Dean Graziosi and the Power of the Infomercial

(note: I do not receive any money from Dean Graziosi as a result of this post)

A few nights ago, I was flipping channels on my television when I stumbled upon an “informational program” about how to make money from real estate investing.

The “show” was hosted by Dean Graziosi, a self-made millionaire who has create a whole suite of information products (videos, books, tapes, and membership programs) on how to profit from purchasing and flipping homes.

My first instinct was to turn off the TV, but then I had a thought: this guy is obviously successful. He’s making a ton of money by selling people on informational products and can even afford to promote them with these 30-minute infomercials.

So what is he doing right? I need to find out, and the best way to do that is to keep watching…

I grabbed a notebook and started writing down everything I noticed. Thirty minutes later, I had come to several interesting conclusions.

First of all, Graziosi takes a very conversational approach to his programs. Throughout the infomerical, he emphasizes that he’s just a regular guy who made millions by following a system. The video is filmed as he’s driving his car, dressed in casual clothes, so it sounds like he’s just having a friendly conversation rather than making a hard sell.

Even though he acts fairly casual, Graziosi does a great job of subtly signaling that he is in fact very successful. He mentions that he is “driving from one of his properties to another” which shows that he is in fact a successful real estate investor. Occasionally, the video zooms out to show him driving in a high-end Mercedes. He also casually mentions that he personally has “made millions” from his investments, but he says it in a way that conveys authority rather than coming across arrogant.

Graziosi does a terrific job of understanding his target market. The people watching his program are probably middle-class families who are looking for was to increase their income and achieve “financial security.”  Throughout the program, Graziosi says things like “give your family the stability they deserve” and “build the life of your dreams.” He always comes across sincere, like he’s truly interested in helping you have a better life.

Another thing: whenever people are watching programs like this, they tend to think that it might be a “get-rich-quick” scheme. Over the years, so many scammers have sold useless products that people have started getting cautious. Graziosi addresses this by explicitly saying that he’s providing information; it’ll still take hard work to execute on his system, but the end rewards can be great. This way, people are more likely to trust what he has to say.

Finally, Graziosi never neglects the call to action. Every minute or so, he mentions that there is a toll-free number you can call for more information. Calls are answered by a sales representative who is trained to sound friendly and enthusiastic, and convert customers at a very high rate.

By giving people a phone number, Graziosi provides a way for them to “find out more” rather than being sold something upfront. This way, he’ll get more calls from people who are on the fence.

Afterwards, I decided to check out Dean’s website, where I noticed a few more things

  • He has an exceptionally compelling biography: Phrases like, “Dean was a poor kid, raised by a single mother, who worked her tail off at two jobs to earn a scant $90 per week” is VERY powerful stuff. Millions of Americans are in a similar situation and feel inspired when they see guys like Dean succeed…and it drives them to know the secret to his success.
  • The call to action in the upper right-hand corner. No matter where people go on the page, they always have the option to buy his products right now. After all, there’s no need to go through a long sales funnel if a customer is willing to buy right now.
  • He has a huge suite of products. Once you’ve built a trusted brand, you should figure out what your customers want and sell them as much as possible. Otherwise, you’re just leaving money on the table.
  • There’s a free membership site. This is a good tool because by signing up for the free content, you are giving up an e-mail address. Graziosi can then leverage this into marketing premium memberships and new informational products to you directly.
  • He has killer testimonials: Notice how he has lots of people who are “average joes” giving these testimonials. They are enthusiastic and authentic, and relate well to prospective customers. Check this out:


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What do you think are the characteristics of an effective informercial? How can you use these principles to earn or save more money?

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