Pearls Of Wisdom

ROUNDTABLE
Pearls of
Wisdom
BY THOMAS HAIRE
A group of from the inaugural class of the DR Hall of Fame chats about
their histories, their passions and what makes direct response great.
esponse Magazine and its Advisory Board are proud to announce the
creation of the Direct Response Hall of Fame and welcome its inaugural
class, which is made up of nine legendary leaders in the direct response
marketing business: Jim Caldwell, Frank Cannella, Bill Guthy, Kevin
Joseph Lyons, Joe Pedott, Ron Popeil, Greg Renker, Sy Sperling and Sydney Yallen.
R
The group will be honored during an induction ceremony at Response Expo in San Diego on
Thursday, April 4. The event, which will be hosted
on the Expo Hall floor at 3 p.m., is sponsored by
DG, LifeBrands and LiveOps, and will follow a special panel discussion with a group of the inductees
that will take place from 1:45-2:45 p.m. at the Hilton San Diego Bayfront.
“We are thrilled to honor such an esteemed
group of inductees in our first class,” says John Yarrington, publisher of Response. “With more than
30 nominees submitted by our Advisory Board, the
breadth of experience and service to the DR business displayed by the members of this first group will
truly set the tone for what it takes to join the ranks
of the DR Hall of Fame in the coming years.”
Here are brief biographies of the nine inductees:
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Response APRI L 2013
❯ After hosting mainstream TV shows in Boston,
New York and in syndication, Jim Caldwell
discovered infomercials in spring 1986. He
hosted and/or executive produced dozens of
shows with Kevin Harrington during the next
three years, before starting Future Thunder
Productions Inc. in 1989, and hit his first home
run in the fall of 1991 with The Flying Lure.
❯ Frank Cannella is the founder of Cannella
Response Television LLC. He pioneered the
long-form DRTV industry in 1982 when he
capitalized on a marketing opportunity that
helped launch the multibillion-dollar industry.
Later, in 1984, Cannella presented an interpretation of the FCC’s deregulation report to rep
firms, propelling the rapid growth and acceptance of the long-form advertisement. Today,
www.responsemagazine.com
Sy Sperling
Jim Caldwell
Bill Guthy
Kevin Joseph Lyons
Frank Cannella
Greg Renker
Joe Pedott
Ron Popeil
his company, Cannella Response Television, is
celebrating its 28th anniversary.
❯ Established in 1988, Guthy-Renker is one of the
world’s largest direct marketers with annual sales of
$1.5 billion and was listed in 2007 by Forbes Magazine as one of the largest privately held companies
in the U.S. Bill Guthy, along with co-founding
partner Greg Renker, has been spotlighted by
Fortune Magazine on its list of “America’s Smartest Young Entrepreneurs” and also was honored
regionally as one of Inc.’s “Entrepreneurs of the
Year.” Guthy is co-founder of the Guthy-Jackson
Foundation, dedicated to discovering the cause,
treatment and cure of NMO (Neuro-Myelitis Optica), a rare, life-threatening autoimmune disease.
❯ Kevin Joseph Lyons has nearly 40 years of experience in media sales and marketing and was on the
team that launched Lifetime Television in 1984.
After serving as Lifetime’s executive vice president
of ad sales, he formed Opportunity Television as
an independent company in 1986 in order to build
the direct response business in national cable.
❯ While attending University of Illinois in 1952, Joe
Pedott co-founded Pedott & Peters Advertising in
www.responsemagazine.com
Sydney Yallen
Chicago, writing hundreds of live television commercials before moving to San Francisco in 1958.
He then founded Joseph Pedott Advertising &
Marketing Inc., offering complete sourcing, sales,
distribution, marketing and advertising services.
Pedott established Joseph Enterprises Inc. in 1981,
which — spurred by the power of TV advertising — developed its own iconic brands such as the
Chia Pet and The Clapper, holiday staples now for
more than 30 years.
