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How To Start An Ad Agency With No Money Down
You can also make money by operating your own ad agency
from home. Offer businesses advertising space in YOUR publication. You
will run a little publication that contains adverts and if you like, a
sprinkling of articles.
You take payment from advertisers first before they place their adverts
with you. You use part of this money for printing and distribution
costs. The balance of the money is your own profits to keep. You now
arrange distribution of your publication. In this way, you can start and
operate a highly profitable advertising business without spending a
single cent. You use the finances of other people (the advertisers) to
float your start up expenses and reap for you a sizable profit on a
daily basis.
Publication Size
Firstly, give a name to your publication. This makes it easily
identifiable and it looks professional too. Now decide on how your
publication is going to look and how many pages it will consist of. It
is good to start with three A4 pages. Place these three A4 pages
together and fold horizontally to make an A5 sized publication that has
A5 sides. The name of your publication and your telephone number goes on
the top first page. Decide on the area you will distribute these
publications. Put the name of this area next to or immediately below the
name of your publication. At a later stage, you may run same named
publications but in different areas.
Decide on the number of copies of your publication you wish to
distribute in a specific area. The more you plan to distribute, the
happier your advertisers will feel about advertising with you. This is
because the more copies you distribute, the greater amount of people
will read the adverts and hence more exposure and business is possible
for your advertiser. Try and visit at least three printers and get
printing quotes on printing your publication.
Distribution
You can use various methods to distribute your publications like handing
them out at street corners to passing pedestrians and motorists, at busy
malls, at community centers and door to door in neighborhoods.
Work out the cost to distribute each copy of your publication. You may
need to employ school kids or part-time workers to do the distribution
for you. Decide on what to pay them. Three cents per publication
correctly delivered is a very fair price. Do random checks to ensure
that these are delivered to your requirements. This method is the most
effective method from a cost point of view and it works the best. The
amount per copy you decide to pay is your distribution costs.
Charging Advertisers
In order to calculate a fair price to charge advertisers, ensuring you
have a sizable profit for your time and trouble, you’ll have to work
backwards.
The costs you have so far are printing costs and distribution costs
(including fuel costs and sundries if applicable). Adding these two
together will give you a total of all costs you will ever get. This
represents the total operating costs to you. Calculate ? (one third) of
the total operating costs. This figure that you get represents your
profit that you keep for yourself. Add this profit figure to your total
operating costs figure. The amount you get represents the total amount
of money you need to get from total advertisers’ fees that you have to
charge. Divide this amount by the number of page sides (twelve A5 sides
if you choose the size mentioned earlier).This figure will give you the
cost of advertising space for one A5 side of your publication. Divide
this figure by four and the new figure that you get will give you the
cost of ¼ (one quarter) page of advertising fee in your publication. You
will base your advertising fees on this figure per quarter page of
advertising space. As an incentive for advertisers to book more space in
your publication, you can give discounts on larger spots taken.
Remember advertisers pay you first, then their advert appears. This
money received from advertisers is pooled together and used to finance
operating costs and your very own profit. You can therefore start and
operate this business with no capital whatsoever.
How To Get Advertisers
Get hold of newspapers on a regular basis. Jot down details of small
businesses or individuals advertising in the classifieds. Check this
newspaper on different days and cross check with the list you have
already drawn up. Once you find adverts appearing more than once, tick
these off on your list. Contact these people and offer your advertising
services.
Collect Adverts And Prepare
The last stage is to collect adverts from advertisers, collect payments
and hand over adverts to your printers. Explain the setting up of your
publication to your printer, who’ll do the layout and typesetting for
you. Once the entire publication is typeset, check for any errors and if
happy commence with printing. Some customers may have fancy logos which
can easily be scanned onto your publication.
You may find that you will have to assist some advertisers with the
drafting and preparation of their adverts. Do this for them as part of
the service. It is important to create a deadline for taking in adverts.
If you find you have some space left, allow a few extra days making sure
you don’t run behind schedule.
Notify advertisers when publications will be ready and when, how and
where they will be distributed. Give the advertiser a publication for
his own records.
Once publications are ready, commence with distribution as planned.
Conclusion
The first time you do this may seem a bit taxing but the second time
round will be a breeze as more advertisers gain confidence in you, your
business and your abilities. As we found in our second time, we had so
many advertisers that space was booked in two days! We had to put off
the rest till the following week.
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