How could Teresa and Joe throw such a lavish party knowing they had finanacial problems???? This show just isn't fun anymore. I think Danielle is a complete loon, but continually calling her a pig is ridiculous. Caroline is the only one who seems to have any class. I wish I could say I will stop watching, but I know I won't!
Teresa did not pay for the party.
I work at business affairs department at an cable network studio in Los Angeles (not Bravo).
We pay for the parties. We also pay everybody hourly minimum wage, for appearing on the show, and if the show is successful most leads are eventually able to negotiate per-episode salaries (RH:NJ is probably at this point. Almost everybody gets a per-episode salary - usually $10,000 to $15,000 - if the show gets a second season. The "secondary casts" usually get something too - the husbands are probably paid, as are the children, though at much small numbers.).
When they go to those boutique stores and restaurants and spend a fortune - well, they don't spend fortune. We have files and files full of stores and restaurants who offer us free meals and free merchandise in exchange for appearing on the show, which is why these stars are rarely at the same place twice. When Teresa "spends" $1,200 at a children clothing boutique, that boutique just got a national cable television advertisement on a hit show for $1,200. Seriously, everyday the e-mails, mail and offers that we get from businesses is insane.
Vacation episodes? We pay for everything - airfare, hotel, food, sightseeing.
Vow renewals? We pay. Is a character getting married? Yeah, we're probably paying for the wedding, too.
It all sounds expensive, but reality shows are a hell lot cheaper to film than a sitcom or drama. We might spend $50,000 on a lavish vacation to a Caribbean island, and that's
still pocket change compared to what we have to pay top notch talent to appear on a high-quality cable TV show like "Burn Notice."
It costs about $1.5-$2M to produce an hour-long drama like "Burn Notice," and we can make an hour-long reality show about rich people for about $350,000, even accounting for all the expenses we pay on behalf of the reality sitars.
On the flip side, a reality show doesn't do as well in DVD sales or in syndication, but reality shows tend to succeed more often and have smaller fixed costs (less contract commitments, no building sets, less union workers).