❯ Ron Popeil is a famed American inventor, pitchman, television star, and the creator of the television infomercial. In the early 1950s, after discovering the reach and power of the television, he
— along with his partner at the time, Mel Korey
— produced the first one-minute long, black-andwhite infomercial for the Ronco Chop-o-Matic.
Some of Popeil’s other hit products include: the
Popeil Pocket Fisherman, the Veg-O-Matic, and
the Showtime Rotisserie. Many of the phrases and
pitches Popeil has used in his infomercials have become an inseparable part of America’s vernacular
including: “Set it and forget it,” “But wait, there’s
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ROUNDTABLE
more,” “Now how much would you
pay?” and, of course, “Less shipping
and handling.”
❯ Greg Renker is co-founder of GuthyRenker and has been spotlighted
by Fortune Magazine on its list of
“America’s Smartest Young Entrepreneurs” and also was honored regionally as one of Inc.’s “Entrepreneurs
of the Year.” Renker co-founded the
Electronic Retailing Association
(ERA) and, in 2004, he received
ERA’s Lifetime Achievement Award.
Renker is deeply involved in his local
community, serving on the Board of
Directors and as vice chairman of the
Eisenhower Medical Center. Renker
also received the 2012 Horatio Alger
Award for Distinguished Americans.
❯ Not only is Sy Sperling the founder
and former president of Hair Club for
Men, but as his DRTV ads made him
famous for, he’s “also a client.” After
You Don’t Have to Lose
Sleep Just Because Google
TV is Closing!
opening his first hair-restoration
salon in 1969, he formed Hair Club
in 1976 after celebrity endorser Ron
Blomberg of the New York Yankees
made his business famous. By the
1990s, there were more than 85 Hair
Club salons in business across the
United States, and Sperling’s memorable turns as DRTV spokesman were
as impressive as his business touch,
as, at its peak, the company’s annual
revenue reached more than $100M.
❯ Sydney Yallen, InterMedia’s founder,
was a direct response advertising pioneer and industry long time industry
leader. A leading innovator in direct
response media applications, Yallen
and his son Robert grew the
InterMedia Group of Companies®
from a regional agency into a national powerhouse with annual billings of
more than $500 million. Syd started
working for a Los Angeles radio station at the age of 13 and advanced
through the general advertising ranks
until the late 1960s, when he was instrumental in developing the media
buying entity concept, eventually
founding InterMedia Time Buying
Corp.® in 1974. He graduated with a
business degree from the University
of Southern California, after serving
in the Navy in World War II. He
passed away in 2009.
Recently, Response was able to catch
up with a few of the inductees to discuss
their careers, the direct response business
and more.
They’ve never been the
only game in town.
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Response APRI L 2013
What does it mean to you to
be an inaugural inductee into
the DR Hall of Fame?
Jim Caldwell: What an honor! When
I think of all the folks who helped build
the industry into what it is today, I am a
realist to know I played a small part. To
be placed in this group of industry icons is
humbling.
Frank Cannella: This is a wonderful
honor, and I am truly grateful to Response
for including me among this elite, re-
spectable group of industry innovators.
More importantly, I applaud Response for
acknowledging the industry’s roots and
providing a forum for the industry to celebrate its accomplishments and incredible
growth over the past 30 years.
Kevin Joseph Lyons: I appreciate being
remembered by a fast moving business
whose memory is usually only as long
as the latest results. Things were always
changing, never dull. I’m delighted to be
remembered by good friends in a business
I’ve been away from for five years.
Joe Pedott: Clearly it is an honor, and I
am not sure I deserve it.
Ron Popeil: It truly is an honor.
Greg Renker: I’m humbled and appreciative to be an inaugural inductee into the
DR Hall of Fame. This motivates us even
more to increase our performance and our
contributions in this industry. We have
some remarkable creative and professional entrepreneurs in our industry, and
we’re thrilled to be included among them.
