In the 1960s and '70s, television emerged as a leading entertainment medium, coinciding with the rise of evangelical Christianity. This shift created a lucrative opportunity for televangelists who grew their audiences from 5 million to 25 million by using persuasive techniques. Inspired by this wave, entrepreneurs Greg Renker and Bill Guthy launched a successful infomercial strategy, notably with an adaptation of 'Think and Grow Rich,' which grossed nearly $10 million. Their company, Guthy-Renker, now generates $1.5 billion annually, exemplifying the explosive growth of the infomercial industry worth up to $300 billion at its peak.
"I would be mesmerized watching these people pitch, because a lot of it was very subtle. But it was using the fundamental techniques you would use to persuade people to take an action, even if they weren't even thinking about it," said Greg Renker. "They wanted your money."
In 1987, inspired by the salesmanship of the televangelists, Renker and his friend Bill Guthy saw an opportunity of their own. Guthy had made a living duplicating audiocassettes for medical conferences and real estate professionals..."
Today, the company makes about $1.5 billion in annual revenue. Its most famous product is the acne treatment Proactiv, but Guthy-Renker's mark has been all over the infomercial industry since the agency's inception.
At its peak, the infomercial industry was worth between $200 and $300 billion, and the ads were the first disruptive engine to establish a new approach to home shopping.
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