet e-tailing, if you will,” says Coons.

In The Economics of Infomercials, Priceonomics says the infomercial industry could be worth $250 billion, while the worth of the entire U.S. network and cable industry was estimated at $97 billion in 2013.

Do infomercials have to be true?

Do ShamWow, Ped Egg, and The Hawaii Chair have to live up to the claims made by their energetic and charismatic pitchmen and pitchwomen?

“They most certainly have to be true,” says Coons. “They must be based upon sound claims, and sound science and sound research.”

Coons says advertisers have the right to create content in an entertaining way, but the ads will be scrutinized.

“Advertising across the board is a self-regulated industry, with oversight by the Federal Trade Commission, and where there are health claims, by the Federal Drug Administration,” says Coons.

An infomercial that doesn’t pass the sniff test can’t expect to remain on the air, she says.

She points to advertisements that promise permanent weight loss without exercise or diet changes.

“As the industry regulatory agencies scan the marketplace, they will inquire if they see something that they think is just not possible,” says Coons.

Competing, cooperating with social media

Despite advertisers increasing their presence online, Coons says television’s reach and influence remain strong.

“I would say the members of the Electronic Retailing Association still believe the power of television is enormous, so I do believe the role of television advertising will continue,” says Coons.

Yet, the infomercial industry is complementing its broadcast message with online and social media engagement.

“Our members are certainly following and accelerating those trends, in terms of meeting the consumers where they are,” says Coons.

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Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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