Why do you believe the
Response Advisory Board
supported your case for
induction into this exclusive
group?
Caldwell: I broke new ground, whether
in categories that had not used the halfhour format before (fishing lures, oil additives, anti-theft devices), or in formats
— specifically the magazine format, using
B-roll, voiceovers and lifestyle immersion
of a product in the editorial side of the
programming to tell emotionally engaging stories, with the Fantom Lightning
vacuum being perhaps the perfect example. Also, I suspect my reality-based direct
response approach where unscripted moments were featured — especially dramatic, unrehearsed demonstrations — may
have been something that stood out.
Cannella: That’s probably for others to
say, but I’m sure it has a lot to do with
CONTINUED >
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ROUNDTABLE
my achievements in 1982 and 1984 that
launched the long-form DRTV industry
and then creating Cannella Response
Television as its media leader.
Lyons: This honor highlights one of the
strongest characteristics of the response
business: the importance of personal relationships. Some of those relationships
began at the very start of national cable
television. I was given the opportunity to
help build a new national cable channel,
first under the leadership of Tom Burchill
and then — through the high-growth
years — working for Doug McCormick.
With less than 1 million television homes
at the beginning, we began working with
product people and marketers selling
products on television. As it developed,
our objectives were perfectly aligned. If I
could provide airtime and they could successfully sell the product, this would help
build our cable distribution. As we gained
greater national television distribution,
product sales increased in tandem.
Pedott: I’ve spent my 60-year career as
the owner of Joseph Pedott Advertising
and Marketing, producing TV commercials and marketing products throughout
the U.S., Canada and Europe. Perhaps
the board enjoyed knowing that I created
two American icons (the Chia Pet and
The Clapper) that have continued to be
promoted and sold for more than 30 years.
They may also have liked that I have built
national brands over the years including
The Garden Weasel, The Garden Claw,
The Creosote Sweeping Log, The Ove
Glove line of products, and others.
Popeil: I’ve always delivered “the promise” — the promise to make and send a
quality product at a fair price that the
customer will enjoy. I’ve also been in the
business for a very long time.
Renker: Guthy-Renker has created some
enduring and long-lasting brands, has reduced its need for DR “hits,” and is proud
to have built a business that has good creativity, along with systems that provide a
platform for future growth.
Why do you think you were
able to maintain success
through all the ups and
downs this marketing method
has seen over the years?
Caldwell: There were periods where
I was not successful, especially when I
put my own money into projects! It was
strictly a numbers game, and I was pretty
lucky, generally, at picking products that
had a chance at success. Steady royalty
flow from winners didn’t hurt while I was
licking my wounds over those losers.
Cannella: I’d like to think we traveled
down the ethical path and always told
it like it was. We created win-win-win
relationships with great clients, great
vendors and very importantly, a great staff.
Surround yourself with the best and the
rest becomes pretty easy. Lastly, we have
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Response APRI L 2013
always stayed focused on identifying new
opportunities that have benefited not only
our clients but also the industry overall.
Lyons: We were both in the same growth
business. It was working together to
our mutual benefit that created an atmosphere of loyalty and trust. This was
necessary, because during more than two
decades, there were rough patches to get
through. Over time, those experiences
resulted in some permanent personal
friendships that I cherish even now that
I am out of the business. Direct response
television was a substantial factor in the
growth of national cable television. It
provided substantial revenue that went
directly to our programming budget to
buy and develop original cable programming. This programming brought viewers
from broadcast television to cable. It continues to do it today.
Pedott: Although our business is not a
true DR business, we use TV advertising
to educate the consumer to buy our products and visit their local retailer to make
their purchase. One reason for our longevity is that we reinvent and make slight
or large changes to each product, keeping
them new and fresh in consumers’ minds.
Popeil: My vocation as an inventor allows me to create something new and different, which has been and always will be
appealing to the public.
Renker: Through good ethics and fair
dealing, we have managed to maintain
good relationships with vendors, creative partners, celebrities, etc., and it has
contributed to our 25-year longevity.
