Electronic Retailer - August 2011 - 27

AsSeenOnTV.com
Chairman and Founder Kevin Harrington on the record about the acquisition and how this new venture will take direct-to-consumer commerce to the next level.
the business and why he believes new technology will help revolutionize the direct-to-consumer marketplace. agreed that TVGoods should move forward and purchase AsSeenOnTV.com. On June 2, 2011, TVGoods formally announced the acquisition of AsSeenOnTV.com and the toll-free number, 866-AsSeenOnTV, for $5 million in cash and stock from Seen on TV LLC. According to Harring ton, t he AsSeenOnTV.com and the toll-free number brands will remain, while the current personnel will stay intact. “We’re keeping the same staff because everybody knows the business so well,” he confirms. In addition, TVGoods CEO Steve Rogai has been tasked to handle the day-to-day operations of the newly acquired company.

Continuing the Vision

AsSeenOnTV.com created major media buzz back in 2000 when CEO and Founder Daniel Fasano and his company at the time, LA Group Inc., purchased the domain name for $5 million. During that period, the purchase price for www.AsSeenOnTV.com represented one of the largest sums paid for an internet domain name. In a Jan. 18, 2000 news release, Fasano stated, “www.AsSeenOnTV.com is the premier domain name for the television direct to retail and infomercial industry. The name has the highest level of public recognition because it … has been a tag line used in commerce for over 50 years. When you consider the enormous cost in developing brand awareness of an internet portal, we’re confident that this domain name will pay for itself many times over.” Fasano envisioned an internet storefront, where consumers could access direct response products they had previously viewed on television and make their purchases online. More than a decade later, AsSeenOnTV.com has emerged as a leading online shopping site devoted specifically to “As Seen On TV” products and offering them at affordable prices. Sadly, however, on June 9, 2009, Fasano passed away after a two-year battle with leukemia. Determined to preserve his legacy, longtime friend Harrington began discussions with Fasano’s wife, Mary Beth, about the company’s future. In the end, the two

In comparison, he continues, “we have an asset in AsSeenOnTV.com that is actually a profitable one that’s making money and building customers. Therefore, from an entrepreneurial standpoint, it made total business sense for me to acquire AsSeenOnTV.com. We’re going to build upon the vision that Dan had and take it to the next level by building customer acquisition through profitability.”

Opening the Door to New Opportunities

Cultivating a Customer Base

As a result of the transaction, TVGoods gained more than 2 million As Seen On TV customers, with the potential to escalate that number to 10 million customers and complemented by millions more in email subscribers, Harrington contends. At the time of purchase, the company boasted 700,000 email subscribers and generated 78,000 page views per day, according to DM News. He points out that customer acquisition is a trend that he’s seeing more and more in the online marketplace, especially with companies like Groupon, Living Social and most notably HauteLook, which comprises 3 million customers. “That company sold for $240 million to Nordstrom’s,” notes Harrington. He adds that the high-end retailer lost money on the deal; however, “it’s all about customer acquisition and having a good customer base.”

Harrington and his team have big plans for this new venture, which includes expanding AsSeenOnTV.com’s product offerings to not only include DR products, but also the integration of big-ticket items and brand advertisers into the online storefront. “Right now, you tend to see a lot of lower-priced items in the $10-$20 range out in the marketplace. Obviously, we’re going to continue to offer those products, but we want to add more brandedtype companies as well, because we have the customers coming to the site now. Why not offer vacuum cleaners, air cleaners and other $200-$400 products?” says Harrington. He also hopes to introduce other types of product offerings such as mortgages and insurance. He adds that it’s not so far-fetched to incorporate pharmaceutical companies into the mix. “We’re in discussions with all the major [advertising] agencies about opening this up beyond the current offerings,” Harrington says. Another significant enhancement to the website is TVGoods’ partnership with Delivery Agent, a leading transactional TV company based in
august 2011 | electronicRetaileR

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Electronic Retailer - August 2011

