I'm not familiar with how this would normally be done, but it smells fishy to me. I assume there's no compensation for appearing in the TV production, so I see it as paying for the privilege of being considered for the opportunity to play for free. Being on a local cable station isn't quite the same break as getting on the Tonight Show.

Oh, by the way, I'm accepting application fees from anyone who's interested in doing volunteer work. Just send me the money, I'll let you know if any openings arise.