We have always asked a lot of questions,
listened closely, and then tried to make
good, entrepreneurial decisions. Luck
has always played a role as well. Bill and
I have always been passionate about the
direct response business, and we have remained entrepreneurially driven enough
to want to study it, pay attention to
competitors, and try to get better. Most
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ROUNDTABLE
importantly, we selected great business
partners in the early days — Ben Van de
Bunt, Kevin Knee and Lenny Lieberman.
What do you believe
was the most significant
accomplishment in your Hall
of Fame career?
What does it say about the
industry when major brand
players that used to avoid DR
now utilize it extensively —
not only to create sales but
also to build brand?
Caldwell: Even though the first RotoZip
infomercial won Infomercial of the Year,
it was the Unbrakeable AutoLock project that was intensely challenging and
fraught with danger of failure. Who can
sell into a negative using an infomercial?
Two years later, after establishing a serious
brand in the automotive space, the president of our biggest competitor, The Club,
came to work for AutoLock!
Caldwell: It was always just a matter of
time. How often can a Fortune 100 executive be flipping channels and seeing the
same program over and over to not realize
that something is going on here where
stories, brands and innovation can cut
through the clutter, find an audience and
build household names in the process?
Cannella: It says — very loud and clear
— that long-form DRTV works. It’s that
simple
Lyons: I am happy to see the development of product branding on response
television. We had some early efforts
to build product awareness for pharmaceutical manufacturers explaining new
drug therapies, automotive advertisers
announcing new models (Chrysler) and
national big box stores introducing new
areas (Wal-Mart Nurseries). These early
efforts were successful for a limited time.
I now see national brands creating sales
and developing branding in a much more
coordinated and sustained manner. This
will develop to everyone’s benefit.
Pedott: The market is changing, as well
as consumer buying habits. DR and
consumers’ ordering directly is a growth
industry, and the major brand players
are following the trend. More people are
shopping from home than ever before and
it’s continuing to grow.
Popeil: They finally wised up! But, having them advertise on television with an
infomercial creates a higher advertising
cost for people like me.
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Response APRI L 2013
Cannella: Getting the infomercial industry started is at the top of the list.
Pedott: Surviving and somewhat flourishing!
Popeil: The “Set it and Forget It” Showtime Rotisserie invention, as well as its
marketing.
Renker: Establishing and growing meaningful and profitable relationships with
our business partners, and all the concentric circles around it, ranging from celebrities to product owners. By being honest,
hard-working and creative, we’ve been
able to navigate challenging business circumstances, and with a little bit of good
luck and blessing, we’ve been able to grow
to a size we never originally envisioned.
What other memorable
accomplishments stand out in
your career?
Caldwell: First, I never knew that the
formative years with Kevin Harrington as
the executive producer for Family Guide
Network would be so influential down
the line on my track record and others.
I’m also proud that I have been able to
wear all the hats as a virtual company in
executing an infomercial — from writing, producing, directing and hosting to
helping to consult on campaign roll-out
has been intensely satisfying. Finally, you
never know where your experiences will
lead you. Converting my DRTV experi-
ences into a full-time gig with one of my
old clients is perhaps the most interesting
transition I have made and a serious accomplishment. Unequal Technologies
is destined to be a serious player in the
Nike/Under Armour world and involves
a technology with 39 worldwide patents
issued and more than 30 pending.
Cannella: For me, it has always been
about relationships and the people I have
worked with and gotten to know. That’s
what made this so much fun. Someone
once said, “Choose a job you love, and
you will never have to work a day in your
life.” Well, that statement sums up the
memorable moments of my career. My career has been filled with some remarkable
clients and talented vendors. We have
had many laughs while breaking bread
or sharing a drink … or two. And I have
been ever-so-fortunate to have worked
side-by-side with the most talented,
dedicated staff anyone could ever ask for.