Table of Contents for the Digital Edition of Electronic Retailer - August 2011

Calendar of Events
Your Association, Your Bottom Line
Industry Reports
FTC Forum
eMarketer Research Facebook Marketing:
IMS Retail Rankings The Top 25 Shows and Spots
Jordan Whitney’s Top Categories
Lockard & Wechsler’s Clearance & Price Index
Ask the Expert
Cover Story TVGoods Buys AsSeenOnTV.com
Come Face2Face at D2C
The Wired World of U.S. Hispanics
Real Truth in Advertising
Marketing for TV is Just the Beginning
Teleservices
Legal
Creative
Member Spotlight
Advertiser Spotlight
Bulletin Board
Advertiser Index
Classifieds
Rick Petry
Electronic Retailer - August 2011 - Cover1
Electronic Retailer - August 2011 - cover2
Electronic Retailer - August 2011 - 3
Electronic Retailer - August 2011 - 4
Electronic Retailer - August 2011 - 5
Electronic Retailer - August 2011 - 6
Electronic Retailer - August 2011 - Calendar of Events
Electronic Retailer - August 2011 - Your Association, Your Bottom Line
Electronic Retailer - August 2011 - 9
Electronic Retailer - August 2011 - Industry Reports
Electronic Retailer - August 2011 - 11
Electronic Retailer - August 2011 - 12
Electronic Retailer - August 2011 - 13
Electronic Retailer - August 2011 - FTC Forum
Electronic Retailer - August 2011 - eMarketer Research Facebook Marketing:
Electronic Retailer - August 2011 - 16
Electronic Retailer - August 2011 - 17
Electronic Retailer - August 2011 - IMS Retail Rankings The Top 25 Shows and Spots
Electronic Retailer - August 2011 - 19
Electronic Retailer - August 2011 - Jordan Whitney’s Top Categories
Electronic Retailer - August 2011 - 21
Electronic Retailer - August 2011 - Lockard & Wechsler’s Clearance & Price Index
Electronic Retailer - August 2011 - 23
Electronic Retailer - August 2011 - 24
Electronic Retailer - August 2011 - Ask the Expert
Electronic Retailer - August 2011 - Cover Story TVGoods Buys AsSeenOnTV.com
Electronic Retailer - August 2011 - 27
Electronic Retailer - August 2011 - 28
Electronic Retailer - August 2011 - 29
Electronic Retailer - August 2011 - 30
Electronic Retailer - August 2011 - Come Face2Face at D2C
Electronic Retailer - August 2011 - 32
Electronic Retailer - August 2011 - 33
Electronic Retailer - August 2011 - The Wired World of U.S. Hispanics
Electronic Retailer - August 2011 - 35
Electronic Retailer - August 2011 - 36
Electronic Retailer - August 2011 - 37
Electronic Retailer - August 2011 - Real Truth in Advertising
Electronic Retailer - August 2011 - 39
Electronic Retailer - August 2011 - Marketing for TV is Just the Beginning
Electronic Retailer - August 2011 - 41
Electronic Retailer - August 2011 - 42
Electronic Retailer - August 2011 - 43
Electronic Retailer - August 2011 - Teleservices
Electronic Retailer - August 2011 - Legal
Electronic Retailer - August 2011 - 46
Electronic Retailer - August 2011 - 47
Electronic Retailer - August 2011 - Creative
Electronic Retailer - August 2011 - 49
Electronic Retailer - August 2011 - 50
Electronic Retailer - August 2011 - Member Spotlight
Electronic Retailer - August 2011 - 52
Electronic Retailer - August 2011 - Advertiser Spotlight
Electronic Retailer - August 2011 - 54
Electronic Retailer - August 2011 - Advertiser Index
Electronic Retailer - August 2011 - Classifieds
Electronic Retailer - August 2011 - 57
Electronic Retailer - August 2011 - Rick Petry
Electronic Retailer - August 2011 - cover3
Electronic Retailer - August 2011 - cover4
Electronic Retailer - August 2011 - Outsert01
Electronic Retailer - August 2011 - Outsert02
Electronic Retailer - August 2011 - Outsert03
Electronic Retailer - August 2011 - Outsert04
Electronic Retailer - August 2011 - Outsert05
Electronic Retailer - August 2011 - Outsert06
Electronic Retailer - August 2011 - Outsert07
Electronic Retailer - August 2011 - Outsert08
Electronic Retailer - August 2011 - Outsert09
Electronic Retailer - August 2011 - Outsert10
Electronic Retailer - August 2011 - Outsert11
Electronic Retailer - August 2011 - Outsert12
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