They continue to make me look good.
Lyons: Among the many clients that
helped build this into an industry are my
fellow inductees. Ron Popeil is a television icon who happens to be the greatest
on-air salesmen I know. Frank Cannella
brought his experience with television to
the national cable arena and helped manage some of the all-time greatest hits. Two
other inductees who were responsible for
a substantial portion of my success are
Bill Guthy and Greg Renker, who created
high production value television shows
combined with celebrity-endorsed products. This vastly increased the amount of
airtime we could provide for DR, increasing the size of the pie for everyone.
Pedott: DR was a byproduct of what we
do best: selling primarily through retail.
However, I was able to bring our way of
marketing products to several European
countries by being the first or near first to
run dealer tagging TV advertising campaigns with chain retailers throughout
Germany, France, the U.K., Austria, the
Netherlands and Switzerland.
www.responsemagazine.com
Popeil: I was one of the first to sell consumer products on TV using short-form
commercials, and I was one of the very
first in the direct response business to use
infomercials to sell my products.
Renker: Launching Tony Robbins’ “Personal Power” (and then “Get the Edge”)
was always very important for GuthyRenker. We always believed that the quality of that product — and its life-changing
benefits — rewarded us financially, as well
as personally. Lenny Lieberman played a
vital role in this effort. The same spirit of
helping others contributed to our decision
to try to create a success with Proactiv.
Our best products have always been those
that have helped the most people, and
we’ve been richly rewarded when we have
tried our best to deliver on our promises.
In your professional career or
personal life, what have been
the two biggest defining
moments?
Caldwell: One has to be when I proactively suggested that Advertising Age’s Bob
Garfield should take a close look at infomercials as a legitimate advertising tool,
and start reviewing them like he did 30and 60-second Madison Avenue spots. I
gave him my first Flying Lure infomercial
as an example, and he ended up reviewing
it, giving it 3.5 out of four stars. It went
on to be included in that year’s top five
advertisements of any kind. Another is
when the Kopras family sought me out
with their RotoZip power tool, having
seen me on-air with Dura-Lube. They had
achieved $45,000 per minute in sales on
QVC, and I simply could not believe I
could corral the opportunity to produce
this infomercial. It seemed like they
would use a bigger company. It was the
most rewarding several years — commercially and critically — that I could have
imagined. To see 13:1 MERs (media efficiency ratios) week after week was sick.
And 6:1 a year later? That’s just crazy.
Cannella: Of course, one is the early pioneering of the infomercial in 1982 — and
www.responsemagazine.com
then, two years later, when I presented
an interpretation of the Federal Communications Commission’s (FCC) deregulation report to rep firms. Then, in 1994, I
partnered on a product called Windows
NOW! with a young entrepreneur named
Rob Medved. That started an 18-year
partnership that brought growth and success to Cannella Response Television.
And we had a lot of fun doing it.
Lyons: A defining moment in my professional career was being given the basic
opportunity to start the media business by
Tom Burchill, then the president of the
brand new Lifetime Television. Later on,
Doug McCormick took over and gave me
additional opportunities to expand and
grow across more Lifetime networks.
Pedott: One is when I received a call
from The Smithsonian’s American History Museum informing me that the story of
the Chia Pet and The Clapper had been
chosen for the Museum’s archives and
artifact collections. I was asked if I would
agree to give the Museum the original
Chia Pet and original Clapper, which I
naturally agreed to do. Another has to
be meeting President Obama and personally giving him a “Chia Obama.” He
graciously accepted it with thanks, and
good-naturedly commented it was a good
likeness — except for the green hair!
Popeil: When I went public on the
American Stock Exchange in 1969, and
when I sold my company in 2005.
Renker: The defining moment for my
personal life was, of course, convincing
my wife Stacey to hang with me for the
rest of our lives. In my professional career,
it’s convincing Bill Guthy to let me be his
partner in the launch of the “Think &
Grow Rich” infomercial. ■
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